<html>
<head>
<title>Form 8-K DATED 1/06/05</title>
</head>
<body link="blue" vlink="purple">
<div>
<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td colspan="5" valign="top">
<p align="center"><b>UNITED STATES</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>SECURITIES AND EXCHANGE COMMISSION</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>Washington, D.C.&nbsp; 20549</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>FORM 8-K</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>CURRENT REPORT</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>Date of Report: January 6, 2005</b></p>

<p align="center">
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>PG&amp;E CORPORATION</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>(Exact Name of Registrant as specified in
Charter)</b></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><b><u>California</u></b></p>
</td>
<td colspan="2" valign="top">
<p align="center"><b><u>1-2609</u></b></p>
</td>
<td colspan="2" valign="top">
<p align="center"><b><u>94-323914</u></b></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">(State or other jurisdiction of
incorporation)</p>
</td>
<td colspan="2" valign="top">
<p align="center"><br />
 (Commission File Number)</p>
</td>
<td colspan="2" valign="top">
<p align="center">(IRS Employer<br />
 Identification No.)</p>
</td>
</tr>

<tr>
<td colspan="2" valign="top">
<p align="center"><b><u>One Market, Spear Tower, Suite 2400, San
Francisco, CA</u></b></p>
</td>
<td colspan="3" valign="top">
<p align="center"><b><u>94105</u></b></p>
</td>
</tr>

<tr>
<td colspan="2" valign="top">
<p align="center">(Address of principal executive offices)</p>
</td>
<td colspan="3" valign="top">
<p align="center">(Zip code)</p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b><u>415-267-7000</u></b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>(Registrant&rsquo;s Telephone Number,
Including Area Code)</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b><u>N/A</u></b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>(Former Name or Former Address, if Changed
Since Last Report)</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>PACIFIC GAS AND ELECTRIC COMPANY</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>(Exact Name of Registrant as specified in
Charter)</b></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><b><u>California</u></b></p>
</td>
<td colspan="2" valign="top">
<p align="center"><b><u>1-2348</u></b></p>
</td>
<td colspan="2" valign="top">
<p align="center"><b><u>94-0742640</u></b></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">(State or other jurisdiction of
incorporation)</p>
</td>
<td colspan="2" valign="top">
<p align="center"><br />
 (Commission File Number)</p>
</td>
<td colspan="2" valign="top">
<p align="center">(IRS Employer<br />
 Identification No.)</p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td colspan="2" valign="top"></td>
<td colspan="2" valign="top"></td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b><u>77 Beale Street, P. O. Box 770000, San
Francisco, California</u></b></p>
</td>
<td valign="top">
<p align="center"><b><u>94177</u></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">(Address of principal executive offices)</p>
</td>
<td valign="top">
<p align="center">(Zip code)</p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b><u>(415) 973-7000</u></b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>(Registrant&rsquo;s Telephone Number,
Including Area Code)</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b><u>N/A</u></b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top">
<p align="center"><b>(Former Name or Former Address, if Changed
Since Last Report)</b></p>
</td>
</tr>

<tr>
<td colspan="5" valign="top"></td>
</tr>

<tr>
<td colspan="5" valign="top">
<p><br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):</p>
</td>
</tr>
</table>

<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td valign="top">
<p>[&nbsp;]</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)</p>
</td>
</tr>

<tr>
<td valign="top">
<p>[&nbsp;]</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Soliciting Material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)</p>
</td>
</tr>

<tr>
<td valign="top">
<p>[&nbsp;]</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act<br />
 (17 CFR 240.14d-2(b)</p>
</td>
</tr>

<tr>
<td valign="top">
<p>[&nbsp;]</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act<br />
 (17 CFR 240.13e-4(c))</p>
</td>
</tr>
</table>

