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<title>SECURITIES AND EXCHANGE COMMISSION</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><font size="3" face="Times New Roman"><br />
 </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><font size="3" face="Times New Roman"><br />
 </font></p>
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<p align="center"><font size="3" face="Times New Roman">FORM
8-K</font></p>
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<p><font size="3" face="Times New Roman"><br />
 </font></p>
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<p align="center"><font size="3" face="Times New Roman">CURRENT
REPORT</font></p>
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<p><font size="3" face="Times New Roman"><br />
 </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><font size="3" face="Times New Roman"><br />
 </font></p>
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<p align="center"><font size="3" face="Times New Roman">Date of
Report: November 19, 2003</font></p>
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<p><font size="3" face="Times New Roman"><br />
 </font></p>
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<p align="center"><font size="3" face="Times New Roman"><br />
 Commission<br />
 File<br />
 Number</font></p>
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<p align="center"><font size="3" face="Times New Roman">Exact Name
of<br />
 Registrant<br />
 as specified in<br />
 its charter</font></p>
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<p align="center"><font size="3" face="Times New Roman"><br />
 State or other<br />
 Jurisdiction of<br />
 Incorporation</font></p>
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<p align="center"><font size="3" face="Times New Roman"><br />
 IRS Employer<br />
 &nbsp; Identification<br />
 Number</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">_____________</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">_____________</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">_____________</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">_____________</font></p>
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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>
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<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>
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<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>

<p align="center"><font size="3" face="Times New Roman"><br />
 </font></p>
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<p align="center"><font size="3" face="Times New Roman"><br />
 </font></p>
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<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>
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<p><font size="3" face="Times New Roman"><br />
 </font></p>
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<p align="center"><font size="3" face="Times New Roman">(Address of
principal executive offices) (Zip Code)</font></p>
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<p align="center"><font size="3" face="Times New Roman"><br />
 </font></p>
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<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>
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<p align="center"><font size="3" face="Times New Roman"><br />
 </font></p>
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<p align="center"><font size="3" face=
"Times New Roman">(Registrant's telephone number, including area
code)</font></p>
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</font>

