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<title>PG&amp;E Corporation Form 8-K</title>
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<p align="center"><b>UNITED STATES</b></p>
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<p align="center"><b>SECURITIES AND EXCHANGE COMMISSION</b></p>
</td>
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<tr>
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<p align="center"><b>Washington, D.C.&nbsp; 20549</b></p>
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<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
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<p align="center"><b>FORM 8-K</b></p>
</td>
</tr>

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

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

<tr>
<td colspan="4" valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
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<p align="center"><b>Date of Report: December 23, 2004</b></p>

<p align="center">
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
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<td colspan="4" valign="top">
<p align="center"><b>PG&amp;E CORPORATION</b></p>
</td>
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<td colspan="4" valign="top">
<p align="center"><b>(Exact Name of Registrant as specified in
Charter)</b></p>
</td>
</tr>

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

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<td colspan="4" valign="top">
<p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
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<p align="center"><b><u>California</u></b></p>
</td>
<td colspan="2" valign="top">
<p align="center"><b><u>1-2609</u></b></p>
</td>
<td valign="top">
<p align="center"><b><u>94-323914</u></b></p>
</td>
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<p align="center">(State or other jurisdiction of
incorporation)</p>
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<p align="center"><br />
 (Commission File Number)</p>
</td>
<td valign="top">
<p align="center">(IRS Employer<br />
 Identification No.)</p>
</td>
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<p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td colspan="2" valign="top"></td>
<td valign="top"></td>
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<p align="center"><b>One Market, Spear Tower, Suite 2400<br />
 San Francisco, CA</b></p>
</td>
<td colspan="2" valign="top">
<p align="center"><b><br />
 <u>94105</u></b></p>
</td>
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<p align="center">(Address of principal executive offices)</p>
</td>
<td colspan="2" valign="top">
<p align="center">(Zip code)</p>
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<td colspan="4" valign="top">
<p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
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<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
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<p align="center"><b><u>415-267-7000</u></b></p>
</td>
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<td colspan="4" valign="top">
<p align="center"><b>(Registrant&rsquo;s Telephone Number,
Including Area Code)</b></p>
</td>
</tr>

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

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

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

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

<tr>
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<p><br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):</p>
</td>
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<p>[&nbsp;]</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)</p>
</td>
</tr>

<tr>
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<p>[&nbsp;]</p>
</td>
<td valign="top"></td>
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<p>Soliciting Material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)</p>
</td>
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<p>[&nbsp;]</p>
</td>
<td valign="top"></td>
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<p>Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act<br />
 (17 CFR 240.14d-2(b)</p>
</td>
</tr>

<tr>
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<p>[&nbsp;]</p>
</td>
<td valign="top"></td>
<td valign="top">
<p>Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act<br />
 (17 CFR 240.13e-4(c))</p>
</td>
</tr>
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<hr size="2" width="624" align="left" />
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<td valign="top">
<p><b>Item 1.01 &ndash; Entry Into a Material Definitive
Agreement</b></p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>Accelerated Share Repurchase Transaction</p>
</td>
</tr>

<tr>
<td valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
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<p>On December 23, 2004, PG&amp;E Corporation entered into an
accelerated share repurchase arrangement with Goldman, Sachs &amp;
Co. (GS&amp;Co.) under which PG&amp;E Corporation has agreed to
repurchase shares of its outstanding common stock with an aggregate
purchase price of approximately $975 million.&nbsp; The purchase is
expected to occur in early February 2005, provided that Pacific Gas
and Electric Company (Utility), PG&amp;E Corporation&rsquo;s
subsidiary, issues the first series of Energy Recovery Bonds (ERBs)
in the approximate amount of $1.8 billion in January 2005 to
refinance the regulatory asset provided under the settlement
agreement entered into by PG&amp;E Corporation, the Utility, and
the California Public Utilities Commission to resolve the
Utility&rsquo;s Chapter 11 proceeding.&nbsp; It is expected that a
wholly owned subsidiary of the Utility will issue the ERBs.&nbsp;
The repurchased shares will be retired at that time.&nbsp;</p>
</td>
</tr>

