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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">UNITED STATES</font></div>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Washington, D.C. 20549</font></div>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">CURRENT REPORT</font></div>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></div>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Date of Report: August 14, 2009</font></div>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">1-12609</font></div></td>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">PG&amp;E CORPORATION</font></div></td>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">94-3234914</font></div></td></tr><tr>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">1-2348</font></div></td>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">PACIFIC GAS AND ELECTRIC COMPANY</font></div></td>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: times new roman">One Market, Spear Tower</font></div>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></div>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">On August 14, 2009, Pacific Gas and Electric Company (&#8220;Utility&#8221;) and the California Public Utilities Commission&#8217;s (&#8220;CPUC&#8221;) Division of Ratepayer Advocates (&#8220;DRA&#8221;) filed a joint petition to request the CPUC to modify its May 29, 2008 cost of capital decision applicable to the Utility and the other
two California investor-owned electric utilities.&#160;&#160;In that decision, the CPUC adopted a uniform three-year cost of capital mechanism to replace the annual cost of capital proceeding, subject to a new annual adjustment mechanism.&#160;&#160;The adjustment mechanism is triggered when the 12-month October-through-September average yield for the applicable Moody&#8217;s Investors Service (&#8220;Moody&#8217;s&#8221;) utility bond index increases or decreases by more than 1% as compared to the applicable
benchmark. Under the decision, the Utility&#8217;s 2008 capital structure (including a 52% equity component) is authorized through 2010 and the Utility&#8217;s cost of capital (including an 11.35% return on equity (&#8220;ROE&#8221;)) will be maintained through 2010, unless the annual adjustment mechanism is triggered.</font></div>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Based on the numerical data from October 2008 through July 2009 for the Moody&#8217;s Baa utility bond index and in accordance with the adopted adjustment mechanism, the Utility estimates that, effective January 1, 2010, its authorized ROE would increase from 11.35% to about 12.18% and the corresponding cost-of-capital revenue requirement
would increase by about $120 million.&#160;&#160;&#160;To avoid imposing this rate increase during a time of economic hardship in the Utility&#8217;s service territory, the Utility and the DRA have requested that the CPUC modify its decision to permit the Utility to maintain its current authorized cost of capital through 2010.&#160;&#160;&#160;In addition, they request that the CPUC extend the annual adjustment mechanism through 2012 and maintain the Utility&#8217;s current authorized capital structure through
2012.&#160;&#160;Finally, they request that the Utility be allowed to defer filing its next full cost of capital application from April 20, 2010 until April 20, 2012, with the resulting authorized capital structure and cost of capital to become effective on January 1, 2013.</font></div>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Unless the CPUC modifies its prior decision before October 15, 2009, the Utility projects that it will have to file an advice letter to notify the CPUC that the adjustment mechanism has triggered an increase in the Utility&#8217;s ROE and the corresponding revenue requirement effective January 1, 2010.&#160;&#160;The Utility would withdraw
this advice letter if the CPUC modifies its prior decision as requested before the end of the year.</font></div>
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<div style="DISPLAY: block; MARGIN-LEFT: 12pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: 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></div></td></tr></table></div>
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form8k081409.htm
_____________________________________________________________________________________
UNITED STATES
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: August 14, 2009
(Date of earliest event reported)
Commission File Number
Exact Name of Registrant
as specified in its charter
State or Other Jurisdiction of Incorporation or Organization
IRS Employer Identification Number
1-12609
PG&E CORPORATION
California
94-3234914
1-2348
PACIFIC GAS AND ELECTRIC COMPANY
California
94-0742640
One Market, Spear Tower
Suite 2400
San Francisco, California 94105
(Address of principal executive offices) (Zip Code)
(415) 267-7000
(Registrant's telephone number, including area code)
77 Beale Street
P.O. Box 770000
San Francisco, California 94177
(Address of principal executive offices) (Zip Code)
(415) 973-7000
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting Material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b)
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item 8.01.  Other Events
Cost of Capital Proceeding
On August 14, 2009, Pacific Gas and Electric Company ("Utility") and the California Public Utilities Commission's ("CPUC") Division of Ratepayer Advocates ("DRA") filed a joint petition to request the CPUC to modify its May 29, 2008 cost of capital decision applicable to the Utility and the other
two California investor-owned electric utilities.  In that decision, the CPUC adopted a uniform three-year cost of capital mechanism to replace the annual cost of capital proceeding, subject to a new annual adjustment mechanism.  The adjustment mechanism is triggered when the 12-month October-through-September average yield for the applicable Moody's Investors Service ("Moody's") utility bond index increases or decreases by more than 1% as compared to the applicable
benchmark. Under the decision, the Utility's 2008 capital structure (including a 52% equity component) is authorized through 2010 and the Utility's cost of capital (including an 11.35% return on equity ("ROE")) will be maintained through 2010, unless the annual adjustment mechanism is triggered.
Based on the numerical data from October 2008 through July 2009 for the Moody's Baa utility bond index and in accordance with the adopted adjustment mechanism, the Utility estimates that, effective January 1, 2010, its authorized ROE would increase from 11.35% to about 12.18% and the corresponding cost-of-capital revenue requirement
would increase by about $120 million.   To avoid imposing this rate increase during a time of economic hardship in the Utility's service territory, the Utility and the DRA have requested that the CPUC modify its decision to permit the Utility to maintain its current authorized cost of capital through 2010.   In addition, they request that the CPUC extend the annual adjustment mechanism through 2012 and maintain the Utility's current authorized capital structure through
2012.  Finally, they request that the Utility be allowed to defer filing its next full cost of capital application from April 20, 2010 until April 20, 2012, with the resulting authorized capital structure and cost of capital to become effective on January 1, 2013.
Unless the CPUC modifies its prior decision before October 15, 2009, the Utility projects that it will have to file an advice letter to notify the CPUC that the adjustment mechanism has triggered an increase in the Utility's ROE and the corresponding revenue requirement effective January 1, 2010.  The Utility would withdraw
this advice letter if the CPUC modifies its prior decision as requested before the end of the year.
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SIGNATURES
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
Dated:  August 14, 2009
By:
LINDA Y.H. CHENG
Linda Y.H. Cheng
Vice President, Corporate Governance and  Corporate Secretary
PACIFIC GAS AND ELECTRIC COMPANY
Dated:  August 14, 2009
By:
LINDA Y.H. CHENG
Linda Y.H. Cheng
Vice President, Corporate Governance and  Corporate Secretary
3