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<head>


<title>PG&amp;E Corp. and Pacific Gas and Electric Co. 8-K dated
May 28, 2004</title>
</head>
<body link="blue" vlink="purple">
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<table border="0" cellspacing="0" cellpadding="0" width="643">
<tr>
<td colspan="4" valign="top">
<p align="center"><font size="3" face="Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><font size="3" face="Times New Roman"><br />
 </font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><font size="3" face="Times New Roman">Washington,
D.C.&nbsp; 20549</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><font size="3" face="Times New Roman"><br />
 </font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><font size="3" face="Times New Roman">FORM
8-K</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><font size="3" face="Times New Roman"><br />
 </font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><font size="3" face="Times New Roman">CURRENT
REPORT</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><font size="3" face="Times New Roman"><br />
 </font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><font size="3" face="Times New Roman">Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of
1934</font></p>
</td>
</tr>

<tr height="43">
<td colspan="4" height="43" valign="top">
<p><font size="3" face="Times New Roman"><br />
 </font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><font size="3" face="Times New Roman">Date of
Report: May 28, 2004</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><font size="3" face="Times New Roman"><br />
 </font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><font size="3" face="Times New Roman"><br />
 Commission<br />
 File<br />
 Number</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" face="Times New Roman">Exact Name
of<br />
 Registrant<br />
 as specified in<br />
 its charter</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" face="Times New Roman"><br />
 State or other<br />
 Jurisdiction of<br />
 Incorporation</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" face="Times New Roman"><br />
 IRS Employer<br />
 &nbsp; Identification<br />
 Number</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><font size="3" face=
"Times New Roman">_____________</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" face=
"Times New Roman">_____________</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" face=
"Times New Roman">_____________</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" face=
"Times New Roman">_____________</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><font size="3" face=
"Times New Roman">1-12609<br />
 </font></p>

<p align="center"><font size="3" face=
"Times New Roman">1-2348</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" face="Times New Roman">PG&amp;E
Corporation<br />
 </font></p>

<p align="center"><font size="3" face="Times New Roman">Pacific Gas
and<br />
 Electric Company</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" face=
"Times New Roman">California<br />
 </font></p>

<p align="center"><font size="3" face=
"Times New Roman">California</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" face=
"Times New Roman">94-3234914<br />
 </font></p>

<p align="center"><font size="3" face=
"Times New Roman">94-0742640</font></p>

<p align="center"><font size="3" face="Times New Roman"><br />
 </font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td colspan="2" valign="top">
<p align="center"><font size="3" face="Times New Roman">Pacific Gas
and Electric
Company&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br />
 77 Beale Street, P. O. Box
770000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br />
 San Francisco,
California&nbsp;&nbsp;94177&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" face="Times New Roman">PG&amp;E
Corporation<br />
 One Market, Spear Tower, Suite 2400<br />
 San Francisco, California&nbsp;&nbsp;94105</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><font size="3" face="Times New Roman"></font></p>

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><font size="3" face="Times New Roman">(Address of
principal executive offices) (Zip Code)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><font size="3" face="Times New Roman"><br />
 </font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td colspan="2" valign="top">
<p align="center"><font size="3" face="Times New Roman">Pacific Gas
and Electric Company<br />
 (415) 973-7000</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" face="Times New Roman">PG&amp;E
Corporation<br />
 (415) 267-7000</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><font size="3" face=
"Times New Roman">(Registrant's telephone number, including area
code)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>
</table>
</div>

<font size="3" face="Times New Roman"><br clear="all" />
</font>

<div align="center"><font size="3" face="Times New Roman"></font>
<hr size="2" width="100%" align="center" />
</div>

<font size="3" face="Times New Roman"><br clear="all" />
</font>

<table border="0" cellspacing="0" cellpadding="0" width="643">
<tr>
<td valign="top">
<p><font size="3" face="Times New Roman">Item 5.</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">Other Events and
Regulation FD Disclosure</font></p>
</td>
</tr>