<div align="center">
<hr size="2" width="624" align="center" />
</div>

<p>Item 1.01 &ndash; Entry into a Material Definitive Agreement</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consistent
with PG&amp;E Corporation&rsquo;s past practice of granting equity
incentives on the first business day of the year, on January 3,
2005, PG&amp;E Corporation granted stock options, restricted stock,
and performance shares under the PG&amp;E Corporation Long-Term
Incentive Program (LTIP) to key employees and executive officers of
PG&amp;E Corporation and its subsidiary, Pacific Gas and Electric
Company.&nbsp; The LTIP, including the Stock Option Plan, has been
previously filed with the Securities and Exchange Commission.&nbsp;
Under the current form of stock option agreement, options generally
vest ratably over four years in equal installments (25%) on the
first, second, third, and fourth anniversaries of the date of
grant.&nbsp; In addition, vesting may be accelerated under certain
circumstances.&nbsp; Stock options granted under the LTIP generally
expire ten years and one day from the date of grant, subject to
earlier expiration in the event of termination of employment.&nbsp;
The exercise price of stock options is equal to the closing price
of PG&amp;E Corporation common stock on the date of grant.&nbsp;
The current form of stock option agreement is attached to this
report as Exhibit 99.1.</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also
attached to this report, as Exhibit 99.2, is the current form of
performance share agreement.&nbsp; Performance shares generally
vest at the end of a three-year performance period, subject to
forfeiture in certain circumstances.&nbsp; In addition, vesting may
be accelerated under certain circumstances.&nbsp; Performance
shares are paid out in cash depending on PG&amp;E
Corporation&rsquo;s total shareholder return over the performance
period relative to the total shareholder returns of companies in a
comparator group over the performance period.&nbsp; No payment is
made if PG&amp;E Corporation&rsquo;s total shareholder return for
the performance period falls below the 25<sup>th</sup> percentile
of the comparator group.&nbsp; The number of performance shares
will be multiplied by a payout percentage ranging from 25% if
PG&amp;E Corporation&rsquo;s total shareholder return falls in the
25<sup>th</sup> percentile to 200% if PG&amp;E Corporation&rsquo;s
total shareholder return falls in the 90<sup>th</sup> percentile or
above.&nbsp; The payment, if any, is calculated by multiplying the
resulting number of performance shares by the average closing price
of a share of PG&amp;E Corporation common stock for the last 30
calendar days of the preceding year.&nbsp; Each time PG&amp;E
Corporation declares a dividend with respect to its common stock,
an amount equal to the dividend multiplied by the number of a
recipient&rsquo;s performance shares is accrued on the
recipient&rsquo;s behalf.&nbsp; Upon payment, if any, with respect
to the performance shares, recipients also are entitled to receive
a payment equal to the amount of dividends accrued with respect to
the performance shares multiplied by the same payout percentage
used to determine the performance share payout.</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
current form of restricted stock agreement is attached to this
report as Exhibit 99.3.&nbsp; The restrictions on the restricted
stock generally lapse ratably over four years in equal installments
(25%) on the first, second, third, and fourth anniversaries of the
date of grant.&nbsp; In general, shares of restricted stock as to
which the restrictions have not yet lapsed are subject to
forfeiture upon termination of employment.&nbsp; In addition, the
lapse of restrictions may be accelerated under certain
circumstances.&nbsp; Any dividends on restricted stock will be held
in escrow and are subject to the same restrictions as the shares to
which the dividends relate.</p>

<p><b>Item 9.01.&nbsp;&nbsp;Financial Statements and
Exhibits</b></p>

<p><b></b></p>

<p>(c)&nbsp; Exhibits</p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p>99.1&nbsp;&nbsp;</p>

</td>
<td valign="top">
<p>Form of Stock Option Agreement under the PG&amp;E Corporation
Long-Term Incentive Program</p>
</td>
</tr>

<tr>
<td valign="top">
<p></p>
</td>
<td valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
</tr>

<tr>
<td valign="top">
<p>99.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>Form of Performance Share Agreement under the PG&amp;E
Corporation Long-Term Incentive Program</p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
</tr>

