PG&E; Predicts Job Cuts if Rate Hike Is Slashed

PG&E; Corp., the largest U.S. utility by sales, said it will have to fire 3,500 employees, or 14% of its work force, if California regulators slash its $822-million rate increase request by a proposed 70%. State Administrative Law Judge Mark Wetzell last month recommended that San Francisco-based PG&E; be granted only $243 million of its requested increase. It would be retroactive to the start of this year and last for at least two more years. The Utility Reform Network, a California consumer-advocacy organization, believes PG&E; is overestimating the impact of the proposed rate hike reduction, said Nettie Hoge, its executive director.Shares of PG&E;, which have fallen 24% since the start of the year on concerns about its rate request, fell 13 cents to close at $23.81 on the New York Stock Exchange.