PG&E;’s net income lifted by regulatory rulings

PG&E; Corp., owner of California’s largest utility, said third-quarter profit rose 56% after regulators allowed the company to pass on more costs to customers.

Net income climbed to $393 million, or $1.09 a share, from $252 million, or 65 cents, a year earlier, the San Francisco- based company said. Revenue rose 13% to $3.17 billion.

PG&E; benefited as regulators let the company collect on costs for scheduling power deliveries dating to 1998 as well as interest expenses stemming from a dispute with power producers that were accused of overcharging for electricity during the California energy crisis of 2000-01.

Per-share profit excluding $83 million in gains on the regulatory decisions was 86 cents a share, PG&E; said. The company was expected to earn 67 cents a share, the average estimate of analysts surveyed by Thomson Financial.

PG&E; raised its full-year forecast for earnings per share excluding one-time items to a range of $2.45 to $2.55, up 5 cents from its previous projection. PG&E; left unchanged its 2007 forecast of $2.65 to $2.75.

Shares of PG&E; rose 51 cents, or 1.2%, to $43.75.

PG&E;’s earnings in the fourth quarter will probably drop from third-quarter levels because the company will spend more on maintenance for its power system, Chief Executive Peter Darbee said. The company deferred some maintenance work from the summer, when a heat wave led to record demand for power to run air conditioners.

Darbee plans to spend $2.5 billion a year through 2010 on upgrades to PG&E;’s power network.