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<title>Form 8-K dated September 10, 2003</title>
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<p align="center"><font size="3" face="Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<p align="center"><font size="3" face="Times New Roman">Washington,
D.C.&nbsp; 20549</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<p align="center"><font size="3" face="Times New Roman">FORM
8-K</font></p>
</td>
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<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
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<td colspan="4" valign="top">
<p align="center"><font size="3" face="Times New Roman">CURRENT
REPORT</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<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>
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<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
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<td colspan="4" valign="top">
<p align="center"><font size="3" face="Times New Roman">Date of
Report: September 10, 2003</font></p>
</td>
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<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
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<td colspan="4" valign="top">
<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
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<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>
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<tr>
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<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>
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<tr>
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<p align="center"><font size="3" face=
"Times New Roman">1-12609</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</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</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</font></p>

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

<tr>
<td valign="top">
<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
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<tr>
<td colspan="2" valign="top">
<p align="center"><font size="3" face="Times New Roman">Pacific Gas
and Electric Company<br />
 77 Beale Street, P. O. Box 770000<br />
 San Francisco, California&nbsp;&nbsp;94177</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 align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
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<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">&nbsp;&nbsp;&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<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 align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>
</table>

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

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

<p><font size="3" face="Times New Roman">Item 5. Other
Events</font></p>

<p><u><font size="3" face="Times New Roman">California Department
of Water Resources&rsquo; (DWR) 2003 Revenue
Requirement</font></u></p>

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
September 4, 2003, the California Public Utilities Commission
(CPUC) approved two decisions relating to the California Department
of Water Resources&rsquo; (DWR) revenue requirements.</font></p>

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
first decision establishes an amount payable by the Utility to the
DWR of approximately $526 million, the amount the DWR estimates the
Utility owes the DWR for under-remittances, for which the Utility
has accrued $516 million at June 30, 2003.&nbsp;&nbsp; The decision
also requires the DWR to provide the Utility with an updated
estimate of the amount of under-remittances and to pay interest on
this amount.&nbsp; The decision directs the Utility and the DWR to
negotiate to determine the appropriate interest amount, subject to
the authority of the CPUC to resolve any dispute.&nbsp; The
decision requires that the interest payment be funded by the
Utility&rsquo;s shareholders.</font></p>

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
second decision allocates the DWR&rsquo;s $1 billion DWR state-wide
revenue requirement reduction among the three California
investor-owned utilities, based on the DWR&rsquo;s 2003
supplemental revenue requirement.&nbsp; The decision allocates
approximately $444 million of the reduction to the Utility&rsquo;s
customers and requires the Utility to provide a one-time bill
credit to its customers to pass through the revenue requirement
reduction within 45 days.&nbsp; The Utility is required to make an
accounting entry to place $444 million in a newly established
interest-bearing Customer Credit Holding Account (CCHA) to be held
in trust for the DWR and to fund the bill credits.&nbsp; As bill
credits are provided, the balance in the CCHA will be
reduced.&nbsp;</font></p>

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
decision also orders the Utility to immediately remit to the DWR
approximately $82 million, which is the difference between $526
million, the DWR&rsquo;s estimated under-remittance amount
determined to be due to the DWR under the first decision, and the
$444 million DWR revenue requirement reduction.&nbsp; On September
9, 2003, the DWR delivered an invoice to the Utility requesting
payment of $77 million, which reflects the DWR&rsquo;s updated
estimate of $521 million for the amount the Utility owes the
DWR.</font></p>

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
decision also reduces the Utility&rsquo;s DWR power charge
remittance rate from the current 10.5 cents per kilowatt-hour (kWh)
to 9.5 cents per kWh effective immediately to reflect updated
information that the DWR provided to the CPUC regarding allocation
of its revised 2003 revenue requirements among customers of the
utilities.&nbsp; This reduction in the remittance rate is in
addition to the $444 million reduction described above.</font></p>