<tr>
<td valign="top" height="20"></td>
<td valign="top" height="20"></td>
</tr>

<tr>
<td valign="top">
<p><font size="3" face="Times New Roman">A.</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">Pacific Gas and Electric
Company&rsquo;s 2003 General Rate Case</font></p>
</td>
</tr>
</table>

<p><font size="3" face="Times New Roman"></font></p>

<table border="0" cellspacing="0" cellpadding="0" width="643">
<tr>
<td valign="top" width="2010">
<p style="text-indent: 30"><font size="3" face="Times New Roman">On May 27, 2004, the
California Public Utilities Commission (CPUC) voted 5 to 0 to
approve a decision in Pacific Gas and Electric Company&rsquo;s
(Utility) 2003 general rate case (GRC) that determines the amount
of authorized base revenues the Utility can collect from customers
to recover its basic business and operational costs for electricity
and natural gas distribution operations and for electricity
generation operations for 2003 and succeeding years.&nbsp; The
decision approves the July 2003 and September 2003 settlement
agreements reached among the Utility and various consumer groups,
including the terms of the settlement agreements that provide for
an attrition adjustment in 2004, 2005 and 2006 based on changes in
the Consumer Price Index (CPI), subject to a minimum and maximum
attrition adjustment amount in each year.&nbsp; The decision is
retroactive to January 1, 2003.</font></p>
</td>
</tr>

<tr>
<td valign="top" height="20"></td>
</tr>

<tr>
<td valign="top">
<p style="text-indent: 30"><font size="3" face="Times New Roman">In accordance with the
settlement agreements, the Utility&rsquo;s total 2003 revenue
requirements are approximately:</font></p>
</td>
</tr>

<tr>
<td valign="top" height="20"></td>
</tr>

<tr>
<td valign="top">
<ul>
  <li>
    <p>$2.5 billion for electric distribution operations, representing
a $236 million increase over the last authorized amount;&nbsp;</p>
  </li>
</ul>
</td>
</tr>

<tr>
<td valign="top">
<ul>
  <li>
    <p>$927 million for natural gas distribution operations,
representing a $52 million increase over the last authorized
amount; and</p>
  </li>
</ul>
</td>
</tr>

<tr>
<td valign="top">
<ul>
  <li>
    <p>$912 million for electricity generation operations, representing
a $38 million increase over the last authorized amount.</p>
  </li>
</ul>
</td>
</tr>

<tr>
<td valign="top" height="20"></td>
</tr>

<tr>
<td valign="top">
<p style="text-indent: 30"><font size="3" face="Times">The minimum attrition adjustments
for electricity and natural gas distribution revenue requirements
for 2004, 2005 and 2006 are 2.00 percent, 2.25 percent and 3.00
percent, respectively.&nbsp; The minimum attrition adjustments for
electricity generation revenue requirements for 2004, 2005 and 2006
are 1.50 percent, 1.50 percent and 2.50 percent,
respectively.&nbsp; The maximum attrition adjustments for
electricity and natural gas distribution revenue requirements for
2004, 2005 and 2006 </font> <font size="3" face="Times New Roman"> are</font><font size="3" face="Times"> 3.00 percent, 3.25 percent and 4.00
percent, respectively.&nbsp; The maximum attrition adjustments for
electricity generation revenue requirements for 2004, 2005 and 2006
are 3.00 percent, 3.00 percent and 4.00 percent,
respectively.&nbsp; In addition, if the Utility forecasts a second
refueling outage at the Diablo Canyon nuclear power plant in any
one year the generation revenue requirement will be increased to
reflect a fixed revenue requirement of $32 million</font> per
refueling outage, adjusted for changes in the CPI.&nbsp; <font
face="Times">The aggregate attrition adjustment for 2004 is
approximately $82 million (excluding the $32 million allowance for
a second refueling outage in 2004) based on the minimum attrition
adjustments.&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" height="20"></td>
</tr>