<tr>
<td valign="top">
<p>99.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>Form of Restricted Stock Agreement under the PG&amp;E
Corporation Long-Term Incentive Program</p>
</td>
</tr>
</table>

<br clear="all" />


<hr>


<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td valign="top">
<p align="center">SIGNATURE</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top">
<p>Pursuant to the requirements of the Securities Exchange Act of
1934, the registrants have duly caused this report to be signed on
their behalf by the undersigned thereunto duly authorized.</p>

<p>&nbsp;</p>
</td>
</tr>
</table>

<p></p>

<p></p>

<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td valign="top"></td>
<td colspan="2" valign="top">
<p>PG&amp;E CORPORATION</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>By:&nbsp;&nbsp;</p>
</td>
<td valign="top">
<div>
<p><u>LINDA Y.H. CHENG&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
</div>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>LINDA Y.H. CHENG<br />
 Vice President and Corporate Secretary<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="2" valign="top">
<p>PACIFIC GAS AND ELECTRIC COMPANY</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>By:&nbsp;&nbsp;</p>
</td>
<td valign="top">
<div>
<p><u>LINDA Y.H. CHENG&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
</div>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>LINDA Y.H. CHENG<br />
 Vice President and Corporate Secretary</p>
</td>
</tr>
</table>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

<p>Dated:&nbsp; January 6, 2005</p>

<hr>

<br clear="all" />


<p align="center">EXHIBIT INDEX</p>


<p align="left">&nbsp;<u>No</u>.</p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p>99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

</td>
<td valign="top">
<p>Form of Stock Option Agreement under the PG&amp;E Corporation
Long-Term Incentive Program</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
</tr>

