With their year-end and fourth-quarter reports, California utilities appear to be basking in the post? energy crisis regulatory environment. Plans have changed from defensive to offensive?with subsidiaries looking for new business rather than selling off existing lines. <b>Pacific Gas & Electric Corp.<\/b> The parent company?s net income for the full year totaled $4.5 billion, compared to $420 million in 2003. Fourth-quarter 2004 earnings were $871 million, compared to $37 million for the fourth quarter of 2003. PG&E, the utility, reported 2004 income of $931 million, compared to $616 million the previous year. For the fourth quarter, PG&E posted $191 million, versus $141 million in the same quarter of 2003. The utility received higher electric and transmission revenues, as well as higher gas revenues due to cooler weather driving more consumption. However, costs for its Diablo Canyon nuclear plant put a 7 cents\/share cost into the equation. Also affecting the bottom line are refinancing bonds related to a phantom regulatory asset allowed by the bankruptcy settlement. A first issue of refinancing bonds was made, and a second issue is expected late this year?earlier than anticipated, according to the company. PG&E will ?transform? its business?from its traditional regulated utility to one that looks more like a competitive business that appears on Wall Street, the corporation?s chief executive officer Peter Darbee said last week. ?It?s going to take awhile to accomplish,? he added. He expects it can be partially done in three years, with a complete transformation in five years. Darbee gave no details on what that transformation will include. Darbee said that the utility will not be pressed for supplies until 2008, when it will need about 2,000 MW. A good portion of that is expected to be filled by building out Mirant?s Contra Costa unit 8, which PG&E agreed to take over in a bankruptcy settlement (<i>Circuit<\/i>, Jan. 21, 2005). PG&E also plans on investing in advanced metering, more customer service, and replacing urban underground cables in the short term. <b>Sempra<\/b> The company showed 2004 earnings of $895 million, up from $649 million in 2003. For the fourth quarter, Sempra reported $346 million, versus $234 million in the same quarter the previous year. Its SoCal Gas subsidiary reported $232 million in 2004, up from $209 million in 2003. For the fourth quarter, SoCal Gas reported $58 million, down from $61 million the year before. San Diego Gas & Electric revealed $208 million in 2004, down from $334 million in 2003. Its fourth-quarter earnings were $68 million?about half of the $128 million reported in the same quarter of 2003. Sempra Generation?s year-end income was $137 million, compared to $71 million in 2003. Sempra LNG did not report. Company officials spoke little to investors about trends for utilities, generation, or LNG subsidiaries. However, a follow-up meeting with investors is scheduled for March 8. <b>Edison<\/b> Once again, Edison International has waited until the last minute to announce earnings, leaving the media and investors in the dark as to the date of the release, much less its contents. No information on Edison?s financials was available at press time.