<html>
<head>
<title>Form 8-K dated 4/25/05</title>
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<p align="center"><b>UNITED STATES</b></p>
</td>
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<tr>
<td colspan="4" valign="top">
<p align="center"><b>SECURITIES AND EXCHANGE COMMISSION</b></p>
</td>
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<tr>
<td colspan="4" valign="top">
<p align="center"><b>Washington, D.C.&nbsp; 20549</b></p>
</td>
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<tr>
<td colspan="4" valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
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<tr>
<td colspan="4" valign="top">
<p align="center"><b>FORM 8-K</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>CURRENT REPORT</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
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<td colspan="4" valign="top">
<p align="center"><b>Date of Report: April 25, 2005</b></p>

<p align="center">
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>PG&amp;E CORPORATION</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>(Exact Name of Registrant as specified in
Charter)</b></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><b><u>California</u></b></p>
</td>
<td valign="top">
<p align="center"><b><u>1-2609</u></b></p>
</td>
<td colspan="2" valign="top">
<p align="center"><b><u>94-323914</u></b></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">(State or other jurisdiction of
incorporation)</p>
</td>
<td valign="top">
<p align="center"><br />
 (Commission File Number)</p>
</td>
<td colspan="2" valign="top">
<p align="center">(IRS Employer<br />
 Identification No.)</p>
</td>
</tr>

<tr>
<td colspan="3" valign="top">
<p align="center"><b><u>One Market, Spear Tower, Suite 2400, San
Francisco, CA</u></b></p>
</td>
<td valign="top">
<p align="center"><b><u>94105</u></b></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top">
<p align="center">(Address of principal executive offices)</p>
</td>
<td valign="top">
<p align="center">(Zip code)</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b><u>415-267-7000</u></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>(Registrant&rsquo;s Telephone Number,
Including Area Code)</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b><u>N/A</u></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>(Former Name or Former Address, if Changed
Since Last Report)</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>PACIFIC GAS AND ELECTRIC COMPANY</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>(Exact Name of Registrant as specified in
Charter)</b></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><b><u>California</u></b></p>
</td>
<td valign="top">
<p align="center"><b><u>1-2348</u></b></p>
</td>
<td colspan="2" valign="top">
<p align="center"><b><u>94-0742640</u></b></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">(State or other jurisdiction of
incorporation)</p>
</td>
<td valign="top">
<p align="center"><br />
 (Commission File Number)</p>
</td>
<td colspan="2" valign="top">
<p align="center">(IRS Employer<br />
 Identification No.)</p>
</td>
</tr>

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

<tr>
<td colspan="3" valign="top">
<p align="center"><b><u>77 Beale Street, P. O. Box 770000, San
Francisco, California</u></b></p>
</td>
<td valign="top">
<p align="center"><b><u>94177</u></b></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top">
<p align="center">(Address of principal executive offices)</p>
</td>
<td valign="top">
<p align="center">(Zip code)</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b><u>(415) 973-7000</u></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>(Registrant&rsquo;s Telephone Number,
Including Area Code)</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b><u>N/A</u></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>(Former Name or Former Address, if Changed
Since Last Report)</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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):</p>
</td>
</tr>
</table>

<p>&nbsp;&nbsp;&nbsp;&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td valign="top">
<p>[&nbsp;]</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)</p>
</td>
</tr>

<tr>
<td valign="top">
<p>[&nbsp;]</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Soliciting Material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)</p>
</td>
</tr>

<tr>
<td valign="top">
<p>[&nbsp;]</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act<br />
 (17 CFR 240.14d-2(b)</p>
</td>
</tr>

<tr>
<td valign="top">
<p>[&nbsp;]</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act<br />
 (17 CFR 240.13e-4(c))</p>
</td>
</tr>
</table>

