Calamity

PG&E Corp. raised the specter of the Enron calamity by announcing that it may have to amend its financial statements potentially back to 1999 and place certain “leases” on its balance sheet that would increase its total assets and liabilities by $1 billion. PG&E said it discovered errors in the accounting treatment of several leases related to merchant power plant financings. Nevertheless, it said any financial revisions would have no material impact on its current income statement.

As the tentacles of the Enron Corp. financial calamity spread into all corners of the federal government last week, FERC Chairman Pat Wood and Commission Nora M. Brownell disputed reports that Enron Chairman Kenneth Lay played a major role in getting them appointed to the Commission last year.

As the tentacles of the Enron Corp. financial calamity spread into all corners of the federal government last week, FERC Chairman Pat Wood and Commission Nora M. Brownell disputed reports that Enron Chairman Kenneth Lay played a major role in getting them appointed to the Commission last year.

Amid the financial calamity facing California’sonce-invincible-looking two major utilities, California regulatorsThursday unanimously approved a temporary 1 cent/kwh rate hike, butthe growing challenge facing the state’s political leaders is thata grassroots push for government-run energy operations isdefinitely picking up steam.