PG&E; profit climbs 20%

PG&E; Corp., owner of California’s largest utility, said first-quarter profit rose 20% on higher electricity rates.

Net income rose to $256 million, or 71 cents a share, from $214 million, or 60 cents, a year earlier, the San Francisco-based company said.

PG&E; was expected to earn 62 cents, the average of analyst estimates compiled by Bloomberg.

The company benefited from higher rates at its Pacific Gas & Electric utility, which got regulatory approval in March for a $213-million increase in base electricity rates this year. Rate increases added 7 cents to per-share profit, PG&E; said.

PG&E; affirmed an earlier forecast for 2007 earnings from operations, which exclude one-time items, of $2.70 to $2.80 a share, up from $2.57 last year.

Shares of PG&E; fell 90 cents to $50.46.