<hr>

<p><b>Item 1.01 &ndash; Entry Into a Material Definitive
Agreement</b></p>

<p>PG&amp;E Corporation 2006 Long-Term Incentive Plan</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
the annual shareholders meeting held on April 20, 2005, PG&amp;E
Corporation&rsquo;s shareholders approved the PG&amp;E Corporation
2006 Long -Term Incentive Plan (2006 LTIP). The 2006 LTIP will
replace the current PG&amp;E Corporation Long-Term Incentive
Program, which will expire on December 31, 2005.&nbsp; No more than
500,000 shares of PG&amp;E Corporation common stock will be granted
under the current PG&amp;E Corporation Long-Term Incentive Program
during the period April 20, 2005, through December 31, 2005.&nbsp;
The 2006 LTIP will become effective as of January 1, 2006, and will
terminate on December 31, 2015, unless it is terminated sooner
according to the terms of the 2006 LTIP.&nbsp;</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
purpose of the 2006 LTIP is to advance the interests of PG&amp;E
Corporation and its shareholders by providing key management
employees, non-employee directors, and other eligible participants
with stock-based financial incentives to align participants&rsquo;
interests with the interests of PG&amp;E Corporation&rsquo;s
shareholders in the long-term success of PG&amp;E Corporation. All
officers and employees of PG&amp;E Corporation, its subsidiaries,
and affiliates are eligible to participate in the 2006 LTIP.&nbsp;
Non-employee directors of PG&amp;E Corporation are eligible to
receive formula-based awards. Under certain circumstances,
prospective employees and consultants are also eligible for
awards.</p>

<p></p>

<p>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
2006 LTIP permits the award of various forms of incentive awards,
including stock options, stock appreciation rights (SARs),
restricted stock awards, restricted stock units, performance
shares, performance units, deferred compensation awards, and other
stock-based awards. The PG&amp;E Corporation Board of Directors has
delegated to the Nominating, Compensation and Governance Committee
(Committee) the authority to determine the type of incentive award,
as well as the terms and conditions of the award, to be granted to
officers of PG&amp;E Corporation and its subsidiaries.&nbsp; The
Board of Directors also has delegated to the Chief Executive
Officer of PG&amp;E Corporation the authority to make awards to
certain other eligible participants within the guidelines adopted
by the Committee.&nbsp; Non-employee directors of PG&amp;E
Corporation are eligible to receive non-discretionary formula-based
incentive awards as set forth in the 2006 LTIP.&nbsp; Specific
awards will be reflected in an agreement between PG&amp;E
Corporation and the participant.</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
maximum of 12,000,000 shares of PG&amp;E Corporation common stock
(subject to adjustment for changes in capital structure, stock
dividends, or other similar events) will be reserved for use under
the 2006 LTIP.&nbsp; Shares of PG&amp;E Corporation&rsquo;s common
stock covered by incentive awards previously granted under the 2006
LTIP may be reused or added back to the 2006 LTIP under certain
circumstances and to the extent permitted by applicable law.&nbsp;
In addition, if a participant uses shares to pay all or part of the
exercise price when exercising a stock option, or if a participant
uses the net exercise method, only the net number of shares will be
considered to have been issued.&nbsp; The 2006 LTIP also contains
other limits with respect to the terms of different types of
incentive awards and with respect to the number of shares subject
to awards that can be granted to an employee during any fiscal
year.&nbsp;</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
2006 LTIP is described in detail in PG&amp;E Corporation&rsquo;s
and Pacific Gas and Electric Company&rsquo;s 2005 joint proxy
statement filed with the Securities and Exchange Commission in
connection with the joint annual meeting of shareholders held on
April 20, 2005.&nbsp; The 2006 LTIP also is attached to this report
as Exhibit 99.&nbsp;</p>

<p></p>

<p>Bond Indenture</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 22, 2005, the indenture governing Pacific Gas and Electric
Company&rsquo;s (Utility) First Mortgage Bonds was amended and
restated as described under Item 8.01, Other Events&mdash;First
Mortgage Bonds.</p>

