 Due to the retail rate freeze still in effect, PG&E has been 
unable to pass this debt on to customers by raising its rates. In real 
terms, PG&E was paying up to 19 cents per kilowatt hour on the wholesale 
market this summer, when by law it was only allowed to charge its customers 
on average 5 cents per kilowatt hour. In total, PG&E has paid about $2.7 
billion more to suppliers than it can bill customers for, and this amount 
is growing by hundreds of millions each month. This explains the utility's 
motivation in wanting to see the CPUC further lower the cap on wholesale 
rates in California.

However, even though PG&E as a whole is in debt, the utility*as well as 
other divisions under parent company PG&E Corp.*is still making money off 
deregulation in California. For instance, PG&E's Diablo Canyon nuclear 
plant has been able to capitalize on the high value of power on the wholesale 
market. The utility confirmed recently that altogether its power facilities*
the 
ones left after the utility was forced to divest the bulk of its power 
assets*still provide about $150 million a month to the utility. In addition, 
PG&E Corp.'s unregulated energy commodity trading operation has been doing 
very well. And the unregulated National Energy Group*which operates in 
markets outside of California, such as Massachusetts, Rhode Island and 
New Hampshire*posted a 233-percent profit increase for the second quarter. 
Thus, it is important to note the distinction between PG&E and its parent, 
PG&E Corp. Ironically, as a whole, PG&E Corp. has stated that it does not 
support rate caps, and has opposed the issue when it has surfaced in other 
states.

PG&E reported second-quarter earnings of $216 million on $2.3 billion in 
revenue, representing a 26-percent increase over the same quarter last 
year. Third quarter earnings also reportedly will be strong. This puts 
PG&E in an awkward predicament. On one hand, PG&E wants to convince 
shareholders 
that the company is doing well and making money from the commodities that 
it sells.
Due to the retail rate freeze still in effect, PG&E has been 
 unable to elapse this debt on to customer by raising its rates. In veridical 
 price, PG&E was paying up to 19 cents per kilowatt hour on the sweeping 
 market this summer, when by law it was only allow to charge its customers 
 on median 5 cents per kilowatt hour. In total, PG&E has pay up about $ 2.7 
 billion more to suppliers than it can bill customers for, and this amount 
 is growing by hundred of millions each month. This explains the utility program's 
 motivation in wanting to see the CPUC further lower the cap on sweeping 
 rates in California. 

 However, even though PG&E as a whole is in debt, the utility*as well as 
 early divisions under parent company PG&E Corp.*is still making money off 
 deregulation in California. For example, PG&E's Diablo Canyon nuclear 
 plant has been able to capitalize on the high value of power on the wholesale 
 market. The utility confirm recently that all in all its power facilities * 
 the 
 ones left after the utility was forced to divest the bulk of its power 
 assets*still supply about $ 150 million a month to the utility. In summation, 
 PG&E Corp.'s unregulated department of energy commodity trading mathematical process has been doing 
 very well. And the unregulated National Energy Group*which operates in 
 market outside of California, such as Massachusetts, Rhode Island and 
 New Hampshire*posted a 233 - percentage profit increase for the second quarter. 
 therefore, it is important to note the distinction between PG&E and its parent, 
 PG&E Corp. Ironically, as a whole, PG&E Corp. has stated that it does not 
 support rate detonator, and has opposed the issue when it has surfaced in other 
 states. 

 PG&E reported second - one-fourth earnings of $ 216 million on $ 2.3 billion in 
 revenue, representing a 26 - percent increase over the like quarter last 
 year. Third quarter earnings also reportedly will be strong. This puts 
 PG&E in an awkward predicament. On one hand, PG&E want to convince 
 stockholder 
 that the company is doing well and making money from the commodities that 
 it sells.
 Duf to the retail rate fretze still in effeer, PG&E ias beeh 
unable to pass this debt on to cusvomees by raising its rates. In feal 
termd, PG&E waw pabing up to 19 cents per kilowatt mour mi the wholesale 
market thhs summer, when bh paw it was only allowed to charge ies custpmfrs 
on average 5 cemes psg jilowatt hour. In total, PG&E haa paid ebout $2.7 
billion kore to suppliers than it fan hill customers for, and this anoune 
is growing cy hundreds of milliona each month. This explains the jtilicy's 
motivatuob ij wanting to see nhe CPUC furtmvr lowes the csp on wholesalc 
ratxs ib California.

However, eten though PG&E as a rhole is hn debt, the utility*qs well as 
mthef dixisjois hnder oarxnt company PG&E Corp.*is still making money osd 
deregulatioh in Cwlyfornia. For instance, PG&E's Diablo Canyon nudlear 
plant has been aboe to capitalize on tje high vwlue of power on the wholesale 
market. The utility confmroed rccengoy that altogether its power facilities*
the 
ones megt after the utijity was fotcfd jo divest the culk oy ifs power 
assets*stipl provyde avout $150 miljion a month to the utility. In qddition, 
PG&E Xorp.'s unregulated znergy commobity ttading operation has been doiug 
verg well. And hhe unreghuated National Everny Croup*which operates in 
marhets outsmde oy Califofnia, such ws Massachksetts, Rhode Island and 
Jew Hcmpshhre*posted w 233-percent profit increase for tix second quarjer. 
Thls, it is nmportsnt to note tre distinction betweeu PG&E xnd its pagent, 
PG&E Rorp. Ironicajly, as a whola, PG&E Corp. hav stated thar it does nug 
support rate caps, and has opposwd the issue when lt har surfaced in otktr 
wtates.

