State regulators decided yesterday to perhaps up the ante inconsidering penalties against Pacific Gas and Electric Co. foralleged rules violations in advertising and promotion materials bysome of its unregulated energy affiliate companies.

The California Public Utilities Commission did approvecompliance plans by PG&E and Southern California Edison Co.,spelling out how they will follow rules established earlier thisyear governing business between the utilities and their affiliates.In all promotional material used by the affiliates a standarddisclaimer needs to be prominently used to explain that the utilityand the affiliates are completely separate and that the affiliatesare not regulated by the CPUC.

PG&E came under criticism by CPUC staff for either ignoringor misapplying the disclaimer. An administrative law judgerecommended a $336,000 fine, but then at the eleventh hour, theCPUC President Richard Bilas recommended a much stiffer fine of$1.68 million. This prompted the regulators to hold the matter forconsideration at their next meeting, Oct. 8.

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