<p></p>

<p><b>Item 8.01 - Other Events</b></p>

<p><b></b></p>

<p>First Mortgage Bonds</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In March 2004, the Utility issued $6.7 billion aggregate principal
amount of First Mortgage Bonds secured by a lien on substantially
all of the Utility&rsquo;s real property and certain tangible
personal property related to the Utility&rsquo;s facilities.&nbsp;
First Mortgage Bonds in the aggregate amount of $2.5 billion also
were used to secure the Utility's obligations under various
agreements.&nbsp; The governing indenture provided that the lien
could be released when, among other conditions, Moody's Investors
Service (Moody&rsquo;s) and Standard &amp; Poor&rsquo;s Rating
Service (S&amp;P) provided written evidence that the ratings on the
Utility's long-term unsecured debt obligations immediately after
the lien was released would be at least equal to the initial
ratings on the First Mortgage Bonds (BBB by S&amp;P and Baa2 by
Moody&rsquo;s).&nbsp; Moody&rsquo;s and S&amp;P have confirmed that
the bonds would be rated BBB by S&amp;P and Baa1 by Moody&rsquo;s
(as increased by Moody&rsquo;s from Baa2 on March 3, 2005) after
release of the lien.&nbsp; On April 22, 2005, the Utility and The
Bank of New York Trust Company, N.A., the successor to BNY Western
Trust Company, as trustee, amended and restated the indenture to
eliminate the provisions related to the lien of the mortgage.&nbsp;
There is no longer any collateral securing the bonds and the bonds
have become the Utility's unsecured general obligations, ranking
equally with the Utility's other unsecured debt.&nbsp; The Utility
has agreed that it will not incur secured debt except for (1) debt
secured by specified liens, and (2) secured debt in an amount not
exceeding 10% of the Utility's tangible net assets, as defined in
the indenture.</p>

<p>In addition, the designations of the remaining $5.3 billion in
aggregate principal amount of First Mortgage Bonds have been
changed as follows:&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="704">
<tr>
<td valign="top" width="313">
<p><u>First Mortgage Bonds</u> </p>
</td>
<td valign="top" width="23">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top" width="235">
<p><u>Redesignated As</u></p>
</td>
<td valign="top" width="20">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top" width="103">
<p><u>Amount</u></p>
</td>
</tr>

<tr>
<td valign="top" width="313">
<p>3.6% First Mortgage Bonds, due 2009</p>
</td>
<td valign="top" width="23"></td>
<td valign="top" width="235">
<p>3.6% Senior Notes, due 2009</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="103">
<p>$600 million</p>
</td>
</tr>

<tr>
<td valign="top" width="313">
<p>4.2% First Mortgage Bonds, due 2011</p>
</td>
<td valign="top" width="23"></td>
<td valign="top" width="235">
<p>4.2% Senior Notes, due 2011</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="103">
<p>$500 million</p>
</td>
</tr>

<tr>
<td valign="top" width="313">
<p>4.8% First Mortgage Bonds, due 2014</p>
</td>
<td valign="top" width="23"></td>
<td valign="top" width="235">
<p>4.8% Senior Notes, due 2014</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="103">
<p>$1 billion</p>
</td>
</tr>

<tr>
<td valign="top" width="313">
<p>6.05% First Mortgage Bonds, due 2034</p>
</td>
<td valign="top" width="23"></td>
<td valign="top" width="235">
<p>6.05% Senior Notes, due 2034</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="103">
<p>$3 billion</p>
</td>
</tr>

<tr>
<td valign="top" width="313">
<p>Floating Rate First Mortgage Bonds, due
2006&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top" width="23"></td>
<td valign="top" width="235">
<p>Floating Rate Senior Notes, due 2006&nbsp;</p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="103">
<p>$200 million</p>
</td>
</tr>
</table>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Committee on Uniform Securities Identification Procedures (CUSIP)
numbers of these instruments remain the same. Certain other bonds
outstanding under the indenture, which had been used to support the
Utility&rsquo;s repayment obligations under credit facilities and
certain of the pollution control loan agreements, have been
cancelled.</p>

