PG&E; Wins Round in Bankruptcy Plan

A federal judge in San Francisco cleared the way for Pacific Gas & Electric Co. to appeal a decision that threatened to scuttle its effort to get out of bankruptcy.

U.S. District Judge Vaughn Walker ruled that the unit of PG&E; Corp. may appeal a decision by a U.S. Bankruptcy judge that the utility’s reorganization plan could not preempt 36 California laws governing its business. Walker set a hearing on PG&E;’s appeal for Aug. 14.

PG&E;’s plan is competing against a rescue bid by the California Public Utilities Commission that would keep the company intact and firmly under state regulations.

Meanwhile, PG&E; won preliminary approval from the Federal Energy Regulatory Commission to build a 53.6-mile extension of a natural gas pipeline that runs from Canada to California’s border as part of the company’s effort to secure energy supplies for its power plants.

FERC said that the expansion is needed to transport the fuel to new gas-fired generators and help alleviate electricity shortages. The project is subject to environmental review.