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<title>Final 8-K 8/3/04</title>
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<p align="center"><font size="3" face="Times New Roman">SECURITIES
AND EXCHANGE COMMISSION</font></p>
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 </font></p>
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<p align="center"><font size="3" face="Times New Roman">Washington,
D.C.&nbsp; 20549</font></p>
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<p align="center"><font size="3" face="Times New Roman">FORM
8-K</font></p>
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 </font></p>
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<p align="center"><font size="3" face="Times New Roman">CURRENT
REPORT</font></p>
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 </font></p>
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<p align="center"><font size="3" face="Times New Roman">Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of
1934</font></p>
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 </font></p>
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<p align="center"><font size="3" face="Times New Roman">Date of
Report: August 3, 2004</font></p>
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 </font></p>
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 Commission<br />
 File<br />
 Number</font></p>
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<p align="center"><font size="3" face="Times New Roman">Exact Name
of<br />
 Registrant<br />
 as specified in<br />
 its charter</font></p>
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 State or other<br />
 Jurisdiction of<br />
 Incorporation</font></p>
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 IRS Employer<br />
 &nbsp; Identification<br />
 Number</font></p>
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"Times New Roman">_____________</font></p>
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"Times New Roman">_____________</font></p>
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"Times New Roman">_____________</font></p>
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"Times New Roman">_____________</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">1-12609</font></p>

<p align="center"><font size="3" face=
"Times New Roman">1-2348</font></p>
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<p align="center"><font size="3" face="Times New Roman">PG&amp;E
Corporation</font></p>

<p align="center"><font size="3" face="Times New Roman">Pacific Gas
and<br />
 Electric Company</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">California</font></p>

<p align="center"><font size="3" face=
"Times New Roman">California</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">94-3234914</font></p>

<p align="center"><font size="3" face=
"Times New Roman">94-0742640</font></p>

<p align="center"><font size="3" face="Times New Roman"><br />
 </font></p>
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<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<p align="center"><font size="3" face="Times New Roman">Pacific Gas
and Electric Company<br />
 77 Beale Street, P. O. Box 770000<br />
 San Francisco, California&nbsp;&nbsp;94177</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" face="Times New Roman">PG&amp;E
Corporation<br />
 One Market, Spear Tower, Suite 2400<br />
 San Francisco, California&nbsp;&nbsp;94105</font></p>
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<p align="center"><font size="3" face="Times New Roman">(Address of
principal executive offices) (Zip Code)</font></p>
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 </font></p>
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<p align="center"><font size="3" face="Times New Roman">Pacific Gas
and Electric Company<br />
 (415) 973-7000</font></p>
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<td colspan="2" valign="top">
<p align="center"><font size="3" face="Times New Roman">PG&amp;E
Corporation<br />
 (415) 267-7000</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">&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;</font></p>
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<p align="center"><font size="3" face=
"Times New Roman">(Registrant's telephone number, including area
code)</font></p>
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<p><font size="3" face="Times New Roman">Item 12. Results of
Operations and Financial Condition&nbsp;</font></p>

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<p><font size="3" face="Times New Roman">The information included
in this Current Report on Form 8-K, including the press release
attached hereto, is being furnished, not filed, pursuant to Item 12
of Form 8-K.</font></p>
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 </font></p>
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<p><font size="3" face="Times New Roman">On August 3, 2004,
PG&amp;E Corporation issued the press release attached hereto
announcing its financial results and the financial results of its
subsidiary, Pacific Gas and Electric Company, for the quarter ended
June 30, 2004.</font></p>
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 </font></p>
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<p><font size="3" face="Times New Roman">PG&amp;E Corporation
presents results and guidance on an &ldquo;earnings from
operations&rdquo; basis in order to provide investors with a
measure that reflects the underlying financial performance of the
business and offers investors a basis on which to compare
performance from one period to another, exclusive of items that, in
management&rsquo;s judgment, are not reflective of the normal
course of operations.</font></p>
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"Times New Roman">SIGNATURE</font></p>
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 </font></p>
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<p><font size="3" face="Times New Roman">Pursuant to the
requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their
behalf by the undersigned thereunto duly authorized.</font></p>
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<p><font size="3" face=
"Times New Roman">&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;</font></p>
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<p><font size="3" face="Times New Roman">PG&amp;E
CORPORATION<br>
</font></p>

<p>&nbsp;</p>

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<p><font size="3" face=
"Times New Roman">&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;</font></p>
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<p><font size="3" face="Times New Roman">By:&nbsp;&nbsp;CHRISTOPHER
P. JOHNS</font></p>
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<td valign="top" bgcolor="#000000" bordercolor="#FFFFFF" width="236"><font size="3">&nbsp;&nbsp;</font></td>
<td height="1" valign="top" width="57"></td>
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<p><font size="3" face=
"Times New Roman">&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;</font></p>
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<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Christopher P.
Johns<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President and
Controller</font></p>

<p><font size="3" face="Times New Roman"><br />
 </font></p>
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<p><font size="3" face=
"Times New Roman">&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;</font></p>
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<p><font size="3" face="Times New Roman">PACIFIC GAS AND ELECTRIC
COMPANY</font></p>

<p><font size="3" face="Times New Roman"></font></p>
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<p><font size="3" face=
"Times New Roman">&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;</font></p>
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<p><font size="3" face="Times New Roman">By:&nbsp;&nbsp;DINYAR B.
MISTRY</font></p>
</td>
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<td height="1" valign="top" bgcolor="black" width="236">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3">&nbsp;</font>&nbsp;</td>
<td height="1" valign="top" width="57"></td>
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<p><font size="3" face=
"Times New Roman">&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;</font></p>
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<p><font size="3" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dinyar B.
Mistry<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and
Controller</font></p>
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<p><font size="3" face="Times New Roman">Dated:&nbsp; August 3,
2004</font></p>

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<hr size="2" width="100%" align="center" />
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<p align="left"><b><font size="3" face="Times New Roman">FOR IMMEDIATE
RELEASE</font></b></p>
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<p><b><font size="3" face="Times New Roman">&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;August 3,
2004</font></b></p>
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<p><b><font size="3" face="Times New Roman">CONTACT: PG&amp;E
Corporation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>

<p><font size="4" face="Times New Roman"></font></p>

<p><b><font size="3" face="Times">PG&amp;E CORP. REPORTs SECOND
QUARTER 2004 FINANCIAL RESULTS</font></b></p>

<p><font size="3" face="Times New Roman"><b>Company Forecasts 2005
Earnings from Operations to Be $2.10 to $2.20 per Share</b></font></p>

<ul type="square">
  <li>PG&amp;E Corporation earned $0.88 per share in consolidated net
income in the second quarter of 2004, compared with $0.55 per share
in the same quarter of 2003. (All &ldquo;per share&rdquo; amounts
in this release are presented on a diluted basis.)&nbsp;<br>
    <br />
  </li>
  <li>Consolidated earnings from operations for PG&amp;E Corporation
and Pacific Gas and Electric Company for the quarter were $0.70 per
share, compared with $0.31 per share in the same quarter of
2003.<br>
    <br />
  </li>
  <li>Pacific Gas and Electric Company&rsquo;s second
quarter earnings from operations were $0.72 per share, compared
with $0.32 per share for the same quarter of 2003.<br />
    <br>
  </li>
</ul>
<p style="line-height: 150%"><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(San Francisco) --
PG&amp;E Corporation (NYSE: PCG) reported $372 million, or $0.88
per share, in consolidated net income in the second quarter of
2004, compared with $227 million, or $0.55 per share, in the second
quarter of 2003.&nbsp; Quarter-over-quarter consolidated net income
rose primarily because the 2003 and 2004 financial effects of
Pacific Gas and Electric Company&rsquo;s 2003 General Rate Case
(GRC) were booked cumulatively in the second quarter, after the
California Public Utilities Commission (CPUC) reached a final
decision in the case on May 27, 2004.<br />
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">On an
earnings-from-operations basis, PG&amp;E Corporation and Pacific
Gas and Electric Company earned $298 million, or $0.70 per share in
the second quarter, compared with $127 million, or $0.31 per share
in the second quarter last year.&nbsp;<br />
</font><font size="3" face="Times New Roman">
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">&ldquo;Pacific Gas and
Electric Company delivered solid earnings from operations and
reached important regulatory and legislative milestones last
quarter,&rdquo; said Robert D. Glynn, Jr., PG&amp;E Corporation
Chairman, CEO and President.&nbsp; &ldquo;The results reaffirm our
positive outlook for the full year 2004 and 2005, which includes
meeting our $2.00 to $2.10 per share target range for 2004 earnings
from operations, and a target of $2.10 to $2.20 for 2005,&rdquo;
said Glynn.<br />
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">In addition to earnings
growth, the Corporation&rsquo;s outlook includes substantial cash
flows in 2005 through 2008, providing a basis for common stock
dividends and share repurchases, as well as the potential to make
additional investments in its core utility business.&nbsp;<br />
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">A significant portion of
the projected cash flows would be accelerated if, as approved last
quarter by the state legislature, Pacific Gas and Electric Company
issues Energy Recovery Bonds to refinance a $2.21 billion after-tax
regulatory asset.&nbsp; The bonds would save customers
approximately $1 billion over the next nine years.&nbsp; The
utility is targeting January 2005 to issue the first series of
bonds.<br />
</font><font size="3" face="Times New Roman">
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">&ldquo;Our previous
projected cash flows provide a clear basis for the
Corporation&rsquo;s aspiration to pay a dividend in the second half
of 2005,&rdquo; said Glynn.&nbsp; &ldquo;With the refinancing of
the utility&rsquo;s regulatory asset, we would aspire to pay a
dividend in the first half of 2005.&rdquo;<br />
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">PG&amp;E
Corporation&rsquo;s second quarter earnings from operations exclude
certain non-operating income and expenses.&nbsp; These items are
included in the line &ldquo;Items Impacting Comparability&rdquo; on
the attached financial tables, which reconcile earnings from
operations with consolidated net income as reported in accordance
with generally accepted accounting principles (GAAP). Also excluded
from earnings from operations are the prior-year results from
National Energy &amp; Gas Transmission, Inc. (NEGT).<br />
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">For the second quarter,
items impacting comparability at the Corporation and Pacific Gas
and Electric Company primarily included a net $90 million, or $0.21
per share, for the recognition of certain net regulatory assets;
and $30 million, or $0.07 per share, of gas distribution revenue
increases authorized retroactively for 2003. Additional items
impacting comparability included incremental interest costs of $20
million, or $0.04 per share; Chapter 11 costs of $6 million, or
$0.02 per share, generally consisting of external legal fees,
financial advisory fees and other related costs; and $20 million,
or $0.04 per share, reflecting the estimated change in the market
value of dividend participation rights associated with the
Corporation&rsquo;s convertible notes.<br />
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">As disclosed in the
Corporation&rsquo;s quarterly report on Form 10-Q for the quarter,
accounting for stock options as an expense in the quarter would
have reduced earnings by $0.01 per share.&nbsp;</font></p>