<p>Tax-Exempt Financing</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 20, 2005, the Utility repaid $454 million under certain
reimbursement obligations that the Utility entered into in April
2004 when its plan of reorganization under Chapter 11 of the U.S.
Bankruptcy Code became effective.&nbsp; These reimbursement
obligations replaced the Utility&rsquo;s obligation to certain
issuers of letters of credit whose letters of credit were drawn
upon during the Chapter 11 proceeding in connection with the&nbsp;
redemption of certain pollution control bonds that had been issued
for the benefit of the Utility.&nbsp; The Utility drew $454 million
under its $1 billion credit agreement to repay the reimbursement
obligations.&nbsp; The Utility anticipates that this draw will be
repaid with the proceeds of a future tax-exempt financing through
the issuance of bonds by a state agency for the benefit of the
Utility.&nbsp; The Utility passes on to its customers interest cost
savings attributable to the lower interest rates associated with
such tax-exempt financing.&nbsp;</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 22, 2005, the Utility entered into an amendment of four
reimbursement agreements totaling $620 million related to letters
of credit aggregating $614 million that had been issued to support
certain pollution control bonds issued on behalf of the
Utility.&nbsp; In addition to reducing pricing and generally
conforming the covenants and events of default to those in the $1
billion working capital facility, the term of the amended
agreements has been extended from three years to five years, until
April 22, 2010.</p>

<p>Redemption of Preferred Stock</p>

<p align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 20, 2005, the Utility&rsquo;s Board of Directors authorized
the redemption of all of the outstanding shares of the
Utility&rsquo;s 6.57% Redeemable First Preferred Stock, CUSIP No.
694308 69 3 (6.57% Preferred Stock) and 6.30% Redeemable First
Preferred Stock, CUSIP No. 694308 65 1 (6.30% Preferred Stock),
totaling approximately $120 million aggregate par value.&nbsp; Both
issues will be redeemed on May 31, 2005.&nbsp; In addition to the
$25 per share redemption price, holders of the 6.57% Preferred
Stock and the 6.30% Preferred Stock will be entitled to receive an
amount equal to all accumulated and unpaid dividends on such shares
to and including May 31, 2005.</p>

<p align="left"><b></b></p>

<p align="left"><b>Item 9.01 - Financial Statements and
Exhibits</b></p>

<p></p>

<p>
Exhibits<br>
</p>

<p></p>

<p></p>

<p>Exhibit 99.&nbsp; PG&amp;E Corporation 2006 Long-Term Incentive
Plan</p>

<p></p>

<br clear="all" />


<div align="center">
<hr size="2" width="100%" align="center" />
</div>

<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td valign="top">
<p align="center">SIGNATURE</p>
</td>
</tr>

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

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

<p>&nbsp;</p>
</td>
</tr>
</table>

<p></p>

<p></p>

<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td valign="top"></td>
<td colspan="2" valign="top">
<p>PG&amp;E CORPORATION</p>
</td>
</tr>

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

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

<tr>
<td valign="top">
<p>
&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Christopher P. Johns<br />
 Senior Vice President, Chief<br />
 Financial Officer and Controller<br />
<br />
 </p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="2" valign="top">
<p>PACIFIC GAS AND ELECTRIC COMPANY</p>
</td>
</tr>

