I haven't seen the ruling, but this sounds like bad news for PG&E
creditors.---sch

Judge tosses out PG&E lawsuit
BY BAY CITY NEWS SERVICE
A federal judge has thrown out a lawsuit filed against the state Public
Utilities Commission by PG&E, which had sought to remove rate caps in the
wake of the company's bankruptcy.
The ruling, issued by U.S. District Judge Thomas Lew in Los Angeles, was
announced by San Francisco City Attorney Louise Renne today. The lawsuit had
originally been filed in the city, but was consolidated with a similar one
filed by a Southern California utility company.
Removing the rate caps, imposed by the commission before the utility filed
for bankruptcy in mid-April, might have allowed Pacific Gas and Electric Co.
to retrieve up to $10 billion from state ratepayers.
The utility, charging that its financial problems were due in part to the
rate caps, filed the lawsuit the Monday after its Friday bankruptcy filing.
Earlier today, CPUC President Loretta Lynch said the lawsuit was ``directly
challenging the PUC's regulatory authority over PG&E.'' She compared the
suit's argument to a company wanting to recuse itself from public safety or
environmental regulations merely because it had filed for bankruptcy.
``We believe clearly that our regulatory authority continues unabated,''
Lynch said.