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<title>PG&amp;E&rsquo;S GRC</title>
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<div>
<p align="center">SECURITIES AND EXCHANGE COMMISSION</p>

<p align="center">Washington, D.C.&nbsp; 20549</p>

<p align="center">FORM 8-K</p>

<p align="center">CURRENT REPORT</p>

<p align="center">Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934</p>

<p align="center">Date of Report:&nbsp; January 31, 2002</p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td>
<p>&nbsp;</p>
</td>
<td valign="top">
<p align="center"><br />
 Commission<br />
 File<br />
 Number</p>
</td>
<td colspan="2" 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 colspan="2" valign="top">
<p align="center"><br />
 IRS Employer<br />
 &nbsp; Identification<br />
 Number</p>
</td>
</tr>

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

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

<p align="center">1-2348</p>
</td>
<td colspan="2" 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 colspan="2" valign="top">
<p align="center">94-3234914</p>

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

<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td colspan="3" 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="3" 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>
<td>
<p>&nbsp;</p>
</td>
</tr>
</table>

<p align="center">(Address of principal executive offices) (Zip
Code)</p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p align="center">Pacific Gas and Electric Company<br />
 (415) 973-7000</p>
</td>
<td valign="top">
<p align="center">PG&amp;E Corporation<br />
 (415) 267-7000</p>
</td>
</tr>
</table>

<p align="center">(Registrant's telephone number, including area
code)</p>

<br clear="all" />


<p>Item 5. Other Events</p>

<p>&nbsp; Pacific Gas and Electric Company - Utility Retained
Generation Ratemaking</p>

<p>On January 18, 2002, an administrative law judge (ALJ) of the
California Public Utilities Commission (CPUC) issued a proposed
decision (PD) in the CPUC's pending proceeding to determine the
ratemaking for Pacific Gas and Electric Company's (Utility)
retained generation facilities, including its Diablo Canyon Nuclear
Power Plant (Diablo Canyon) and hydroelectric power plants.&nbsp;
The PD was issued as part of the CPUC's consideration of the
Utility's November 2000 emergency application to establish a rate
stabilization plan. The President of the CPUC also issued an
alternate PD.&nbsp;</p>

<p></p>

<p>The PD would establish interim cost-of-service revenue
requirements for the costs incurred by the Utility associated with
Utility-owned generation assets and power purchased from third
parties (collectively referred to as "utility retained generation"
or "URG").&nbsp; The PD proposes to calculate the URG revenue
requirement based on actual and reasonably incurred costs,
including operating expenses, purchased power costs, depreciation,
taxes, and a return on rate base (derived from the net book value
of retained plant).&nbsp; The PD proposes an interim 2002 URG
revenue requirement of $2.875 billion for the Utility, including
fuel costs and purchased power costs.&nbsp; Of this amount, the
revenue requirement for Diablo Canyon is proposed to be $393
million. As the PD proposes that the interim URG revenue
requirement would be adjusted in the Utility's next General Rate
Case to reflect actual recorded costs, the PD proposes that the
Utility establish balancing accounts to reflect the difference
between authorized and actual costs.&nbsp;</p>

<p></p>

<p>The PD proposes that all costs, except hydroelectric and fossil
power plant operating and maintenance&nbsp; (O&amp;M) costs, be
subject to reasonableness review.&nbsp; O&amp;M cost estimates are
proposed to be reduced by approximately 2 percent (or approximately
$6 million) to reflect the reduced risk associated with no
reasonableness review.&nbsp;&nbsp; Revenues from plants under
contract with the California Independent System Operator (ISO) as
"must run" facilities are to be used as an offset to the revenue
requirement.</p>

<p></p>

<p>With respect to Diablo Canyon, the PD would supersede an earlier
CPUC order directing the Utility to share the net benefits of
operating Diablo Canyon with ratepayers beginning January 1,
2002.&nbsp; Instead, the PD would place Diablo Canyon on
cost-of-service ratemaking. The PD proposes to use the currently
authorized return on equity (ROE) of 11.22 percent.</p>

<p></p>

<p>The PD would determine the Utility's interim rate base, as of
December 31, 2000, for its fossil and hydroelectric facilities at
$985 million and for Diablo Canyon at $408
million.&nbsp;&nbsp;&nbsp; Diablo Canyon would be depreciated over
10 years, with the depreciation rate to be investigated in the
Utility's next General Rate Case.</p>

<p></p>

<p>The alternate PD notes that the end-of-year 2000 plant balances
may not be appropriate, as any amounts that should have been
depreciated under the Assembly Bill 1890 transition cost scheme
during 2001 would be transition costs, and thus the proposed
revenue requirement in the PD, $2.875 billion, may reflect recovery
of transition costs.&nbsp; The alternate PD makes clear that the
revenue requirement could be adjusted downward in a future CPUC
decision on the Utility's transition cost recovery.</p>

<p></p>

<p>Both the PD and alternate PD note that any adopted decision
would not set generation rates since the CPUC must also consider
the revenue requirement of the California Department of Water
Resources (DWR) to be recovered from rates collected by the
utilities as agents of the DWR.&nbsp; (On January 8, 2002, the CPUC
issued a proposed decision determining that the DWR's $10 billion
revenue requirement for the period from January 2001 through
December 2002 would be allocated among the three California
investor-owned energy utilities based on designated
per-kilowatt-hour charges.&nbsp; The Utility's proposed share of
the DWR revenue requirement would be $4.8 billion for the two-year
period.)&nbsp; In addition, both the PD and alternate PD noted that
the CPUC must also address the Utility's transition cost recovery,
the impact of the accounting changes the CPUC adopted in March
2001, and the status of the rate freeze.&nbsp; The PD and the
alternate PD would require the Utility to establish a balancing
account to track the differences between billed revenues and
authorized revenue requirements.&nbsp;</p>