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

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

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

<p>Dated:&nbsp; April 25, 2005</p>

<br clear="all" />


<hr>


<p align="center"><b>EXHIBIT INDEX</b></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><u>No.</u>&nbsp;</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p><u>Description of Exhibit</u></p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
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<p>PG&amp;E Corporation 2006 Long-Term Incentive Plan</p>
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[{"type": "8-K", "sequence": "1", "filename": "final042505.htm", "description": "FORM 8-K DATED APRIL 25, 2005", "secsgml_size_bytes": 22108}]
{"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": "05770996"}, "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 4/25/05
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: April 25, 2005
PG&E CORPORATION
(Exact Name of Registrant as specified in
Charter)
California
1-2609
94-323914
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
One Market, Spear Tower, Suite 2400, San
Francisco, CA
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 1.01 – Entry Into a Material Definitive
Agreement
PG&E Corporation 2006 Long-Term Incentive Plan
At
the annual shareholders meeting held on April 20, 2005, PG&E
Corporation's shareholders approved the PG&E Corporation
2006 Long -Term Incentive Plan (2006 LTIP). The 2006 LTIP will
replace the current PG&E Corporation Long-Term Incentive
Program, which will expire on December 31, 2005.  No more than
500,000 shares of PG&E Corporation common stock will be granted
under the current PG&E Corporation Long-Term Incentive Program
during the period April 20, 2005, through December 31, 2005. 
The 2006 LTIP will become effective as of January 1, 2006, and will
terminate on December 31, 2015, unless it is terminated sooner
according to the terms of the 2006 LTIP.
The
purpose of the 2006 LTIP is to advance the interests of PG&E
Corporation and its shareholders by providing key management
employees, non-employee directors, and other eligible participants
with stock-based financial incentives to align participants'
interests with the interests of PG&E Corporation's
shareholders in the long-term success of PG&E Corporation. All
officers and employees of PG&E Corporation, its subsidiaries,
and affiliates are eligible to participate in the 2006 LTIP. 
Non-employee directors of PG&E Corporation are eligible to
receive formula-based awards. Under certain circumstances,
prospective employees and consultants are also eligible for
awards.
The
2006 LTIP permits the award of various forms of incentive awards,
including stock options, stock appreciation rights (SARs),
restricted stock awards, restricted stock units, performance
shares, performance units, deferred compensation awards, and other
stock-based awards. The PG&E Corporation Board of Directors has
delegated to the Nominating, Compensation and Governance Committee
(Committee) the authority to determine the type of incentive award,
as well as the terms and conditions of the award, to be granted to
officers of PG&E Corporation and its subsidiaries.  The
Board of Directors also has delegated to the Chief Executive
Officer of PG&E Corporation the authority to make awards to
certain other eligible participants within the guidelines adopted
by the Committee.  Non-employee directors of PG&E
Corporation are eligible to receive non-discretionary formula-based
incentive awards as set forth in the 2006 LTIP.  Specific
awards will be reflected in an agreement between PG&E
Corporation and the participant.
A
maximum of 12,000,000 shares of PG&E Corporation common stock
(subject to adjustment for changes in capital structure, stock
dividends, or other similar events) will be reserved for use under
the 2006 LTIP.  Shares of PG&E Corporation's common
stock covered by incentive awards previously granted under the 2006
LTIP may be reused or added back to the 2006 LTIP under certain
circumstances and to the extent permitted by applicable law. 
In addition, if a participant uses shares to pay all or part of the
exercise price when exercising a stock option, or if a participant
uses the net exercise method, only the net number of shares will be
considered to have been issued.  The 2006 LTIP also contains
other limits with respect to the terms of different types of
incentive awards and with respect to the number of shares subject
to awards that can be granted to an employee during any fiscal
year.
The
2006 LTIP is described in detail in PG&E Corporation's
and Pacific Gas and Electric Company's 2005 joint proxy
statement filed with the Securities and Exchange Commission in
connection with the joint annual meeting of shareholders held on
April 20, 2005.  The 2006 LTIP also is attached to this report
as Exhibit 99.
Bond Indenture
On
April 22, 2005, the indenture governing Pacific Gas and Electric
Company's (Utility) First Mortgage Bonds was amended and
restated as described under Item 8.01, Other Events—First
Mortgage Bonds.
Item 8.01 - Other Events
