State OKs PG&E; Plan to Cut Electric Rates

California regulators approved a plan by PG&E; Corp.’s Pacific Gas & Electric Co. to cut electricity rates at the state’s largest utility by $799 million as it seeks to emerge from bankruptcy protection.

Residential rates would drop 4.1% starting March 1 in the order by the California Public Utilities Commission. Business rates would be reduced by as much as 15%. The commission approved the rate cut in a 3-2 vote after overturning a delay requested by Commissioner Carl Wood.

The San Francisco-based utility, which is expected to return to normal operation this quarter, has been collecting more money from customers than it needs to pay lower power and interest expenses as it emerges from Chapter 11 proceedings.

Shares of PG&E; rose 34 cents to $27.89 on the New York Stock Exchange.