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

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

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

<p><font size="3" face=
"Times New Roman">A.&nbsp;&nbsp;&nbsp;Proposed Decisions Regarding
Proposed Settlement Agreement</font></p>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
previously disclosed, PG&amp;E Corporation, its subsidiary, Pacific
Gas and Electric Company (Utility), and the staff of the California
Public Utilities Commission (CPUC) announced a proposed settlement
agreement (Settlement Agreement) to jointly support a new plan of
reorganization (Settlement Plan) submitted to the U.S. Bankruptcy
Court for the Northern District of California (Bankruptcy Court)
where the Utility&rsquo;s proceeding commenced under Chapter 11 of
the U.S. Bankruptcy Code is pending.&nbsp; To become effective,
among other conditions, the Settlement Agreement must be entered
into by the CPUC by December 31, 2003.&nbsp; CPUC hearings to
consider the Settlement Agreement were completed on September 26,
2003.</font></p>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
November 18, 2003, the CPUC administrative law judge (ALJ) who
presided at the hearings issued a proposed decision regarding the
Settlement Agreement.&nbsp; Additionally, the CPUC Commissioner
assigned to the proceeding, who is also the President of the CPUC,
issued two alternate proposed decisions (Alternate Decision 1 and
Alternate Decision 2).&nbsp; In its November 19, 2003 press
release, the CPUC stated that the assigned Commissioner preferred
Alternate Decision 2.&nbsp; All three proposed decisions would find
that the regulatory asset and rates resulting from the Settlement
Agreement would be reasonable.&nbsp; However, the ALJ&rsquo;s
proposed decision and Alternate Decision 2&nbsp; recommend
modifications to the Settlement Agreement.&nbsp; All three proposed
decisions were issued for the CPUC to consider at its regular
meeting to be held on December 18, 2003.&nbsp; The CPUC has
scheduled oral arguments in the case on December 2, 2003.&nbsp;
Comments by interested parties are due by December 8, 2003, and
reply comments are due by December 15, 2003.&nbsp; The CPUC&rsquo;s
press release stated that other CPUC Commissioners may issue their
own alternate decisions by December 4, 2003, with comments due by
December 11, 2003.&nbsp; The CPUC may accept, reject or modify any
proposed or alternate decision.&nbsp; PG&amp;E Corporation and the
Utility are unable to predict the outcome of this
matter.</font></p>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>
ALJ&rsquo;s Proposed Decision.</u>&nbsp; The ALJ&rsquo;s proposed
decision recommends that the CPUC reject the Settlement Agreement
and approve a modified settlement agreement.&nbsp; The ALJ&rsquo;s
proposed decision would conclude that the CPUC lacks authority to
agree to be bound by the Settlement Agreement and the Settlement
Plan.&nbsp; Therefore, the ALJ&rsquo;s proposed decision would
modify the Settlement Agreement by deleting provisions of the
Settlement Agreement that provide that (a) the Settlement Agreement
and the Settlement Plan would be irrevocable and binding upon the
parties, notwithstanding any future decisions or orders of the CPUC
or contrary state law, and (b) the Bankruptcy Court would retain
jurisdiction over the Settlement Agreement and the Settlement Plan
for purposes of enforcement.&nbsp; The ALJ&rsquo;s proposed
decision would state that the CPUC intends that all future
Commissions should recognize and give all possible consideration
and weight to the fact that the modified settlement agreement has
been approved based upon the expectations and reasonable reliance
of the parties and the CPUC that all of its terms and conditions
would remain in effect for the full term of the agreement and would
be implemented by future Commissions.</font></p>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
ALJ&rsquo;s proposed decision recommends that the following
provisions also be deleted from the Settlement
Agreement:</font></p>

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

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<p><font size="3" face=
"Times New Roman">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;<br />
 </font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">The provision which
acknowledges that in order for the benefits of the Settlement
Agreement to be realized, both the Utility and PG&amp;E Corporation
must be able to pay dividends and repurchase stock when
appropriate, and which states that the parties agree that, other
than the capital structure and stand-alone dividend conditions
contained in prior CPUC decisions authorizing the formation of
PG&amp;E Corporation, the CPUC would not restrict the ability of
the boards of directors of either the Utility or PG&amp;E
Corporation to declare and pay dividends or repurchase common
stock.</font></p>
</td>
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<td valign="top">
<p><font size="3" face="Times New Roman"><br />
 </font></p>
</td>
<td valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font size="3" face=
"Times New Roman">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;<br />
 </font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">The provision under which
the CPUC would agree to act to facilitate and maintain investment
grade credit ratings for the Utility.</font></p>
</td>
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<td valign="top">
<p><font size="3" face="Times New Roman"><br />
 </font></p>
</td>
<td valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font size="3" face=
"Times New Roman">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;<br />
 </font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">The provision which
precludes the waiver of the requirement in the Settlement Plan that
Standard and Poor&rsquo;s and Moody&rsquo;s Investor&rsquo;s
Service, Inc. shall have issued investment grade company credit
ratings for the Utility as a condition precedent to the effective
date of the Settlement Plan.</font></p>
</td>
</tr>

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

<tr>
<td valign="top">
<p><font size="3" face=
"Times New Roman">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;<br />
 </font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">The provisions which state
the parties&rsquo; intent that the Utility emerge from Chapter 11
with an investment grade company rating, that the Utility&rsquo;s
company credit rating should improve over time, and that the CPUC
be required to provide timely and full recovery of the
Utility&rsquo;s reasonable costs of providing utility service over
the term of the Settlement Agreement.</font></p>
</td>
</tr>