First Mortgage Bonds
In March 2004, the Utility issued $6.7 billion aggregate principal
amount of First Mortgage Bonds secured by a lien on substantially
all of the Utility's real property and certain tangible
personal property related to the Utility's facilities. 
First Mortgage Bonds in the aggregate amount of $2.5 billion also
were used to secure the Utility's obligations under various
agreements.  The governing indenture provided that the lien
could be released when, among other conditions, Moody's Investors
Service (Moody's) and Standard & Poor's Rating
Service (S&P) provided written evidence that the ratings on the
Utility's long-term unsecured debt obligations immediately after
the lien was released would be at least equal to the initial
ratings on the First Mortgage Bonds (BBB by S&P and Baa2 by
Moody's).  Moody's and S&P have confirmed that
the bonds would be rated BBB by S&P and Baa1 by Moody's
(as increased by Moody's from Baa2 on March 3, 2005) after
release of the lien.  On April 22, 2005, the Utility and The
Bank of New York Trust Company, N.A., the successor to BNY Western
Trust Company, as trustee, amended and restated the indenture to
eliminate the provisions related to the lien of the mortgage. 
There is no longer any collateral securing the bonds and the bonds
have become the Utility's unsecured general obligations, ranking
equally with the Utility's other unsecured debt.  The Utility
has agreed that it will not incur secured debt except for (1) debt
secured by specified liens, and (2) secured debt in an amount not
exceeding 10% of the Utility's tangible net assets, as defined in
the indenture.
In addition, the designations of the remaining $5.3 billion in
aggregate principal amount of First Mortgage Bonds have been
changed as follows:
First Mortgage Bonds
Redesignated As
Amount
3.6% First Mortgage Bonds, due 2009
3.6% Senior Notes, due 2009
$600 million
4.2% First Mortgage Bonds, due 2011
4.2% Senior Notes, due 2011
$500 million
4.8% First Mortgage Bonds, due 2014
4.8% Senior Notes, due 2014
$1 billion
6.05% First Mortgage Bonds, due 2034
6.05% Senior Notes, due 2034
$3 billion
Floating Rate First Mortgage Bonds, due
2006
Floating Rate Senior Notes, due 2006
$200 million
The
Committee on Uniform Securities Identification Procedures (CUSIP)
numbers of these instruments remain the same. Certain other bonds
outstanding under the indenture, which had been used to support the
Utility's repayment obligations under credit facilities and
certain of the pollution control loan agreements, have been
cancelled.
Tax-Exempt Financing
On
April 20, 2005, the Utility repaid $454 million under certain
reimbursement obligations that the Utility entered into in April
2004 when its plan of reorganization under Chapter 11 of the U.S.
Bankruptcy Code became effective.  These reimbursement
obligations replaced the Utility's obligation to certain
issuers of letters of credit whose letters of credit were drawn
upon during the Chapter 11 proceeding in connection with the 
redemption of certain pollution control bonds that had been issued
for the benefit of the Utility.  The Utility drew $454 million
under its $1 billion credit agreement to repay the reimbursement
obligations.  The Utility anticipates that this draw will be
repaid with the proceeds of a future tax-exempt financing through
the issuance of bonds by a state agency for the benefit of the
Utility.  The Utility passes on to its customers interest cost
savings attributable to the lower interest rates associated with
such tax-exempt financing.
On
April 22, 2005, the Utility entered into an amendment of four
reimbursement agreements totaling $620 million related to letters
of credit aggregating $614 million that had been issued to support
certain pollution control bonds issued on behalf of the
Utility.  In addition to reducing pricing and generally
conforming the covenants and events of default to those in the $1
billion working capital facility, the term of the amended
agreements has been extended from three years to five years, until
April 22, 2010.
Redemption of Preferred Stock
On
April 20, 2005, the Utility's Board of Directors authorized
the redemption of all of the outstanding shares of the
Utility's 6.57% Redeemable First Preferred Stock, CUSIP No.
694308 69 3 (6.57% Preferred Stock) and 6.30% Redeemable First
Preferred Stock, CUSIP No. 694308 65 1 (6.30% Preferred Stock),
totaling approximately $120 million aggregate par value.  Both
issues will be redeemed on May 31, 2005.  In addition to the
$25 per share redemption price, holders of the 6.57% Preferred
Stock and the 6.30% Preferred Stock will be entitled to receive an
amount equal to all accumulated and unpaid dividends on such shares
to and including May 31, 2005.
Item 9.01 - Financial Statements and
Exhibits
Exhibits
Exhibit 99.  PG&E Corporation 2006 Long-Term Incentive
Plan
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, Chief
Financial Officer and Controller
PACIFIC GAS AND ELECTRIC COMPANY
By:
DINYAR B. MISTRY
Dinyar B. Mistry
Vice President and Controller
Dated:  April 25, 2005
EXHIBIT INDEX
No.
Description of Exhibit
99
PG&E Corporation 2006 Long-Term Incentive Plan