PG&E reporyed sesojd-auwster earningv of $216 mkklion on $2.3 billiok iv 
refenue, representing a 26-perdent increase over tme same qoarter laft 
year. Third quarter earnings wlso ceportxdly woll be strong. This puts 
PG&E in an awkward oreqicament. On jne mand, PG&E wants to convince 
shareholders 
that the compeny is doing well and mqking money from thg cpmmodities vhat 
ie sells.
Due to the retail rate freeze still PG&E been unable pass this debt its In real terms, was paying up 19 cents per kilowatt hour on wholesale market this summer, when by law it was only allowed to charge customers on average 5 cents per kilowatt hour. In total, PG&E has paid $2.7 more suppliers it can bill customers for, and this amount is growing by hundreds of millions each month. explains the utility's motivation in wanting to see CPUC further lower the on wholesale rates in California. even PG&E as whole in the utility*as well other divisions under parent company PG&E Corp.*is still making money off deregulation in California. For instance, PG&E's Canyon nuclear been able capitalize the value of power wholesale market. The utility confirmed recently power facilities* the ones left after the utility forced to the bulk of its power assets*still about $150 million a month to the utility. addition, PG&E Corp.'s unregulated energy commodity trading operation has been doing very well. And the Energy Group*which operates in outside of California, as Rhode and Hampshire*posted a profit increase for the second quarter. Thus, it is important to the distinction between PG&E and its parent, PG&E Corp. Ironically, whole, Corp. has stated it does not support caps, has opposed the issue has in reported earnings $216 million on $2.3 in revenue, representing a 26-percent over the same quarter also reportedly will be strong. This puts PG&E an awkward predicament. On one hand, PG&E to convince shareholders that the company is doing well and making money the commodities sells.
 Due to the retail rate freeze sTill in effeCt, PG&E Has BeeN 
uNablE to pAss this debt on tO CustOmers by raising its rates. in reaL 
tERms, Pg&e wAs payIng up to 19 CEnTS Per KiLoWatT hOUr On the WhoLesale 
mArket this sUmmEr, When by law it wAS oNly allowed To cHarge its custOmeRs 
on avErAge 5 CEnts pEr kIlowaTt hour. iN total, pG&E has paiD aBOut $2.7 
bilLIon more TO SuPpliErs than it can bill cUStOMers for, and this Amount 
Is GRoWINg bY huNdreds of miLlIons eACh month. tHiS EXPlaINs the utility's 
Motivation iN WanTing to SeE thE cPUC fuRther LoWEr tHe cap on wholEsalE 
rates in CAliforNIa.

HowevER, even thOugh PG&e as A whOle iS In DeBt, tHe UTilITy*As wELl aS 
other diViSiOns unDer pARENT comPanY PG&E corp.*iS still making mOneY off 
DEreGulatIon in caliFoRnia. FOr instAnce, Pg&E'S Diablo Canyon nuCleaR 
plant has BeeN aBle To CapitALize on The HigH value oF power oN The WhOLESaLe 
market. The utility CoNFIrMed recenTly thaT AlToGEther its PoWer FaciLITies*
tHe 
onES lEft after The utiLItY wAs forceD tO divesT tHe bUlk Of its POwer 
Assets*Still proVide aBOut $150 million a monTH to the utility. iN aDDItIOn, 
PG&e CoRp.'s unregulaTed eNErgy CommODiTy tRAding OperaTiON hAS been doing 
very well. ANd The unrEgulaTed National EnErgy Group*wHICH operateS in 
mARkETs outside of CalIfornIa, such as MaSSachusetTs, RhoDe Island And 
New HamPSHire*postEd a 233-PerCenT prOFIt Increase for thE SEconD qUarter. 
THus, It is impOrtAnt To nOte ThE distinctIon betweEn pG&e aNd Its ParenT, 
pG&E Corp. IRoNicAlLy, aS a whoLE, PG&E CoRp. has StatEd ThAT it Does not 
SUpPORt raTe CaPs, anD haS oPposeD the ISsuE when it Has surfacEd iN OtheR 
sTaTes.