<p><font size="3" face="Times New Roman"></font></p>

<p><b><u><font size="3" face="Times New Roman">PACIFIC GAS AND
ELECTRIC COMPANY</font></u></b></p>

<p><font size="3" face="Times New Roman"></font></p>

<p style="line-height: 150%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">Pacific Gas and Electric
Company contributed $307 million, or $0.72 per share, to earnings
from operations in the second quarter, compared with $130 million,
or $0.32 per share, in the second quarter of last year.&nbsp;<br />
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">With the approval of the
2003 GRC in May, the utility received final authorization from the
CPUC for gas and electric base revenue increases and certain
minimum future revenue adjustments through 2006 to cover the cost
of new investment in energy infrastructure and inflation.&nbsp; The
quarter-over-quarter difference in utility earnings from operations
primarily reflects the year-to-date effects of GRC- and
attrition-related revenue increases, totaling $0.30 per share, all
of which is reflected in second quarter 2004 results.&nbsp;<br />
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">Additionally, second
quarter 2004 earnings from operations include approximately $0.07
per share of equity return on the regulatory asset established
under the settlement agreement resolving Pacific Gas and Electric
Company&rsquo;s Chapter 11 case.&nbsp; The remaining difference was
primarily due to higher electric and gas transmission revenues
offset by the costs associated with rate base growth and
inflation.</font></p>

<p><font size="3" face="Times New Roman"></font></p>

<p><b><u><font size="3" face="Times New Roman">EARNINGS
GUIDANCE<br />
 </font></u></b></p>

<p style="line-height: 150%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">PG&amp;E Corporation is
estimating that 2005 earnings from operations for the holding
company and Pacific Gas and Electric Company will be in the range
of $2.10 to $2.20 per share.&nbsp; Among the assumptions underlying
the 2005 estimates are the utility earning its authorized return on
equity of 11.22 percent; the issuance of the first series of Energy
Recovery Bonds by January 2005; and the utility&rsquo;s achievement
of the CPUC-authorized capital structure.<br>
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">Reaffirming its previously
issued earnings guidance, the Corporation expects 2004 earnings
from operations for PG&amp;E Corporation and Pacific Gas and
Electric Company to be in the range of $2.00-$2.10 per
share.&nbsp;&nbsp;<br>
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">Guidance estimates reflect
forecasted results for PG&amp;E Corporation and Pacific Gas and
Electric Company; guidance does not include NEGT, since the
Corporation will retain no ownership interest once NEGT&rsquo;s
Chapter 11 case is completed.&nbsp;<br>
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">PG&amp;E Corporation bases
guidance on &ldquo;earnings from operations&rdquo; in order to
provide a measure that allows investors to compare the underlying
financial performance of the business from one period to another,
exclusive of items that management believes do not reflect the
normal course of operations. Earnings from operations are not a
substitute or alternative for consolidated net income presented in
accordance with GAAP.&nbsp;<br>
</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Times New Roman">The attachment to this
news release reconciles 2004 and 2005 estimated earnings per share
from operations with estimated consolidated net income per share in
accordance with GAAP.&nbsp;</font></p>

<p align="center"><font size="2" face=
"Times New Roman">###</font></p>

<p><b><font size="2" face="Times New Roman">A conference call with
the financial community will be held today at 9:00 a.m. Eastern
Standard Time to discuss PG&amp;E Corporation&rsquo;s results for
the second quarter of 2004.&nbsp; The call will be open to the
public on a listen-only basis via webcast.&nbsp; Please visit our
website at www.pgecorp.com for more information and instructions
for accessing the conference call webcast.&nbsp;</font></b>
<b><font size="2" color="black">The call will be archived at
www.pgecorp.com.&nbsp;</font></b>  <font size="2" color=
"black"> <b>Alternatively, a toll-free replay of the conference call
may be accessed shortly after the live call through 9:00 p.m. EDT,
August 10, 2004, by dialing (877) 470-0867.&nbsp; International callers may dial
(402)-220-0642.</b></font></p>

<p><b><font size="3" face="Times New Roman"></font></b></p>

<p><font size="3" face="Times New Roman">This press release and the
attachment contain forward-looking statements regarding estimated
earnings for 2004 and 2005 and management&rsquo;s outlook for
substantial cash flows in 2005 through 2008.&nbsp;&nbsp; These
statements are based on current expectations and assumptions which
management believes are reasonable and on information currently
available to management but are necessarily subject to various
risks and uncertainties. Actual results could differ materially
from those contemplated by the forward-looking statements. Some of
the factors that could cause future results to differ materially
include:</font></p>

<p><font size="3" face="Times New Roman"></font></p>

<ul type="square">
<li><font size="3" face="Times New Roman">The timing and resolution
of the petitions for review that were filed in the California Court
of Appeal seeking review of the CPUC's December 18, 2003 decision
approving the Settlement Agreement and the CPUC's March 16, 2004
denial of applications for rehearing of the December 18, 2003
decision;</font></li>

<li><font size="3" face="Times New Roman">The timing and resolution
of the pending appeals of the bankruptcy court's order confirming
the Utility&rsquo;s Plan of Reorganization,</font></li>

<li><font size="3" face="Times New Roman">Whether the conditions to
securitizing the $2.21 billion after-tax regulatory asset
established under the Settlement Agreement are met, and if so, the
timing and amount of the securitization,</font></li>

<li><font size="3" face="Times New Roman">Whether the CPUC approves
the Utility's long-term electricity resource plan and adopts the
Utility's related ratemaking proposals, whether the assumptions and
forecasts underlying the long-term resource plan prove to be
accurate, and the terms and conditions of the long-term resource commitments the Utility enters into in
connection with its long-term resource plan;</font></li>

<li><font size="3" face="Times New Roman">Unanticipated changes in
operating expenses or capital expenditures affecting the
Utility&rsquo;s ability to earn its authorized rate of
return;</font></li>

<li><font size="3" face="Times New Roman">The level and volatility
of wholesale electricity and natural gas prices and supplies, the
Utility's ability to manage and respond to the levels and
volatility successfully, and the extent to which the Utility is
able to timely recover increased costs related to such
volatility;</font></li>

<li><font size="3" face="Times New Roman">The extent to which the
Utility's residual net open position (<i>i.e</i>., that portion of
the Utility's electricity customers' demand not satisfied by
electricity that the Utility generates or has under contract, or by
electricity provided under the California Department of Water
Resources electricity contracts allocated to the Utility's
customers) increases or decreases;</font></li>

<li><font size="3" face="Times New Roman">The operation of the
Utility's Diablo Canyon nuclear power plant
which exposes the Utility to potentially significant environmental
and capital expenditure outlays and, to the extent the Utility is
unable to increase its spent fuel storage capacity by 2007 or find
an alternative depository, the risk that the Utility may be
required to close the Diablo Canyon power plant and purchase electricity from more expensive
sources;</font></li>

<li><font size="3" face="Times">The impact of current and future
ratemaking actions of the CPUC</font><a name="_DV_C1261"><font color="black" face="Times">,</font></a>
  including the risk of material differences between forecasted costs used to
  determine rates and actual costs incurred;</li>

<li><font size="3" face="Times">The extent to which the CPUC or the
FERC delays or denies recovery of the Utility's costs from
customers due to a regulatory determination that such costs were
not reasonable or prudent or for other</font> <font face=
"Times">reasons</font><a name="_DV_C1262"><em><i><font face=
"Times"></font></i></em></a><font color="black" face=
"Times">resulting in write-offs of regulatory balancing
accounts</font><font face=
"Times">;</font></li>

<li><font size="3" face="Times">How</font> the CPUC administers the
capital structure, stand-alone dividend and first priority
conditions of the CPUC's decisions permitting the establishment of
holding companies for California investor-owned electric
utilities;</li>

<li><font size="3" face="Times New Roman">The impact of future
legislative or regulatory actions or policies;</font></li>

<li><font size="3" face="Times New Roman">Increased
competition;</font></li>

<li><font size="3" face="Times New Roman">The outcome of pending
litigation, and</font></li>

<li><font size="3" face="Times New Roman">Other factors discussed
in PG&amp;E Corporation's and Pacific Gas and Electric Company's
SEC reports.</font></li>
</ul>

<p><em><i><font size="3" face=
"Times New Roman"></font></i></em></p>

<p><em><i><font size="3" face=
"Times New Roman"></font></i></em></p>

<p align="center"><font size="3" face=
"Times New Roman">###</font></p>
</div>

<font size="3" face="Times New Roman"><br clear="all" />
</font>

<div>
<div align="center"><font size="3" face="Times New Roman"></font>
<hr size="2" width="100%" align="center" />
</div>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td colspan="19" valign="top">
<h2 align="center"><b><font size="3" face=
"Times New Roman">PG&amp;E CORPORATION</font></b></h2>
</td>
</tr>

<tr>
<td colspan="19" valign="top">
<p align="center"><b><font size="2" face=
"Times New Roman">CONDENSED STATEMENT OF CONSOLIDATED
INCOME</font></b></p>
</td>
</tr>

<tr>
<td colspan="19" valign="top">
<p align="center"><b><font size="2" face=
"Times New Roman">(Unaudited)</font></b></p>
</td>
</tr>

<tr height="14">
<td colspan="4" height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td colspan="5" height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td colspan="5" height="14" valign="top"></td>
</tr>

<tr>
<td colspan="4" valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td colspan="5" valign="top">
<p align="center"><b><font size="2" face="Times New Roman">Three
months ended<br />
 June 30,</font></b></p>
</td>
<td valign="top"></td>
<td colspan="5" valign="top">
<p align="center"><b><font size="2" face="Times New Roman">Six
months ended<br />
 June 30,</font></b></p>
</td>
</tr>

