<html>
<head>
<title>10-14-03 Form 8-K</title>
</head>
<body>
<div>
<table border="0" cellspacing="0" cellpadding="0" width="644">
<tr>
<td colspan="4" valign="top">
<p align="center">SECURITIES AND EXCHANGE COMMISSION</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">Washington, D.C.&nbsp; 20549</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">FORM 8-K</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">CURRENT REPORT</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

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

<tr>
<td colspan="4" valign="top">
<p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">Date of Report: October 14, 2003</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p align="center">_____________</p>
</td>
<td valign="top">
<p align="center">_____________</p>
</td>
<td valign="top">
<p align="center">_____________</p>
</td>
<td valign="top">
<p align="center">_____________</p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">1-12609</p>

<p align="center">1-2348</p>
</td>
<td valign="top">
<p align="center">PG&amp;E Corporation</p>

<p align="center">Pacific Gas and<br />
 Electric Company</p>
</td>
<td valign="top">
<p align="center">California</p>

<p align="center">California</p>
</td>
<td valign="top">
<p align="center">94-3234914</p>

<p align="center">94-0742640</p>
</td>
</tr>

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

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

<tr>
<td colspan="4" valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

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

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

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

<tr>
<td colspan="4" valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">(Registrant's telephone number, including area
code)</p>
</td>
</tr>

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

<p align="center">Inapplicable</p>

<p align="center">(Former Name or Former Address, if Changed Since
Last Report)</p>

<p>Item 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Events</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
previously disclosed, in January 2002, the California Attorney
General (AG) filed a complaint in the San Francisco Superior Court
against PG&amp;E Corporation and its directors, as well as against
the directors of Pacific Gas and Electric Company (Utility), based
on allegations of unlawful, unfair or fraudulent business acts or
practices in violation of California Business and Professions Code
Section 17200 (Section 17200).&nbsp; Among other allegations, the
AG alleged that past transfers of money from the Utility to
PG&amp;E Corporation, and allegedly from PG&amp;E Corporation to
other affiliates of PG&amp;E Corporation, violated various
conditions established by the California Public Utilities
Commission (CPUC) in decisions approving the holding company
formation.&nbsp; The AG also challenged PG&amp;E
Corporation&rsquo;s alleged failure to infuse the Utility with
cash.&nbsp; Similar complaints were filed in February 2002 against
PG&amp;E Corporation by the City and County of San Francisco in San
Francisco Superior Court, and against PG&amp;E Corporation, its
directors, and the Utility&rsquo;s directors by Cynthia Behr, a
private plaintiff, in Santa Clara Superior Court.&nbsp; The AG and
the City and County of San Francisco requested restitution of
assets allegedly wrongfully transferred to PG&amp;E Corporation
from the Utility, civil penalties, and injunctive relief, among
other remedies. The three cases were later designated as complex
proceedings and coordinated in the San Francisco Superior Court,
where they are pending currently.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
defendants removed all three lawsuits to the Bankruptcy
Court.&nbsp; The plaintiffs asked the Bankruptcy Court to send the
lawsuits back to the state&nbsp; courts.&nbsp; In June 2002, among
other actions, the Bankruptcy Court sent back to the state courts
only the Section 17200 portions of the complaints that were focused
on the allegedly improper payments from the Utility to PG&amp;E
Corporation and PG&amp;E Corporation&rsquo;s alleged failure to
infuse monies into the Utility as needed.&nbsp;</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October&nbsp;8, 2003, the U.S. District Court for the Northern
District of California (District Court) reversed, in part, the
Bankruptcy Court&rsquo;s June 2002 decision and ordered the
plaintiffs&rsquo; restitution claims sent back to the Bankruptcy
Court.&nbsp; The District Court found that these claims, estimated
by the plaintiffs at approximately $5 billion, are the property of
the Utility&rsquo;s estate and are therefore properly within the
Bankruptcy Court&rsquo;s jurisdiction.&nbsp; Under the new plan of
reorganization proposed by the Utility, PG&amp;E Corporation, and
the Official Committee of Unsecured Creditors dated July 31, 2003
(Settlement Plan) and submitted to the Bankruptcy Court for
confirmation, the Utility would release these claims.&nbsp; The
District Court also affirmed, in part, the Bankruptcy Court&rsquo;s
June 2002 decision and found that the plaintiffs&rsquo; civil
penalty and injunctive relief claims under Section 17200 could be
resolved in San Francisco&nbsp; Superior Court.&nbsp;</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
Section 17200, the AG and the City and County of San Francisco are
entitled to seek civil penalties of $2,500 against each defendant
for each violation of Section 17200.&nbsp; The AG&rsquo;s complaint
asserted that the total civil penalties would be not less than $500
million.&nbsp; PG&amp;E Corporation believes that the applicable
calculation methodology for civil penalties, if any violations were
found, would not result in a material adverse effect on its
financial condition or results of operations.&nbsp;</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
status conference in San Francisco Superior Court for all three
cases has been scheduled for October 21, 2003.&nbsp; No proceedings
have yet been scheduled in Bankruptcy Court for the restitution
claims.</p>

