Description: Lawsuit by California city against utility for withholding amounts collected as greenhouse gas credits from electricity users from taxes paid to the City under its electricity tax ordinance.
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City of Torrance v. Southern California Edison Co.
Case Documents:
Filing Date Type File Action Taken Summary 03/17/2021 Opinion Download Judgment of dismissal reversed. California Appellate Court Said Greenhouse Gas Credits Did Not Reduce City’s Electricity Users’ Tax Base. The California Court of Appeal reversed the dismissal of the City of Torrance’s lawsuit that alleged that Southern California Edison Company (Edison)—the sole electricity provider in the city—impermissibly reduced the amount of the electricity users’ tax that it remitted to the City after collecting it from residents and businesses. Edison reduced the tax base by the amount of an annual “industry assistance credit” established by the California Public Utilities Commission that rewards businesses that implement energy-efficient programs that reduce greenhouse gas emissions. The appellate court agreed with the City that the credits should not affect the tax base. The appellate court further concluded, however, that Edison was not directly liable for the uncollected electricity users’ taxes but that the City had to be given the opportunity to amend its complaint to seek unpaid taxes from consumers that underpaid the electricity users’ tax due to Edison’s use of an incorrect tax base. -
City of Torrance v. Southern California Edison Co.
Case Documents:
Filing Date Type File Action Taken Summary 03/22/2019 Complaint Download Complaint filed.