<html>
<head>
<title>Form 8-K 4/11/05</title>
</head>
<body link="blue" vlink="purple">
<div>
<table border="0" cellspacing="0" cellpadding="0">
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<p align="center"><b>UNITED STATES</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>SECURITIES AND EXCHANGE COMMISSION</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><b>Washington, D.C.&nbsp; 20549</b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
</td>
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<tr>
<td colspan="4" valign="top">
<p align="center"><b>FORM 8-K</b></p>
</td>
</tr>

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

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

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

<tr>
<td colspan="4" valign="top">
<p align="center"><b>Date of Report: April 11, 2005</b></p>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<tr>
<td colspan="4" valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):</p>
</td>
</tr>
</table>

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

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

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

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

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

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

<div align="center">
<hr size="2" width="624" align="center" />
</div>

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

<p>Pacific Gas and Electric Company (Utility) Credit Agreement</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 8, 2005, the Utility entered into a $1 billion revolving
credit facility (the &ldquo;New Credit Agreement&rdquo;) with
Citicorp North America, Inc., as administrative agent and a lender,
JPMorgan Chase Bank, N.A., as syndication agent and a lender,
Barclays Bank PLC, BNP Paribas and Deutsche Bank Securities Inc.,
as documentation agents and lenders, ABN Amro Bank N.V., Lehman
Brothers Bank, FSB, Mellon Bank, N.A., Royal Bank of Canada, The
Bank of New York, The Bank of Nova Scotia, UBS Loan Finance LLC,
and Union Bank of California, N.A., as senior managing agents, and
KBC Bank, NV, Morgan Stanley Bank and William Street Commitment
Corporation, as lenders.</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
New Credit Agreement replaces the $850 million credit agreement
that the Utility entered into on March 5, 2004, shortly before the
Utility&rsquo;s plan of reorganization under Chapter 11 of the U.S.
Bankruptcy Code became effective.&nbsp; The New Credit Agreement
includes a $600&nbsp;million sublimit for the issuance of letters
of credit and a $100&nbsp;million sublimit for &ldquo;swing
line&rdquo; loans; i.e., loans made available on a same day basis
and repayable in full within thirty days.&nbsp;&nbsp; Loans under
the New Credit Agreement will be used to cover operating expenses
and seasonal fluctuations in cash flows and may also be used for
bridge financing in connection with the reissuance of tax-exempt
pollution control bonds.&nbsp; Letters of credit under the New
Credit Agreement will be used primarily to provide credit
enhancements to counterparties for natural gas and electricity
procurement transactions.&nbsp;</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to obtaining any required regulatory approvals and commitments from
existing or new lenders and satisfaction of other specified
conditions, the Utility may obtain an increase in the aggregate
lenders&rsquo; commitments under the New Credit Agreement of up to
$500&nbsp;million or, in the event that the Utility&rsquo;s $650
million accounts receivable facility is terminated or expires, of
up to $850 <b></b>million, <b></b>in the aggregate for all such
increases.</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
New Credit Agreement will have a term of five years and all amounts
will be due and payable on April 8, 2010.&nbsp; At the
Utility&rsquo;s request and at the sole discretion of each lender,
the facility may be extended for additional periods.&nbsp; The
Utility has the right to replace any lender who does not agree to
an extension.&nbsp;</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Utility&rsquo;s obligations under the New Credit Agreement have
been secured with a first mortgage bond issued under the indenture
dated as of March 11, 2004, between the Utility and The Bank of New
York Trust Company, N.A., the successor to BNY Western Trust
Company, as trustee (the &ldquo;Indenture&rdquo;).&nbsp; The bond
will be returned to the Utility when the lien of the mortgage is
released rendering the credit facility unsecured.&nbsp; The Utility
is currently taking the required actions to release the lien.&nbsp;
It is expected that the lien will be released by the end of April
2005.</p>