<p>Item 9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regulation FD
Disclosure</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information reported in this section of this Current Report on Form
8-K, included Exhibit 1, is being furnished, not filed, pursuant to
Item 9 of Form 8-K.&nbsp;</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attached
to this Current Report on Form 8-K as Exhibit 1 are revised
financial projections relating to the Settlement Plan.&nbsp;
Financial projections relating to the Settlement Plan were
furnished to the Securities and Exchange Commission (SEC) on a Form
8-K on July 8, 2003.&nbsp; The financial projections furnished to
the SEC on July 8, 2003 were included as Exhibit C to the
Disclosure Statement dated July 31, 2003 and mailed to all persons
entitled to vote on the Settlement Plan on August 15,
2003.&nbsp;</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Among
other revisions, the financial projections have been revised to
reflect the following significant events:</p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><b>-</b></p>
</td>
<td valign="top">
<p>The proposed settlement agreement submitted to the CPUC for
approval in the Utility&rsquo;s 2003 General Rate Case (GRC) on
September 15, 2003.&nbsp; The settlement proposes lower
depreciation rates than originally assumed, resulting in a higher
rate base and lower cash flow over the forecast period.</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p><b>-</b></p>
</td>
<td valign="top">
<p>The bill credit of $444 million to the Utility&rsquo;s customers
ordered by the CPUC on September 4, 2003, to pass through the
California Department of Water Resources&rsquo; (DWR) reduction in
its 2003 revenue requirement to customers.&nbsp; (The Utility's
financial forecasts of the cash projected to be available at the
effective date of the Settlement Plan are expected to largely
offset the decrease due to the one-time bill credit.)</p>

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

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Projected
net income under the July 2003 projections and the revised
projections is about equal for the first two years (2004 and 2005),
increasing to a positive difference under the revised projections
of about $13 million in 2008 as a result of the lower depreciation
rates agreed to as part of the GRC settlement.&nbsp; Likewise, the
projected amount of cash flow available for dividends and share
repurchases beginning in 2005 is projected to be between $30
million to $50 million less per year in the revised projections
than in the July 2003 projections, accumulating to about $150
million over the 2005-2008 forecast period.</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E
Corporation and the Utility believe that the forecast credit ratios
based upon the updated projections are not materially different
from the ratios contained in the projections furnished to the SEC
in July 2003.</p>

<p><u>Cautionary Statement Regarding Forward Looking
Statements</u></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
projected financial information attached hereto as Exhibit 1 and
the various assumptions underlying such projections constitute
forward-looking statements which are necessarily subject to various
risks and uncertainties that could cause actual results to differ
materially from those contemplated by the forward looking
statements and financial projections.&nbsp; Some of the factors
that could cause results to differ materially include:</p>