<tr>
<td valign="top">
<p style="text-indent: 30"><font size="3" face="Times New Roman">The approximate $799
million annual electric rate reduction that went into effect on
March 1, 2004, pursuant to the rate design settlement agreement
reached in February 2004, already reflects the revenue requirement
changes resulting from the CPUC&rsquo;s final GRC decision.&nbsp;
As previously disclosed, the Utility expects to record regulatory
assets and liabilities as of June 30, 2004, associated with the
revenue requirement increases (including attrition), recovery of
unfunded taxes, depreciation, and decommissioning.&nbsp; As a
result, the Utility expects that there will be a positive net
impact related to the above of approximately $400 million on the
Utility&rsquo;s pre-tax earnings.</font></p>
</td>
</tr>
</table>

<font size="3" face="Times New Roman"><br clear="all" />
</font>

<table border="0" cellspacing="0" cellpadding="0" width="643">
<tr>
<td valign="top">
<p align="center"><font size="3" face=
"Times New Roman">SIGNATURE</font></p>
</td>
</tr>

<tr>
<td valign="top" height="20"></td>
</tr>

<tr>
<td valign="top">
<p><font size="3" face="Times New Roman">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.</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
</tr>
</table>

<p><font size="3" face="Times New Roman"></font></p>

<table border="0" cellspacing="0" cellpadding="0" width="643">
<tr height="86">
<td height="30" valign="top">
<p><font size="3" face=
"Times New Roman">&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;</font></p>
</td>
<td height="30" valign="top">
<p><font size="3" face="Times New Roman">PG&amp;E CORPORATION
 </font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="3" face=
"Times New Roman">&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;</font></p>
</td>
<td valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CHRISTOPHER
P. JOHNS</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td valign="top">
<p><font size="3" face=
"Times New Roman">&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;</font></p>
</td>
<td valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Christopher
P. Johns<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President and
Controller</font></p>

<p><font size="3" face="Times New Roman"><br />
 </font></p>
</td>
</tr>

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

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

<tr height="30">
<td height="30" valign="top">
<p><font size="3" face=
"Times New Roman">&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;</font></p>
</td>
<td height="30" valign="top">
<p><font size="3" face="Times New Roman">PACIFIC GAS AND ELECTRIC
COMPANY<br />
 </font></p>

</td>
</tr>

<tr height="25">
<td height="25" valign="top">
<p><font size="3" face=
"Times New Roman">&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;</font></p>
</td>
<td height="25" valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LINDA
Y.H. CHENG</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td valign="top">
<p><font size="3" face=
"Times New Roman">&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;</font></p>
</td>
<td valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Linda
Y.H. Cheng<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate
Secretary</font></p>
</td>
</tr>

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

<tr>
<td valign="top">
<p><font size="3" face="Times New Roman">Dated:&nbsp; May 28,
2004</font></p>
</td>
<td valign="top"></td>
</tr>
</table>

