PG&E;’s Reorganization Plan Draws Criticism

PG&E; Corp.’s $12-billion reorganization plan for Pacific Gas & Electric, California’s largest utility, is too generous to the company and expensive for customers, two state Democratic lawmakers said.

Sens. Joe Dunn (D-Santa Ana) and Debra Bowen (D-Marina del Rey) criticized a settlement between PG&E; Corp. and the staff of the California Public Utilities Commission and urged the five-member commission to consider alternatives that could save consumers money. The commission will vote on whether to approve the plan Dec. 18.

The reorganization plan would let Pacific Gas exit Bankruptcy Court protection by March, allow the utility to make an 11.2% profit for nine years and restore PG&E;’s dividend by 2005. PG&E;’s stock has risen 33% since the plan was announced in June.

PG&E;’s shares rose 47 cents to $25.88 on the New York Stock Exchange.