PG&E Corp. managed to avoid being added to the recession’s casualty list on Tuesday as proceeds from a multi-year tax settlement pushed 4Q2008 consolidated net income to $517 million, or $1.37/share, which is more than double the $203 million, or 56 cents/share, in the same quarter of 2007.

On a non-generally accepted accounting principles (GAAP) earnings from operations basis, which excludes the tax settlement, PG&E’s 4Q2008 net income was 70 cents/share, compared with 56 cents/share in 4Q2007.

The San Francisco-based energy holding company is parent to Pacific Gas and Electric Co., a utility that provides natural gas and electric service to approximately 15 million people throughout a 70,000-square-mile service area in northern and central California.

The company reported that net income for the year and quarter were increased substantially by the benefits of a multi-year tax settlement, the proceeds of which will help fund utility capital investments by the utility subsidiary.

PG&E’s consolidated net income for full-year 2008 was $1.34 billion, or $3.63/share, compared with $1 billion, or $2.78/share, in 2007. Per-share earnings on a GAAP basis in 2008 include income from a settlement of 2001-2004 tax audits, totaling $257 million, or 68 cents/share. On a non-GAAP earnings from operations basis, which excludes the benefits of the tax settlement, PG&E’s results in 2008 were $2.95/share, compared with $2.78/share in 2007.

“Our results for 2008 were in line with our commitments to investors and continue to support our longer-term earnings growth targets,” said CEO Peter A. Darbee. “Looking ahead, we are confident that we are well positioned to continue making the needed investments to strengthen energy reliability and services for our customers.”

The company attributed its year-over-year increase in earnings to earnings from higher authorized capital investments in utility infrastructure and energy efficiency incentive revenues, partially offset by higher expenses due to storm-related outages, natural gas system maintenance activities and an extended outage to replace the steam generators at one unit of the Diablo Canyon nuclear plant.

For 2009 the company reaffirmed its guidance of $3.15-3.25/share.

In lieu of its regular quarterly conference call, PG&E said senior management will provide an overview of the business and discuss the company’s strategic focus, capital spending plans and multi-year financial outlook at its upcoming investor conference on Thursday in New York City. A webcast of the event will begin at 2 p.m. EST at www.pgecorp.com.

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