Back in February, the Marin Energy Authority voted to begin selling power directly to Marin County residents.
Under the plan, the authority would sell the power, but PG&E would continue to distribute it.
The California Public Utility Commission on Monday accused the utility of violating state regulations by calling customers, urging them to opt out of the deal.
It ordered PG&E to immediately cease such actions.
The utility is the sole sponsor of Proposition 16 on the June ballot.
It's spending $34.5 million on the measure which would require two-thirds voter approval before other local governments could implement similar plans.
PG&E says it is still reviewing the charges and will respond in the coming days.
