The company, which serves better than one out of every three Californians, has been suffering since last summer, when the price of wholesale electricity began to rise further and further above the price it was allowed to charge customers as required by the state's 1996 deregulation plan. According to the filing, PG&E had $2.6 billion in cash and $4.4 billion in outstanding bills as of March 29.

The day before the filing, Gov. Gray Davis went on television to allay concerns and reveal his proposal for a rate increase smaller than requested by the state's private utilities. In announcing the filing, PG&E officials said the filing was necessary because the state has heretofore been unable to drum up a better solution.

After the filing, at a bill singing in San Diego, Davis responded by saying PG&E "acted selfishly" had "dishonored itself" with the filing. He added that within a few days he expects to have rescued the state's other troubled utility, Southern California Edison. If he also can negotiate a deal with San Diego Gas & Electric, Davis says he plans on acquiring PG&E's assets in bankruptcy court.