<p></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
New Credit Agreement includes usual and customary covenants for
credit facilities of this type, including covenants limiting liens
to those permitted under the Indenture, mergers, sales of all or
substantially all of the Utility&rsquo;s assets and other
fundamental changes.&nbsp; In addition, the New Credit Agreement
also requires that the Utility maintain a ratio of total
consolidated debt to total consolidated capitalization of not more
than 0.65 to 1.00 as of the end of each fiscal quarter.</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of a default by the Utility under the New Credit
Agreement, including cross-defaults relating to specified other
debt of the Utility or any of its significant subsidiaries in
excess of $100 million, the lenders may terminate the commitments
under the New Credit Agreement and declare the amounts outstanding,
including all accrued interest and unpaid fees, payable
immediately.&nbsp; In addition, the lenders may enforce any and all
rights and remedies created under applicable law, including set-off
rights, the New Credit Agreement and, prior to the release of the
mortgage, the Indenture.&nbsp; For events of default relating to
insolvency, bankruptcy or receivership, the commitments are
automatically terminated and the amounts outstanding become payable
immediately.</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
fees and interest rates the Utility will pay under the New Credit
Agreement will vary depending on the Utility&rsquo;s senior secured
debt rating (or, at any time following the release of the lien of
the first mortgage bonds), the Utility&rsquo;s senior unsecured
debt ratings by <a name="_DV_C30">Standard &amp; Poor&rsquo;s
Ratings Services</a> <a name="_DV_M22"></a>(&ldquo;S&amp;P&rdquo;)
and Moody&rsquo;s <a name="_DV_C31">Investors Services
(&ldquo;Moody&rsquo;s&rdquo;).</a> <a name=
"_DV_M23"></a>&nbsp;&nbsp; The Utility is required to pay a
&ldquo;facility fee&rdquo; on the amount of the New Credit
Agreement (regardless of the usage of the commitments) and a
&ldquo;utilization fee&rdquo; for each day on which the aggregate
outstanding credit extensions under the New Credit Agreement are
greater than 50% of the aggregate commitments under the New Credit
Agreement calculated by multiplying the applicable percentage by
the outstanding credit extensions. At the Utility&rsquo;s option,
any loan under the New Credit Agreement (other than swing line
loans) will bear interest at a rate equal to the &ldquo;applicable
margin&rdquo; plus one of the following indexes: (i)&nbsp;LIBOR
(London Interbank Overnight Rate) or (ii)&nbsp;the base rate (the
higher of (a)&nbsp;the administrative agent&rsquo;s base rate and
(b)&nbsp;the Federal Funds rate plus 0.50%).&nbsp; Each swing line
loan will bear interest at the applicable margin plus the base
rate. The facility fee, the utilization fee and the applicable
margin will be determined in accordance with the following
table:</p>

<table border="1" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p align="center"><br />
 S&amp;P/Moody&rsquo;s Rating</p>
</td>
<td valign="top">
<p>Applicable Margin for Base Rate Loans</p>
</td>
<td valign="top">
<p align="center">Applicable Margin for LIBOR Loans</p>
</td>
<td valign="top">
<p align="center">Facility Fee</p>

<p align="center">Rate</p>
</td>
<td valign="top">
<p align="center">Utilization Fee</p>

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

<tr>
<td align="center">
<p>A/A2 or higher</p>
</td>
<td>
<p align="center">0%</p>
</td>
<td>
<p align="center">0.220%</p>
</td>
<td>
<p align="center">0.080%</p>
</td>
<td valign="top">
<p align="center">0.100%</p>
</td>
</tr>

<tr>
<td align="center">
<p>A-/A3</p>
</td>
<td>
<p align="center">0%</p>
</td>
<td>
<p align="center">0.300%</p>
</td>
<td>
<p align="center">0.100%</p>
</td>
<td valign="top">
<p align="center">0.100%</p>
</td>
</tr>

<tr>
<td>
<p align="center">BBB+/Baa1</p>
</td>
<td>
<p align="center">0%</p>
</td>
<td>
<p align="center">0.350%</p>
</td>
<td>
<p align="center">0.125%</p>
</td>
<td valign="top">
<p align="center">0.125%</p>
</td>
</tr>

<tr>
<td>
<p align="center">BBB/Baa2</p>
</td>
<td>
<p align="center">0%</p>
</td>
<td>
<p align="center">0.425%</p>
</td>
<td>
<p align="center">0.150%</p>
</td>
<td valign="top">
<p align="center">0.125%</p>
</td>
</tr>

<tr>
<td>
<p align="center">BBB-/Baa3</p>
</td>
<td>
<p align="center">0%</p>
</td>
<td>
<p align="center">0.575%</p>
</td>
<td>
<p align="center">0.175%</p>
</td>
<td valign="top">
<p align="center">0.125%</p>
</td>
</tr>

<tr>
<td>
<p align="center">BB+/Ba1 or lower</p>
</td>
<td>
<p align="center">0%</p>
</td>
<td>
<p align="center">0.675%</p>
</td>
<td>
<p align="center">0.200%</p>
</td>
<td valign="top">
<p align="center">0.250%</p>
</td>
</tr>
</table>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If
the Utility's debt ratings from S&amp;P and Moody's are at
different levels, the higher rating applies.&nbsp; In addition, the
Utility will pay a fee for each letter of credit outstanding under
the New Credit Agreement equal to the applicable margin for LIBOR
loans to be shared by the lenders.&nbsp; The Utility will also pay
a fronting fee of 0.125% to the individual issuer of a letter of
credit.</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
lenders and agents under the New Credit Agreement and their
affiliates have in the past provided, and may in the future
provide, investment banking, underwriting, lending, commercial
banking and other advisory services to the Utility and PG&amp;E
Corporation.&nbsp; These parties have received, and may in the
future receive, customary compensation from the Utility and
PG&amp;E Corporation for such services.</p>

