PG&E; Power Line Upgrade OKd

A bankruptcy judge has cleared the way for Pacific Gas & Electric Co. to spend up to $75 million to upgrade a bottleneck in its transmission system that contributed to last year’s rolling blackouts.

PG&E;’s Path 15 near Los Banos in the San Joaquin Valley gained notoriety last winter when the 84-mile stretch of high-voltage transmission lines was unable to handle enough electricity from Southern California to keep the lights on in the north.

The $300-million project will add a third line to the two already present and make other improvements.

Under the direction of U.S. Energy Secretary Spencer Abraham, PG&E; is working with several private and public agencies and businesses to make improvements and share ownership of the new line.

Revenue from the new line will be regulated by the Federal Energy Regulatory Commission.

Bankruptcy Judge Dennis Montali must approve all PG&E; spending requests over $50 million. PG&E; filed for federal bankruptcy protection 10 months ago after soaring power prices drove it into debt. It claims it owes it creditors more than $13 billion.