<tr>
<td valign="top">
<p>99.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>Form of Performance Share Agreement under the PG&amp;E
Corporation Long-Term Incentive Program</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p>99.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>Form of Restricted Stock Agreement under the PG&amp;E
Corporation Long-Term Incentive Program</p>
</td>
</tr>
</table>
</div>
</body>
</html>
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{"company-data": {"conformed-name": "PACIFIC GAS & ELECTRIC CO", "cik": "0000075488", "assigned-sic": "4931", "irs-number": "940742640", "state-of-incorporation": "CA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-02348", "film-number": "05516418"}, "business-address": {"street1": "77 BEALE ST", "street2": "P O BOX 770000", "city": "SAN FRANCISCO", "state": "CA", "zip": "94177", "phone": "4152677000"}, "mail-address": {"street1": "77 BEALE STREET", "street2": "P O BOX 770000", "city": "SAN FRANCISCO", "state": "CA", "zip": "94177"}}
Form 8-K DATED 1/06/05
UNITED STATES
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: January 6, 2005
PG&E CORPORATION
(Exact Name of Registrant as specified in
Charter)
California
1-2609
94-323914
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
One Market, Spear Tower, Suite 2400, San
Francisco, CA
94105
(Address of principal executive offices)
(Zip code)
415-267-7000
(Registrant's Telephone Number,
Including Area Code)
N/A
(Former Name or Former Address, if Changed
Since Last Report)
PACIFIC GAS AND ELECTRIC COMPANY
(Exact Name of Registrant as specified in
Charter)
California
1-2348
94-0742640
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
77 Beale Street, P. O. Box 770000, San
Francisco, California
94177
(Address of principal executive offices)
(Zip code)
(415) 973-7000
(Registrant's Telephone Number,
Including Area Code)
N/A
(Former Name or Former Address, if Changed
Since Last Report)
Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):
[ ]
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ]
Soliciting Material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act
(17 CFR 240.14d-2(b)
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act
(17 CFR 240.13e-4(c))
Item 1.01 – Entry into a Material Definitive Agreement
Consistent
with PG&E Corporation's past practice of granting equity
incentives on the first business day of the year, on January 3,
2005, PG&E Corporation granted stock options, restricted stock,
and performance shares under the PG&E Corporation Long-Term
Incentive Program (LTIP) to key employees and executive officers of
PG&E Corporation and its subsidiary, Pacific Gas and Electric
Company.  The LTIP, including the Stock Option Plan, has been
previously filed with the Securities and Exchange Commission. 
Under the current form of stock option agreement, options generally
vest ratably over four years in equal installments (25%) on the
first, second, third, and fourth anniversaries of the date of
grant.  In addition, vesting may be accelerated under certain
circumstances.  Stock options granted under the LTIP generally
expire ten years and one day from the date of grant, subject to
earlier expiration in the event of termination of employment. 
The exercise price of stock options is equal to the closing price
of PG&E Corporation common stock on the date of grant. 
The current form of stock option agreement is attached to this
report as Exhibit 99.1.
Also
attached to this report, as Exhibit 99.2, is the current form of
performance share agreement.  Performance shares generally
vest at the end of a three-year performance period, subject to
forfeiture in certain circumstances.  In addition, vesting may
be accelerated under certain circumstances.  Performance
shares are paid out in cash depending on PG&E
Corporation's total shareholder return over the performance
period relative to the total shareholder returns of companies in a
comparator group over the performance period.  No payment is
made if PG&E Corporation's total shareholder return for
the performance period falls below the 25
th
percentile
of the comparator group.  The number of performance shares
will be multiplied by a payout percentage ranging from 25% if
PG&E Corporation's total shareholder return falls in the
25
th
percentile to 200% if PG&E Corporation's
total shareholder return falls in the 90
th
percentile or
above.  The payment, if any, is calculated by multiplying the
resulting number of performance shares by the average closing price
of a share of PG&E Corporation common stock for the last 30
calendar days of the preceding year.  Each time PG&E
Corporation declares a dividend with respect to its common stock,
an amount equal to the dividend multiplied by the number of a
recipient's performance shares is accrued on the
recipient's behalf.  Upon payment, if any, with respect
to the performance shares, recipients also are entitled to receive
a payment equal to the amount of dividends accrued with respect to
the performance shares multiplied by the same payout percentage
used to determine the performance share payout.
The
current form of restricted stock agreement is attached to this
report as Exhibit 99.3.  The restrictions on the restricted
stock generally lapse ratably over four years in equal installments
(25%) on the first, second, third, and fourth anniversaries of the
date of grant.  In general, shares of restricted stock as to
which the restrictions have not yet lapsed are subject to
forfeiture upon termination of employment.  In addition, the
lapse of restrictions may be accelerated under certain
circumstances.  Any dividends on restricted stock will be held
in escrow and are subject to the same restrictions as the shares to
which the dividends relate.
Item 9.01.  Financial Statements and
Exhibits
(c)  Exhibits
99.1
Form of Stock Option Agreement under the PG&E Corporation
Long-Term Incentive Program
99.2
Form of Performance Share Agreement under the PG&E
Corporation Long-Term Incentive Program
99.3
Form of Restricted Stock Agreement under the PG&E
Corporation Long-Term Incentive Program
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrants have duly caused this report to be signed on
their behalf by the undersigned thereunto duly authorized.
PG&E CORPORATION
By:
LINDA Y.H. CHENG
LINDA Y.H. CHENG
Vice President and Corporate Secretary
PACIFIC GAS AND ELECTRIC COMPANY
By:
LINDA Y.H. CHENG
LINDA Y.H. CHENG
Vice President and Corporate Secretary
Dated:  January 6, 2005
EXHIBIT INDEX
No
.
99.1
Form of Stock Option Agreement under the PG&E Corporation
Long-Term Incentive Program
99.2
Form of Performance Share Agreement under the PG&E
Corporation Long-Term Incentive Program
99.3
Form of Restricted Stock Agreement under the PG&E
Corporation Long-Term Incentive Program