<table border="0" cellspacing="0" cellpadding="0" width="569">
<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>The outcome of the Utility&rsquo;s Chapter 11 proceeding,
including whether the proposed settlement agreement among the
Utility, PG&amp;E Corporation, and the staff of the CPUC becomes
effective and whether the Settlement Plan is implemented;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>The outcome of pending litigation and regulatory proceedings,
including proceedings related to the true-up of the allocation of
the DWR&rsquo;s 2001-2002 revenue requirements among the three
California investor-owned electric utilities, the timing and impact
of the end of the retail electric rate freeze, the structure of
post-rate freeze ratemaking, whether the Utility is required to
refund previously collected revenues to ratepayers, and whether the
proposed settlements in the Utility&rsquo;s 2003 GRC proceeding are
approved by the CPUC;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>The Utility's ability to manage the net open position over time,
which can be affected by whether various counterparties are able to
meet their obligations under their power sale agreements with the
Utility or with the DWR;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>The level and volatility of wholesale electricity and natural
gas prices and the Utility's ability to manage and respond to this
volatility successfully;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>The demand for and pricing of natural gas transportation and
storage services;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>Increased competition as a result of municipalization of the
Utility's distribution assets, self-generation by customers, and
other forms of competition that may result in stranded investment
capital, loss of customer growth, and additional barriers to cost
recovery;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>The extent to which the cities and counties in the
Utility&rsquo;s service territory become community choice
aggregators and the extent to which the Utility&rsquo;s
distribution customers can switch between purchasing electricity
from the Utility or from alternate energy service providers as
direct access customers;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>The operation and decommissioning of the Utility&rsquo;s Diablo
Canyon nuclear power plant, which expose the Utility to potentially
significant environmental and capital expenditure risks, and, to
the extent the Utility is unable increase its spent fuel storage
capacity by 2007 or find an alternative depository, the risk that
the Utility may be required to close Diablo Canyon and purchase
electricity from more expensive sources;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>Future regulatory proceedings related to whether the Utility has
complied with all applicable rules, tariffs, and orders, and the
extent to which a finding of non-compliance could result in
customer refunds, penalties, or other non-recoverable expense;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p><i>-</i></p>
</td>
<td valign="top">
<p>The effect of compliance with existing and future environmental
laws, regulations, and policies;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p><i>-</i></p>
</td>
<td valign="top">
<p>How the CPUC administers the capital structure, stand-alone
dividend, and first priority conditions of the holding company
conditions.</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>Unanticipated population growth or decline, changes in market
demand and general economic and financial market conditions,
including unanticipated changes in interest or inflation rates;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>Unanticipated changes in operating expenses and capital
expenditures;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>Applicable governmental policies and legislative or regulatory
actions;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>Weather, storms, earthquakes, fires, other natural disasters,
explosions, accidents, mechanical breakdowns, and other events or
perils that affect demand, result in power outages, reduce
generating output or cause damage to the Utility&rsquo;s assets or
operations or those of third parties on which the Utility
relies;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>Acts of terrorism;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>Actions of rating agencies and</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>-</p>
</td>
<td valign="top">
<p>New accounting pronouncements, including significant changes in
accounting policies material to the Utility.</p>
</td>
</tr>
</table>

<p><em></em></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
particular, the financial projections, attached as Exhibit 1, have
been prepared based upon certain assumptions that PG&amp;E
Corporation and the Utility believe to be reasonable under the
circumstances, taking into account the purpose for which they were
prepared.&nbsp; However, the financial projections were not
prepared with a view toward compliance with the published
guidelines of the SEC or the American Institute of Certified Public
Accountants regarding projections or forecasts.&nbsp; In addition,
the financial projections have not been examined or compiled by the
independent accountants of the Utility or PG&amp;E
Corporation.&nbsp; Neither the Utility nor PG&amp;E Corporation
makes any representation as to the accuracy of the projections or
the ability of the reorganized Utility to achieve the projected
results.&nbsp; Many of the assumptions on which the projections are
based are subject to significant uncertainties.&nbsp; Some
assumptions may not materialize and unanticipated events and
circumstances may affect the actual financial results.&nbsp;
Therefore, the actual results achieved may vary from the projected
results and the variations may be material.</p>

<b><br clear="all" />
</b>

<table border="0" cellspacing="0" cellpadding="0" width="656">
<tr>
<td valign="top">
<p align="center">SIGNATURE</p>
</td>
</tr>

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

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

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

<p></p>

<table border="0" cellspacing="0" cellpadding="0" width="656">
<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td colspan="2" valign="top">
<p>PG&amp;E CORPORATION</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>By:&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>CHRISTOPHER P. JOHNS<br />
 _________________________________________</p>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>CHRISTOPHER P. JOHNS<br />
 Senior Vice President and Controller</p>
</td>
</tr>

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

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

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

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

<table border="0" cellspacing="0" cellpadding="0" width="661">
<tr>
<td valign="top">
<p>Dated:&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;October 14, 2003</p>
</td>
</tr>

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

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

<br clear="all" />


<p align="center"><b>Exhibit Index</b></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p>Exhibit 1</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>Revised financial projections relating to the Settlement
Plan</p>
</td>
</tr>
</table>

