2

               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
                (Date of earliest event reported)
                        February 17, 1999

     CALIFORNIA INFRASTUCTURE AND ECONOMIC DEVELOPMENT BANK
                  SPECIAL PURPOSE TRUST PG&E-1
                  (Issuer of the Certificates)

                        PG&E FUNDING LLC
       (Exact name of registrant as specified in charter)



Delaware                 333-30715                    94-3274751

    (State of           (Commission File Number)         (IRS
                            Employer
 incorporation)                                   Identification
                              No.)


                   245 Market Street, Room 424
 San Francisco, California                                94105

(Address of principal executive offices)               (Zip Code)


                         (415) 972-5467

                 (Registrant's telephone number,
                      including area code)

                               N/A

  (Former name or former address, if changed since last report)

Item 4.  Changes in Registrant's Certifying Accountant

PG&E Funding LLC is a special purpose, single member limited
liability company organized under the laws of the State of
Delaware.  Effective February 17, 1999, the Board of Directors of
PG&E Funding LLC declined to reappoint Arthur Andersen LLP
("AA"), as the independent public accountants to examine its
financial statements for fiscal year 1999.  AA's reports on the
financial statements of PG&E Funding LLC for fiscal year 1997
(the first year of PG&E Funding LLC's existence), did not contain
an adverse opinion or a disclaimer of opinion, nor was qualified
or modified as to uncertainty, audit scope, or accounting
principles.  During 1997 and 1998 and the subsequent interim
period, there were no disagreements (as such term is defined in
instruction 4 to Item 304 of Securities and Exchange Commission
Regulation S-K) with AA on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or
procedure, which disagreements, if not resolved to the
satisfaction of AA would have caused it to make reference to the
subject matter of the disagreement(s) in connection with its
report.  Attached hereto is a copy of a letter from Arthur
Andersen LLP to the Securities and Exchange Commission indicating
it agrees with the statements made in this report.

On February 17, 1999, the Board of Directors of PG&E Funding LLC
selected Deloitte and Touche LLP as the independent public
accountants to examine its financial statements for fiscal year
1999.


Item 7.  Financial Statements, Pro Forma Financial Information, and
Exhibits

Exhibit No.                        Description

   16          Letter from Arthur Andersen LLP to Securities and
Exchange Commission


                            SIGNATURE
                                
                                
Pursuant  to the requirements of the Securities Exchange  Act  of
1934, the registrant has duly caused this report to be signed  on
its behalf by the undersigned hereunto duly authorized.
                                   
                                   PG&E FUNDING LLC
                                   (Registrant)




Dated: February 23, 1999                     GABRIEL B. TOGNERI
                                   By:
                                   ____________________________
                                   Name: Gabriel B. Togneri
                                   Title:Treasurer
                                   
                          EXHIBIT INDEX



Exhibit No.                        Description

   16          Letter from Arthur Andersen LLP to Securities and
               Exchange Commission
[{"type": "8-K", "sequence": "1", "description": "FORM 8-K", "secsgml_size_bytes": 4096}]
{"company-data": {"conformed-name": "PG&E FUNDING LLC", "cik": "0001041637", "assigned-sic": "6189", "irs-number": "943274751", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-30715", "film-number": "99548807"}, "business-address": {"street1": "245 MARKET ST RM 424", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105", "phone": "4159725467"}, "mail-address": {"street1": "77 BEALE ST", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105"}}
2

               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
                (Date of earliest event reported)
                        February 17, 1999

     CALIFORNIA INFRASTUCTURE AND ECONOMIC DEVELOPMENT BANK
                  SPECIAL PURPOSE TRUST PG&E-1
                  (Issuer of the Certificates)

                        PG&E FUNDING LLC
       (Exact name of registrant as specified in charter)

Delaware                 333-30715                    94-3274751

    (State of           (Commission File Number)         (IRS
                            Employer
 incorporation)                                   Identification
                              No.)

                   245 Market Street, Room 424
 San Francisco, California                                94105

(Address of principal executive offices)               (Zip Code)

                         (415) 972-5467

                 (Registrant's telephone number,
                      including area code)

                               N/A

  (Former name or former address, if changed since last report)

Item 4.  Changes in Registrant's Certifying Accountant

PG&E Funding LLC is a special purpose, single member limited
liability company organized under the laws of the State of
Delaware.  Effective February 17, 1999, the Board of Directors of
PG&E Funding LLC declined to reappoint Arthur Andersen LLP
("AA"), as the independent public accountants to examine its
financial statements for fiscal year 1999.  AA's reports on the
financial statements of PG&E Funding LLC for fiscal year 1997
(the first year of PG&E Funding LLC's existence), did not contain
an adverse opinion or a disclaimer of opinion, nor was qualified
or modified as to uncertainty, audit scope, or accounting
principles.  During 1997 and 1998 and the subsequent interim
period, there were no disagreements (as such term is defined in
instruction 4 to Item 304 of Securities and Exchange Commission
Regulation S-K) with AA on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or
procedure, which disagreements, if not resolved to the
satisfaction of AA would have caused it to make reference to the
subject matter of the disagreement(s) in connection with its
report.  Attached hereto is a copy of a letter from Arthur
Andersen LLP to the Securities and Exchange Commission indicating
it agrees with the statements made in this report.

On February 17, 1999, the Board of Directors of PG&E Funding LLC
selected Deloitte and Touche LLP as the independent public
accountants to examine its financial statements for fiscal year
1999.

Item 7.  Financial Statements, Pro Forma Financial Information, and
Exhibits

Exhibit No.                        Description

   16          Letter from Arthur Andersen LLP to Securities and
Exchange Commission

                            SIGNATURE
                                
                                
Pursuant  to the requirements of the Securities Exchange  Act  of
1934, the registrant has duly caused this report to be signed  on
its behalf by the undersigned hereunto duly authorized.
                                   
                                   PG&E FUNDING LLC
                                   (Registrant)

Dated: February 23, 1999                     GABRIEL B. TOGNERI
                                   By:
                                   ____________________________
                                   Name: Gabriel B. Togneri
                                   Title:Treasurer
                                   
                          EXHIBIT INDEX

Exhibit No.                        Description

   16          Letter from Arthur Andersen LLP to Securities and
               Exchange Commission