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<title>3-06-03 8K</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">Washington,
D.C.&nbsp; 20549</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 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">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">Date of
Report: March 6, 2003</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>
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<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>
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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>
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<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 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">Pacific Gas
and Electric Company<br />
 (415) 973-7000</font></p>
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<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">(Registrant's telephone number, including area
code)</font></p>
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<div align="center"><font size="3" face="Times New Roman"></font>
<hr size="2" width="100%" align="center" />
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<p><font size="3" face="Times New Roman">Item 5. Other
Events</font></p>

<p><font size="3" face="Times New Roman">Pacific Gas and Electric
Company Bankruptcy</font></p>

<h3><b><font size="3" face=
"Times New Roman">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Updated Trial Schedule for Confirmation Hearings and Order
Scheduling Pre-Settlement Conference</font></b></h3>

<p><font size="3" face="Times New Roman">On February 27, 2003, the
United States Bankruptcy Court for the Northern District of
California (Bankruptcy Court) announced an updated trial schedule
for the confirmation hearings of Pacific Gas and Electric
Company&rsquo;s (Utility) proposed plan of reorganization
(Plan).&nbsp; Under the new schedule, the Bankruptcy Court canceled
all of the trial dates that previously were calendared in March
2003 and rescheduled the next trial date to occur on April 8,
2003.&nbsp; The Bankruptcy Court stated that it is holding a number
of additional dates through April 24, 2003, which also may be made
available for trial.&nbsp; During the interim period, parties will
have an opportunity to conduct discovery regarding modifications to
the Plan that the Utility filed on February 24, 2003.</font></p>

<p><font size="3" face="Times New Roman">On March 4, 2003, the
Bankruptcy Court ordered the Utility, the California Public
Utilities Commission (CPUC), and certain objecting parties to
attend a pre-settlement conference meeting scheduled to occur on
March 10, 2003.&nbsp; The purpose of the meeting is to enable the
volunteer settlement judge presiding at the meeting to assess
whether the parties should proceed with a judicially supervised
settlement conference at which the parties could explore the
possibility of resolving differences between the Utility&rsquo;s
Plan and the alternative proposed plan of reorganization presented
by the CPUC and the Official Committee of Unsecured Creditors, or
OCC.&nbsp;</font></p>

<h3><b><font size="3" face=
"Times New Roman">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Monthly Operating Report</font></b></h3>

<p><font size="3" face="Times New Roman">On March 3, 2003, the
Utility filed its monthly operating report for the month ended
January 31, 2003, with the Bankruptcy Court. The Utility's monthly
operating report includes an unaudited income statement for the
month and an unaudited balance sheet dated as of the end of the
month.&nbsp; These unaudited financial statements are attached as
Exhibit 99.1 to this report. Although not included in Exhibit 99.1,
the monthly operating report also includes a statement of receipts
and disbursements, as well as other information.&nbsp; The
preliminary financial statements were prepared using certain
assumptions and estimates that are subject to revision.&nbsp; Any
adjustments for these estimates (based upon changes in facts and
circumstances, further analysis, and other factors) will be
reflected in the financial statements in the period during which
such adjustments are made.&nbsp; These adjustments could have a
material impact on reported results in the future.</font></p>

<h3><b><font size="3" face=
"Times New Roman">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Proposed Securities Offerings in Connection with the
Utility&rsquo;s Plan</font></b></h3>

<p><font size="3" face="Times New Roman">The Utility&rsquo;s Plan
contemplates that the assets of the Utility&rsquo;s electric
transmission, natural gas transportation and storage, and electric
generation businesses would be transferred to three new limited
liability companies: ETrans, LLC, GTrans LLC, and Electric
Generation LLC (Gen), or collectively the LLCs.&nbsp;&nbsp; The
Utility&rsquo;s Plan provides that allowed claims would be
satisfied by cash, long-term notes issued by the LLCs or a
combination of cash and such notes.&nbsp; Under the Utility&rsquo;s
Plan, each of ETrans, GTrans, and Gen would issue long-term notes
to the reorganized Utility and the Utility would then transfer the
notes to certain holders of allowed claims (Creditor Notes).&nbsp;
In addition, each of the reorganized Utility, ETrans, GTrans, and
Gen would issue notes in registered public offerings (New Money
Notes).&nbsp; The LLCs would transfer the proceeds of the sale of
the New Money Notes, less working capital reserves, to the Utility
for payment of allowed claims.&nbsp;</font></p>