<tr height="1">
<td colspan="7" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="5" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td colspan="5" height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td colspan="7" valign="top">
<p><b><font size="2" face="Times New Roman">(in millions, except
per share amounts)</font></b></p>
</td>
<td valign="top"></td>
<td colspan="2" valign="top">
<p align="center"><b><font size="2" face=
"Times New Roman">2004</font></b></p>
</td>
<td valign="top"></td>
<td colspan="2" valign="top">
<p align="center"><b><font size="2" face=
"Times New Roman">2003</font></b></p>
</td>
<td valign="top"></td>
<td colspan="2" valign="top">
<p align="center"><b><font size="2" face=
"Times New Roman">2004</font></b></p>
</td>
<td valign="top"></td>
<td colspan="2" valign="top">
<p align="center"><b><font size="2" face=
"Times New Roman">2003</font></b></p>
</td>
</tr>

<tr height="1">
<td colspan="7" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td colspan="7" valign="top">
<p><b><font size="2" face="Times New Roman">Operating
Revenues</font></b><sup><font size="2"></font></sup></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font size="2" face="Times New Roman">Electric</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">2,063&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">2,058&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">3,851&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">3,412&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font size="2" face="Times New Roman">Natural gas</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">686&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">656&nbsp;&nbsp;</font> &nbsp;</p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">1,617&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">1,484&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="4" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td colspan="4" valign="top">
<p><font size="2" face="Times New Roman">Total Operating
Revenues</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">2,749&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">2,714&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">5,468&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">4,896&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="4" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr height="9">
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td colspan="4" height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
</tr>

<tr height="19">
<td colspan="8" height="19" valign="top">
<p><b><font size="2" face="Times New Roman">Operating
Expenses</font></b></p>
</td>
<td height="19" valign="top"></td>
<td height="19" valign="top"></td>
<td height="19" valign="top"></td>
<td height="19" valign="top"></td>
<td height="19" valign="top"></td>
<td height="19" valign="top"></td>
<td height="19" valign="top"></td>
<td height="19" valign="top"></td>
<td height="19" valign="top"></td>
<td height="19" valign="top"></td>
<td height="19" valign="top"></td>
</tr>

<tr height="14">
<td height="14" valign="top"></td>
<td colspan="7" height="14" valign="top">
<p><font size="2" face="Times New Roman">Cost of
electricity</font></p>
</td>
<td height="14" valign="top"></td>
<td height="14" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">685&nbsp;</font></p>
</td>
<td height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td height="14" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">562&nbsp;</font></p>
</td>
<td height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td height="14" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">1,254&nbsp;</font></p>
</td>
<td height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td height="14" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">1,152&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font size="2" face="Times New Roman">Cost of natural
gas</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">278&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">306&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">857&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">777&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font size="2" face="Times New Roman">Operating expenses
including depreciation</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">1,110&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">1,009&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(2,673)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">2,033&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font size="2" face="Times New Roman">Reorganization
items</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">4&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">65&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">6&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">100&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="4" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td colspan="4" valign="top">
<p><font size="2" face="Times New Roman">Total Operating
Expenses</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">2,077&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">1,942&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(556)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">4,062&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="4" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td colspan="8" valign="top">
<p><b><font size="2" face="Times New Roman">Operating
Income</font></b></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">672&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">772&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">6,024&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">834&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="7" valign="top">
<p><font size="2" face="Times New Roman">Interest and other
expense, net</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(165)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(232)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(408)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(467)</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="4" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td colspan="8" valign="top">
<p><b><font size="2" face="Times New Roman">Income Before Income
Taxe</font></b><font size="2">s</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">507&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">540&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">5,616&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">367&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="7" valign="top">
<p><font size="2" face="Times New Roman">Income tax
provision</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">135&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">212&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">2,211&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">122&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="4" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr height="9">
<td colspan="8" height="9" valign="top">
<h3></h3>
</td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
<td height="9" valign="top"></td>
</tr>

<tr>
<td colspan="8" valign="top">
<p><b><font size="2" face="Times New Roman">Income from Continuing
Operations</font></b></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">372&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">328&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">3,405&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">245&nbsp;</font></p>
</td>
</tr>

<tr height="12">
<td colspan="8" height="12" valign="top">
<h3><b><font size="2" face="Times New Roman">Discontinued
Operations of NEGT</font></b>  <font size="1"><sup>(a)</sup></font></h3>
</td>
<td height="12" valign="top"></td>
<td height="12" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td height="12" valign="top"></td>
<td height="12" valign="top"></td>
<td height="12" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(101)</font></p>
</td>
<td height="12" valign="top"></td>
<td height="12" valign="top"></td>
<td height="12" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td height="12" valign="top"></td>
<td height="12" valign="top"></td>
<td height="12" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(366)</font></p>
</td>
</tr>

<tr height="1">
<td colspan="8" height="1" valign="top">
<h3></h3>
</td>
<td height="1" valign="top"></td>
<td height="1" valign="bottom" bgcolor="black"></td>
<td height="1" valign="bottom"></td>
<td height="1" valign="bottom"></td>
<td height="1" valign="bottom" bgcolor="black"></td>
<td height="1" valign="bottom"></td>
<td height="1" valign="bottom"></td>
<td height="1" valign="bottom" bgcolor="black"></td>
<td height="1" valign="bottom"></td>
<td height="1" valign="bottom"></td>
<td height="1" valign="bottom" bgcolor="black"></td>
</tr>

<tr>
<td colspan="8" valign="top">
<p><b><font size="2" face="Times New Roman">Net Income (Loss)
Before Cumulative Effect of<br />
 &nbsp;&nbsp;&nbsp;Changes in Accounting Principles</font></b></p>
</td>
<td valign="top"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">372&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">227&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">3,405&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(121)</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="7" valign="top">
<p><font size="2" face="Times New Roman">Cumulative effect of
changes in accounting principles</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(6)</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="4" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td colspan="8" valign="top">
<p><b><font size="2" face="Times New Roman">Net Income
(Loss)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">372&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">227&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">3,405&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(127)</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="4" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="4" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="4" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td colspan="8" valign="top">
<p><b><font size="2" face="Times New Roman">Weighted Average Common
Shares<br />
 &nbsp;&nbsp;&nbsp;Outstanding and Participating Securities,
Diluted</font></b></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">425&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">410&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">424&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">408&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="8" valign="top">
<p><b><font size="2" face="Times New Roman">Earnings (Loss) Per
Common Share, Basic (b)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.89&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.56&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">8.22&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(0.32)</font></p>
</td>
</tr>

<tr>
<td colspan="8" valign="top">
<p><b><font size="2" face="Times New Roman">Earnings (Loss) Per
Common Share, Diluted (b)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.88&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.55&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">8.03&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(0.31)</font></p>
</td>
</tr>
</table>

<p><font size="3" face="Times New Roman"><br />
<br />
</font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr height="14">
<td colspan="4" height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td colspan="2" height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td colspan="5" height="14" valign="bottom">
<p align="center"><b><font size="2" face="Times New Roman"><br />
 Earnings (Loss)</font></b></p>
</td>
<td height="14" valign="bottom"></td>
<td colspan="5" height="14" valign="bottom">
<p align="center"><b><font size="2" face="Times New Roman">Earnings
(Loss) per</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">Common
Share, Diluted</font></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td colspan="2" valign="top"></td>
<td valign="top"></td>
<td colspan="5" valign="bottom">
<p align="center"><b><font size="2" face="Times New Roman">Three
months ended<br />
 June 30,</font></b></p>
</td>
<td valign="bottom"></td>
<td colspan="5" valign="bottom">
<p align="center"><b><font size="2" face="Times New Roman">Three
months ended<br />
 June 30,</font></b></p>
</td>
</tr>

<tr height="1">
<td colspan="8" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="5" height="1" valign="bottom" bgcolor="black"></td>
<td height="1" valign="bottom"></td>
<td colspan="5" height="1" valign="bottom" bgcolor="black"></td>
</tr>

<tr>
<td colspan="8" valign="top"></td>
<td valign="top"></td>
<td colspan="2" valign="bottom">
<p align="center"><b><font size="2" face=
"Times New Roman">2004</font></b></p>
</td>
<td valign="bottom"></td>
<td colspan="2" valign="bottom">
<p align="center"><b><font size="2" face=
"Times New Roman">2003</font></b></p>
</td>
<td valign="bottom"></td>
<td colspan="2" valign="bottom">
<p align="center"><b><font size="2" face=
"Times New Roman">2004</font></b></p>
</td>
<td valign="bottom"></td>
<td colspan="2" valign="bottom">
<p align="center"><b><font size="2" face=
"Times New Roman">2003</font></b></p>
</td>
</tr>

<tr height="1">
<td colspan="8" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td colspan="8" valign="top">
<p><font size="2" face="Times New Roman">Pacific Gas and Electric
Company and Holding Company</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="7" valign="top">
<p><font size="2" face="Times New Roman">Pacific Gas and Electric
Company</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">307&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">130&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.72&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.32&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="7" valign="top">
<p><font size="2" face="Times New Roman">Holding Company</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(9)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(3)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(0.02)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(0.01)</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td colspan="7" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="2" valign="top"></td>
<td colspan="6" valign="top">
<p><font size="2" face="Times New Roman">Earnings from
Operations</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">298&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">127&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.70&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.31&nbsp;</font></p>
</td>
</tr>

<tr height="21">
<td height="21" valign="top"></td>
<td colspan="8" height="21" valign="top">
<p><font size="2" face="Times New Roman">Headroom</font></p>
</td>
<td height="21" valign="top"></td>
<td height="21" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td height="21" valign="top"></td>
<td height="21" valign="top"></td>
<td height="21" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">&nbsp;321&nbsp;</font></p>
</td>
<td height="21" valign="top"></td>
<td height="21" valign="top"></td>
<td height="21" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td height="21" valign="top"></td>
<td height="21" valign="top"></td>
<td height="21" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.78&nbsp;</font></p>
</td>
</tr>

