Problems with Landlord, PG&E, Old tenants

I live in a house that shares a PG&E meter with another house. The landlord rented the other house to meth addicts and they racked up a $4,000 bill and PG&E turned off the electric (after the other tenants had been evicted and jailed). Rather than taking care of the bill, our landlord's idea of fixing the situation was to have us 'move out' for a week so that PG&E would think that the house is vacant, and to sign a new lease under another roommates name. Now we have asked her to reimburse us for the food that went rotten and the five nights in a hotel that my roommate had to stay in and she has said absolutely not.

I know this is illegal, what would you advise us to do?

You can sue him in small claims for the diminished value of your premises, and possibly for the direct damages you sufferedas well.

Don't lie to the utility.

Diminished value of the premises? How could you calculate that? No. You can get a rent credit for the period you were unable to stay in the unit from lack of electric. You can sue for any electric overpayments or for the LL's failure to disclose shared utility agreements. You would have to sue the person responsible for your utility bill for having it shut off and ruining your food, or turn it in to your renter's insurance.