<p><font size="3" face="Times New Roman"></font></p>

<p><font size="3" face="Times New Roman"></font></p>

<p><font size="2" face="Times New Roman"></font></p>
</body>
</html>
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{"company-data": {"conformed-name": "PG&E CORP", "cik": "0001004980", "assigned-sic": "4931", "irs-number": "943234914", "state-of-incorporation": "CA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-12609", "film-number": "04838926"}, "business-address": {"street1": "ONE MARKET SPEAR TOWER", "street2": "SUITE 2400", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105", "phone": "4152677000"}, "mail-address": {"street1": "ONE MARKET SPEAR TOWER", "street2": "SUITE 2400", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105"}, "former-company": {"former-conformed-name": "PG&E PARENT CO INC", "date-changed": "19951214"}}
PG&E Corp. and Pacific Gas and Electric Co. 8-K dated
May 28, 2004
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: May 28, 2004
Commission
File
Number
Exact Name
of
Registrant
as specified in
its charter
State or other
Jurisdiction of
Incorporation
IRS Employer
Identification
Number
_____________
_____________
_____________
_____________
1-12609
1-2348
PG&E
Corporation
Pacific Gas
and
Electric Company
California
California
94-3234914
94-0742640
Pacific Gas
and Electric
Company
77 Beale Street, P. O. Box
770000
San Francisco,
California  94177
PG&E
Corporation
One Market, Spear Tower, Suite 2400
San Francisco, California  94105
(Address of
principal executive offices) (Zip Code)
Pacific Gas
and Electric Company
(415) 973-7000
PG&E
Corporation
(415) 267-7000
(Registrant's telephone number, including area
code)
Item 5.
Other Events and
Regulation FD Disclosure
A.
Pacific Gas and Electric
Company's 2003 General Rate Case
On May 27, 2004, the
California Public Utilities Commission (CPUC) voted 5 to 0 to
approve a decision in Pacific Gas and Electric Company's
(Utility) 2003 general rate case (GRC) that determines the amount
of authorized base revenues the Utility can collect from customers
to recover its basic business and operational costs for electricity
and natural gas distribution operations and for electricity
generation operations for 2003 and succeeding years.  The
decision approves the July 2003 and September 2003 settlement
agreements reached among the Utility and various consumer groups,
including the terms of the settlement agreements that provide for
an attrition adjustment in 2004, 2005 and 2006 based on changes in
the Consumer Price Index (CPI), subject to a minimum and maximum
attrition adjustment amount in each year.  The decision is
retroactive to January 1, 2003.
In accordance with the
settlement agreements, the Utility's total 2003 revenue
requirements are approximately:
$2.5 billion for electric distribution operations, representing
a $236 million increase over the last authorized amount;
$927 million for natural gas distribution operations,
representing a $52 million increase over the last authorized
amount; and
$912 million for electricity generation operations, representing
a $38 million increase over the last authorized amount.
The minimum attrition adjustments
for electricity and natural gas distribution revenue requirements
for 2004, 2005 and 2006 are 2.00 percent, 2.25 percent and 3.00
percent, respectively.  The minimum attrition adjustments for
electricity generation revenue requirements for 2004, 2005 and 2006
are 1.50 percent, 1.50 percent and 2.50 percent,
respectively.  The maximum attrition adjustments for
electricity and natural gas distribution revenue requirements for
2004, 2005 and 2006
are
3.00 percent, 3.25 percent and 4.00
percent, respectively.  The maximum attrition adjustments for
electricity generation revenue requirements for 2004, 2005 and 2006
are 3.00 percent, 3.00 percent and 4.00 percent,
respectively.  In addition, if the Utility forecasts a second
refueling outage at the Diablo Canyon nuclear power plant in any
one year the generation revenue requirement will be increased to
reflect a fixed revenue requirement of $32 million
per
refueling outage, adjusted for changes in the CPI.
The aggregate attrition adjustment for 2004 is
approximately $82 million (excluding the $32 million allowance for
a second refueling outage in 2004) based on the minimum attrition
adjustments.
The approximate $799
million annual electric rate reduction that went into effect on
March 1, 2004, pursuant to the rate design settlement agreement
reached in February 2004, already reflects the revenue requirement
changes resulting from the CPUC's final GRC decision. 
As previously disclosed, the Utility expects to record regulatory
assets and liabilities as of June 30, 2004, associated with the
revenue requirement increases (including attrition), recovery of
unfunded taxes, depreciation, and decommissioning.  As a
result, the Utility expects that there will be a positive net
impact related to the above of approximately $400 million on the
Utility's pre-tax earnings.
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
CHRISTOPHER
P. JOHNS
Christopher
P. Johns
Senior Vice President and
Controller
PACIFIC GAS AND ELECTRIC
COMPANY
LINDA
Y.H. CHENG
Linda
Y.H. Cheng
Corporate
Secretary
Dated:  May 28,
2004