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

<tr>
<td valign="top">
<p><font size="3" face=
"Times New Roman">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;<br />
 </font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">The provision which
precludes the Settlement Plan from including the issuance of any
new preferred or common stock.</font></p>
</td>
</tr>
</table>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
ALJ&rsquo;s proposed decision also would require the Utility to
increase its funding to support environmental enhancement
activities to $100 million over 10 years, as compared to $70
million proposed in the Settlement Agreement.&nbsp; The Utility
would be authorized to recover the $100 million in its retail rates
without further review.&nbsp; The ALJ&rsquo;s proposed decision
also would require the Utility to increase its funding to support
research and investment in clean energy technology to $30 million
over five years, as compared to $15 million proposed in the
Settlement Agreement.&nbsp; The funds to support clean energy
technology and investment would not be recoverable in retail
rates.</font></p>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>
Alternate Decisions 1 and 2</u>.&nbsp; Both Alternate Decisions 1
and 2 would find that the CPUC has the authority to enter into a
settlement agreement and bind future Commissions and that the
Bankruptcy Court has jurisdiction to enforce it.&nbsp;</font></p>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alternate
Decision 1 recommends that the CPUC approve the Settlement
Agreement without change.</font></p>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alternate
Decision 2, which the Assigned Commissioner prefers, recommends
that the following provisions be deleted from the Settlement
Agreement:<br />
 </font></p>

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<tr>
<td valign="top">
<p><font size="3" face=
"Times New Roman">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;<br />
 </font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">The provision which
acknowledges that in order for the benefits of the Settlement
Agreement to be realized, both the Utility and PG&amp;E Corporation
must be able to pay dividends and repurchase stock when appropriate
and which states that the parties agree that, other than the
capital structure and stand-alone dividend conditions contained in
prior CPUC decisions authorizing the formation of PG&amp;E
Corporation, the CPUC would not restrict the ability of the boards
of directors of either the Utility or PG&amp;E Corporation to
declare and pay dividends or repurchase common stock.</font></p>
</td>
</tr>

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

<tr>
<td valign="top">
<p><font size="3" face=
"Times New Roman">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;<br />
 </font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">The phrase
&ldquo;notwithstanding any contrary state law&rdquo; from the
provisions which state that the Settlement Agreement, the
Settlement Plan, and the confirmation order would be enforceable in
accordance with federal law, notwithstanding any contrary state
law.&nbsp; Alternate Decision 2 explains that the CPUC can only
enter into a settlement agreement if it is consistent with state
law,</font> and that the phrase is therefore irrelevant<font size=
"2" face="Arial">.</font></p>
</td>
</tr>
</table>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alternate
Decision 2 would clarify the provision of the Settlement Agreement
which states that the CPUC would agree to act to facilitate and
maintain investment grade credit ratings for the Utility.&nbsp; The
clarification would provide that the Settlement Agreement would be
interpreted so that the CPUC would not be obligated to guarantee
such a credit rating when there are other causes, besides the
CPUC&rsquo;s actions (e.g., the Utility&rsquo;s imprudent conduct
resulting in a disallowance), which are responsible for any threats
to the Utility&rsquo;s investment grade credit rating.</font></p>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alternate
Decision 2 would provide for the same additional funding for
support of environmental enhancements and clean energy technology
as provided in the ALJ&rsquo;s proposed decision.</font></p>

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

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

<p><font size="3" face=
"Times New Roman">B.&nbsp;&nbsp;&nbsp;Conclusion of Confirmation
Trial Testimony in Utility&rsquo;s Chapter 11 Proceeding</font></p>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
previously disclosed, the confirmation trial of the Settlement Plan
in the Bankruptcy Court began on November 10, 2003.&nbsp; On
November 17, 2003, testimony concluded in the trial after four days
of hearings.&nbsp; The Bankruptcy Court has scheduled closing
arguments on November 24, 2003.</font></p>