<tr height="17">
<td height="17" valign="top"></td>
<td colspan="8" height="17" valign="top">
<p><font size="2" face="Times New Roman">Items Impacting
Comparability <sup>(c)</sup></font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">74&nbsp;</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(118)</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.18&nbsp;</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(0.29)</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="8" valign="top">
<p><a name="OLE_LINK1"><font size="2" face=
"Times New Roman">NEGT</font></a> <sup><font size=
"2">(a)</font></sup></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(103)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(0.25)</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top"></td>
<td colspan="6" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td colspan="9" valign="top">
<h3><b><font size="2" face="Times New Roman">PG&amp;E Corporation
Reported Earnings</font></b></h3>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">372&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">227&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.88&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.55&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top"></td>
<td colspan="5" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top"></td>
<td colspan="5" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top"></td>
<td colspan="5" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>
</table>

<p><font size="3" face="Times New Roman"><br />
<br />
<br />
</font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr height="14">
<td colspan="4" height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td colspan="2" height="14" valign="top"></td>
<td height="14" valign="top"></td>
<td colspan="5" height="14" valign="bottom">
<p align="center"><b><font size="2" face="Times New Roman"><br />
 Earnings (Loss)</font></b></p>
</td>
<td height="14" valign="bottom"></td>
<td colspan="5" height="14" valign="bottom">
<p align="center"><b><font size="2" face="Times New Roman">Earnings
(Loss) per Common Share, Diluted</font></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td colspan="2" valign="top"></td>
<td valign="top"></td>
<td colspan="5" valign="bottom">
<p align="center"><b><font size="2" face="Times New Roman">Six
months ended<br />
 June 30,</font></b></p>
</td>
<td valign="bottom"></td>
<td colspan="5" valign="bottom">
<p align="center"><b><font size="2" face="Times New Roman">Six
months ended<br />
 June 30,</font></b></p>
</td>
</tr>

<tr height="1">
<td colspan="8" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="5" height="1" valign="bottom" bgcolor="black"></td>
<td height="1" valign="bottom"></td>
<td colspan="5" height="1" valign="bottom" bgcolor="black"></td>
</tr>

<tr>
<td colspan="8" valign="top"></td>
<td valign="top"></td>
<td colspan="2" valign="bottom">
<p align="center"><b><font size="2" face=
"Times New Roman">2004</font></b></p>
</td>
<td valign="bottom"></td>
<td colspan="2" valign="bottom">
<p align="center"><b><font size="2" face=
"Times New Roman">2003</font></b></p>
</td>
<td valign="bottom"></td>
<td colspan="2" valign="bottom">
<p align="center"><b><font size="2" face=
"Times New Roman">2004</font></b></p>
</td>
<td valign="bottom"></td>
<td colspan="2" valign="bottom">
<p align="center"><b><font size="2" face=
"Times New Roman">2003</font></b></p>
</td>
</tr>

<tr height="1">
<td colspan="8" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td colspan="8" valign="top">
<p><font size="2" face="Times New Roman">Pacific Gas and Electric
Company and Holding Company</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="7" valign="top">
<p><font size="2" face="Times New Roman">Pacific Gas and Electric
Company</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">488&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">302&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">1.15&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.74&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="7" valign="top">
<p><font size="2" face="Times New Roman">Holding Company</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(14)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(0.03)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td colspan="7" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr height="17">
<td height="17" valign="top"></td>
<td colspan="2" height="17" valign="top"></td>
<td colspan="6" height="17" valign="top">
<p><font size="2" face="Times New Roman">Earnings from
Operations</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">474&nbsp;</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">302&nbsp;</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">1.12&nbsp;</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.74&nbsp;</font></p>
</td>
</tr>

<tr height="17">
<td height="17" valign="top"></td>
<td colspan="8" height="17" valign="top">
<p><font size="2" face="Times New Roman">Headroom</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">140&nbsp;</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">0.34&nbsp;</font></p>
</td>
</tr>

<tr height="17">
<td height="17" valign="top"></td>
<td colspan="8" height="17" valign="top">
<p><font size="2" face="Times New Roman">Items Impacting
Comparability <sup>(c)</sup></font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">2,931&nbsp;</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(205)</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">6.91&nbsp;</font></p>
</td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(0.50)</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="8" valign="top">
<p><font size="2" face="Times New Roman">NEGT
<sup>(a)</sup></font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(364)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">-</font>&nbsp;</p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(0.89)</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top"></td>
<td colspan="5" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr>
<td colspan="9" valign="top">
<p><font size="2" face="Times New Roman">PG&amp;E Corporation
Reported Earnings</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">3,405&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(127)</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">8.03&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face=
"Times New Roman">(0.31)</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top"></td>
<td colspan="5" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top"></td>
<td colspan="5" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top"></td>
<td colspan="5" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>
</table>

<p><font size="3" face="Times New Roman"></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font size="1" face="Times New Roman">(a)</font></p>
</td>
<td valign="top">
<p><font size="1" face="Times New Roman">On July 8, 2003, PG&amp;E
National Energy Group, Inc., or PG&amp;E NEG, and certain of its
subsidiaries filed voluntary petitions for relief under the
provisions of Chapter 11 of the Bankruptcy Code in the U.S.
Bankruptcy Court for the District of Maryland, Greenbelt
Division.&nbsp; On October 3, 2003, the bankruptcy court authorized
PG&amp;E NEG to change its company name to National Energy and Gas
Transmission, Inc., or NEGT.<br />
<br />
 In anticipation of NEGT's Chapter 11 filing, PG&amp;E
Corporation's representatives, who previously served on the NEGT
Board of Directors, resigned on July 7, 2003 and were replaced with
Board members who are not affiliated with PG&amp;E
Corporation.&nbsp; As a result, PG&amp;E Corporation no longer
retains significant influence over the ongoing operations of
NEGT.&nbsp; Effective July 8, 2003, PG&amp;E Corporation no longer
consolidates the earnings and losses of NEGT and has reflected its
ownership interest in NEGT utilizing the cost method of accounting,
under which PG&amp;E Corporation's investment in NEGT is reflected
as a single amount on the Consolidated Balance Sheets of PG&amp;E
Corporation at June 30, 2004 and December 31, 2003.&nbsp; In
addition, the operations of NEGT prior to July 8, 2003, are
reflected as discontinued operations in the Consolidated Financial
Statements.&nbsp; On May 3, 2004, the bankruptcy court approved
NEGT's plan of reorganization, which eliminates PG&amp;E
Corporation&rsquo;s equity interest.</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr height="10">
<td height="10" valign="top">
<p><font size="1" face="Times New Roman">(b)</font></p>
</td>
<td height="10" valign="top">
<p><font size="1" face="Times New Roman">Reflects PG&amp;E
Corporation&rsquo;s adoption of the &ldquo;Two-Class&rdquo; method
of calculating earnings per share for all periods
presented.</font></p>
</td>
</tr>

<tr height="10">
<td height="10" valign="top"></td>
<td height="10" valign="top">
<p><font size="1" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="1" face="Times New Roman">(c)</font></p>
</td>
<td valign="top">
<p><font size="1" face="Times New Roman">Items impacting
comparability for the quarter ending June 30, 2004 include the
Utility&rsquo;s recognition of a gain of approximately $120 million
($0.28 per share), after-tax, related to the prior year impact and
regulatory asset recognition resulting from the California Public
Utilities Commission, or CPUC, decision in the Utility&rsquo;s 2003
General Rate Case, or GRC decision, on May 27, 2004.&nbsp;
Offsetting the effect of the GRC decision during the quarter were
the net effect of incremental interest costs of $20 million ($0.04
per share) from the increased amount and cost of debt resulting
from the California energy crisis and the Utility's Chapter 11
filing; increased costs of $6 million ($0.02 per share) related to
the NEGT's Chapter 11 filing and generally consisting of external
legal consulting fees, financial advisory fees and other related
costs and payments; and $20 million ($0.04 per share) related to
the change in the estimated market value of non-cumulative dividend
participation rights included within the Holding Company&rsquo;s
$280 million principal amount of 9.5% Convertible Subordinated
Notes.</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face="Times New Roman">Items impacting
comparability for the quarter ended June 30, 2003 include the net
effect of incremental interest costs of $73 million ($0.19 per
share) from the increased amount and cost of debt resulting from
the California energy crisis and the Utility's Chapter 11 filing;
increased costs of $31 million ($0.07 per share) related to the
Utility's and NEGT's Chapter 11 filings and generally consisting of
external legal consulting and financial advisory fees, and $14
million ($0.03 per share) associated with prior year impacts of a
revised decision related to the Utility's 1999 General Rate
Case.</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face="Times New Roman">Items impacting
comparability for the year-to-date period ending June 30, 2004
include the Utility&rsquo;s recognition of a gain of approximately
$120 million ($0.28 per share), after-tax, related to the prior
year impact and regulatory asset recognition resulting from the GRC
decision and a gain of approximately $2,950 million ($6.95 per
share) related to the establishment of regulatory assets
contemplated in the December 19, 2003 settlement agreement, or
Settlement Agreement, entered into between the Utility, PG&amp;E
Corporation and the CPUC to resolve the Utility's Chapter 11
proceeding, as executed by the CPUC and confirmed by the U.S.
Bankruptcy Court for the Northern District of California.&nbsp; In
addition, the Utility recognized $17 million ($0.04 per share) in
charges related to obligations to invest in clean energy technology
and donate land, included in the Settlement Agreement.<br />
<br />
 The effect of recognizing the impacts of the Settlement Agreement
and GRC was partially offset by the net effect of incremental
interest costs of $73 million ($0.17 per share) from the increased
amount and cost of debt resulting from the California energy crisis
and the Utility's Chapter 11 filing; increased costs of $10 million
($0.02 per share) related to the Utility's and NEGT's Chapter 11
filings and generally consisting of external legal consulting fees,
financial advisory fees and other related costs and payments; and
$39 million ($0.09 per share) related to the change in the
estimated market value of non-cumulative dividend participation
rights included within the Holding Company&rsquo;s $280 million
principal amount of 9.5% Convertible Subordinated Notes.</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face="Times New Roman">Items impacting
comparability for the year-to-date period ended June 30, 2003
include the net effect of incremental interest costs of $146
million ($0.34 per share) from the increased amount and cost of
debt resulting from the California energy crisis and the Utility's
Chapter 11 proceeding; increased costs of $52 million ($0.14 per
share) related to the Utility's and NEGT's Chapter 11 filings and
generally consisting of external legal consulting and financial
advisory fees, and $7 million ($0.02 per share) of other costs
associated with current year regulatory rulings.</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face="Times New Roman">To enable accurate
comparison to current period, certain previously disclosed items
impacting comparability have been reclassed to the related
operating entity in the prior period.</font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman"><br />
</font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr height="5">
<td colspan="7" height="5" valign="top">
<h6 align="left"><b><font size="2" face=
"Times New Roman">Reconciliation of Guidance for Earnings from
Operations for 2004</font></b></h6>
</td>
</tr>

