A federal bankruptcy judge says it's not up to him to set rates for Pacific Gas and Electric Co.'s customers, signaling he will not help the ailing utility recoup money through rate hikes. Judge Dennis Montali says rate increases should be decided by the state's Public Utilities Commission, a move that relieves many consumer advocates who feared Montali would drive up rates to help pay the utility's creditors.
State agencies are where issues such as rates for electricity are handled.
However, Montali did leave himself an opening for future court-ordered increases, according to the ruling. But PUC President Loretta Lynch said she had not yet reviewed Montali's decision, but she was happy the judge will not attempt to set his own rates for the utility. Montali had little precedent to go on when making his decision. The Times investigates the condition of East Bay nursing homes .