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      Form 8-K dated November 28, 2006 - filed December 4, 2006
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>UNITED
        STATES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        AND EXCHANGE COMMISSION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
        D.C.&#160; 20549</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
        8-K</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
        to Section 13 or 15(d) of the Securities Exchange Act of
        1934</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Date
        of Report: November 28, 2006</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Date
        of
        earliest event reported)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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        CORPORATION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
        Name of Registrant as specified in Charter)</font></div>
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              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                  Employer Identification No.)</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>One
        Market, Spear Tower, Suite 2400, San Francisco, California
        94105</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
        of principal executive offices, zip code)</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>415-267-7000</u></strong></font></div>
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        Telephone Number, Including Area Code)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>N/A</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
        Name or Former Address, if Changed Since Last Report)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PACIFIC
        GAS AND ELECTRIC COMPANY</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
        Name of Registrant as specified in Charter)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div align="center">
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              </td>
              <td valign="top" width="26%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1-2348</strong></font></div>
              </td>
              <td valign="top" width="26%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>94-0742640</strong></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                  or other jurisdiction of </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">incorporation)</font></div>
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              <td valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                  File Number)</font></div>
              </td>
              <td valign="top" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                  Employer Identification No.)</font></div>
              </td>
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      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>77
        Beale Street, P. O. Box 770000, San Francisco, California
        94177</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
        of principal executive offices, zip code)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>(415)
        973-7000</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Registrant&#8217;s
        Telephone Number, Including Area Code)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
        Name or Former Address, if Changed Since Last Report)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; 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>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
        communications pursuant to Rule 425 under the Securities Act (17 CFR
        230.425)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -36pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
        Material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
        240.14a-12)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -54pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
        communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
        240.14d-2(b)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -54pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#168;</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
        communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
        240.13e-4(c))</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        8.01 - Other Events </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pacific
        Gas and Electric Company (Utility) Acquires Contra Costa Unit 8
        Assets</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        November 28, 2006, the Utility completed its acquisition of the 530-megawatt
        (MW) Contra Costa Unit 8 electric generation facility from Mirant Corporation
        and certain of its subsidiaries (Mirant). The partially constructed plant
        will
        be renamed the Gateway Generating Station (Gateway) and is located in Antioch,
        California. As previously disclosed, in June 2006, the California Public
        Utilities Commission (CPUC) approved the Utility&#8217;s application to acquire the
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">facility,
        to complete construction at a cost of approximately $300 million, and to
        operate
        the facility. In order to reduce the environmental impact of the facility
        and as
        a result of changes to Gateway&#8217;s environmental permits, on November 8, 2006, the
        Utility requested the CPUC to authorize recovery of approximately $75 million
        of
        additional expenditures that are necessary to convert the plant from fresh
        water
        cooling to dry cooling. The Utility anticipates that the CPUC will issue
        its
        decision on this request in the first quarter of 2007. The Utility also plans
        to
        file a request with the California Energy Commission (CEC) (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
        state
        agency that is responsible for licensing of all thermal power plants over
        50 MW
        in California)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        to amend
        the facility&#8217;s current permit to remove Mirant from being a responsible party
        under the permit, and to authorize the conversion to dry cooling. The Utility
        expects</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        that the
        CEC will issue a decision in the second quarter of 2007. Subject to obtaining
        these permit amendments from the </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CEC
        and
        the completion of final development activities, t</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">he
        Utility estimates that it will</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        complete
        construction of the facility and commence operations in 2009. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>C</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PUC
        Approves New Long-Term Generation Resource Commitments</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        November 30, 2006,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        the CPUC
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">approved
        s</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">even
        agreements that the Utility submitted to the CPUC and that would provide
        2,250
        MW of new long-term electricity generation resources in northern California
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">in
        accordance with</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        the
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Utility&#8217;s
        2004 long-term electricity procurement plan. The CPUC also authorized the
        Utility to recover certain costs associated with these long-term generation
        resource commitments as described below. None of the agreements approved
        by the
        CPUC will become enforceable and binding agreements until after the CPUC
        decision becomes final and non-appealable. The decision will become final
        and
        non-appealable on December 30, 2006, unless a petition for rehearing is filed
        at
        the CPUC before such date. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Utility-Owned
        Projects. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Two
        of
        t</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">he
        approved agreements provide </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">for
        third
        parties to construct generation facilities to be owned and operated by the
        Utility. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">One
        of
        these two contracts calls for the construction of a 657-MW power plant to
        be
        located in Colusa County, California. The other contract calls for the
        construction of a 163-MW power plant at the Utility&#8217;s Humboldt Bay facility to
        re-power the existing power plant at Humboldt Bay, which is at the end of
        its
        useful life. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        to the
        Colusa project, the CPUC adopted an initial capital cost equal to the sum
        of the
        fixed contract costs plus the Utility&#8217;s estimated owner&#8217;s costs and a
        contingency amount</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        to
        account for the risk and uncertainty in the estimation of owner&#8217;s costs.