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

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

<p><font size="3" face="Times New Roman">C.&nbsp;&nbsp;&nbsp;Ninth
Circuit Preemption Decision</font></p>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
previously disclosed, in connection with the original plan of
reorganization filed by the Utility and PG&amp;E Corporation, on
May 14, 2003, the U.S. Court of Appeals for the Ninth Circuit
(Ninth Circuit) heard oral argument in the appeal filed by the CPUC
and other parties of the August 30, 2002, order issued by the U.S.
District Court for the Northern District of California (District
Court) finding that the U.S. Bankruptcy Code expressly preempts
"non-bankruptcy laws that would otherwise apply to bar, among other
things, transactions necessary to implement the reorganization
plan."&nbsp; The District Court order had reversed an earlier
ruling by the Bankruptcy Court which found that bankruptcy law did
not expressly preempt certain non-bankruptcy laws in connection
with the original plan of reorganization, but that it could
impliedly preempt non-bankruptcy laws in certain
circumstances.&nbsp;</font></p>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
November 19, 2003, the Ninth Circuit issued a decision agreeing
with the District Court&rsquo;s finding that a Chapter 11
reorganization plan expressly preempts otherwise applicable
non-bankruptcy laws.&nbsp; However, the Ninth Circuit ruled that
the scope of such express preemption is limited to those
non-bankruptcy laws relating to financial condition.&nbsp; The
Ninth Circuit determined that neither the Bankruptcy Court nor the
District Court had applied the proper standard of express
preemption.&nbsp; It therefore reversed the District Court&rsquo;s
August 30, 2002 decision and remanded the matter back to the
Bankruptcy Court for further proceedings to determine whether the
Utility&rsquo;s and PG&amp;E Corporation&rsquo;s original plan of
reorganization satisfied the express preemption standard announced
by the Ninth Circuit.</font></p>

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

<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
the Ninth Circuit stated that the question of implied preemption
was not before it in the appeal, it reaffirmed that implied
preemption could apply under the Bankruptcy Code, even if express
preemption did not.</font></p>

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

<p><font size="3" face="Times New Roman">The Settlement Agreement
discussed above does not rely on the bankruptcy law preemption
issues addressed in the Ninth Circuit decision.</font></p>