<p></p>
</div>
</body>
</html>
[{"type": "8-K", "sequence": "1", "filename": "final101403.htm", "description": "FORM 8-K", "secsgml_size_bytes": 24567}]
{"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": "03940622"}, "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"}}
10-14-03 Form 8-K
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: October 14, 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)
Inapplicable
(Former Name or Former Address, if Changed Since
Last Report)
Item 5.     Other Events
As
previously disclosed, in January 2002, the California Attorney
General (AG) filed a complaint in the San Francisco Superior Court
against PG&E Corporation and its directors, as well as against
the directors of Pacific Gas and Electric Company (Utility), based
on allegations of unlawful, unfair or fraudulent business acts or
practices in violation of California Business and Professions Code
Section 17200 (Section 17200).  Among other allegations, the
AG alleged that past transfers of money from the Utility to
PG&E Corporation, and allegedly from PG&E Corporation to
other affiliates of PG&E Corporation, violated various
conditions established by the California Public Utilities
Commission (CPUC) in decisions approving the holding company
formation.  The AG also challenged PG&E
Corporation's alleged failure to infuse the Utility with
cash.  Similar complaints were filed in February 2002 against
PG&E Corporation by the City and County of San Francisco in San
Francisco Superior Court, and against PG&E Corporation, its
directors, and the Utility's directors by Cynthia Behr, a
private plaintiff, in Santa Clara Superior Court.  The AG and
the City and County of San Francisco requested restitution of
assets allegedly wrongfully transferred to PG&E Corporation
from the Utility, civil penalties, and injunctive relief, among
other remedies. The three cases were later designated as complex
proceedings and coordinated in the San Francisco Superior Court,
where they are pending currently.
The
defendants removed all three lawsuits to the Bankruptcy
Court.  The plaintiffs asked the Bankruptcy Court to send the
lawsuits back to the state  courts.  In June 2002, among
other actions, the Bankruptcy Court sent back to the state courts
only the Section 17200 portions of the complaints that were focused
on the allegedly improper payments from the Utility to PG&E
Corporation and PG&E Corporation's alleged failure to
infuse monies into the Utility as needed.
On
October 8, 2003, the U.S. District Court for the Northern
District of California (District Court) reversed, in part, the
Bankruptcy Court's June 2002 decision and ordered the
plaintiffs' restitution claims sent back to the Bankruptcy
Court.  The District Court found that these claims, estimated
by the plaintiffs at approximately $5 billion, are the property of
the Utility's estate and are therefore properly within the
Bankruptcy Court's jurisdiction.  Under the new plan of
reorganization proposed by the Utility, PG&E Corporation, and
the Official Committee of Unsecured Creditors dated July 31, 2003
(Settlement Plan) and submitted to the Bankruptcy Court for
confirmation, the Utility would release these claims.  The
District Court also affirmed, in part, the Bankruptcy Court's
June 2002 decision and found that the plaintiffs' civil
penalty and injunctive relief claims under Section 17200 could be
resolved in San Francisco  Superior Court.
Under
Section 17200, the AG and the City and County of San Francisco are
entitled to seek civil penalties of $2,500 against each defendant
for each violation of Section 17200.  The AG's complaint
asserted that the total civil penalties would be not less than $500
million.  PG&E Corporation believes that the applicable
calculation methodology for civil penalties, if any violations were
found, would not result in a material adverse effect on its
financial condition or results of operations.
A
status conference in San Francisco Superior Court for all three
cases has been scheduled for October 21, 2003.  No proceedings
have yet been scheduled in Bankruptcy Court for the restitution
claims.
Item 9.       Regulation FD
Disclosure
The
information reported in this section of this Current Report on Form
8-K, included Exhibit 1, is being furnished, not filed, pursuant to
Item 9 of Form 8-K.
Attached
to this Current Report on Form 8-K as Exhibit 1 are revised
financial projections relating to the Settlement Plan. 
Financial projections relating to the Settlement Plan were
furnished to the Securities and Exchange Commission (SEC) on a Form
8-K on July 8, 2003.  The financial projections furnished to
the SEC on July 8, 2003 were included as Exhibit C to the
Disclosure Statement dated July 31, 2003 and mailed to all persons
entitled to vote on the Settlement Plan on August 15,
2003.
Among
other revisions, the financial projections have been revised to
reflect the following significant events:
-
The proposed settlement agreement submitted to the CPUC for
approval in the Utility's 2003 General Rate Case (GRC) on
September 15, 2003.  The settlement proposes lower
depreciation rates than originally assumed, resulting in a higher
rate base and lower cash flow over the forecast period.
-
The bill credit of $444 million to the Utility's customers
ordered by the CPUC on September 4, 2003, to pass through the
California Department of Water Resources' (DWR) reduction in
its 2003 revenue requirement to customers.  (The Utility's
financial forecasts of the cash projected to be available at the
effective date of the Settlement Plan are expected to largely
offset the decrease due to the one-time bill credit.)
Projected
net income under the July 2003 projections and the revised
projections is about equal for the first two years (2004 and 2005),
increasing to a positive difference under the revised projections
of about $13 million in 2008 as a result of the lower depreciation
rates agreed to as part of the GRC settlement.  Likewise, the
