PACIFIC GAS <PCG> ACCOUNTING CHANGE TO CUT NET Pacific Gas and Electric Co said it expects to record a 470 mln dlr, or 1.25 dlr per share, reduction in 1987 earnings because of the company's decision to change the method used to record Diablo Canyon Nuclear Power Plant revenues. The accounting change will not affect the company's cash position and the company intends to continue paying its dividend at the annual rate of 1.92 dlrs per share. Last year Pacific Gas reported earnings of 925 mln dlrs, or 2.60 dlrs per share. Pacific Gas said the accounting change was prompted by delays in the receipt of a California Public Utilities Commission decision on the company's 1984 application for rate relief to recover the 5.8 billion dlr cost of constructing units one and two of the Diablo Canyon Nuclear Power Project. It said the commission is currently allowing the company to recover 40 pct of the cost of owning and operating the plants. As a result, 63 mln dlrs has been accumulating each month as deferred non-cash account receivable, which has been included in current income. But the accounting change, effective January 1, will reflect only cash received through interim rates approved by the commission, Pacific Gas and Electric said. It also said the commission is now awaiting its Public Staff Division's report which will recommend how much of the 5.8 billion dlr investment Pacific Gas should be allowed to recover in rates. The company further stated that it is confident it will receive an objective review of the facts. It also said it intends to seek additional interim rates. Pacific Gas began construction of the two nuclear power units in 1969. After a number of construction delays, unit one went into operation in May 1985 and unit two went on line in March last year.