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August 25, 2003, the Utility informed the CPUC that a one time bill
credit would reduce the Utility&rsquo;s cash balance at the
effective date of its proposed bankruptcy settlement by
approximately $265 million (after tax) compared to the cash balance
assumed in the financial projections for the settlement.&nbsp; In
this regard, the decision states that it is not intended to be
inconsistent with the proposed bankruptcy settlement, adversely
affect the revenues and ratemaking necessary to implement the
settlement if approved by the CPUC, or limit or preclude any
particular decision the CPUC may ultimately make in its
consideration of the proposed settlement. <b>&nbsp;</b> The
Utility's financial forecasts of the cash projected to be available
at the effective date of the proposed plan of reorganization also
are subject to change based on other variables that are expected to
largely offset the decrease due to the one-time bill
credit.</font></p>

<p><u><font size="3" face="Times New Roman">Utility&rsquo;s
Bankruptcy Proceeding</font></u></p>

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
September 8, 2003, at a status conference, the U.S. Bankruptcy
Court for the Northern District of California determined that the
confirmation trial in the Utility's Chapter 11 proceeding would
start on November 10, 2003, rather than November 3, 2003 as
previously disclosed.&nbsp; The Court indicated it would set
further trial dates at a status conference to be held on October 8,
2003. The Court also indicated that it would decide whether to
impose time limits on witness presentation during the confirmation
trial at the October 8, 2003 status conference.&nbsp; Finally, the
Court set October 16, 2003 as the hearing date for any summary
judgment motions that may be filed.&nbsp; Any summary judgment
motions must be filed by September 26, 2003.</font></p>

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
September 10, 2003, CPUC hearings began in the CPUC&rsquo;s
proceeding to consider the proposed settlement agreement and are
expected to conclude on September 29, 2003.</font></p>

<p><u><font size="3" face="Times New Roman">PG&amp;E National
Energy Group, Inc. Bankruptcy</font></u></p>

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
previously disclosed, in May 2003, PG&amp;E Corporation received a
return of $533 million from the federal government for an
overpayment of 2002 estimated federal income taxes resulting from
losses and deductions incurred at PG&amp;E Corporation, the Utility
and PG&amp;E National Energy Group, Inc. (NEG) or its subsidiaries,
of which approximately $361.5 million is related to losses and
deductions of NEG or its subsidiaries that were incorporated into
PG&amp;E Corporation&rsquo;s 2002 consolidated federal income tax
return.&nbsp; As previously disclosed, a claim has been asserted on
behalf of NEG's estate that NEG is entitled to be compensated for
any tax savings achieved by PG&amp;E Corporation as a result of the
incorporation of NEG's losses and deductions in PG&amp;E
Corporation's consolidated federal tax return under an alleged
implied tax sharing agreement between PG&amp;E Corporation and NEG
or otherwise.&nbsp; NEG filed a complaint initially under seal in
the U.S. Bankruptcy Court for the District of Maryland, Greenbelt
Division, in which NEG alleges that it has a direct interest in
$361 million of the funds received by PG&amp;E Corporation based on
a purported implied tax sharing agreement.&nbsp; Without prior
notice to PG&amp;E Corporation, NEG also obtained a temporary
restraining order (TRO) from the Bankruptcy Court temporarily
prohibiting PG&amp;E Corporation from using such funds and filed a
motion for a preliminary injunction seeking an order to continue to
enjoin PG&amp;E Corporation from using such funds.&nbsp; As
previously disclosed, PG&amp;E Corporation denies that any tax
sharing agreement, whether implied or express, ever existed and
denies that it has any obligation to compensate NEG for the
incorporation of its or its subsidiaries' losses and deductions
into PG&amp;E Corporation's consolidated federal tax returns, as
required under the Internal Revenue Code.&nbsp; Nevertheless, as
previously disclosed, any adjudication of NEG&rsquo;s claim will be
subject to resolution in the pending litigation.&nbsp;
Consequently, until the dispute is resolved, PG&amp;E Corporation
is treating $361.5 million of the amount received by PG&amp;E
Corporation as restricted cash.&nbsp; On September 5, 2003,
PG&amp;E Corporation reached an agreement with NEG and its
creditors pursuant to which the TRO will be dissolved, NEG's motion
for a preliminary injunction will be withdrawn, and PG&amp;E
Corporation will provide NEG ten business days advance notice
before voluntarily allowing the cash balance in its institutional
money market accounts to drop below $361.5 million or otherwise
pledging such amount.&nbsp; Further, on September 5, 2003, the
Bankruptcy Court set a trial schedule for NEG&rsquo;s complaint
that calls for a trial to begin in July 2004.</font></p>

