2010 California Code
Revenue and Taxation Code
Chapter 3. Special Provisions And Exemptions

40041.  The consumption of electrical energy which this state is
prohibited from taxing under the Constitution of the United States or
under the Constitution of this state is exempt from the surcharge.



40041.5.  In any instances where an exemption is claimed by reason
of the provisions of Section 40041, an electric utility or a consumer
may request the board to issue a ruling as to the validity of the
exemption, accompanying the request with a statement showing the
facts and basis for the claim. The board shall issue its ruling
within 30 days of receipt of the request. Pending issuance of the
ruling, the electric utility shall not be obligated to collect the
surcharge from the claimant.



40043.  The consumption by an electric utility of purchased
electrical energy that is used directly, lost by dissipation or
unaccounted for in accordance with generally accepted accounting
principles by the electric utility in the process of generation,
transmission and distribution of electrical energy is exempt from the
surcharge.



40044.  When an electric utility purchases electrical energy and
pools in its system the energy with electrical energy generated by
it, the consumption of electrical energy in this state from the pool
by the utility during any quarter shall be deemed to be a consumption
of energy generated by it to the extent that the kilowatt-hours of
the electrical energy generated by it during the quarter exceeds the
kilowatt-hours consumed by the electric utility.



40045.  For the purpose of the proper administration of this part it
shall be presumed that electrical energy sold by an electric utility
in this state to other than an electric utility is consumed by the
purchaser in this state until the contrary is established.



40046.  The amount of kilowatt-hours of electrical energy determined
by or stated on a billing of an electric utility in accordance with
its business practices and accounting records to have been sold to a
consumer during any calendar quarter or billing period of the
electric utility shall be presumed to be correct. The presumption may
be rebutted by evidence which establishes that the amount of
kilowatt-hours was other than such amount.