<html>
<head>

<title>PG&amp;E Corporation and Pacific Gas and Electric Company
8-K dated December 12, 2003</title>
</head>
<body>
<div>
<table border="0" cellspacing="0" cellpadding="0" width="651">
<tr>
<td colspan="4" valign="top">
<p align="center"><font size="3" face="Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></p>
</td>
</tr>

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

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

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

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

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

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

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

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

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

<tr height="31">
<td colspan="4" height="31" valign="top">
<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><font size="3" face="Times New Roman">Date of
Report: December 12, 2003</font></p>
</td>
</tr>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<tr height="28">
<td colspan="4" height="28" valign="top">
<p align="center"><font size="3" face=
"Times New Roman">(Registrant's telephone number, including area
code)</font></p>
</td>
</tr>

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

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

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

<tr>
<td colspan="4" valign="top">
<p align="center"><font size="3" face="Times New Roman">(Former
Name or Former Address, if Changed Since Last Report)</font></p>
</td>
</tr>
</table>

<p></p>

<table border="0" cellspacing="0" cellpadding="0" width="651">
<tr>
<td valign="top">
<p><font size="3" face="Times New Roman">Item 5.</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">Other Events</font></p>
</td>
</tr>

<tr>
<td colspan="2" valign="top">
<p><u><font size="3" face="Times New Roman">Proposed Decision
Issued in the California Department of Water Resources' (DWR)
2001-2002 Revenue Requirement True-Up Proceeding and the DWR 2004
Revenue Requirement Proceeding</font></u></p>
</td>
</tr>

<tr>
<td colspan="2" valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
On December 9, 2003, an administrative law judge (ALJ) of the
California Public Utilities Commission (CPUC) issued a proposed
decision that would implement a true-up adjustment of the CPUC's
previous interim allocation of the DWR's revenue requirement for
the 2001-2002 period among the three California investor-owned
utilities (IOUs) including Pacific Gas and Electric Company
(Utility).&nbsp; As previously disclosed, the true-up adjustment is
to be based on the actual amount of power purchased by the DWR for
the respective IOU's customers during the 2001-2002 period.&nbsp;
To determine the amount of the true-up, the proposed decision
recommends that the CPUC use the allocation methodology it used in
determining the allocation of the 2001-2002 DWR power charge
revenue requirement.&nbsp; Under this methodology, the proposed
decision would find that the Utility has over-remitted
approximately $100 million in power charges to the DWR.&nbsp;</p>
</td>
</tr>

<tr>
<td colspan="2" valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
The proposed decision also recommends the CPUC adopt an interim
allocation of the DWR 2004 revenue requirement among the three
California IOUs.&nbsp; The DWR pays for its costs of purchasing
electricity from a revenue requirement collected from the IOUs'
electricity customers through a power charge and a bond
charge.&nbsp; The ALJ's proposed decision would accept the 2004
bond charge requested by the DWR but would reject Southern
California Edison (SCE)'s proposal requesting that the CPUC revisit
the allocation methodology from a previous decision used to
allocate the DWR bond charge revenue requirement among the
customers of the IOUs.&nbsp; The Utility estimated that, if
adopted, the SCE proposal would have resulted in an allocation of
an additional approximately $550 million in bond charges to the
Utility in connection with the 2001-2002 true-up.</p>
</td>
</tr>

<tr>
<td colspan="2" valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The proposed decision agrees with the Utility's proposal to include
any true-up adjustments to the DWR's 2001-2002 revenue requirement
in each IOU's allocation of the 2004 DWR revenue requirement to be
reflected in the 2004 DWR remittance rate.&nbsp; SCE supported this
proposal, but San Diego Gas &amp; Electric Company had proposed
that any under-remittance that an IOU is determined to owe should
be paid by the IOU immediately.</font></p>
</td>
</tr>

<tr>
<td colspan="2" valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The proposed decision would adopt an interim allocation of the 2004
DWR revenue requirement by applying the methodology adopted for the
allocation of the 2003 DWR revenue requirement.&nbsp; The interim
allocation would allocate approximately 40 percent of the $4.652
billion, or $1.874 billion, of the 2004 DWR revenue requirement to
the Utility's customers.&nbsp; The final allocation methodology for
the 2004 DWR revenue requirement would be litigated in a second
phase of this proceeding, and, once determined, would be
retroactive to January 1, 2004.&nbsp; Hearings in the second phase
are scheduled to begin on January 20, 2004.&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="2" valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The CPUC is expected to issue a final decision on the 2001-2002
true-up adjustments and the interim allocation of the 2004 DWR
revenue requirement in January 2004.</font></p>
</td>
</tr>

<tr>
<td colspan="2" valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The CPUC may accept, reject or modify the ALJ's proposed
decision.&nbsp; If the CPUC retroactively determines that the
Utility has under-remitted a material amount to the DWR and orders
the Utility to make a one-time true-up payment from cash on hand
rather than collect the under-remitted amount from customers on a
going-forward basis, the Utility's financial condition and results
of operation would be materially adversely affected.&nbsp; PG&amp;E
Corporation and the Utility are unable to predict the outcome of
this matter.&nbsp;</font></p>
</td>
</tr>
</table>

