understanding the natural gas surcharge

the surcharge, effective january 1, 2001, applies to natural gas consumption throughout california [[2]]. it is indeed levied on both public utility gas corporations and consumers who directly purchase natural gas from interstate pipelines. the revenue generated from this surcharge is dedicated to funding rate reductions and home weatherization programs, benefiting california residents [[2]].

• who pays? public utility gas corporations and consumers purchasing directly from interstate pipelines.
• when did it start? january 1, 2001.
• where does the money go? rate reductions and home weatherization programs.

filing requirements: a step-by-step guide

even if there is no surcharge to report for a specific period, filing a return is mandatory. the surcharge rate applies to all billings starting on or after january 1, 2001. failure to file on time will result in penalties and interest charges.

1. schedule a – natural gas surcharge schedule: report net taxable therms consumed during the quarter, categorized by customer class and the service territory of each public utility gas corporation.
2. completing schedule a: select the company and surcharge type from the drop-down menus. the system automatically calculates the care rate, non-care rate, care surcharge, non-care surcharge, and total surcharge.
3. computation of surcharge:
   • enter total therms consumed.
   • enter total exempt therms consumed.
   • the system calculates therms subject to the surcharge (total therms minus exempt therms), ensuring it matches the sum of net taxable therms care and non-care from schedule a.
   • the system automatically calculates the total surcharge due.
4. summary: the system automatically populates all totals,including any penalties and interest due.
5. your information: certify the accuracy of the return and provide preparer details, including name, title, country, and telephone number. indicate whether you are a paid preparer.
6. declaration of intent: enter your password to proceed.
7. confirmation: review the confirmation and print the return for your records.

understanding schedule a: natural gas surcharge schedule

schedule a requires reporting the net taxable therms consumed during the reporting quarter per customer class in the service territory of each public utility gas corporation. to complete this schedule, users must select from drop-down menus for company and surcharge type. the system then automatically calculates the care rate, non-care rate, care surcharge, non-care surcharge, and total surcharge.

computation of surcharge: key steps

the computation of the surcharge involves several key steps:

• entering the total therms consumed.
• entering the total exempt therms consumed.
• the system calculates the therms subject to the surcharge, ensuring it aligns wiht the data from schedule a.

the total surcharge due is automatically calculated by the system.

summary and final steps

the summary section provides a comprehensive overview of the return, with all totals automatically populated. this includes the total surcharge due, any applicable penalties, and interest.the final steps involve providing your information, declaring your intent, and confirming the filing.

faq: natural gas surcharge in california

what is the natural gas surcharge?

it is indeed a surcharge on natural gas consumption in california, used to fund public purpose programs [[2]].

who administers the surcharge?

the california department of tax and fee administration (cdtfa) [[2]].

when did the surcharge take effect?

january 1,2001 [[2]].

who is required to pay the surcharge?

public utility gas corporations and consumers purchasing natural gas from interstate pipelines [[2]].

what happens if i don’t file on time?

you will be subject to penalty and interest charges.