PG&E; Net Income Slips as Its Expenses Climb

PG&E; Corp., the parent of California’s largest utility, reported a slightly smaller profit for the first quarter as its costs for electricity and natural gas rose substantially and it saw higher operating and maintenance expenses.

PG&E; reported net income of $214 million, or 60 cents a share, compared with a year-earlier profit of $218 million, or 54 cents. A smaller share count boosted the per-share figure.

Excluding certain items, the San Francisco-based company had a profit of 60 cents a share, matching Wall Street estimates.

Revenue in the quarter rose 18% to $3.15 billion, but operating expenses rose 24%.

The company reaffirmed its outlook for 2006 earnings from operations of $2.40 to $2.50 a share and 2007 earnings from operations of $2.65 to $2.75.

Analysts expected $2.47 for this year and $2.69 for next year.

Shares of PG&E; fell 15 cents to $39.58.