SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C. 20549

                    _____________________

                         FORM 8-K

                         CURRENT REPORT
               PURSUANT TO SECTION 13 OR 15(d) OF THE
                   SECURITIES EXCHANGE ACT OF 1934



                         Date of Report
               (Date of earliest event reported)
                         October 15, 1998

     CALIFORNIA INFRASTUCTURE AND ECONOMIC DEVELOPMENT BANK
               SPECIAL PURPOSE TRUST PG&E-1
               (Issuer of the Certificates)

                    PG&E FUNDING LLC
     (Exact name of registrant as specified in charter)



Delaware                 333-30715                    94-3274751
--------                 ---------                    ----------
(State of           (Commission File Number)         (IRS Employer
incorporation)                                   Identification No.)


245 Market Street, Room 424
San Francisco, California                                94105
----------------------------                     -------------------
(Address of principal executive offices)               (Zip Code)


                            (415) 972-5467
                 ------------------------------------
                    (Registrant's telephone number,
                            including area code)

                                    N/A
------------------------------------------------------------------
(Former name or former address, if changed since last report)

<PAGE>

ITEM 5.  OTHER EVENTS.

     Bankers Trust Company of California, N.A., as certificate
trustee of the California Infrastructure and Economic Development
Bank Special Purpose Trust PG&E-1 (the "Trust"), has informed
PG&E Funding LLC that it has transmitted to holders of
certificates issued by the Trust of record on October 14, 1998,
the letter regarding certain actions the trustee is taking related
to Proposition 9 to be voted on by California voters on November 3,
1998.  A copy of the trustee's correspondence to certificate holders
is attached hereto as Exhibit 99.

ITEM 7.  EXHIBITS


Exhibit 99     Letter dated October 14, 1998, from Bankers Trust
               Company of California, N.A., as certificate
               trustee of the California Infrastructure and
               Economic Development Bank Special Purpose Trust
               PG&E-1 (the "Trust") transmitted to holders of
               certificates issued by the Trust, together with
               attachments.


<PAGE>

                         SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.

                         PG&E FUNDING LLC
                         (Registrant)




                                    Gabriel B. Togneri
Date:  October 16, 1998       By:  ____________________________
                              Name: Gabriel B. Togneri
                              Title: Treasurer
<PAGE>

                         EXHIBIT INDEX

EXHIBIT NUMBER           DESCRIPTION

99             Letter dated October 14, 1998, from Bankers Trust
               Company of California, N.A., as certificate
               trustee of the California Infrastructure and
               Economic Development Bank Special Purpose Trust
               PG&E-1 (the "Trust") transmitted to holders of
               certificates issued by the Trust, together with
               attachments.
[{"type": "8-K", "sequence": "1", "description": "FORM 8-K", "secsgml_size_bytes": 3574}]
{"company-data": {"conformed-name": "PG&E FUNDING LLC", "cik": "0001041637", "assigned-sic": "6189", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-30715", "film-number": "98726502"}, "business-address": {"street1": "245 MARKET ST RM 424", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105", "phone": "4159737000"}, "mail-address": {"street1": "77 BEALE ST", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105"}}
SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C. 20549

                    _____________________

                         FORM 8-K

                         CURRENT REPORT
               PURSUANT TO SECTION 13 OR 15(d) OF THE
                   SECURITIES EXCHANGE ACT OF 1934

                         Date of Report
               (Date of earliest event reported)
                         October 15, 1998

     CALIFORNIA INFRASTUCTURE AND ECONOMIC DEVELOPMENT BANK
               SPECIAL PURPOSE TRUST PG&E-1
               (Issuer of the Certificates)

                    PG&E FUNDING LLC
     (Exact name of registrant as specified in charter)

Delaware                 333-30715                    94-3274751
--------                 ---------                    ----------
(State of           (Commission File Number)         (IRS Employer
incorporation)                                   Identification No.)

245 Market Street, Room 424
San Francisco, California                                94105
----------------------------                     -------------------
(Address of principal executive offices)               (Zip Code)

                            (415) 972-5467
                 ------------------------------------
                    (Registrant's telephone number,
                            including area code)

                                    N/A
------------------------------------------------------------------
(Former name or former address, if changed since last report)
ITEM 5.  OTHER EVENTS.

     Bankers Trust Company of California, N.A., as certificate
trustee of the California Infrastructure and Economic Development
Bank Special Purpose Trust PG&E-1 (the "Trust"), has informed
PG&E Funding LLC that it has transmitted to holders of
certificates issued by the Trust of record on October 14, 1998,
the letter regarding certain actions the trustee is taking related
to Proposition 9 to be voted on by California voters on November 3,
1998.  A copy of the trustee's correspondence to certificate holders
is attached hereto as Exhibit 99.

ITEM 7.  EXHIBITS

Exhibit 99     Letter dated October 14, 1998, from Bankers Trust
               Company of California, N.A., as certificate
               trustee of the California Infrastructure and
               Economic Development Bank Special Purpose Trust
               PG&E-1 (the "Trust") transmitted to holders of
               certificates issued by the Trust, together with
               attachments.
SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.

                         PG&E FUNDING LLC
                         (Registrant)

                                    Gabriel B. Togneri
Date:  October 16, 1998       By:  ____________________________
                              Name: Gabriel B. Togneri
                              Title: Treasurer
EXHIBIT INDEX

EXHIBIT NUMBER           DESCRIPTION

99             Letter dated October 14, 1998, from Bankers Trust
               Company of California, N.A., as certificate
               trustee of the California Infrastructure and
               Economic Development Bank Special Purpose Trust
               PG&E-1 (the "Trust") transmitted to holders of
               certificates issued by the Trust, together with
               attachments.