<p><font size="3" face="Times New Roman">On February 24, 2003, the
Utility filed amendments to the Utility&rsquo;s Plan with the
Bankruptcy Court that, among other modifications, commit PG&amp;E
Corporation to contribute up to $700 million in cash to the
Utility&rsquo;s capital from the issuance of equity or from other
available sources, to the extent necessary to satisfy the cash
obligations of the Utility in respect of allowed claims and
required deposits into escrow for disputed claims, or to obtain
investment grade ratings for the debt to be issued by the
reorganized Utility and the LLCs.</font></p>

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

<p><font size="3" face="Times New Roman">On March 5, 2003, PG&amp;E
Corporation entered into a commitment agreement, which was filed
with the Bankruptcy Court, with Lehman Brothers, Inc. (Lehman)
under which Lehman committed to purchase from PG&amp;E Corporation
$700 million of PG&amp;E Corporation&rsquo;s common stock. The
amount Lehman is required to purchase will be reduced by the net
proceeds of any offering of equity or equity-linked securities by
PG&amp;E Corporation.&nbsp; PG&amp;E Corporation is required to
issue to Lehman a number of shares of common stock that equals the
sum of (1) the amount of the purchase price Lehman is required to
pay (i.e., up to $700 million minus the proceeds of any offering of
equity or equity-linked securities) divided by the closing price of
a share of PG&amp;E Corporation common stock on the second trading
day before the closing of the purchase, and (2) 100% of the number
of shares so determined.&nbsp; If the net proceeds of
Lehman&rsquo;s sale of such shares exceeds the amount Lehman paid
for the shares including interest from the date of Lehman&rsquo;s
purchase to the date of Lehman&rsquo;s sale (such amount is
referred to as the adjusted purchase price), or if Lehman still
owns shares after receiving the adjusted purchase price, Lehman is
required to pay the excess proceeds and/or return such shares to
PG&amp;E Corporation.&nbsp; If the net proceeds of the sale of such
shares are less than the adjusted purchase price, PG&amp;E
Corporation is required to pay the difference to Lehman and
Lehman&rsquo;s commitment will terminate.</font></p>

<p><font size="3" face="Times New Roman">Lehman&rsquo;s commitment
will expire upon written notice by Lehman to PG&amp;E Corporation
that any one of the following events has occurred:</font></p>

<p>any change in the terms of the Utility&rsquo;s Plan determined
by Lehman to be materially adverse;</p>

<p>the failure to pay when due any of the fees required to be paid
to Lehman;</p>

<p>the confirmation of a plan of reorganization other than the
Utility&rsquo;s Plan, the withdrawal of the Utility&rsquo;s Plan,
or the denial of confirmation of the Utility&rsquo;s Plan;</p>

<p>the failure to comply with a condition, covenant, or agreement
set forth in the commitment documentation;</p>

<p>the consummation of the Utility&rsquo;s Plan without the
purchase of the equity securities subject to the commitment; or</p>

<p>March 3, 2004.</p>

<p><font size="3" face="Times New Roman">Lehman&rsquo;s commitment
is subject to the satisfaction of a number of conditions precedent,
including without limitation:</font></p>

<p>the Utility&rsquo;s Plan shall have been confirmed by the
Bankruptcy Court and shall have become effective following the
resolution of any appeal in a manner satisfactory to Lehman;</p>

<p>PG&amp;E Corporation&rsquo;s equity market capitalization
immediately before the closing date of the financing contemplated
by the commitment is not less than $2.5 billion;</p>

<p>PG&amp;E Corporation, on an unconsolidated basis, shall not have
more than $500 million of debt;</p>

<p>the Creditor Notes and the New Money Notes, as well as the
Utility and the LLCs themselves, shall have received investment
grade credit ratings from both Moody&rsquo;s Investors Service and
Standard &amp; Poor&rsquo;s Rating Service as of the closing date
of the financing contemplated by the commitment;</p>

<p>each of the reorganized Utility and the LLCs shall have issued
the Creditor Notes and the New Money Notes, in accordance with the
terms of the Utility&rsquo;s Plan and, with respect to the New
Money Notes, Lehman shall have acted as joint book-runner in the
offerings thereof;</p>

<p>PG&amp;E Corporation shall not be in default under any of its
material agreements;</p>