<tr height="5">
<td height="5" valign="top"></td>
<td height="5" valign="top"></td>
<td colspan="5" height="5" valign="top">
<h6></h6>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td colspan="5" valign="top">
<h6><b><font size="2" face="Times New Roman">Year Ended December
31, 2004 <sup>(1)</sup></font></b></h6>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="5" height="1" valign="top" bgcolor="black"></td>
</tr>

<tr height="17">
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td colspan="2" height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Earnings from Operations
EPS Guidance <sup>(2)</sup></font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">2.00&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">2.10&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Estimated Items Impacting
Comparability</font></p>
</td>
<td valign="top"></td>
<td colspan="2" valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>

<tr height="11">
<td height="11" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp; Incremental
interest expense</font></p>
</td>
<td height="11" valign="top"></td>
<td colspan="2" height="11" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(0.20)</font></p>
</td>
<td height="11" valign="bottom"></td>
<td height="11" valign="bottom"></td>
<td height="11" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(0.14)</font></p>
</td>
</tr>

<tr height="11">
<td height="11" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp; Utility
Chapter 11 Settlement Agreement assets and<br />
 &nbsp;&nbsp; obligations <sup>(3)</sup></font></p>
</td>
<td height="11" valign="top"></td>
<td colspan="2" height="11" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">6.88&nbsp;</font></p>
</td>
<td height="11" valign="bottom"></td>
<td height="11" valign="bottom"></td>
<td height="11" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">6.91&nbsp;</font></p>
</td>
</tr>

<tr height="11">
<td height="11" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp; 2003 GRC
settlement <sup>(4)</sup></font></p>
</td>
<td height="11" valign="top"></td>
<td colspan="2" height="11" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">0.28&nbsp;</font></p>
</td>
<td height="11" valign="bottom"></td>
<td height="11" valign="bottom"></td>
<td height="11" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">0.28&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;
Mark-to-market dividend participation rights
<sup>(5)</sup></font></p>
</td>
<td valign="top"></td>
<td colspan="2" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(0.10)</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(0.09)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;Utility
and NEGT Chapter 11 related expenses</font></p>
</td>
<td valign="top"></td>
<td colspan="2" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(0.05)</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(0.03)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;Gain on
disposition of NEGT <sup>(6)</sup></font></p>
</td>
<td valign="top"></td>
<td colspan="2" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">0.88&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">1.73&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="bottom" bgcolor="black"></td>
<td height="1" valign="bottom"></td>
<td height="1" valign="bottom"></td>
<td height="1" valign="bottom" bgcolor="black"></td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Reported EPS
Guidance&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">9.69&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">10.76&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>
</table>

<p><font size="3" face="Times New Roman"></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p align="center"><font size="1" face=
"Times New Roman">(1)</font></p>
</td>
<td valign="top">
<p><font size="1" face="Times New Roman">Estimates include a range
of shares outstanding.</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><font size="1" face=
"Times New Roman">(2)</font></p>
</td>
<td valign="top">
<p><font size="1" face="Times New Roman">Excludes the results of
NEGT.</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><font size="1" face=
"Times New Roman">(3)</font></p>
</td>
<td valign="top">
<p><font size="1" face="Times New Roman">Impact of recognizing $2.2
billion after-tax regulatory asset and a $700 million after-tax
regulatory asset for the Utility&rsquo;s retained generation as
provided for in the Utility&rsquo;s Plan of Reorganization.&nbsp;
These regulatory assets are offset by $17 million related to
obligations to invest in clean energy technology and donate land,
included in the Settlement Agreement.</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><font size="1" face=
"Times New Roman">(4)</font></p>
</td>
<td valign="top">
<p><font size="1" face="Times New Roman">Impact of recording, as a
result of the approval of the 2003 GRC, additional 2003 natural gas
revenues and various regulatory assets and liabilities associated
with the recovery of retained generation assets, unfunded taxes,
depreciation and decommissioning.<br />
 </font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><font size="1" face=
"Times New Roman">(5)</font></p>
</td>
<td valign="top">
<p><font size="1" face="Times New Roman">Reflects the change in
estimated market value of dividend participation rights, which
entitle the holders of PG&amp;E Corporation&rsquo;s 9.50%
Convertible Subordinated Notes to participate in any dividends
declared and paid on PG&amp;E Corporation&rsquo;s common shares
based upon their equity conversion ratio.<br />
 </font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font size="1" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><font size="1" face=
"Times New Roman">(6)</font></p>
</td>
<td valign="top">
<p><font size="1" face="Times New Roman">Impact of recognizing the
reversal of PG&amp;E Corporation&rsquo;s investment in NEGT and
related amounts in deferred income taxes and accumulated other
comprehensive income as a result of the implementation of
NEGT&rsquo;s plan of reorganization eliminating PG&amp;E
Corporation&rsquo;s equity interest.</font></p>
</td>
</tr>
</table>

<p><font size="3" face="Times New Roman"><br />
</font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr height="5">
<td colspan="7" height="5" valign="top">
<h6 align="left"><b><font size="2" face=
"Times New Roman">Reconciliation of Guidance for Earnings from
Operations for 2005</font></b></h6>
</td>
</tr>

<tr height="5">
<td height="5" valign="top"></td>
<td height="5" valign="top"></td>
<td colspan="5" height="5" valign="top">
<h6></h6>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td colspan="5" valign="top">
<h6><b><font size="2" face="Times New Roman">Year Ended December
31, 2005 <sup>(1)</sup></font></b></h6>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="5" height="1" valign="top" bgcolor="black"></td>
</tr>

<tr height="17">
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td colspan="2" height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
<td height="17" valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Earnings from Operations
EPS Guidance <sup>(2)</sup></font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">2.10&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">2.20&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Estimated Items Impacting
Comparability</font></p>
</td>
<td valign="top"></td>
<td colspan="2" valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>

<tr height="11">
<td height="11" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp; Incremental
interest expense</font></p>
</td>
<td height="11" valign="top"></td>
<td colspan="2" height="11" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(0.05)</font></p>
</td>
<td height="11" valign="bottom"></td>
<td height="11" valign="bottom"></td>
<td height="11" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(0.04)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;NEGT
Chapter 11 related expenses</font></p>
</td>
<td valign="top"></td>
<td colspan="2" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(0.05)</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(0.03)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;Premium
to retire Holding Company Senior Secured
&nbsp;&nbsp;&nbsp;Notes</font></p>
</td>
<td valign="top"></td>
<td colspan="2" valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(0.07)</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">(0.06)</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="bottom" bgcolor="black"></td>
<td height="1" valign="bottom"></td>
<td height="1" valign="bottom"></td>
<td height="1" valign="bottom" bgcolor="black"></td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Reported EPS
Guidance&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">1.93&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face=
"Times New Roman">2.07&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
</tr>

<tr height="1">
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top" bgcolor="black"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td height="1" valign="top" bgcolor="black"></td>
</tr>
</table>

<p><font size="3" face="Times New Roman"></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p align="center"><font size="1" face=
"Times New Roman">(1)</font></p>
</td>
<td valign="top">
<p><font size="1" face="Times New Roman">Estimates include a range
of shares outstanding.</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="top"></td>
<td height="19" valign="top">
<p><font size="1" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><font size="1" face=
"Times New Roman">(2)</font></p>
</td>
<td valign="top">
<p><font size="1" face="Times New Roman">Excludes the results of
NEGT.</font></p>
</td>
</tr>
</table>

<p><font size="3" face="Times New Roman"></font></p>

<font size="3" face="Times New Roman"><br clear="all" />
</font>

<div align="center"><font size="3" face="Times New Roman"></font>
<hr size="2" width="100%" align="center" />
</div>

<table border="0" cellspacing="0" cellpadding="0" width="613" height="977">
<tr height="15">
<td nowrap height="54" valign="bottom" bgcolor="white">
<p><b><font size="1" face="Arial">&nbsp;</font></b></p>
</td>
<td nowrap colspan="2" height="54" valign="bottom" bgcolor="white">
<p align="right"><b><font size="1" face="Arial"></font></b></p>

<p align="center"><b><font size="1" face="Arial"><u>3 months
ended</u></font></b></p>
</td>
<td nowrap colspan="2" height="54" valign="bottom" bgcolor="white">
<p align="right"><b><font size="1" face="Arial"></font></b></p>

<p align="center"><b><font size="1" face="Arial"><u>Year to
date</u></font></b></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><b><u><font size="1" face="Arial">Electric Sales (in millions
kWh)</font></u></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><b><font size="1" face=
"Arial"><u>6/30/2004</u></font></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><b><font size="1" face=
"Arial"><u>6/30/2003</u></font></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><b><font size="1" face=
"Arial"><u>6/30/2004</u></font></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><b><font size="1" face=
"Arial"><u>6/30/2003</u></font></b></p>
</td>
</tr>

<tr height="8">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><u><font size="1" face="Arial">&nbsp;</font></u></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Residential</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; 6,544</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
6,422</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13,966</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
13,616</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Commercial</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7,849</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7,578</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15,326</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
14,817</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Industrial</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3,809</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3,401</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7,164</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
6,944</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Agricultural</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,182</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
982</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,679</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,457</font></p>
</td>
</tr>

<tr height="26">
<td nowrap height="26" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Public street and
highway lighting</font></p>
</td>
<td nowrap height="26" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
125</font></p>
</td>
<td nowrap height="26" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
156</font></p>
</td>
<td nowrap height="26" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
240</font></p>
</td>
<td nowrap height="26" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
297</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Other electric
utilities</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; 2</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
10</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
6</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
61</u></font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><b><font size="1" face="Arial">Sales from Energy
Deliveries</font></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
19,511</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
18,549</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38,381</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
37,192</font></p>
</td>
</tr>

