DOW JONESNEWSWIRES
PG&E Corp.'s (PCG) third-quarter profit rose 4.6%, beating
analysts' estimates, as the company saw additional revenue because
of infrastructure investments.
PG&E said it has spent $3 billion on infrastructure so far
this year, increasing its earning potential. The utility's profits
are more insulated from slumping power demand because state
regulation decouples returns from power sales.
PG&E, which has about 15 million customers in central and
northern California, has worked to stem unpaid bills during the
economic downturn in the state with home-foreclosure rates among
the nation's highest.
PG&E reported profit of $321 million, or 83 cents a share,
up from $307 million, or 83 cents, a year earlier. On a non-GAAP
basis, the company earned 93 cents a share compared with 83
cents.
Revenue fell 12% to $3.23 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 91 cents a share on $3.48 billion in sales.
Operating margin rose to 18.8% from 17.4%.
The utility's electricity sales declined 8.7%, and its natural
gas revenue saw a 23.8% drop.
The company said Monday that it agreed to buy solar energy from
two California projects as it looks to build its alternative-energy
sources as the company looks for ways to boost renewable-energy
development to meet government mandates and amid speculation about
federal taxes on carbon use and carbon-dioxide emissions.
Shares of PG&E, which reiterated its earnings guidance for
2009, 2010 and 2011, were down eights cents at $41.47 early
Thursday.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;
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