        (Owner&#8217;s costs include the Utility&#8217;s expenses for legal, engineering, and
        consulting services as well as the costs for internal personnel and overhead
        related to the project.) </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        to the
        Humboldt Bay project, the CPUC adopted an initial capital cost equal to the
        sum
        of the fixed contract costs plus the Utility&#8217;s estimated owner&#8217;s costs, but
        limited the contingency amount for owner&#8217;s costs to 5 percent of the fixed
        contract cost and estimated owner&#8217;s costs. The CPUC also authorized the Utility
        to adjust the initial capital cost for each project to reflect any actual
        incentive payments made to, or liquidated damages received from, the contractors
        through notification to the CPUC but without a reasonableness review.
</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">2</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        CPUC
        directed the Utility to true up the projects&#8217; forecasted initial capital costs
        to reflect actual initial capital costs in the Utility&#8217;s next G</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">eneral
        Rate Case (GRC) proceeding </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">following
        the commencement of operation of the projects. (It is anticipated that the
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Humboldt
        Bay and Colusa projects will commence operations in May&#160;2009 and May 2010,
        respectively, and, assuming the proposed settlement of the Utility&#8217;s 2007 GRC is
        approved by the CPUC, that the next GRC will occur in 2011.) For the Colusa
        project, the true-up will adjust the amount of initial capital costs recoverable
        in rates to </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">reflect
        50 percent of any actual cost savings. For the Humboldt Bay project,
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
        true-up will adjust the amount of initial capital costs recoverable in rates
        to
        reflect </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">any
        actual cost savings. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Utility is authorized to seek recovery of additional capital costs incurred
        in
        connection with either project that are attributable to operational
        enhancements, but the request will be subject to the CPUC&#8217;s </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">review.
        The CPUC decision states that the Utility may not seek to recover any other
        additional capital costs incurred in connection with the Colusa project.