<tr height="8">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="18">
<td nowrap height="20" valign="bottom" bgcolor="white">
<p><b><font size="1" face="Arial">Total Electric Customers
<sup>(1)</sup></font></b></p>
</td>
<td nowrap height="20" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;</font></p>
</td>
<td nowrap height="20" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;</font></p>
</td>
<td nowrap height="20" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;
4,899,119</font></p>
</td>
<td nowrap height="20" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp; 4,866,729</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><b><u><font size="1" face="Arial">Bundled Gas Sales (millions
MCF)</font></u></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="4">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><b><u><font size="1" face="Arial">&nbsp;</font></u></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Residential</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
35</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
43</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
120</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
122</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Commercial</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
16</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
19</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
43</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; 45</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Industrial</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
-&nbsp;&nbsp;</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
-&nbsp;&nbsp;</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
-&nbsp;&nbsp;</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
-&nbsp;&nbsp;</u></font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><b><font size="1" face="Arial">Total Bundled Gas
Sales</font></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
51</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
62</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
163</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
167</font></p>
</td>
</tr>

<tr height="6">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="16">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><b><font size="1" face="Arial">Total Transportation
Only</font></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
131</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
111</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
275</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
233</u></font></p>
</td>
</tr>

<tr height="7">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="16">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><b><font size="1" face="Arial">Total Gas Sales</font></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
182</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
173</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
438</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
400</font></p>
</td>
</tr>

<tr height="11">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td nowrap height="20" valign="bottom" bgcolor="white">
<p><b><font size="1" face="Arial">Total Gas Customers
<sup>(1)</sup></font></b></p>
</td>
<td nowrap height="20" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;</font></p>
</td>
<td nowrap height="20" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;</font></p>
</td>
<td nowrap height="20" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;
4,067,498</font></p>
</td>
<td nowrap height="20" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp; 4,026,467</font></p>
</td>
</tr>

<tr height="10">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><b><font size="1" face="Arial">&nbsp;</font></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="10">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><b><font size="1" face="Arial">&nbsp;</font></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><b><u><font size="1" face="Arial">Sources of Electric Energy (in
millions kWh)</font></u></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">Utility Generation</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Nuclear</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2,786</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4,363</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7,108</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7,629</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Hydro (net)</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2,462</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3,023</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5,557</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5,956</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Fossil</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
215</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
37</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
439</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
196</u></font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Total Utility
Generation</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5,463</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7,423</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13,104</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
13,781</font></p>
</td>
</tr>

<tr height="6">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">Purchased Power</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Qualifying
Facilities</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4,633</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4,471</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9,306</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9,014</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Irrigation
Districts</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,230</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,556</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2,286</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2,594</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Other purchased
power</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
203</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,275</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
375</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2,548</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="14" valign="bottom">
<p><font size="1" face="Arial">&nbsp;&nbsp; Spot Market
Purchases/Sales, net</font></p>
</td>
<td nowrap height="14" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3,028</u></font></p>
</td>
<td nowrap height="14" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(591)</u></font></p>
</td>
<td nowrap height="14" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4,221</u></font></p>
</td>
<td nowrap height="14" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
408</u></font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;&nbsp; Total Purchased
Power</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9,094</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
6,711</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16,188</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
14,564</font></p>
</td>
</tr>

<tr height="6">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">Delivery from DWR</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4,503</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4,890</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9,064</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
11,488</font></p>
</td>
</tr>

<tr height="6">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">Delivery to Direct Access
Customers</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2,291</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2,085</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4,391</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4,403</font></p>
</td>
</tr>

<tr height="5">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">Other (includes energy
loss)</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(1,840)</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(2,560)</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(4,366)</u></font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(7,044)</u></font></p>
</td>
</tr>

<tr height="6">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><b><font size="1" face="Arial">Total Electric Energy
Delivered</font></b></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
19,511</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
18,549</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38,381</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
37,192</font></p>
</td>
</tr>

<tr height="16">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
</tr>

<tr height="21">
<td nowrap height="21" valign="bottom" bgcolor="white">
<p><b><u><font size="1" face="Arial">Diablo Canyon
Performance</font></u></b></p>
</td>
<td nowrap height="21" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;</font></p>
</td>
<td nowrap height="21" valign="bottom" bgcolor="white">
<p align="right"><b><font size="1" face=
"Arial">&nbsp;</font></b></p>
</td>
<td nowrap height="21" valign="bottom" bgcolor="white">
<p align="right"><b><font size="1" face=
"Arial">&nbsp;</font></b></p>
</td>
<td nowrap height="21" valign="bottom" bgcolor="white">
<p align="right"><b><font size="1" face=
"Arial">&nbsp;</font></b></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">Overall capacity factors (including
refuelings)</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">59%</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">92%</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">75%</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">81%</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">Refueling outage period</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">4/1-6/7</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
-&nbsp;&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">3/22-6/7</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face="Arial">&nbsp;
2/3-3/26</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="16" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">Refueling outage duration
(days)</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
68.5</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
-&nbsp;&nbsp;</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
77.5</font></p>
</td>
<td nowrap height="16" valign="bottom" bgcolor="white">
<p align="right"><font size="1" face=
"Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
51.2</font></p>
</td>
</tr>

<tr height="15">
<td nowrap height="21" valign="bottom" bgcolor="white"></td>
<td nowrap height="21" valign="bottom" bgcolor="white"></td>
<td nowrap height="21" valign="bottom" bgcolor="white"></td>
<td nowrap height="21" valign="bottom" bgcolor="white"></td>
<td nowrap height="21" valign="bottom" bgcolor="white"></td>
</tr>

<tr height="15">
<td nowrap colspan="5" height="49" valign="bottom" bgcolor="white">
<p><font size="1" face="Arial">Total electric and gas customers for
2004 are represented by the number of active accounts while the
2003 figures<br>
represent&nbsp; a 12-month average
of billing accounts.</font></p>

