PG&E Corp. suffered an 11% net earnings loss for the thirdquarter, reporting earnings of 55 cents per share ($210 million),compared with 62 cents per share ($257 million) for 3Q97. Thecompany attributed the majority of the decline to utilitysubsidiary Pacific Gas and Electric’s pending 1999 general ratecase and a change in the way revenues are recorded as a result ofthe deregulation of California’s electric industry. The utilitysubsidiary is earning below its authorized rate of return, a trendthat is expected to continue until the rate case is resolved earlynext year.

PG&E’s unregulated energy business, however, reported itsfirst net profits, which were two cents per share, compared to aloss of three cents per share in the third quarter of 1997. “We arepleased with the performance of our unregulated businesses as theycontinue to move into profitability,” said CEO Robert D. Glynn, Jr.”I am confident in our ability to meet Wall Street’s currentexpectations for our 1998 performance and to grow strongly in thefuture.”

The $30 billion energy giant reported operating revenues of $5.3billion, compared with $4.1 billion in 3Q97. Operating revenues forthe year to day were $19.3 billion, compared with $13.2 billionlast year. The majority of the increase is a result of theacquisitions of Valero Natural Gas and Teco Pipeline. Net incomefor the first three quarters of the year was $617 million comparedto $763 million over the same period last year.

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