        The
        Utility is permitted to seek recovery of additional capital costs incurred
        in
        connection with the Humboldt Bay project, but such requests will be subject
        to a
        reasonableness review. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        CPUC
        also authorized the Utility to collect a non-bypassable charge from departing
        customers for 10 years to recover the above-market costs of the Colusa and
        Humboldt Bay projects. The Utility had originally proposed a 30-year recovery
        period. At the end of this 10-year period, the Utility will still be able
        to
        collect any above-market costs from its current full-service customers (known
        as
&#8220;bundled&#8221; customers), but will no longer be able to charge departing customers
        for these costs. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        CPUC
        also adopted the Utility&#8217;s estimates of non-fuel operations and maintenance
        costs for the purpose of establishing an initial revenue requirement for
        the
        Colusa and Humboldt Bay projects. The CPUC authorized the Utility to recover
        additional expenses it may incur as a result of (1) increased staffing levels
        due to permitting requirements, or (2) a change in the commercial operation
        date. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        CPUC
        noted that the revenue requirement to recover the initial capital costs for
        the
        Colusa project will begin to accrue in the Utility Generation Balancing Account
        (UGBA) as of the date the completed plant is transferred to the Utility,
        and
        would be included in rates on January 1 of the following year. The initial
        revenue requirement for the Humboldt Bay project would begin to accrue in
        the
        UGBA as of its commercial operation date, and would be included in rates
        on
        January 1 of the following year.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Finally,
        the CPUC noted that any environmental review of the Colusa and Humboldt Bay
        projects required by the California Environmental Quality Act (CEQA) would
        be
        conducted by the CEC</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Applications
        for permits to construct the two projects have been filed with the CEC. As
        part
        of the CEC&#8217;s permitting process, the CEC will conduct a CEQA review of each
        project. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Power
        Purchase Agreements. </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        CPUC
        also approved five power purchase agreements. The Utility has executed four
        of
        these agreements that would provide approximately 800 MW of capacity with
        terms
        ranging from 15 to 20 years. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        new
        generation </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">facilities</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        contemplated by these four power purchase agreements are anticipated to begin
        delivering power to the grid in </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2009.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        The
        Utility also has entered into a letter of intent with an affiliate of Calpine
        Corporation in which the parties agreed to execute the fifth power purchase
        agreement to provide 601 MW of capacity over a 10-year term beginning in
        2010.
        The parties are targeting to execute this fifth power purchase agreement
        by the
        end of the year. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        CPUC
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">decision
        authorizes the Utility to recover the fixed and variable costs of the power
        purchase agreements, along with fuel costs, through the Energy Resource Recovery
        Account, a balancing account </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">designed
        to track and allow recovery of the difference between the authorized revenue
        requirement and actual costs incurred under the Utility's authorized procurement
        plans, for the terms of the agreements. Although a</font></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">3</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
        2006
        CPUC decision requires utilities to elect one of two cost allocation methods
        to
        recover any &#8220;net capacity costs&#8221; incurred under the power purchase agreements
        (i.e.,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        contract
        price less energy revenues)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        at the
        time they request approval of a power purchase agreement, the CPUC noted
        that
        the Utility had submitted its application in April 2006 before the decision
        was
        issued. In its November 30, 2006 decision, the CPUC permitted the Utility
        to
        defer its election of a cost allocation method for these agreements until
        after
        the CPUC takes further action or provides further direction with respect
        to the
        cost allocation method that calls for an &#8220;energy rights auction&#8221; (as described
        in PG&amp;E Corporation&#8217;s and the Utility&#8217;s Quarterly Report on Form 10-Q for
        the quarter ended September 30, 2006). </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        completion and the commencement of commercial operations of the generation
        facilities supporting the Utility&#8217;s long-term generation resources, including
        the Colusa and Humboldt Bay projects, are subject to construction and
        development risks, including those risks related to obtaining required permits
        and meeting construction schedules and operational performance requirements.
        In
        addition, the Utility may incur costs at the Humboldt Bay and Colusa projects
        that are not recoverable from customers.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">4</font></div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURE</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; 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 hereunto
        duly authorized. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="80%">

            <tr>
              <td align="left" valign="middle" width="43%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="middle" width="43%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" colspan="3" valign="bottom" width="47%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PG&amp;E
                  CORPORATION</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="middle" width="43%">&#160;</td>
              <td align="left" colspan="2" valign="middle" width="4%">&#160;</td>
              <td align="left" colspan="2" valign="middle" width="44%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
                  December 4, 2006</font></div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:</font></div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="43%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">G.
                  ROBERT POWELL</font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="43%">&#160;</td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="3%">&#160;</td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">G.