<p>there shall not have occurred any event, development, or
circumstance since the date of the latest annual financial
statements that has caused or could reasonably be expected to cause
a material adverse condition or material adverse change in or
affecting the Utility&rsquo;s Plan or the condition, results of
operations, assets, liabilities, management, prospects, or value of
PG&amp;E Corporation and related entities (other than those related
to PG&amp;E National Energy Group, Inc. and its subsidiaries
(NEG));</p>

<p>all governmental, regulatory, shareholder, and third-party
approvals required to consummate the transactions contemplated by
the Utility&rsquo;s Plan shall have been obtained and be in full
force and effect; and</p>

<p>PG&amp;E Corporation shall have used its best efforts to offer
and sell equity and equity-linked securities to raise at least $700
million.</p>

<p><font size="3" face="Times New Roman">&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; In addition, on March 5, 2003, Lehman
delivered a letter to PG&amp;E Corporation in which Lehman stated
that based upon current market conditions and Lehman&rsquo;s
present understanding of the Utility&rsquo;s Plan, it is highly
confident, as of March 5, 2003, that it has the ability to sell or
place the New Money Notes.&nbsp; Lehman&rsquo;s view as to its
ability to sell or place the New Money Notes assumes the
satisfaction of a number of conditions, including without
limitation:</font></p>

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

<ul type="disc">
<li><font size="3" face="Times New Roman">the receipt of a
confirmation order from the Bankruptcy Court for a plan of
reorganization in substantially the same form as the
Utility&rsquo;s Plan;</font></li>

<li><font size="3" face="Times New Roman">the receipt of all
regulatory approvals required to consummate the Utility&rsquo;s
Plan;</font></li>

<li><font size="3" face="Times New Roman">the receipt of ratings
for the New Money Notes and the Creditor Notes of at least Baa3
from Moody's Investors Service and at least BBB- from Standard
&amp; Poor's Ratings Service;</font></li>

<li><font size="3" face="Times New Roman">there shall not have
occurred or become known to Lehman any material adverse change in
the financial condition, results of operations, business, or
prospects (including pro forma financial projections) of each of
the reorganized Utility and the LLCs since February 24, 2003, or of
PG&amp;E Corporation and its subsidiaries (other than NEG) taken as
a whole;</font></li>

<li><font size="3" face="Times New Roman">PG&amp;E Corporation, on
an unconsolidated basis, shall have no more than $500 million of
total debt; and</font></li>

<li><font size="3" face="Times New Roman">PG&amp;E Corporation
shall have sold equity securities resulting in proceeds of up to
$700 million to the extent that other identified sources of cash
and the proceeds from the sale of New Money Notes and Creditor
Notes are not sufficient to fully satisfy all claims.</font></li>
</ul>

<p><font size="3" face="Times New Roman">Item 7. Financial
Statements, Pro Forma Financial Information, and
Exhibits</font></p>

<p><font size="3" face="Times New Roman">Exhibit 99.1 - Pacific Gas
and Electric Company Income Statement for the month ended January
31, 2003 and Balance Sheet dated January 31, 2003</font></p>

<p><font size="3" face="Times New Roman">Exhibit 99.2 &ndash;
Commitment Letter dated March 5, 2003 between PG&amp;E Corporation
and&nbsp; Lehman Brothers, Inc.</font></p>

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

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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;</font></p>
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<p><font size="3" face="Times New Roman">PG&amp;E
CORPORATION</font></p>
</td>
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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;</font></p>
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<p><font size="3" face="Times New Roman">By:&nbsp; CHRISTOPHER P.
JOHNS</font></p>
</td>
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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;</font></p>
</td>
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<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>
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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;</font></p>
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<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>
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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;</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;</font></p>
</td>
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<p><font size="3" face="Times New Roman">PACIFIC GAS AND ELECTRIC
COMPANY</font></p>
</td>
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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;</font></p>
</td>
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<p><font size="3" face="Times New Roman">By:&nbsp;&nbsp;DINYAR B.
MISTRY</font></p>
</td>
</tr>

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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;</font></p>
</td>
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<p><font size="3" face="Times New Roman">&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;&nbsp;&nbsp;</u></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;</font></p>
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<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DINYAR B.
MISTRY<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and
Controller</font></p>
</td>
</tr>
</table>