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<td valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
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<td valign="top">
<p>Under the terms of the arrangement, PG&amp;E Corporation may
receive from, or be required to pay, GS&amp;Co. a price adjustment
based on the daily volume weighted average market price of PG&amp;E
Corporation common stock over a period of approximately eight
months to begin shortly after the purchase.&nbsp; The price
adjustment can be settled, at PG&amp;E Corporation&rsquo;s option,
in cash or in shares of its common stock.&nbsp;</p>
</td>
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<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
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<p>GS&amp;Co. may terminate the transaction (i) in the event of a
default by PG&amp;E Corporation under the accelerated share
repurchase arrangement (which would include the acceleration of
certain other PG&amp;E Corporation indebtedness in a principal
amount in excess of $75 million), (ii) on the day before any
ex-dividend date of a PG&amp;E Corporation dividend, and (iii) in
certain other circumstances.&nbsp; In the event of termination in
connection with an ex-dividend date, PG&amp;E Corporation and
GS&amp;Co. may elect to enter into a new agreement to complete the
original transaction.&nbsp; Upon an early termination (other than
when a new agreement is executed to complete the original
transaction), PG&amp;E Corporation would be required to compensate
GS&amp;Co. for losses it incurred in connection with the
accelerated share repurchase transaction.</p>
</td>
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<td valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
</tr>

<tr>
<td valign="top">
<p>Any shares that PG&amp;E Corporation issues in the future in
connection with an early termination of the transaction or to
compensate GS&amp;Co. for any price adjustment would increase the
number of shares outstanding at the time of issuance.&nbsp; In
addition, until the transaction is completed or terminated,
generally accepted accounting principles require PG&amp;E
Corporation to assume that it will issue shares to settle any
obligation it may have at the end of a quarterly or year end
reporting period to GS&amp;Co. in relation to any increase in share
price over the share price at inception of the transaction, along
with other net costs with respect to the repurchased shares.&nbsp;
The amount of shares PG&amp;E Corporation must treat as having been
issued to settle such obligation would be included in the weighted
average number of shares outstanding for purposes of calculating
PG&amp;E Corporation&rsquo;s fully diluted earnings per share for
that reporting period.</p>
</td>
</tr>

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<td valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
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<p>GS&amp;Co. and certain of its affiliates have engaged, and may
in the future engage, in financial advisory, investment banking and
other services for PG&amp;E Corporation and its affiliates,
including acting as a lender under PG&amp;E Corporation&rsquo;s
current credit agreement.</p>
</td>
</tr>

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<td valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
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<td valign="top">
<p><b>Item 2.03 &ndash; Creation of a Direct Financial Obligation
or an Obligation under an Off-Balance Sheet Arrangement of a
Registrant</b></p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>The information set forth above in Item 1.01 regarding the
accelerated share repurchase arrangement is hereby incorporated
into Item 2.03(b) by reference.</p>
</td>
</tr>
</table>

<p></p>

<p></p>

<br clear="all" />


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<hr size="2" width="624" align="left" />
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<p>&nbsp;</p>

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

<tr>
<td valign="top">
<p>Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.</p>

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

<p></p>

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<td valign="top"></td>
<td colspan="2" valign="top">
<p>PG&amp;E CORPORATION</p>
</td>
</tr>