                  ROBERT POWELL</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vice
                  President and Controller</font></div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 36pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 36pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div align="center">
        <table border="0" cellpadding="0" cellspacing="0" width="80%">

            <tr>
              <td align="left" valign="middle" width="43%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="middle" width="3%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="left" valign="middle" width="43%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" colspan="3" valign="bottom" width="47%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PACIFIC
                  GAS AND ELECTRIC COMPANY</strong></font></div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="middle" width="43%">&#160;</td>
              <td align="left" colspan="2" valign="middle" width="4%">&#160;</td>
              <td align="left" colspan="2" valign="middle" width="44%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="43%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
                  December 4, 2006</font></div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:</font></div>
              </td>
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[{"type": "8-K", "sequence": "1", "filename": "form8k120406.htm", "description": "FORM 8-K DATED NOVEMBER 28, 2006 - FILED DECEMBER 4, 2006", "secsgml_size_bytes": 52272}]
{"company-data": {"conformed-name": "PACIFIC GAS & ELECTRIC CO", "cik": "0000075488", "assigned-sic": "4931", "irs-number": "940742640", "state-of-incorporation": "CA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-02348", "film-number": "061255303"}, "business-address": {"street1": "77 BEALE ST", "street2": "P O BOX 770000", "city": "SAN FRANCISCO", "state": "CA", "zip": "94177", "phone": "4152677000"}, "mail-address": {"street1": "77 BEALE STREET", "street2": "P O BOX 770000", "city": "SAN FRANCISCO", "state": "CA", "zip": "94177"}}
Form 8-K dated November 28, 2006 - filed December 4, 2006
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: November 28, 2006
(Date
        of
        earliest event reported)
PG&E
        CORPORATION
(Exact
        Name of Registrant as specified in Charter)
California
1-12609
94-3234914
(State
                  or other jurisdiction of
incorporation)
(Commission
                  File Number)
(IRS
                  Employer Identification No.)
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)
N/A
(Former
        Name or Former Address, if Changed Since Last Report)
PACIFIC
        GAS AND ELECTRIC COMPANY
(Exact
        Name of Registrant as specified in Charter)
California
1-2348
94-0742640
(State
                  or other jurisdiction of
incorporation)
(Commission
                  File Number)
(IRS
                  Employer Identification No.)
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)
N/A
(Former
        Name or Former Address, if Changed Since Last Report)
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):
¨
Written
        communications pursuant to Rule 425 under the Securities Act (17 CFR
        230.425)
¨
Soliciting
        Material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
        240.14a-12)
¨
Pre-commencement
        communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
        240.14d-2(b)
¨
Pre-commencement
        communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
        240.13e-4(c))
Item
        8.01 - Other Events
Pacific
        Gas and Electric Company (Utility) Acquires Contra Costa Unit 8
        Assets
On
        November 28, 2006, the Utility completed its acquisition of the 530-megawatt
        (MW) Contra Costa Unit 8 electric generation facility from Mirant Corporation
        and certain of its subsidiaries (Mirant). The partially constructed plant
        will
        be renamed the Gateway Generating Station (Gateway) and is located in Antioch,
        California. As previously disclosed, in June 2006, the California Public
        Utilities Commission (CPUC) approved the Utility's application to acquire the
facility,
        to complete construction at a cost of approximately $300 million, and to
        operate
        the facility. In order to reduce the environmental impact of the facility
        and as
        a result of changes to Gateway's environmental permits, on November 8, 2006, the
        Utility requested the CPUC to authorize recovery of approximately $75 million
        of
        additional expenditures that are necessary to convert the plant from fresh
        water
        cooling to dry cooling. The Utility anticipates that the CPUC will issue
        its
        decision on this request in the first quarter of 2007. The Utility also plans
        to
        file a request with the California Energy Commission (CEC) (
the
        state
        agency that is responsible for licensing of all thermal power plants over
        50 MW
        in California)
to amend
        the facility's current permit to remove Mirant from being a responsible party
        under the permit, and to authorize the conversion to dry cooling. The Utility
        expects
that the
        CEC will issue a decision in the second quarter of 2007. Subject to obtaining
        these permit amendments from the
CEC
        and
        the completion of final development activities, t
he
        Utility estimates that it will
complete
        construction of the facility and commence operations in 2009.