<p><font size="3" face="Times New Roman">Dated:&nbsp; March 6,
2003</font></p>
</div>
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3-06-03 8K
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: March 6, 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
Pacific Gas and Electric
Company Bankruptcy
A.       
Updated Trial Schedule for Confirmation Hearings and Order
Scheduling Pre-Settlement Conference
On February 27, 2003, the
United States Bankruptcy Court for the Northern District of
California (Bankruptcy Court) announced an updated trial schedule
for the confirmation hearings of Pacific Gas and Electric
Company's (Utility) proposed plan of reorganization
(Plan).  Under the new schedule, the Bankruptcy Court canceled
all of the trial dates that previously were calendared in March
2003 and rescheduled the next trial date to occur on April 8,
2003.  The Bankruptcy Court stated that it is holding a number
of additional dates through April 24, 2003, which also may be made
available for trial.  During the interim period, parties will
have an opportunity to conduct discovery regarding modifications to
the Plan that the Utility filed on February 24, 2003.
On March 4, 2003, the
Bankruptcy Court ordered the Utility, the California Public
Utilities Commission (CPUC), and certain objecting parties to
attend a pre-settlement conference meeting scheduled to occur on
March 10, 2003.  The purpose of the meeting is to enable the
volunteer settlement judge presiding at the meeting to assess
whether the parties should proceed with a judicially supervised
settlement conference at which the parties could explore the
possibility of resolving differences between the Utility's
Plan and the alternative proposed plan of reorganization presented
by the CPUC and the Official Committee of Unsecured Creditors, or
OCC.
B.        
Monthly Operating Report
On March 3, 2003, the
Utility filed its monthly operating report for the month ended
January 31, 2003, with the Bankruptcy Court. The Utility's monthly
operating report includes an unaudited income statement for the
month and an unaudited balance sheet dated as of the end of the
month.  These unaudited financial statements are attached as
Exhibit 99.1 to this report. Although not included in Exhibit 99.1,
the monthly operating report also includes a statement of receipts
and disbursements, as well as other information.  The
preliminary financial statements were prepared using certain
assumptions and estimates that are subject to revision.  Any
adjustments for these estimates (based upon changes in facts and
circumstances, further analysis, and other factors) will be
reflected in the financial statements in the period during which
such adjustments are made.  These adjustments could have a
material impact on reported results in the future.
C.       
Proposed Securities Offerings in Connection with the
Utility's Plan
The Utility's Plan
contemplates that the assets of the Utility's electric
transmission, natural gas transportation and storage, and electric
generation businesses would be transferred to three new limited
liability companies: ETrans, LLC, GTrans LLC, and Electric
Generation LLC (Gen), or collectively the LLCs.   The
Utility's Plan provides that allowed claims would be
satisfied by cash, long-term notes issued by the LLCs or a
combination of cash and such notes.  Under the Utility's
Plan, each of ETrans, GTrans, and Gen would issue long-term notes
to the reorganized Utility and the Utility would then transfer the
notes to certain holders of allowed claims (Creditor Notes). 
In addition, each of the reorganized Utility, ETrans, GTrans, and
Gen would issue notes in registered public offerings (New Money
Notes).  The LLCs would transfer the proceeds of the sale of
the New Money Notes, less working capital reserves, to the Utility
for payment of allowed claims.
On February 24, 2003, the
Utility filed amendments to the Utility's Plan with the
Bankruptcy Court that, among other modifications, commit PG&E
Corporation to contribute up to $700 million in cash to the
Utility's capital from the issuance of equity or from other
available sources, to the extent necessary to satisfy the cash
obligations of the Utility in respect of allowed claims and
required deposits into escrow for disputed claims, or to obtain
investment grade ratings for the debt to be issued by the
reorganized Utility and the LLCs.
On March 5, 2003, PG&E
Corporation entered into a commitment agreement, which was filed
with the Bankruptcy Court, with Lehman Brothers, Inc. (Lehman)
under which Lehman committed to purchase from PG&E Corporation
$700 million of PG&E Corporation's common stock. The
amount Lehman is required to purchase will be reduced by the net
proceeds of any offering of equity or equity-linked securities by
PG&E Corporation.  PG&E Corporation is required to
issue to Lehman a number of shares of common stock that equals the
sum of (1) the amount of the purchase price Lehman is required to
pay (i.e., up to $700 million minus the proceeds of any offering of
equity or equity-linked securities) divided by the closing price of
a share of PG&E Corporation common stock on the second trading
day before the closing of the purchase, and (2) 100% of the number
of shares so determined.  If the net proceeds of