<table border="0" cellspacing="0" cellpadding="0">
<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">SIGNATURE</font></p>
</td>
</tr>
</table>

<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>

<table border="0" cellspacing="0" cellpadding="0">
<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">PG&amp;E CORPORATION<br />
 &nbsp;&nbsp;&nbsp;&nbsp;</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">By:&nbsp; CHRISTOPHER P.
JOHNS</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;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></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<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President
and Controller</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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">PACIFIC GAS AND ELECTRIC
COMPANY<br />
 &nbsp;&nbsp;&nbsp;&nbsp;</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">By:&nbsp;DINYAR B.
MISTRY</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;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></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;DINYAR
B. MISTRY</font></p>

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice
President and Controller&nbsp;</font></p>
</td>
</tr>
</table>

<p><font size="3" face="Times New Roman">Dated:&nbsp; September 10,
2003</font></p>
</div>
</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": "03890501"}, "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"}}
Form 8-K dated September 10, 2003
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: September 10, 2003
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
California Department
of Water Resources' (DWR) 2003 Revenue
Requirement
On
September 4, 2003, the California Public Utilities Commission
(CPUC) approved two decisions relating to the California Department
of Water Resources' (DWR) revenue requirements.
The
first decision establishes an amount payable by the Utility to the
DWR of approximately $526 million, the amount the DWR estimates the
Utility owes the DWR for under-remittances, for which the Utility
has accrued $516 million at June 30, 2003.   The decision
also requires the DWR to provide the Utility with an updated
estimate of the amount of under-remittances and to pay interest on
this amount.  The decision directs the Utility and the DWR to
negotiate to determine the appropriate interest amount, subject to
the authority of the CPUC to resolve any dispute.  The
decision requires that the interest payment be funded by the
Utility's shareholders.
The
second decision allocates the DWR's $1 billion DWR state-wide
revenue requirement reduction among the three California
investor-owned utilities, based on the DWR's 2003
supplemental revenue requirement.  The decision allocates
approximately $444 million of the reduction to the Utility's
customers and requires the Utility to provide a one-time bill
credit to its customers to pass through the revenue requirement
reduction within 45 days.  The Utility is required to make an
accounting entry to place $444 million in a newly established
interest-bearing Customer Credit Holding Account (CCHA) to be held
in trust for the DWR and to fund the bill credits.  As bill
credits are provided, the balance in the CCHA will be
reduced.
The
decision also orders the Utility to immediately remit to the DWR
approximately $82 million, which is the difference between $526
million, the DWR's estimated under-remittance amount
determined to be due to the DWR under the first decision, and the
$444 million DWR revenue requirement reduction.  On September
9, 2003, the DWR delivered an invoice to the Utility requesting
payment of $77 million, which reflects the DWR's updated
estimate of $521 million for the amount the Utility owes the
DWR.
The
decision also reduces the Utility's DWR power charge
remittance rate from the current 10.5 cents per kilowatt-hour (kWh)
to 9.5 cents per kWh effective immediately to reflect updated
information that the DWR provided to the CPUC regarding allocation
of its revised 2003 revenue requirements among customers of the
utilities.  This reduction in the remittance rate is in
addition to the $444 million reduction described above.
On
August 25, 2003, the Utility informed the CPUC that a one time bill
credit would reduce the Utility's cash balance at the
effective date of its proposed bankruptcy settlement by
approximately $265 million (after tax) compared to the cash balance
assumed in the financial projections for the settlement.  In