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

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

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

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<p><font size="3" face=
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<p><font size="3" face="Times New Roman">PACIFIC GAS AND ELECTRIC
COMPANY<br />
<br />
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<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>
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<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LINDA
Y.H. CHENG</font></p>
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<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>
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<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;&nbsp;Corporate
Secretary</font></p>
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<p><font size="3" face="Times New Roman">Dated:&nbsp; November 19,
2003</font></p>
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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": "031014188"}, "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"}}
SECURITIES AND EXCHANGE COMMISSION
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: November 19, 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
A.   Proposed Decisions Regarding
Proposed Settlement Agreement
As
previously disclosed, PG&E Corporation, its subsidiary, Pacific
Gas and Electric Company (Utility), and the staff of the California
Public Utilities Commission (CPUC) announced a proposed settlement
agreement (Settlement Agreement) to jointly support a new plan of
reorganization (Settlement Plan) submitted to the U.S. Bankruptcy
Court for the Northern District of California (Bankruptcy Court)
where the Utility's proceeding commenced under Chapter 11 of
the U.S. Bankruptcy Code is pending.  To become effective,
among other conditions, the Settlement Agreement must be entered
into by the CPUC by December 31, 2003.  CPUC hearings to
consider the Settlement Agreement were completed on September 26,
2003.
On
November 18, 2003, the CPUC administrative law judge (ALJ) who
presided at the hearings issued a proposed decision regarding the
Settlement Agreement.  Additionally, the CPUC Commissioner
assigned to the proceeding, who is also the President of the CPUC,
issued two alternate proposed decisions (Alternate Decision 1 and
Alternate Decision 2).  In its November 19, 2003 press
release, the CPUC stated that the assigned Commissioner preferred
Alternate Decision 2.  All three proposed decisions would find
that the regulatory asset and rates resulting from the Settlement
Agreement would be reasonable.  However, the ALJ's
proposed decision and Alternate Decision 2  recommend
modifications to the Settlement Agreement.  All three proposed
decisions were issued for the CPUC to consider at its regular
meeting to be held on December 18, 2003.  The CPUC has
scheduled oral arguments in the case on December 2, 2003. 
Comments by interested parties are due by December 8, 2003, and
reply comments are due by December 15, 2003.  The CPUC's
press release stated that other CPUC Commissioners may issue their
own alternate decisions by December 4, 2003, with comments due by
December 11, 2003.  The CPUC may accept, reject or modify any
proposed or alternate decision.  PG&E Corporation and the
Utility are unable to predict the outcome of this
matter.
ALJ's Proposed Decision.
The ALJ's proposed
decision recommends that the CPUC reject the Settlement Agreement
and approve a modified settlement agreement.  The ALJ's
proposed decision would conclude that the CPUC lacks authority to
agree to be bound by the Settlement Agreement and the Settlement
Plan.  Therefore, the ALJ's proposed decision would
modify the Settlement Agreement by deleting provisions of the
Settlement Agreement that provide that (a) the Settlement Agreement
and the Settlement Plan would be irrevocable and binding upon the
parties, notwithstanding any future decisions or orders of the CPUC
or contrary state law, and (b) the Bankruptcy Court would retain
jurisdiction over the Settlement Agreement and the Settlement Plan
for purposes of enforcement.  The ALJ's proposed
decision would state that the CPUC intends that all future
Commissions should recognize and give all possible consideration
and weight to the fact that the modified settlement agreement has
been approved based upon the expectations and reasonable reliance
of the parties and the CPUC that all of its terms and conditions
would remain in effect for the full term of the agreement and would
be implemented by future Commissions.
The
ALJ's proposed decision recommends that the following
provisions also be deleted from the Settlement
Agreement:
-
The provision which
acknowledges that in order for the benefits of the Settlement
Agreement to be realized, both the Utility and PG&E Corporation
must be able to pay dividends and repurchase stock when
appropriate, and which states that the parties agree that, other
than the capital structure and stand-alone dividend conditions
contained in prior CPUC decisions authorizing the formation of
PG&E Corporation, the CPUC would not restrict the ability of
the boards of directors of either the Utility or PG&E
Corporation to declare and pay dividends or repurchase common
stock.
-
The provision under which
the CPUC would agree to act to facilitate and maintain investment
grade credit ratings for the Utility.
-
The provision which
precludes the waiver of the requirement in the Settlement Plan that
Standard and Poor's and Moody's Investor's
Service, Inc. shall have issued investment grade company credit
ratings for the Utility as a condition precedent to the effective
date of the Settlement Plan.
-
The provisions which state
the parties' intent that the Utility emerge from Chapter 11
with an investment grade company rating, that the Utility's