<p></p>

<table border="0" cellspacing="0" cellpadding="0" width="656">
<tr>
<td valign="top">
<p align="center"><font size="3" face=
"Times New Roman">SIGNATURE</font></p>
</td>
</tr>

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

<tr>
<td valign="top">
<p><font size="3" face="Times New Roman">Pursuant to the
requirements of the Securities Exchange Act of 1934 the registrants
have duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized.</font></p>
</td>
</tr>

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

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

<table border="0" cellspacing="0" cellpadding="0" width="656">
<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;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="3" face="Times New Roman">PG&amp;E
CORPORATION</font></p>
</td>
</tr>

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

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

<tr>
<td valign="top"></td>
<td colspan="2" valign="top">
<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr height="53">
<td height="53" 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;</font></p>
</td>
<td colspan="2" height="53" valign="top">
<p><font size="3" face="Times New Roman">PACIFIC GAS AND ELECTRIC
COMPANY<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;</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">By:&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">/s/ DINYAR B. MISTRY<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;</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">DINYAR B. MISTRY<br />
 Vice President and Controller</font></p>
</td>
</tr>
</table>

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

<table border="0" cellspacing="0" cellpadding="0" width="661">
<tr>
<td valign="top">
<p><font size="3" face=
"Times New Roman">Dated:&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;December
12, 2003</font></p>
</td>
</tr>

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

<p><font size="3" face="Times New Roman"></font></p>
</div>
</body>
</html>
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PG&E Corporation and Pacific Gas and Electric Company
8-K dated December 12, 2003
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C.  20549
FORM
8-K
CURRENT
REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of
Report: December 12, 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
Proposed Decision
Issued in the California Department of Water Resources' (DWR)
2001-2002 Revenue Requirement True-Up Proceeding and the DWR 2004
Revenue Requirement Proceeding
On December 9, 2003, an administrative law judge (ALJ) of the
California Public Utilities Commission (CPUC) issued a proposed
decision that would implement a true-up adjustment of the CPUC's
previous interim allocation of the DWR's revenue requirement for
the 2001-2002 period among the three California investor-owned
utilities (IOUs) including Pacific Gas and Electric Company
(Utility).  As previously disclosed, the true-up adjustment is
to be based on the actual amount of power purchased by the DWR for
the respective IOU's customers during the 2001-2002 period. 
To determine the amount of the true-up, the proposed decision
recommends that the CPUC use the allocation methodology it used in
determining the allocation of the 2001-2002 DWR power charge
revenue requirement.  Under this methodology, the proposed
decision would find that the Utility has over-remitted
approximately $100 million in power charges to the DWR.
The proposed decision also recommends the CPUC adopt an interim
allocation of the DWR 2004 revenue requirement among the three
California IOUs.  The DWR pays for its costs of purchasing
electricity from a revenue requirement collected from the IOUs'
electricity customers through a power charge and a bond
charge.  The ALJ's proposed decision would accept the 2004
bond charge requested by the DWR but would reject Southern
California Edison (SCE)'s proposal requesting that the CPUC revisit
the allocation methodology from a previous decision used to
allocate the DWR bond charge revenue requirement among the
customers of the IOUs.  The Utility estimated that, if
adopted, the SCE proposal would have resulted in an allocation of
an additional approximately $550 million in bond charges to the
Utility in connection with the 2001-2002 true-up.
The proposed decision agrees with the Utility's proposal to include
any true-up adjustments to the DWR's 2001-2002 revenue requirement
in each IOU's allocation of the 2004 DWR revenue requirement to be
reflected in the 2004 DWR remittance rate.  SCE supported this
proposal, but San Diego Gas & Electric Company had proposed
that any under-remittance that an IOU is determined to owe should
be paid by the IOU immediately.
The proposed decision would adopt an interim allocation of the 2004
DWR revenue requirement by applying the methodology adopted for the
allocation of the 2003 DWR revenue requirement.  The interim
allocation would allocate approximately 40 percent of the $4.652
billion, or $1.874 billion, of the 2004 DWR revenue requirement to
the Utility's customers.  The final allocation methodology for
the 2004 DWR revenue requirement would be litigated in a second
phase of this proceeding, and, once determined, would be
retroactive to January 1, 2004.  Hearings in the second phase
are scheduled to begin on January 20, 2004.
The CPUC is expected to issue a final decision on the 2001-2002
true-up adjustments and the interim allocation of the 2004 DWR
revenue requirement in January 2004.
The CPUC may accept, reject or modify the ALJ's proposed
decision.  If the CPUC retroactively determines that the
Utility has under-remitted a material amount to the DWR and orders
the Utility to make a one-time true-up payment from cash on hand
rather than collect the under-remitted amount from customers on a
going-forward basis, the Utility's financial condition and results
of operation would be materially adversely affected.  PG&E
Corporation and the Utility are unable to predict the outcome of
this matter.
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:
/s/ CHRISTOPHER P.
JOHNS
_____________________________________
CHRISTOPHER P. JOHNS
Senior Vice President and Controller
PACIFIC GAS AND ELECTRIC
COMPANY
By:
/s/ DINYAR B. MISTRY
_________________________________________
DINYAR B. MISTRY
Vice President and Controller
Dated:
December
12, 2003