The commission voted unanimously to approve the rate increase, which would give the financially troubled utility an additional $97.4 million in revenue in the next year.

The troubled utility wants to suspend repayments on lines of credit, revolving credit lines and industrial development revenue bonds from Jan. 31 to at least March 15.

The troubled utility, New York's second largest, also agreed to an independent comprehensive management audit that will try to pinpoint the cause of Niagara Mohawk's problems.

California's troubled utilities took more hits yesterday from Washington judges, California regulators and Wall Street bond companies.

Pacific Power & Light was formed in 1910 from the merger of several financially troubled utilities in Oregon and Washington.

Founded in 1911 from the merger of several smaller companies, Lilco grew to become one of the nation's biggest - and most troubled - utilities.

Mr. Kessel had long recommended some kind of state takeover of the troubled utility, but Mr. Zarb was reluctant.

The troubled utility disclosed its intentions when it registered to sell $314 million of preferred stock with the Securities and Exchange Commission.

After a decade of failed attempts at taking over the troubled utility, there is a growing feeling among public officials and industry experts that this time is different.

Citing the pending litigation, the executives who made diversification decisions at the four troubled utilities declined through company spokesmen or their attorneys to be interviewed for this article.