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Business Taxes Law Guide—Revision 2024
Energy Resources Surcharge Regulations
Title 18. Public Revenues
Division 2. California Department of Tax and Fee Administration — Business Taxes (State Board of Equalization — Business Taxes — See Chapters 6 and 9.9)
Chapter 5. Energy Resources Surcharge Law
Article 1. Collection of Surcharge by Electric Utilities
Regulation 2304
Regulation 2304. Worthless Accounts.
Reference: Section 40023, Revenue and Taxation Code.
An electric utility is relieved from liability to collect the surcharge insofar as the base upon which the surcharge is imposed is represented by accounts which have been found to be worthless and charged off in accordance with generally accepted accounting principles. If the electric utility has previously paid the amount of the surcharge, it may take as a deduction on its return the amount found to be worthless and charged off. If such accounts are thereafter collected in whole or in part, the surcharge so collected shall be paid with the first return filed after such collection.
Electric utilities may charge off their worthless accounts on the basis of their experience ratio provided the write-off percentage includes an allowance for collection on worthless accounts made subsequent to the write-off.
History—Adopted December 18, 1974, effective January 26, 1975.