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A federal appeals court said California can sue

Pacific Gas & Electric Co.

to recover nearly $4.6 billion that the state’s attorney general alleges were improperly transferred to its parent PG & E; Corp. during the California energy crisis. The decision reversed a ruling by U.S. District Court Judge Vaughn Walker, saying he had improperly restricted the state’s policing powers. The decision Tuesday opened the door for California Attorney General Bill Lockyer to pursue his case before San Francisco Judge Richard Kramer. Lockyer and San Francisco City Attorney Dennis Herrera filed suits early in 2002.

– IHOP Corp.

said its fourth-quarter sales at stores that have been open at least one year climbed 5.4 percent, driven by traffic growth and an increase in the average guest check. The Glendale-based restaurant chain said full-year same-store sales rose 2.9 percent. IHOP had forecast 2005 same-store sales of between 2 percent and 4 percent.

– California Pizza Kitchen Inc.

cut its fourth-quarter profit outlook, citing hurricane-related closures and costs from remodeling two restaurants. The L.A.-based company now expects earnings of 29 cents per share, below its previous guidance of 30 cents to 31 cents per share. CPK said fourth-quarter revenues increased 8.9 percent to $125.4 million and comparable store sales increased 5.3 percent, missing its October same-store sales forecast of between 5.5 percent to 6.5 percent. Comparable restaurant sales would have been 6.5 percent excluding the closures and remodeling charges, the company said.

– Walt Disney Co.

set a holiday-season attendance record at its Walt Disney World resort in Florida, said Chief Financial Officer Thomas Staggs at a Citigroup media conference in Phoenix. A marketing campaign to promote the 50th anniversary of Disneyland in Anaheim boosted attendance throughout Disney’s parks and resorts unit, Bloomberg News reported. Staggs declined to disclose attendance figures or first-quarter sales at the parks and resorts division.