company credit rating should improve over time, and that the CPUC
be required to provide timely and full recovery of the
Utility's reasonable costs of providing utility service over
the term of the Settlement Agreement.
-
The provision which
precludes the Settlement Plan from including the issuance of any
new preferred or common stock.
The
ALJ's proposed decision also would require the Utility to
increase its funding to support environmental enhancement
activities to $100 million over 10 years, as compared to $70
million proposed in the Settlement Agreement.  The Utility
would be authorized to recover the $100 million in its retail rates
without further review.  The ALJ's proposed decision
also would require the Utility to increase its funding to support
research and investment in clean energy technology to $30 million
over five years, as compared to $15 million proposed in the
Settlement Agreement.  The funds to support clean energy
technology and investment would not be recoverable in retail
rates.
Alternate Decisions 1 and 2
.  Both Alternate Decisions 1
and 2 would find that the CPUC has the authority to enter into a
settlement agreement and bind future Commissions and that the
Bankruptcy Court has jurisdiction to enforce it.
Alternate
Decision 1 recommends that the CPUC approve the Settlement
Agreement without change.
Alternate
Decision 2, which the Assigned Commissioner prefers, recommends
that the following provisions be deleted from the Settlement
Agreement:
-
The provision which
acknowledges that in order for the benefits of the Settlement
Agreement to be realized, both the Utility and PG&E Corporation
must be able to pay dividends and repurchase stock when appropriate
and which states that the parties agree that, other than the
capital structure and stand-alone dividend conditions contained in
prior CPUC decisions authorizing the formation of PG&E
Corporation, the CPUC would not restrict the ability of the boards
of directors of either the Utility or PG&E Corporation to
declare and pay dividends or repurchase common stock.
-
The phrase
"notwithstanding any contrary state law" from the
provisions which state that the Settlement Agreement, the
Settlement Plan, and the confirmation order would be enforceable in
accordance with federal law, notwithstanding any contrary state
law.  Alternate Decision 2 explains that the CPUC can only
enter into a settlement agreement if it is consistent with state
law,
and that the phrase is therefore irrelevant
.
Alternate
Decision 2 would clarify the provision of the Settlement Agreement
which states that the CPUC would agree to act to facilitate and
maintain investment grade credit ratings for the Utility.  The
clarification would provide that the Settlement Agreement would be
interpreted so that the CPUC would not be obligated to guarantee
such a credit rating when there are other causes, besides the
CPUC's actions (e.g., the Utility's imprudent conduct
resulting in a disallowance), which are responsible for any threats
to the Utility's investment grade credit rating.
Alternate
Decision 2 would provide for the same additional funding for
support of environmental enhancements and clean energy technology
as provided in the ALJ's proposed decision.
B.   Conclusion of Confirmation
Trial Testimony in Utility's Chapter 11 Proceeding
As
previously disclosed, the confirmation trial of the Settlement Plan
in the Bankruptcy Court began on November 10, 2003.  On
November 17, 2003, testimony concluded in the trial after four days
of hearings.  The Bankruptcy Court has scheduled closing
arguments on November 24, 2003.
C.   Ninth
Circuit Preemption Decision
As
previously disclosed, in connection with the original plan of
reorganization filed by the Utility and PG&E Corporation, on
May 14, 2003, the U.S. Court of Appeals for the Ninth Circuit
(Ninth Circuit) heard oral argument in the appeal filed by the CPUC
and other parties of the August 30, 2002, order issued by the U.S.
District Court for the Northern District of California (District
Court) finding that the U.S. Bankruptcy Code expressly preempts
"non-bankruptcy laws that would otherwise apply to bar, among other
things, transactions necessary to implement the reorganization
plan."  The District Court order had reversed an earlier
ruling by the Bankruptcy Court which found that bankruptcy law did
not expressly preempt certain non-bankruptcy laws in connection
with the original plan of reorganization, but that it could
impliedly preempt non-bankruptcy laws in certain
circumstances.
On
November 19, 2003, the Ninth Circuit issued a decision agreeing
with the District Court's finding that a Chapter 11
reorganization plan expressly preempts otherwise applicable
non-bankruptcy laws.  However, the Ninth Circuit ruled that
the scope of such express preemption is limited to those
non-bankruptcy laws relating to financial condition.  The
Ninth Circuit determined that neither the Bankruptcy Court nor the
District Court had applied the proper standard of express
preemption.  It therefore reversed the District Court's
August 30, 2002 decision and remanded the matter back to the
Bankruptcy Court for further proceedings to determine whether the
Utility's and PG&E Corporation's original plan of
reorganization satisfied the express preemption standard announced
by the Ninth Circuit.
Although
the Ninth Circuit stated that the question of implied preemption
was not before it in the appeal, it reaffirmed that implied
preemption could apply under the Bankruptcy Code, even if express
preemption did not.
The Settlement Agreement
discussed above does not rely on the bankruptcy law preemption
issues addressed in the Ninth Circuit decision.
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
LINDA
Y.H. CHENG
Linda
Y.H. Cheng
Corporate
Secretary
PACIFIC GAS AND ELECTRIC
COMPANY
LINDA
Y.H. CHENG
Linda
Y.H. Cheng
Corporate
Secretary
Dated:  November 19,
2003