<p></p>

<p>&nbsp; Comments on both the PD and the alternate PD are due
February 8, 2002 and the CPUC will consider the decision
thereafter.&nbsp;</p>

<br clear="all" />


<p><br />
SIGNATURE</p>

<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>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top"></td>
<td valign="top">
<p>PG&amp;E CORPORATION<br />
 </p>
</td>
</tr>

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

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

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

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

<tr>
<td valign="top"></td>
<td valign="top">
<p>PACIFIC GAS AND ELECTRIC COMPANY<br />
 </p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p>By:&nbsp;&nbsp;DINYAR B. MISTRY</p>
</td>
</tr>

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

<tr>
<td valign="top"></td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DINYAR B. MISTRY<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and Controller</p>
</td>
</tr>
</table>

<p>Dated:&nbsp; January 31, 2002</p>
</div>
</body>
</html>
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{"company-data": {"conformed-name": "PG&E CORP", "cik": "0001004980", "assigned-sic": "4931", "irs-number": "943234914", "state-of-incorporation": "CA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-12609", "film-number": "02524077"}, "business-address": {"street1": "ONE MARKET SPEAR TOWER", "street2": "SUITE 2400", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105", "phone": "4152677000"}, "mail-address": {"street1": "ONE MARKET SPEAR TOWER", "street2": "SUITE 2400", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105"}, "former-company": {"former-conformed-name": "PG&E PARENT CO INC", "date-changed": "19951214"}}
PG&E'S GRC
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:  January 31, 2002
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 - Utility Retained
Generation Ratemaking
On January 18, 2002, an administrative law judge (ALJ) of the
California Public Utilities Commission (CPUC) issued a proposed
decision (PD) in the CPUC's pending proceeding to determine the
ratemaking for Pacific Gas and Electric Company's (Utility)
retained generation facilities, including its Diablo Canyon Nuclear
Power Plant (Diablo Canyon) and hydroelectric power plants. 
The PD was issued as part of the CPUC's consideration of the
Utility's November 2000 emergency application to establish a rate
stabilization plan. The President of the CPUC also issued an
alternate PD.
The PD would establish interim cost-of-service revenue
requirements for the costs incurred by the Utility associated with
Utility-owned generation assets and power purchased from third
parties (collectively referred to as "utility retained generation"
or "URG").  The PD proposes to calculate the URG revenue
requirement based on actual and reasonably incurred costs,
including operating expenses, purchased power costs, depreciation,
taxes, and a return on rate base (derived from the net book value
of retained plant).  The PD proposes an interim 2002 URG
revenue requirement of $2.875 billion for the Utility, including
fuel costs and purchased power costs.  Of this amount, the
revenue requirement for Diablo Canyon is proposed to be $393
million. As the PD proposes that the interim URG revenue
requirement would be adjusted in the Utility's next General Rate
Case to reflect actual recorded costs, the PD proposes that the
Utility establish balancing accounts to reflect the difference
between authorized and actual costs.
The PD proposes that all costs, except hydroelectric and fossil
power plant operating and maintenance  (O&M) costs, be
subject to reasonableness review.  O&M cost estimates are
proposed to be reduced by approximately 2 percent (or approximately
$6 million) to reflect the reduced risk associated with no
reasonableness review.   Revenues from plants under
contract with the California Independent System Operator (ISO) as
"must run" facilities are to be used as an offset to the revenue
requirement.
With respect to Diablo Canyon, the PD would supersede an earlier
CPUC order directing the Utility to share the net benefits of
operating Diablo Canyon with ratepayers beginning January 1,
2002.  Instead, the PD would place Diablo Canyon on
cost-of-service ratemaking. The PD proposes to use the currently
authorized return on equity (ROE) of 11.22 percent.
The PD would determine the Utility's interim rate base, as of
December 31, 2000, for its fossil and hydroelectric facilities at
$985 million and for Diablo Canyon at $408
million.    Diablo Canyon would be depreciated over
10 years, with the depreciation rate to be investigated in the
Utility's next General Rate Case.
The alternate PD notes that the end-of-year 2000 plant balances
may not be appropriate, as any amounts that should have been
depreciated under the Assembly Bill 1890 transition cost scheme
during 2001 would be transition costs, and thus the proposed
revenue requirement in the PD, $2.875 billion, may reflect recovery
of transition costs.  The alternate PD makes clear that the
revenue requirement could be adjusted downward in a future CPUC
decision on the Utility's transition cost recovery.
Both the PD and alternate PD note that any adopted decision
would not set generation rates since the CPUC must also consider
the revenue requirement of the California Department of Water
Resources (DWR) to be recovered from rates collected by the
utilities as agents of the DWR.  (On January 8, 2002, the CPUC
issued a proposed decision determining that the DWR's $10 billion
revenue requirement for the period from January 2001 through
December 2002 would be allocated among the three California
investor-owned energy utilities based on designated
per-kilowatt-hour charges.  The Utility's proposed share of
the DWR revenue requirement would be $4.8 billion for the two-year
period.)  In addition, both the PD and alternate PD noted that
the CPUC must also address the Utility's transition cost recovery,
the impact of the accounting changes the CPUC adopted in March
2001, and the status of the rate freeze.  The PD and the
alternate PD would require the Utility to establish a balancing
account to track the differences between billed revenues and
authorized revenue requirements.
Comments on both the PD and the alternate PD are due
February 8, 2002 and the CPUC will consider the decision
thereafter.
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:  January 31, 2002