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A federal bankruptcy judge has refused to delay Pacific Gas and Electric´s reorganization plan. But the judge today left the door open for an appeal by two state regulators opposed to the customer-backed bailout of California´s largest power utility.

U.S. Bankruptcy Judge Dennis Montali denied a motion that would have blocked PG-and-E´s comeback plan until the courts hear appeals by the city of Palo Alto and California Public Utilities Commission board members Loretta Lynch and Carl Wood.

But the hearing wasn´t a total victory for PG and E. Montali rejected an attempt by PG-and-E and the PUC to prevent Lynch and Wood from pursuing an attempt to revise the bailout.

The bailout is expected to cost utility customers between $6.2 billion and $8.2 billion through 2012.

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