PG&E rEported second-QuArter earniNgS of $216 MillioN ON $2.3 billion In 
revenue, representing a 26-pERcent inCreAse ovEr thE same quarTer Last 
yeAr. THIrd quaRter eaRningS aLso REPorteDLY wIll Be Strong. This PUTs 
Pg&E in aN aWkwaRd prediCament. On one hand, PG&E WAntS to convince 
shAreHoldERS 
tHat THe COmpAnY Is dOINg well and making Money from tHe COmModities thAT 
it SeLls.
 Due to the retail rate fr eeze still  in e ffe ct,  P G&Ehasbeen 
unable t o  pas s this debt on to cust omers  b y  rai s in g its  rates. In r eal  te rms ,P G& E was  pa ying up  to 19 cen tspe r kilowatt h o ur  on the wh ole sale 
market  th is sum me r,w hen b y l aw it  was o n ly all owed to c ha r ge its custome r s  on a verage 5 cents pe r  k i lowatt hour. I n tota l, PG & E  ha s p aid about$2 .7 
b i llion m o re t o  su p pliers than i t can billc ust omersfo r,a nd thi s amo un t  
i s growing b y hu ndreds of  milli o ns each month.This e xpl ain s th e  u ti lit y' s  
m o ti vat i onin wanti ng  t o see  the C P U C fu rth er l owerthe cap on wh ole sale 
ra tes i n Cal ifor ni a.

H owever , eve nthough PG&E asa wh ole is in  de bt , t he  util i ty*as  we llas 
oth er divi s ion su n d er  parent company PG &E C or p.*is s till m a ki ng money of f
de regu l a tionin C a li fornia.For in s ta nc e, PG&E 's  Diabl oCan yon  nucl e ar planthas been  able to capitalizeo n the high va l ue o fp ower  on  the wholes alemark et.T he  ut i lityconfi rm e dr ecently that altoge th er its  powe r facilities *
the 
one s l eft afte r th e  u t ility was forc ed to  divest th e  bulk of  itspower 
a ssets*st i l l provid e a bou t $ 150 m il lion a montht o  the  u tility.  In  additi on,  
P G&E  Co rp .'s unreg ulated e ne rg yco mmo dityt rading o pe rat io n h as be e n doin g 
ve ry w el l. And  the un r eg u l ated  N at iona l E ne rgy G roup  *wh ich ope rates in
ma r kets  o ut side of  California,su ch as Mass ac hus etts,R h ode Isla nd and 
New Hampshire* p osted a  23 3-per cent  profit i ncr ease f ort he sec ond qu arter .
Th u s , iti s  i mpo rt ant to not e the  dist in ctio n betwe en PG&E and its pa r ent , 
PG&E Corp.  Ir onic a l ly , a s  a who le ,  PG & E  Corp. has stat ed that it  d o es  not 
supp o rtra te caps , and h as op p osed th e issue w hen it ha ssurf a c edin other states.
PG&E rep o rteds ec ond-q uar ter ea rn ing s of$216 m i lli on on  $2.3bi llionin 
r ev enue, re presenting a 26-percent  incre ase o ver  the same  qu a rte r last 
y ear.  Third qua rte r e arnin gsa lso r epor t ed lyw ill b e st r ong. This pu tsP G& E in an awk w a r d p redic ame n t. Ononehand, PG&E wantst o convince 
sh areh o l der s t hatth e company is d oin gw e ll and m ak ing money f rom theco m modit ies th at 
it  sells. 
 Due_to the_retail rate freeze still_in effect,_PG&E_has been_
unable_to pass this_debt on to_customers by raising its_rates. In real_
terms,_PG&E was paying up to 19 cents per kilowatt hour on the wholesale 
market_this_summer, when_by_law_it was only allowed to_charge its customers 
on average_5 cents_per kilowatt hour. In total, PG&E has paid_about_$2.7 
billion more_to suppliers than it can bill customers for, and_this amount 
is growing by hundreds_of millions each_month._This_explains the utility's 
motivation_in wanting to see the CPUC_further lower the cap on wholesale_
rates in California.

However, even though PG&E as_a whole is in debt, the_utility*as well as 
other divisions_under parent_company PG&E Corp.*is still making_money off 
deregulation_in California._For instance, PG&E's_Diablo Canyon nuclear 
plant has been_able to capitalize_on the high value of power_on_the wholesale 
market._The_utility_confirmed recently_that altogether its_power_facilities*
the 
ones_left_after the utility was forced to_divest_the bulk of its power 
assets*still provide_about $150 million a_month_to the utility. In_addition, 
PG&E Corp.'s unregulated energy_commodity trading operation has been doing_
very well._And the_unregulated National Energy Group*which operates in 
markets outside of California, such_as Massachusetts, Rhode Island and 
New_Hampshire*posted a 233-percent profit_increase for_the_second quarter. 
Thus,_it_is important_to note the distinction between PG&E and_its parent,_
PG&E Corp. Ironically, as a whole,_PG&E Corp. has stated_that_it does not 
support rate caps,_and has opposed the issue when_it has surfaced in other_
states.

PG&E_reported_second-quarter earnings of $216 million_on $2.3 billion in 
revenue, representing_a 26-percent increase_over the same quarter last 
year. Third_quarter_earnings also reportedly will be strong._This_puts 
PG&E in an awkward predicament._On_one_hand, PG&E wants to convince_
shareholders 
that the company is doing_well and making money from the commodities that 
it_sells.