Monday April 16 10:00 PM ET

PG&E Reports $4.12 Billion Loss

SAN FRANCISCO (Reuters) - PG&E Corp. (NYSE:PCG - news), parent of bankrupt California utility Pacific Gas & Electric, on Monday reported a fourth-quarter loss of $4.12 billion or $11.34 a share as the company wrote off massive power purchase costs which it vowed to continue to try and collect.

The company took a $4.1 billion charge, which had been pre-announced in late March, relating to costs the utility incurred buying power for its customers that it may be unable to recoup under California's much criticized electricity market deregulation laws.

``While standard accounting rules required the utility to record a charge against earnings for unreimbursed wholesale and transition costs, taking this charge does not diminish our conviction that the utility is entitled under law to recover those costs, not does it diminish our ongoing lawsuit in Federal District Court,'' Chairman Robert Glynn Jr. said.

Pacific Gas & Electric, California's largest utility, filed for Chapter 11 bankruptcy protection on April 6 after talks with regulators and politicians aimed at solving the financial crisis stalled.

The company on an operating basis reported earnings of $140 million or $0.38 per share compared with $294 million or $0.80 in the prior year period.

Analysts had expected PG&E Corp. to earn in the range of 38 to 41 cents, with a consensus estimate of 40 cents per share, according to market research firm Thomson Financial/First Call.

For the year, PG&E reported earnings on an operating basis of $925 million or $2.54 a share, up 12 percent from $826 million or $2.24 a share in the prior year.

The company noted that it had exceeded its goal to grow operating earnings by 8 to 10 percent.

``While overshadowed by the extraordinary impacts of the California energy crisis we demonstrated continued solid performance on an operating basis,'' Glynn, who is also president and chief executive officer, said.

Wholesale power prices in California began to soar in late spring 2000 amid buoyant demand linked to a strong economy. Growth in supplies lagged, with no significant power plants built in the state during the preceding decade.

Pacific Gas & Electric was not able to pass on these increased costs to its customers due to a retail price freeze imposed under deregulation laws.

-- Anonymous, April 17, 2001