C
PUC
        Approves New Long-Term Generation Resource Commitments
On
        November 30, 2006,
the CPUC
approved
        s
even
        agreements that the Utility submitted to the CPUC and that would provide
        2,250
        MW of new long-term electricity generation resources in northern California
in
        accordance with
the
Utility's
        2004 long-term electricity procurement plan. The CPUC also authorized the
        Utility to recover certain costs associated with these long-term generation
        resource commitments as described below. None of the agreements approved
        by the
        CPUC will become enforceable and binding agreements until after the CPUC
        decision becomes final and non-appealable. The decision will become final
        and
        non-appealable on December 30, 2006, unless a petition for rehearing is filed
        at
        the CPUC before such date.
Utility-Owned
        Projects.
Two
        of
        t
he
        approved agreements provide
for
        third
        parties to construct generation facilities to be owned and operated by the
        Utility.
One
        of
        these two contracts calls for the construction of a 657-MW power plant to
        be
        located in Colusa County, California. The other contract calls for the
        construction of a 163-MW power plant at the Utility's Humboldt Bay facility to
        re-power the existing power plant at Humboldt Bay, which is at the end of
        its
        useful life.
As
        to the
        Colusa project, the CPUC adopted an initial capital cost equal to the sum
        of the
        fixed contract costs plus the Utility's estimated owner's costs and a
        contingency amount
to
        account for the risk and uncertainty in the estimation of owner's costs.
        (Owner's costs include the Utility's expenses for legal, engineering, and
        consulting services as well as the costs for internal personnel and overhead
        related to the project.)
As
        to the
        Humboldt Bay project, the CPUC adopted an initial capital cost equal to the
        sum
        of the fixed contract costs plus the Utility's estimated owner's costs, but
        limited the contingency amount for owner's costs to 5 percent of the fixed
        contract cost and estimated owner's costs. The CPUC also authorized the Utility
        to adjust the initial capital cost for each project to reflect any actual
        incentive payments made to, or liquidated damages received from, the contractors
        through notification to the CPUC but without a reasonableness review.
2
The
        CPUC
        directed the Utility to true up the projects' forecasted initial capital costs
        to reflect actual initial capital costs in the Utility's next G
eneral
        Rate Case (GRC) proceeding
following
        the commencement of operation of the projects. (It is anticipated that the
Humboldt
        Bay and Colusa projects will commence operations in May 2009 and May 2010,
        respectively, and, assuming the proposed settlement of the Utility's 2007 GRC is
        approved by the CPUC, that the next GRC will occur in 2011.) For the Colusa
        project, the true-up will adjust the amount of initial capital costs recoverable
        in rates to
reflect
        50 percent of any actual cost savings. For the Humboldt Bay project,
the
        true-up will adjust the amount of initial capital costs recoverable in rates
        to
        reflect
any
        actual cost savings.
The
        Utility is authorized to seek recovery of additional capital costs incurred
        in
        connection with either project that are attributable to operational
        enhancements, but the request will be subject to the CPUC's
review.
        The CPUC decision states that the Utility may not seek to recover any other
        additional capital costs incurred in connection with the Colusa project.
        The
        Utility is permitted to seek recovery of additional capital costs incurred
        in
        connection with the Humboldt Bay project, but such requests will be subject
        to a
        reasonableness review.
The
        CPUC
        also authorized the Utility to collect a non-bypassable charge from departing
        customers for 10 years to recover the above-market costs of the Colusa and
        Humboldt Bay projects. The Utility had originally proposed a 30-year recovery
        period. At the end of this 10-year period, the Utility will still be able
        to
        collect any above-market costs from its current full-service customers (known
        as
"bundled" customers), but will no longer be able to charge departing customers
        for these costs.