Lehman's sale of such shares exceeds the amount Lehman paid
for the shares including interest from the date of Lehman's
purchase to the date of Lehman's sale (such amount is
referred to as the adjusted purchase price), or if Lehman still
owns shares after receiving the adjusted purchase price, Lehman is
required to pay the excess proceeds and/or return such shares to
PG&E Corporation.  If the net proceeds of the sale of such
shares are less than the adjusted purchase price, PG&E
Corporation is required to pay the difference to Lehman and
Lehman's commitment will terminate.
Lehman's commitment
will expire upon written notice by Lehman to PG&E Corporation
that any one of the following events has occurred:
any change in the terms of the Utility's Plan determined
by Lehman to be materially adverse;
the failure to pay when due any of the fees required to be paid
to Lehman;
the confirmation of a plan of reorganization other than the
Utility's Plan, the withdrawal of the Utility's Plan,
or the denial of confirmation of the Utility's Plan;
the failure to comply with a condition, covenant, or agreement
set forth in the commitment documentation;
the consummation of the Utility's Plan without the
purchase of the equity securities subject to the commitment; or
March 3, 2004.
Lehman's commitment
is subject to the satisfaction of a number of conditions precedent,
including without limitation:
the Utility's Plan shall have been confirmed by the
Bankruptcy Court and shall have become effective following the
resolution of any appeal in a manner satisfactory to Lehman;
PG&E Corporation's equity market capitalization
immediately before the closing date of the financing contemplated
by the commitment is not less than $2.5 billion;
PG&E Corporation, on an unconsolidated basis, shall not have
more than $500 million of debt;
the Creditor Notes and the New Money Notes, as well as the
Utility and the LLCs themselves, shall have received investment
grade credit ratings from both Moody's Investors Service and
Standard & Poor's Rating Service as of the closing date
of the financing contemplated by the commitment;
each of the reorganized Utility and the LLCs shall have issued
the Creditor Notes and the New Money Notes, in accordance with the
terms of the Utility's Plan and, with respect to the New
Money Notes, Lehman shall have acted as joint book-runner in the
offerings thereof;
PG&E Corporation shall not be in default under any of its
material agreements;
there shall not have occurred any event, development, or
circumstance since the date of the latest annual financial
statements that has caused or could reasonably be expected to cause
a material adverse condition or material adverse change in or
affecting the Utility's Plan or the condition, results of
operations, assets, liabilities, management, prospects, or value of
PG&E Corporation and related entities (other than those related
to PG&E National Energy Group, Inc. and its subsidiaries
(NEG));
all governmental, regulatory, shareholder, and third-party
approvals required to consummate the transactions contemplated by
the Utility's Plan shall have been obtained and be in full
force and effect; and
PG&E Corporation shall have used its best efforts to offer
and sell equity and equity-linked securities to raise at least $700
million.
In addition, on March 5, 2003, Lehman
delivered a letter to PG&E Corporation in which Lehman stated
that based upon current market conditions and Lehman's
present understanding of the Utility's Plan, it is highly
confident, as of March 5, 2003, that it has the ability to sell or
place the New Money Notes.  Lehman's view as to its
ability to sell or place the New Money Notes assumes the
satisfaction of a number of conditions, including without
limitation:
the receipt of a
confirmation order from the Bankruptcy Court for a plan of
reorganization in substantially the same form as the
Utility's Plan;
the receipt of all
regulatory approvals required to consummate the Utility's
Plan;
the receipt of ratings
for the New Money Notes and the Creditor Notes of at least Baa3
from Moody's Investors Service and at least BBB- from Standard
& Poor's Ratings Service;
there shall not have
occurred or become known to Lehman any material adverse change in
the financial condition, results of operations, business, or
prospects (including pro forma financial projections) of each of
the reorganized Utility and the LLCs since February 24, 2003, or of
PG&E Corporation and its subsidiaries (other than NEG) taken as
a whole;
PG&E Corporation, on
an unconsolidated basis, shall have no more than $500 million of
total debt; and
PG&E Corporation
shall have sold equity securities resulting in proceeds of up to
$700 million to the extent that other identified sources of cash
and the proceeds from the sale of New Money Notes and Creditor
Notes are not sufficient to fully satisfy all claims.
Item 7. Financial
Statements, Pro Forma Financial Information, and
Exhibits
Exhibit 99.1 - Pacific Gas
and Electric Company Income Statement for the month ended January
31, 2003 and Balance Sheet dated January 31, 2003
Exhibit 99.2 –
Commitment Letter dated March 5, 2003 between PG&E Corporation
and  Lehman Brothers, Inc.
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:  March 6,
2003