</td>
</tr>
</table>

<p><font size="3" face="Times New Roman"></font></p>

<p><font size="3" face="Times New Roman"></font></p>
</div>
</body>
</html>
[{"type": "8-K", "sequence": "1", "filename": "final8k080304.htm", "description": "FORM 8-K", "secsgml_size_bytes": 150903}]
{"company-data": {"conformed-name": "PG&E CORP", "cik": "0001004980", "assigned-sic": "4931", "irs-number": "943234914", "state-of-incorporation": "CA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-12609", "film-number": "04946597"}, "business-address": {"street1": "ONE MARKET SPEAR TOWER", "street2": "SUITE 2400", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105", "phone": "4152677000"}, "mail-address": {"street1": "ONE MARKET SPEAR TOWER", "street2": "SUITE 2400", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105"}, "former-company": {"former-conformed-name": "PG&E PARENT CO INC", "date-changed": "19951214"}}
Final 8-K 8/3/04
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C.  20549
FORM
8-K
CURRENT
REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of
Report: August 3, 2004
Commission
File
Number
Exact Name
of
Registrant
as specified in
its charter
State or other
Jurisdiction of
Incorporation
IRS Employer
Identification
Number
_____________
_____________
_____________
_____________
1-12609
1-2348
PG&E
Corporation
Pacific Gas
and
Electric Company
California
California
94-3234914
94-0742640
Pacific Gas
and Electric Company
77 Beale Street, P. O. Box 770000
San Francisco, California  94177
PG&E
Corporation
One Market, Spear Tower, Suite 2400
San Francisco, California  94105
(Address of
principal executive offices) (Zip Code)
Pacific Gas
and Electric Company
(415) 973-7000
PG&E
Corporation
(415) 267-7000
(Registrant's telephone number, including area
code)
Item 12. Results of
Operations and Financial Condition
The information included
in this Current Report on Form 8-K, including the press release
attached hereto, is being furnished, not filed, pursuant to Item 12
of Form 8-K.
On August 3, 2004,
PG&E Corporation issued the press release attached hereto
announcing its financial results and the financial results of its
subsidiary, Pacific Gas and Electric Company, for the quarter ended
June 30, 2004.
PG&E Corporation
presents results and guidance on an "earnings from
operations" basis in order to provide investors with a
measure that reflects the underlying financial performance of the
business and offers investors a basis on which to compare
performance from one period to another, exclusive of items that, in
management's judgment, are not reflective of the normal
course of operations.
SIGNATURE
Pursuant to the
requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their
behalf by the undersigned thereunto duly authorized.
PG&E
CORPORATION
By:  CHRISTOPHER
P. JOHNS
Christopher P.
Johns
Senior Vice President and
Controller
PACIFIC GAS AND ELECTRIC
COMPANY
By:  DINYAR B.
MISTRY
Dinyar B.
Mistry
Vice President and
Controller
Dated:  August 3,
2004
FOR IMMEDIATE
RELEASE
August 3,
2004
CONTACT: PG&E
Corporation
PG&E CORP. REPORTs SECOND
QUARTER 2004 FINANCIAL RESULTS
Company Forecasts 2005
Earnings from Operations to Be $2.10 to $2.20 per Share
PG&E Corporation earned $0.88 per share in consolidated net
income in the second quarter of 2004, compared with $0.55 per share
in the same quarter of 2003. (All "per share" amounts
in this release are presented on a diluted basis.)
Consolidated earnings from operations for PG&E Corporation
and Pacific Gas and Electric Company for the quarter were $0.70 per
share, compared with $0.31 per share in the same quarter of
2003.
Pacific Gas and Electric Company's second
quarter earnings from operations were $0.72 per share, compared
with $0.32 per share for the same quarter of 2003.
(San Francisco) --
PG&E Corporation (NYSE: PCG) reported $372 million, or $0.88
per share, in consolidated net income in the second quarter of
2004, compared with $227 million, or $0.55 per share, in the second
quarter of 2003.  Quarter-over-quarter consolidated net income
rose primarily because the 2003 and 2004 financial effects of
Pacific Gas and Electric Company's 2003 General Rate Case
(GRC) were booked cumulatively in the second quarter, after the
California Public Utilities Commission (CPUC) reached a final
decision in the case on May 27, 2004.
On an
earnings-from-operations basis, PG&E Corporation and Pacific
Gas and Electric Company earned $298 million, or $0.70 per share in
the second quarter, compared with $127 million, or $0.31 per share
in the second quarter last year.
"Pacific Gas and
Electric Company delivered solid earnings from operations and
reached important regulatory and legislative milestones last
quarter," said Robert D. Glynn, Jr., PG&E Corporation
Chairman, CEO and President.  "The results reaffirm our
positive outlook for the full year 2004 and 2005, which includes
meeting our $2.00 to $2.10 per share target range for 2004 earnings
from operations, and a target of $2.10 to $2.20 for 2005,"
said Glynn.
In addition to earnings
growth, the Corporation's outlook includes substantial cash
flows in 2005 through 2008, providing a basis for common stock
dividends and share repurchases, as well as the potential to make
additional investments in its core utility business.
A significant portion of
the projected cash flows would be accelerated if, as approved last
quarter by the state legislature, Pacific Gas and Electric Company
issues Energy Recovery Bonds to refinance a $2.21 billion after-tax
regulatory asset.  The bonds would save customers
approximately $1 billion over the next nine years.  The
utility is targeting January 2005 to issue the first series of
bonds.
"Our previous
projected cash flows provide a clear basis for the
Corporation's aspiration to pay a dividend in the second half
of 2005," said Glynn.  "With the refinancing of
the utility's regulatory asset, we would aspire to pay a
dividend in the first half of 2005."
PG&E
Corporation's second quarter earnings from operations exclude
certain non-operating income and expenses.  These items are
included in the line "Items Impacting Comparability" on
the attached financial tables, which reconcile earnings from
operations with consolidated net income as reported in accordance
with generally accepted accounting principles (GAAP). Also excluded
from earnings from operations are the prior-year results from
National Energy & Gas Transmission, Inc. (NEGT).
For the second quarter,
items impacting comparability at the Corporation and Pacific Gas
and Electric Company primarily included a net $90 million, or $0.21
per share, for the recognition of certain net regulatory assets;
and $30 million, or $0.07 per share, of gas distribution revenue
increases authorized retroactively for 2003. Additional items
impacting comparability included incremental interest costs of $20
million, or $0.04 per share; Chapter 11 costs of $6 million, or
$0.02 per share, generally consisting of external legal fees,
financial advisory fees and other related costs; and $20 million,
or $0.04 per share, reflecting the estimated change in the market
value of dividend participation rights associated with the
Corporation's convertible notes.
As disclosed in the
Corporation's quarterly report on Form 10-Q for the quarter,
accounting for stock options as an expense in the quarter would
have reduced earnings by $0.01 per share.
PACIFIC GAS AND
ELECTRIC COMPANY
Pacific Gas and Electric
Company contributed $307 million, or $0.72 per share, to earnings
from operations in the second quarter, compared with $130 million,
or $0.32 per share, in the second quarter of last year.
With the approval of the
2003 GRC in May, the utility received final authorization from the
CPUC for gas and electric base revenue increases and certain
minimum future revenue adjustments through 2006 to cover the cost
of new investment in energy infrastructure and inflation.  The
quarter-over-quarter difference in utility earnings from operations
primarily reflects the year-to-date effects of GRC- and
attrition-related revenue increases, totaling $0.30 per share, all
of which is reflected in second quarter 2004 results.
Additionally, second
quarter 2004 earnings from operations include approximately $0.07
per share of equity return on the regulatory asset established
under the settlement agreement resolving Pacific Gas and Electric
Company's Chapter 11 case.  The remaining difference was
primarily due to higher electric and gas transmission revenues
offset by the costs associated with rate base growth and
inflation.
EARNINGS
GUIDANCE
PG&E Corporation is
estimating that 2005 earnings from operations for the holding
company and Pacific Gas and Electric Company will be in the range
of $2.10 to $2.20 per share.  Among the assumptions underlying
the 2005 estimates are the utility earning its authorized return on
equity of 11.22 percent; the issuance of the first series of Energy
Recovery Bonds by January 2005; and the utility's achievement
of the CPUC-authorized capital structure.
Reaffirming its previously
issued earnings guidance, the Corporation expects 2004 earnings
from operations for PG&E Corporation and Pacific Gas and
Electric Company to be in the range of $2.00-$2.10 per
share.
Guidance estimates reflect
forecasted results for PG&E Corporation and Pacific Gas and
Electric Company; guidance does not include NEGT, since the
Corporation will retain no ownership interest once NEGT's
Chapter 11 case is completed.
PG&E Corporation bases
guidance on "earnings from operations" in order to
provide a measure that allows investors to compare the underlying
financial performance of the business from one period to another,
exclusive of items that management believes do not reflect the
normal course of operations. Earnings from operations are not a
substitute or alternative for consolidated net income presented in
accordance with GAAP.
The attachment to this
news release reconciles 2004 and 2005 estimated earnings per share
from operations with estimated consolidated net income per share in
accordance with GAAP.
###
A conference call with
the financial community will be held today at 9:00 a.m. Eastern
Standard Time to discuss PG&E Corporation's results for
the second quarter of 2004.  The call will be open to the
public on a listen-only basis via webcast.  Please visit our
website at www.pgecorp.com for more information and instructions
for accessing the conference call webcast.
The call will be archived at
www.pgecorp.com.
Alternatively, a toll-free replay of the conference call
may be accessed shortly after the live call through 9:00 p.m. EDT,
August 10, 2004, by dialing (877) 470-0867.  International callers may dial
(402)-220-0642.
This press release and the
attachment contain forward-looking statements regarding estimated
earnings for 2004 and 2005 and management's outlook for
substantial cash flows in 2005 through 2008.   These
statements are based on current expectations and assumptions which
management believes are reasonable and on information currently
available to management but are necessarily subject to various
risks and uncertainties. Actual results could differ materially
from those contemplated by the forward-looking statements. Some of
the factors that could cause future results to differ materially
include:
The timing and resolution
of the petitions for review that were filed in the California Court
of Appeal seeking review of the CPUC's December 18, 2003 decision
approving the Settlement Agreement and the CPUC's March 16, 2004
denial of applications for rehearing of the December 18, 2003
decision;
The timing and resolution
of the pending appeals of the bankruptcy court's order confirming
the Utility's Plan of Reorganization,
Whether the conditions to
securitizing the $2.21 billion after-tax regulatory asset
established under the Settlement Agreement are met, and if so, the
timing and amount of the securitization,
Whether the CPUC approves
the Utility's long-term electricity resource plan and adopts the
Utility's related ratemaking proposals, whether the assumptions and
forecasts underlying the long-term resource plan prove to be
accurate, and the terms and conditions of the long-term resource commitments the Utility enters into in
connection with its long-term resource plan;
Unanticipated changes in
operating expenses or capital expenditures affecting the
Utility's ability to earn its authorized rate of
return;
The level and volatility
of wholesale electricity and natural gas prices and supplies, the
Utility's ability to manage and respond to the levels and
volatility successfully, and the extent to which the Utility is
able to timely recover increased costs related to such
volatility;
The extent to which the
Utility's residual net open position (
i.e
., that portion of
the Utility's electricity customers' demand not satisfied by
electricity that the Utility generates or has under contract, or by
electricity provided under the California Department of Water
Resources electricity contracts allocated to the Utility's
customers) increases or decreases;
The operation of the
Utility's Diablo Canyon nuclear power plant
which exposes the Utility to potentially significant environmental
