PG&E Swings to Fourth-Quarter Profit

PG&E(PCG Quote) swung to a profit after earlier delaying its earnings release to sort out accounting for power-plant leases.

The parent of bankrupt Pacific Gas & Electric earned $529 million, or $1.45 a share, compared with a loss of $4.12 billion, or $11.34 a share, in the year-ago quarter. It posted operating revenue of $4.98 billion, down from $8.08 billion in last year's fourth quarter.

In the release the company said it decided to move several previously off-balance sheet power plant leases back onto its books, reducing earnings by $1 million but not requiring a restatement.

PG&E expects to earn $3 a share this year.

Pacific Gas & Electric filed for Chapter 11 bankruptcy protection in April 2001 under the weight of debt it used to buy power at soaring prices in the wholesale market. California's deregulation laws prevented it from fully passing on its costs to its customers.