this regard, the decision states that it is not intended to be
inconsistent with the proposed bankruptcy settlement, adversely
affect the revenues and ratemaking necessary to implement the
settlement if approved by the CPUC, or limit or preclude any
particular decision the CPUC may ultimately make in its
consideration of the proposed settlement.
The
Utility's financial forecasts of the cash projected to be available
at the effective date of the proposed plan of reorganization also
are subject to change based on other variables that are expected to
largely offset the decrease due to the one-time bill
credit.
Utility's
Bankruptcy Proceeding
On
September 8, 2003, at a status conference, the U.S. Bankruptcy
Court for the Northern District of California determined that the
confirmation trial in the Utility's Chapter 11 proceeding would
start on November 10, 2003, rather than November 3, 2003 as
previously disclosed.  The Court indicated it would set
further trial dates at a status conference to be held on October 8,
2003. The Court also indicated that it would decide whether to
impose time limits on witness presentation during the confirmation
trial at the October 8, 2003 status conference.  Finally, the
Court set October 16, 2003 as the hearing date for any summary
judgment motions that may be filed.  Any summary judgment
motions must be filed by September 26, 2003.
On
September 10, 2003, CPUC hearings began in the CPUC's
proceeding to consider the proposed settlement agreement and are
expected to conclude on September 29, 2003.
PG&E National
Energy Group, Inc. Bankruptcy
As
previously disclosed, in May 2003, PG&E Corporation received a
return of $533 million from the federal government for an
overpayment of 2002 estimated federal income taxes resulting from
losses and deductions incurred at PG&E Corporation, the Utility
and PG&E National Energy Group, Inc. (NEG) or its subsidiaries,
of which approximately $361.5 million is related to losses and
deductions of NEG or its subsidiaries that were incorporated into
PG&E Corporation's 2002 consolidated federal income tax
return.  As previously disclosed, a claim has been asserted on
behalf of NEG's estate that NEG is entitled to be compensated for
any tax savings achieved by PG&E Corporation as a result of the
incorporation of NEG's losses and deductions in PG&E
Corporation's consolidated federal tax return under an alleged
implied tax sharing agreement between PG&E Corporation and NEG
or otherwise.  NEG filed a complaint initially under seal in
the U.S. Bankruptcy Court for the District of Maryland, Greenbelt
Division, in which NEG alleges that it has a direct interest in
$361 million of the funds received by PG&E Corporation based on
a purported implied tax sharing agreement.  Without prior
notice to PG&E Corporation, NEG also obtained a temporary
restraining order (TRO) from the Bankruptcy Court temporarily
prohibiting PG&E Corporation from using such funds and filed a
motion for a preliminary injunction seeking an order to continue to
enjoin PG&E Corporation from using such funds.  As
previously disclosed, PG&E Corporation denies that any tax
sharing agreement, whether implied or express, ever existed and
denies that it has any obligation to compensate NEG for the
incorporation of its or its subsidiaries' losses and deductions
into PG&E Corporation's consolidated federal tax returns, as
required under the Internal Revenue Code.  Nevertheless, as
previously disclosed, any adjudication of NEG's claim will be
subject to resolution in the pending litigation. 
Consequently, until the dispute is resolved, PG&E Corporation
is treating $361.5 million of the amount received by PG&E
Corporation as restricted cash.  On September 5, 2003,
PG&E Corporation reached an agreement with NEG and its
creditors pursuant to which the TRO will be dissolved, NEG's motion
for a preliminary injunction will be withdrawn, and PG&E
Corporation will provide NEG ten business days advance notice
before voluntarily allowing the cash balance in its institutional
money market accounts to drop below $361.5 million or otherwise
pledging such amount.  Further, on September 5, 2003, the
Bankruptcy Court set a trial schedule for NEG's complaint
that calls for a trial to begin in July 2004.
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:  CHRISTOPHER P.
JOHNS
CHRISTOPHER
P. JOHNS
Senior Vice President
and Controller
PACIFIC GAS AND ELECTRIC
COMPANY
By: DINYAR B.
MISTRY
DINYAR
B. MISTRY
Vice
President and Controller
Dated:  September 10,
2003