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

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

<p>Dated:&nbsp; December 23, 2004</p>
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{"company-data": {"conformed-name": "PG&E CORP", "cik": "0001004980", "assigned-sic": "4931", "irs-number": "943234914", "state-of-incorporation": "CA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-12609", "film-number": "041224701"}, "business-address": {"street1": "ONE MARKET SPEAR TOWER", "street2": "SUITE 2400", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105", "phone": "4152677000"}, "mail-address": {"street1": "ONE MARKET SPEAR TOWER", "street2": "SUITE 2400", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105"}, "former-company": {"former-conformed-name": "PG&E PARENT CO INC", "date-changed": "19951214"}}
PG&E Corporation Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: December 23, 2004
PG&E CORPORATION
(Exact Name of Registrant as specified in
Charter)
California
1-2609
94-323914
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
One Market, Spear Tower, Suite 2400
San Francisco, CA
94105
(Address of principal executive offices)
(Zip code)
415-267-7000
(Registrant's Telephone Number,
Including Area Code)
N/A
(Former Name or Former Address, if Changed
Since Last Report)
Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):
[ ]
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ]
Soliciting Material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act
(17 CFR 240.14d-2(b)
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act
(17 CFR 240.13e-4(c))
Item 1.01 – Entry Into a Material Definitive
Agreement
Accelerated Share Repurchase Transaction
On December 23, 2004, PG&E Corporation entered into an
accelerated share repurchase arrangement with Goldman, Sachs &
Co. (GS&Co.) under which PG&E Corporation has agreed to
repurchase shares of its outstanding common stock with an aggregate
purchase price of approximately $975 million.  The purchase is
expected to occur in early February 2005, provided that Pacific Gas
and Electric Company (Utility), PG&E Corporation's
subsidiary, issues the first series of Energy Recovery Bonds (ERBs)
in the approximate amount of $1.8 billion in January 2005 to
refinance the regulatory asset provided under the settlement
agreement entered into by PG&E Corporation, the Utility, and
the California Public Utilities Commission to resolve the
Utility's Chapter 11 proceeding.  It is expected that a
wholly owned subsidiary of the Utility will issue the ERBs. 
The repurchased shares will be retired at that time.
Under the terms of the arrangement, PG&E Corporation may
receive from, or be required to pay, GS&Co. a price adjustment
based on the daily volume weighted average market price of PG&E
Corporation common stock over a period of approximately eight
months to begin shortly after the purchase.  The price
adjustment can be settled, at PG&E Corporation's option,
in cash or in shares of its common stock.
GS&Co. may terminate the transaction (i) in the event of a
default by PG&E Corporation under the accelerated share
repurchase arrangement (which would include the acceleration of
certain other PG&E Corporation indebtedness in a principal
amount in excess of $75 million), (ii) on the day before any
ex-dividend date of a PG&E Corporation dividend, and (iii) in
certain other circumstances.  In the event of termination in
connection with an ex-dividend date, PG&E Corporation and
GS&Co. may elect to enter into a new agreement to complete the
original transaction.  Upon an early termination (other than
when a new agreement is executed to complete the original
transaction), PG&E Corporation would be required to compensate
GS&Co. for losses it incurred in connection with the
accelerated share repurchase transaction.
Any shares that PG&E Corporation issues in the future in
connection with an early termination of the transaction or to
compensate GS&Co. for any price adjustment would increase the
number of shares outstanding at the time of issuance.  In
addition, until the transaction is completed or terminated,
generally accepted accounting principles require PG&E
Corporation to assume that it will issue shares to settle any
obligation it may have at the end of a quarterly or year end
reporting period to GS&Co. in relation to any increase in share
price over the share price at inception of the transaction, along
with other net costs with respect to the repurchased shares. 
The amount of shares PG&E Corporation must treat as having been
issued to settle such obligation would be included in the weighted
average number of shares outstanding for purposes of calculating
PG&E Corporation's fully diluted earnings per share for
that reporting period.
GS&Co. and certain of its affiliates have engaged, and may
in the future engage, in financial advisory, investment banking and
other services for PG&E Corporation and its affiliates,
including acting as a lender under PG&E Corporation's
current credit agreement.
Item 2.03 – Creation of a Direct Financial Obligation
or an Obligation under an Off-Balance Sheet Arrangement of a
Registrant
The information set forth above in Item 1.01 regarding the
accelerated share repurchase arrangement is hereby incorporated
into Item 2.03(b) by reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
PG&E CORPORATION
By:
CHRISTOPHER P. JOHNS
Christopher P. Johns
Senior Vice President and Controller
Dated:  December 23, 2004