projected amount of cash flow available for dividends and share
repurchases beginning in 2005 is projected to be between $30
million to $50 million less per year in the revised projections
than in the July 2003 projections, accumulating to about $150
million over the 2005-2008 forecast period.
PG&E
Corporation and the Utility believe that the forecast credit ratios
based upon the updated projections are not materially different
from the ratios contained in the projections furnished to the SEC
in July 2003.
Cautionary Statement Regarding Forward Looking
Statements
The
projected financial information attached hereto as Exhibit 1 and
the various assumptions underlying such projections constitute
forward-looking statements which are necessarily subject to various
risks and uncertainties that could cause actual results to differ
materially from those contemplated by the forward looking
statements and financial projections.  Some of the factors
that could cause results to differ materially include:
-
The outcome of the Utility's Chapter 11 proceeding,
including whether the proposed settlement agreement among the
Utility, PG&E Corporation, and the staff of the CPUC becomes
effective and whether the Settlement Plan is implemented;
-
The outcome of pending litigation and regulatory proceedings,
including proceedings related to the true-up of the allocation of
the DWR's 2001-2002 revenue requirements among the three
California investor-owned electric utilities, the timing and impact
of the end of the retail electric rate freeze, the structure of
post-rate freeze ratemaking, whether the Utility is required to
refund previously collected revenues to ratepayers, and whether the
proposed settlements in the Utility's 2003 GRC proceeding are
approved by the CPUC;
-
The Utility's ability to manage the net open position over time,
which can be affected by whether various counterparties are able to
meet their obligations under their power sale agreements with the
Utility or with the DWR;
-
The level and volatility of wholesale electricity and natural
gas prices and the Utility's ability to manage and respond to this
volatility successfully;
-
The demand for and pricing of natural gas transportation and
storage services;
-
Increased competition as a result of municipalization of the
Utility's distribution assets, self-generation by customers, and
other forms of competition that may result in stranded investment
capital, loss of customer growth, and additional barriers to cost
recovery;
-
The extent to which the cities and counties in the
Utility's service territory become community choice
aggregators and the extent to which the Utility's
distribution customers can switch between purchasing electricity
from the Utility or from alternate energy service providers as
direct access customers;
-
The operation and decommissioning of the Utility's Diablo
Canyon nuclear power plant, which expose the Utility to potentially
significant environmental and capital expenditure risks, and, to
the extent the Utility is unable increase its spent fuel storage
capacity by 2007 or find an alternative depository, the risk that
the Utility may be required to close Diablo Canyon and purchase
electricity from more expensive sources;
-
Future regulatory proceedings related to whether the Utility has
complied with all applicable rules, tariffs, and orders, and the
extent to which a finding of non-compliance could result in
customer refunds, penalties, or other non-recoverable expense;
-
The effect of compliance with existing and future environmental
laws, regulations, and policies;
-
How the CPUC administers the capital structure, stand-alone
dividend, and first priority conditions of the holding company
conditions.
-
Unanticipated population growth or decline, changes in market
demand and general economic and financial market conditions,
including unanticipated changes in interest or inflation rates;
-
Unanticipated changes in operating expenses and capital
expenditures;
-
Applicable governmental policies and legislative or regulatory
actions;
-
Weather, storms, earthquakes, fires, other natural disasters,
explosions, accidents, mechanical breakdowns, and other events or
perils that affect demand, result in power outages, reduce
generating output or cause damage to the Utility's assets or
operations or those of third parties on which the Utility
relies;
-
Acts of terrorism;
-
Actions of rating agencies and
-
New accounting pronouncements, including significant changes in
accounting policies material to the Utility.
In
particular, the financial projections, attached as Exhibit 1, have
been prepared based upon certain assumptions that PG&E
Corporation and the Utility believe to be reasonable under the
circumstances, taking into account the purpose for which they were
prepared.  However, the financial projections were not
prepared with a view toward compliance with the published
guidelines of the SEC or the American Institute of Certified Public
Accountants regarding projections or forecasts.  In addition,
the financial projections have not been examined or compiled by the
independent accountants of the Utility or PG&E
Corporation.  Neither the Utility nor PG&E Corporation
makes any representation as to the accuracy of the projections or
the ability of the reorganized Utility to achieve the projected
results.  Many of the assumptions on which the projections are
based are subject to significant uncertainties.  Some
assumptions may not materialize and unanticipated events and
circumstances may affect the actual financial results. 
Therefore, the actual results achieved may vary from the projected
results and the variations may be material.
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:
LINDA Y.H. CHENG
_________________________________________
LINDA Y.H. CHENG
Corporate Secretary
Dated:
October 14, 2003
Exhibit Index
Exhibit 1
Revised financial projections relating to the Settlement
Plan