PG&E 2Q net income slips on ballot charge

SAN FRANCISCO

Pacific Gas & Electric said Wednesday its second-quarter net income fell 14 percent as it recorded a charge related to a failed California ballot initiative.

PG&E stood by its previous earnings guidance and said its results so far this year are "on track with the company's plans," according to CEO, President and Chairman Peter Darbee.

The company said its net income fell to $333 million, or 86 cents per share, from $388 million, or $1.02 per share, in the same period last year.

The charge involved lobbying expenses for a June proposition that, if it passed, would have required two-thirds of area voters to approve any local government's establishment or expansion of municipal utilities.

Excluding the charge, PG&E earned 91 cents per share, while analysts surveyed by Thomson Reuters expected 90 cents per share on that basis.

Revenue rose 1.2 percent to $3.23 billion. Analysts expected $3.27 billion in revenue.

The company said it still expects to earn $3.35 to $3.50 per share for 2010, excluding one-time items, and $3.65 to $3.85 per share for 2011.

PG&E shares were flat at $45.09 in morning trading. They have traded between $34.85 and $45.79 in the last 52 weeks.