and capital expenditure outlays and, to the extent the Utility is
unable to increase its spent fuel storage capacity by 2007 or find
an alternative depository, the risk that the Utility may be
required to close the Diablo Canyon power plant and purchase electricity from more expensive
sources;
The impact of current and future
ratemaking actions of the CPUC
,
including the risk of material differences between forecasted costs used to
  determine rates and actual costs incurred;
The extent to which the CPUC or the
FERC delays or denies recovery of the Utility's costs from
customers due to a regulatory determination that such costs were
not reasonable or prudent or for other
reasons
resulting in write-offs of regulatory balancing
accounts
;
How
the CPUC administers the
capital structure, stand-alone dividend and first priority
conditions of the CPUC's decisions permitting the establishment of
holding companies for California investor-owned electric
utilities;
The impact of future
legislative or regulatory actions or policies;
Increased
competition;
The outcome of pending
litigation, and
Other factors discussed
in PG&E Corporation's and Pacific Gas and Electric Company's
SEC reports.
###
PG&E CORPORATION
CONDENSED STATEMENT OF CONSOLIDATED
INCOME
(Unaudited)
Three
months ended
June 30,
Six
months ended
June 30,
(in millions, except
per share amounts)
2004
2003
2004
2003
Operating
Revenues
Electric
$
2,063
$
2,058
$
3,851
$
3,412
Natural gas
686
656
1,617
1,484
Total Operating
Revenues
2,749
2,714
5,468
4,896
Operating
Expenses
Cost of
electricity
685
562
1,254
1,152
Cost of natural
gas
278
306
857
777
Operating expenses
including depreciation
1,110
1,009
(2,673)
2,033
Reorganization
items
4
65
6
100
Total Operating
Expenses
2,077
1,942
(556)
4,062
Operating
Income
672
772
6,024
834
Interest and other
expense, net
(165)
(232)
(408)
(467)
Income Before Income
Taxe
s
507
540
5,616
367
Income tax
provision
135
212
2,211
122
Income from Continuing
Operations
372
328
3,405
245
Discontinued
Operations of NEGT
(a)
-
(101)
-
(366)
Net Income (Loss)
Before Cumulative Effect of
Changes in Accounting Principles
372
227
3,405
(121)
Cumulative effect of
changes in accounting principles
-
-
-
(6)
Net Income
(Loss)
$
372
$
227
$
3,405
$
(127)
Weighted Average Common
Shares
Outstanding and Participating Securities,
Diluted
425
410
424
408
Earnings (Loss) Per
Common Share, Basic (b)
$
0.89
$
0.56
$
8.22
$
(0.32)
Earnings (Loss) Per
Common Share, Diluted (b)
$
0.88
$
0.55
$
8.03
$
(0.31)
Earnings (Loss)
Earnings
(Loss) per
Common
Share, Diluted
Three
months ended
June 30,
Three
months ended
June 30,
2004
2003
2004
2003
Pacific Gas and Electric
Company and Holding Company
Pacific Gas and Electric
Company
$
307
$
130
$
0.72
$
0.32
Holding Company
(9)
(3)
(0.02)
(0.01)
Earnings from
Operations
298
127
0.70
0.31
Headroom
-
321
-
0.78
Items Impacting
Comparability
(c)
74
(118)
0.18
(0.29)
NEGT
(a)
-
(103)
-
(0.25)
PG&E Corporation
Reported Earnings
$
372
$
227
$
0.88
$
0.55
Earnings (Loss)
Earnings
(Loss) per Common Share, Diluted
Six
months ended
June 30,
Six
months ended
June 30,
2004
2003
2004
2003
Pacific Gas and Electric
Company and Holding Company
Pacific Gas and Electric
Company
$
488
$
302
$
1.15
$
0.74
Holding Company
(14)
-
(0.03)
-
Earnings from
Operations
474
302
1.12
0.74
Headroom
-
140
-
0.34
Items Impacting
Comparability
(c)
2,931
(205)
6.91
(0.50)
NEGT
(a)
-
(364)
-
(0.89)
PG&E Corporation
Reported Earnings
$
3,405
$
(127)
$
8.03
$
(0.31)
(a)
On July 8, 2003, PG&E
National Energy Group, Inc., or PG&E NEG, and certain of its
subsidiaries filed voluntary petitions for relief under the
provisions of Chapter 11 of the Bankruptcy Code in the U.S.
Bankruptcy Court for the District of Maryland, Greenbelt
Division.  On October 3, 2003, the bankruptcy court authorized
PG&E NEG to change its company name to National Energy and Gas
Transmission, Inc., or NEGT.
In anticipation of NEGT's Chapter 11 filing, PG&E
Corporation's representatives, who previously served on the NEGT
Board of Directors, resigned on July 7, 2003 and were replaced with
Board members who are not affiliated with PG&E
Corporation.  As a result, PG&E Corporation no longer
retains significant influence over the ongoing operations of
NEGT.  Effective July 8, 2003, PG&E Corporation no longer
consolidates the earnings and losses of NEGT and has reflected its
ownership interest in NEGT utilizing the cost method of accounting,
under which PG&E Corporation's investment in NEGT is reflected
as a single amount on the Consolidated Balance Sheets of PG&E
Corporation at June 30, 2004 and December 31, 2003.  In
addition, the operations of NEGT prior to July 8, 2003, are
reflected as discontinued operations in the Consolidated Financial
Statements.  On May 3, 2004, the bankruptcy court approved
NEGT's plan of reorganization, which eliminates PG&E
Corporation's equity interest.
(b)
Reflects PG&E
Corporation's adoption of the "Two-Class" method
of calculating earnings per share for all periods
presented.
(c)
Items impacting
comparability for the quarter ending June 30, 2004 include the
Utility's recognition of a gain of approximately $120 million
($0.28 per share), after-tax, related to the prior year impact and
regulatory asset recognition resulting from the California Public
Utilities Commission, or CPUC, decision in the Utility's 2003
General Rate Case, or GRC decision, on May 27, 2004. 
Offsetting the effect of the GRC decision during the quarter were
the net effect of incremental interest costs of $20 million ($0.04
per share) from the increased amount and cost of debt resulting
from the California energy crisis and the Utility's Chapter 11
filing; increased costs of $6 million ($0.02 per share) related to
the NEGT's Chapter 11 filing and generally consisting of external
legal consulting fees, financial advisory fees and other related
costs and payments; and $20 million ($0.04 per share) related to
the change in the estimated market value of non-cumulative dividend
participation rights included within the Holding Company's
$280 million principal amount of 9.5% Convertible Subordinated
Notes.
Items impacting
comparability for the quarter ended June 30, 2003 include the net
effect of incremental interest costs of $73 million ($0.19 per
share) from the increased amount and cost of debt resulting from
the California energy crisis and the Utility's Chapter 11 filing;
increased costs of $31 million ($0.07 per share) related to the
Utility's and NEGT's Chapter 11 filings and generally consisting of
external legal consulting and financial advisory fees, and $14
million ($0.03 per share) associated with prior year impacts of a
revised decision related to the Utility's 1999 General Rate
Case.
Items impacting
comparability for the year-to-date period ending June 30, 2004
include the Utility's recognition of a gain of approximately
$120 million ($0.28 per share), after-tax, related to the prior
year impact and regulatory asset recognition resulting from the GRC
decision and a gain of approximately $2,950 million ($6.95 per
share) related to the establishment of regulatory assets
contemplated in the December 19, 2003 settlement agreement, or
Settlement Agreement, entered into between the Utility, PG&E
Corporation and the CPUC to resolve the Utility's Chapter 11
proceeding, as executed by the CPUC and confirmed by the U.S.
Bankruptcy Court for the Northern District of California.  In
addition, the Utility recognized $17 million ($0.04 per share) in
charges related to obligations to invest in clean energy technology
and donate land, included in the Settlement Agreement.
The effect of recognizing the impacts of the Settlement Agreement
and GRC was partially offset by the net effect of incremental
interest costs of $73 million ($0.17 per share) from the increased
amount and cost of debt resulting from the California energy crisis
and the Utility's Chapter 11 filing; increased costs of $10 million
($0.02 per share) related to the Utility's and NEGT's Chapter 11
filings and generally consisting of external legal consulting fees,
financial advisory fees and other related costs and payments; and
$39 million ($0.09 per share) related to the change in the
estimated market value of non-cumulative dividend participation
rights included within the Holding Company's $280 million
principal amount of 9.5% Convertible Subordinated Notes.
Items impacting
comparability for the year-to-date period ended June 30, 2003
include the net effect of incremental interest costs of $146
million ($0.34 per share) from the increased amount and cost of
debt resulting from the California energy crisis and the Utility's
Chapter 11 proceeding; increased costs of $52 million ($0.14 per
share) related to the Utility's and NEGT's Chapter 11 filings and
generally consisting of external legal consulting and financial
advisory fees, and $7 million ($0.02 per share) of other costs
associated with current year regulatory rulings.
To enable accurate
comparison to current period, certain previously disclosed items
impacting comparability have been reclassed to the related
operating entity in the prior period.
Reconciliation of Guidance for Earnings from
Operations for 2004
Year Ended December
31, 2004
(1)
Earnings from Operations
EPS Guidance
(2)
$
2.00
$
2.10
Estimated Items Impacting
Comparability
Incremental
interest expense
(0.20)
(0.14)
Utility
Chapter 11 Settlement Agreement assets and
obligations
(3)
6.88
6.91
2003 GRC
settlement
(4)
0.28
0.28
Mark-to-market dividend participation rights
(5)
(0.10)
(0.09)
Utility
and NEGT Chapter 11 related expenses
(0.05)
(0.03)
Gain on
disposition of NEGT
(6)
0.88
1.73
Reported EPS
Guidance
$
9.69
$
10.76
(1)
Estimates include a range
of shares outstanding.
(2)
Excludes the results of
NEGT.
(3)
Impact of recognizing $2.2
billion after-tax regulatory asset and a $700 million after-tax
regulatory asset for the Utility's retained generation as
provided for in the Utility's Plan of Reorganization. 
These regulatory assets are offset by $17 million related to
obligations to invest in clean energy technology and donate land,
included in the Settlement Agreement.
(4)
Impact of recording, as a
result of the approval of the 2003 GRC, additional 2003 natural gas
revenues and various regulatory assets and liabilities associated
with the recovery of retained generation assets, unfunded taxes,
depreciation and decommissioning.
(5)
Reflects the change in
estimated market value of dividend participation rights, which
entitle the holders of PG&E Corporation's 9.50%
Convertible Subordinated Notes to participate in any dividends
declared and paid on PG&E Corporation's common shares
based upon their equity conversion ratio.
(6)
Impact of recognizing the
reversal of PG&E Corporation's investment in NEGT and
related amounts in deferred income taxes and accumulated other
comprehensive income as a result of the implementation of
NEGT's plan of reorganization eliminating PG&E
Corporation's equity interest.
Reconciliation of Guidance for Earnings from
Operations for 2005
Year Ended December
31, 2005
(1)
Earnings from Operations
EPS Guidance
(2)
$
2.10
$
2.20
Estimated Items Impacting
Comparability
Incremental
interest expense
(0.05)
(0.04)
NEGT
Chapter 11 related expenses
(0.05)
(0.03)
Premium
to retire Holding Company Senior Secured
   Notes
(0.07)
(0.06)
Reported EPS
Guidance
$
1.93
$
2.07
(1)
Estimates include a range
of shares outstanding.
(2)
Excludes the results of
NEGT.
3 months
ended
Year to
date
Electric Sales (in millions
kWh)
6/30/2004
6/30/2003
6/30/2004
6/30/2003
Residential
6,544
6,422
13,966
13,616
Commercial
7,849
7,578
15,326
14,817
Industrial
3,809
3,401
7,164
6,944
Agricultural
1,182
982
1,679
1,457
Public street and
highway lighting
125
156
240
297
Other electric
utilities
2
10
6
61
Sales from Energy
Deliveries
19,511
18,549
38,381
37,192
Total Electric Customers
(1)
4,899,119
4,866,729
Bundled Gas Sales (millions
MCF)
Residential
35
43
120
122
Commercial
16
19
43
45
Industrial
-
-
-
-
Total Bundled Gas
Sales
51
62
163
167
Total Transportation
Only
131
111
275
233
Total Gas Sales
182
173
438
400
Total Gas Customers
(1)
4,067,498
4,026,467
Sources of Electric Energy (in
millions kWh)
Utility Generation
Nuclear
2,786
4,363
7,108
7,629
Hydro (net)
2,462
3,023
5,557
5,956
Fossil
215
37
439
196
Total Utility
Generation
5,463
7,423
13,104
13,781
Purchased Power
Qualifying
Facilities
4,633
4,471
9,306
9,014
Irrigation
Districts
1,230
1,556
2,286
2,594
Other purchased
power
203
1,275
375
2,548
Spot Market
Purchases/Sales, net
3,028
(591)
4,221
408
Total Purchased
Power
9,094
6,711
16,188
14,564
Delivery from DWR
4,503
4,890
9,064
11,488
Delivery to Direct Access
Customers
2,291
2,085
4,391
4,403
Other (includes energy
loss)
(1,840)
(2,560)
(4,366)
(7,044)
Total Electric Energy
Delivered
19,511
18,549
38,381
37,192
Diablo Canyon
Performance
Overall capacity factors (including
refuelings)
59%
92%
75%
81%
Refueling outage period
4/1-6/7
-
3/22-6/7
2/3-3/26
Refueling outage duration
(days)
68.5
-
77.5
51.2
Total electric and gas customers for
2004 are represented by the number of active accounts while the
2003 figures
represent  a 12-month average
of billing accounts.