The
        CPUC
        also adopted the Utility's estimates of non-fuel operations and maintenance
        costs for the purpose of establishing an initial revenue requirement for
        the
        Colusa and Humboldt Bay projects. The CPUC authorized the Utility to recover
        additional expenses it may incur as a result of (1) increased staffing levels
        due to permitting requirements, or (2) a change in the commercial operation
        date.
The
        CPUC
        noted that the revenue requirement to recover the initial capital costs for
        the
        Colusa project will begin to accrue in the Utility Generation Balancing Account
        (UGBA) as of the date the completed plant is transferred to the Utility,
        and
        would be included in rates on January 1 of the following year. The initial
        revenue requirement for the Humboldt Bay project would begin to accrue in
        the
        UGBA as of its commercial operation date, and would be included in rates
        on
        January 1 of the following year.
Finally,
        the CPUC noted that any environmental review of the Colusa and Humboldt Bay
        projects required by the California Environmental Quality Act (CEQA) would
        be
        conducted by the CEC
.
Applications
        for permits to construct the two projects have been filed with the CEC. As
        part
        of the CEC's permitting process, the CEC will conduct a CEQA review of each
        project.
Power
        Purchase Agreements.
The
        CPUC
        also approved five power purchase agreements. The Utility has executed four
        of
        these agreements that would provide approximately 800 MW of capacity with
        terms
        ranging from 15 to 20 years.
The
        new
        generation
facilities
contemplated by these four power purchase agreements are anticipated to begin
        delivering power to the grid in
2009.
The
        Utility also has entered into a letter of intent with an affiliate of Calpine
        Corporation in which the parties agreed to execute the fifth power purchase
        agreement to provide 601 MW of capacity over a 10-year term beginning in
        2010.
        The parties are targeting to execute this fifth power purchase agreement
        by the
        end of the year.
The
        CPUC
decision
        authorizes the Utility to recover the fixed and variable costs of the power
        purchase agreements, along with fuel costs, through the Energy Resource Recovery
        Account, a balancing account
designed
        to track and allow recovery of the difference between the authorized revenue
        requirement and actual costs incurred under the Utility's authorized procurement
        plans, for the terms of the agreements. Although a
3
July
        2006
        CPUC decision requires utilities to elect one of two cost allocation methods
        to
        recover any "net capacity costs" incurred under the power purchase agreements
        (i.e.,
contract
        price less energy revenues)
at the
        time they request approval of a power purchase agreement, the CPUC noted
        that
        the Utility had submitted its application in April 2006 before the decision
        was
        issued. In its November 30, 2006 decision, the CPUC permitted the Utility
        to
        defer its election of a cost allocation method for these agreements until
        after
        the CPUC takes further action or provides further direction with respect
        to the
        cost allocation method that calls for an "energy rights auction" (as described
        in PG&E Corporation's and the Utility's Quarterly Report on Form 10-Q for
        the quarter ended September 30, 2006).
The
        completion and the commencement of commercial operations of the generation
        facilities supporting the Utility's long-term generation resources, including
        the Colusa and Humboldt Bay projects, are subject to construction and
        development risks, including those risks related to obtaining required permits
        and meeting construction schedules and operational performance requirements.
        In
        addition, the Utility may incur costs at the Humboldt Bay and Colusa projects
        that are not recoverable from customers.
4
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 hereunto
        duly authorized.
PG&E
                  CORPORATION
Dated:
                  December 4, 2006
By:
G.
                  ROBERT POWELL
G.
                  ROBERT POWELL
Vice
                  President and Controller
PACIFIC
                  GAS AND ELECTRIC COMPANY
Dated:
                  December 4, 2006
By:
G.
                  ROBERT POWELL
G.
                  ROBERT POWELL
Vice
                  President and Controller
5