<p><b>Item 1.02 &ndash; Termination of a Material Definitive
Agreement</b></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth above in Item 1.01 regarding termination of
the Utility&rsquo;s prior $850 million credit agreement dated as of
March 5, 2004, is hereby incorporated into Item 1.02 by
reference.</p>

<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>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information set forth above in Item 1.01 regarding the
Utility&rsquo;s $1 billion credit agreement is hereby incorporated
into Item 2.03(a) by reference.</p>

<p></p>

<p></p>

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

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

<p>Annual Earnings Assessment Proceedings</p>

<p></p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 4, 2005, the Utility filed a motion with the California
Public Utilities Commission (CPUC) seeking approval of a settlement
agreement entered into on April 4, 2005 between the Utility and the
CPUC&rsquo;s Office of Ratepayer Advocates (ORA).&nbsp; The
settlement agreement proposes the resolution of the Utility&rsquo;s
claims that have been pending for several years for shareholder
incentives earned by the Utility for the successful implementation
of demand-side management, energy efficiency, and low-income energy
efficiency programs for past program years (1994 through
2001).&nbsp; The Utility&rsquo;s claims for shareholder incentives
are addressed in the Utility&rsquo;s Annual Earnings Assessment
Proceeding (AEAP).&nbsp; In addition to resolving claims made in
the pending AEAPs, the settlement agreement proposes to resolve all
future claims for shareholder incentives relating to past program
years that the Utility would otherwise have made in future AEAPs
through 2010.&nbsp;</p>

<p></p>

<p align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Utility&rsquo;s total current and future shareholder incentive
claims aggregate to approximately $207 million.&nbsp; Under the
settlement agreement, the parties have agreed that the results to
date show that the energy savings anticipated in the
Utility&rsquo;s shareholder incentive claims are being
realized.&nbsp; The parties have proposed that the Utility receive
shareholder incentives of approximately $186 million to resolve the
Utility&rsquo;s claims in the pending and future AEAPs.&nbsp;&nbsp;
The parties have proposed that approximately $160 million be
allocated to electric customers, and that the remaining $26 million
be allocated to gas customers, in proportion to the relative
allocations of the original claims.&nbsp;</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E
Corporation and the Utility cannot predict whether or when the CPUC
will approve the settlement agreement.&nbsp; Assuming the CPUC
approves the settlement agreement, the Utility would record pre-tax
income of $186 million during the quarter in which the settlement
agreement is approved by the CPUC.&nbsp;&nbsp; The Utility has
already collected $28 million of the $186 million from electric
customers through the public goods charge.&nbsp; It is anticipated
that the remaining $158 million would be collected from customers
over a 12-month period beginning on January 1, 2006, assuming prior
CPUC approval of the settlement agreement.&nbsp;</p>

<p></p>

<br clear="all" />


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

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

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

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

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

<p></p>

<p></p>

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

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

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

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

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

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

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>By:&nbsp;&nbsp;</p>
</td>
<td valign="top">
<div>
<p><u>DINYAR B. MISTRY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>
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<p>Dinyar B. Mistry<br />
 Vice President and Controller</p>
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<p>Dated:&nbsp; April 11, 2005</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": "05744609"}, "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"}}
Form 8-K 4/11/05
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: April 11, 2005
PG&E CORPORATION
(Exact Name of Registrant as specified in
Charter)
California
1-2609
94-323914
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
One Market, Spear Tower, Suite 2400, San
Francisco, CA
94105
(Address of principal executive offices)
(Zip code)
415-267-7000
(Registrant's Telephone Number,
Including Area Code)
N/A
(Former Name or Former Address, if Changed
Since Last Report)
PACIFIC GAS AND ELECTRIC COMPANY
(Exact Name of Registrant as specified in
Charter)
California
1-2348
94-0742640
(State or other jurisdiction of
incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
77 Beale Street, P. O. Box 770000, San
Francisco, California
94177
(Address of principal executive offices)
(Zip code)
(415) 973-7000
(Registrant's Telephone Number,
Including Area Code)
N/A
(Former Name or Former Address, if Changed
Since Last Report)
Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):
[ ]
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ]
Soliciting Material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act
(17 CFR 240.14d-2(b)
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act
(17 CFR 240.13e-4(c))
Item 1.01 – Entry Into a Material Definitive
Agreement
Pacific Gas and Electric Company (Utility) Credit Agreement
On
April 8, 2005, the Utility entered into a $1 billion revolving
credit facility (the "New Credit Agreement") with
Citicorp North America, Inc., as administrative agent and a lender,
JPMorgan Chase Bank, N.A., as syndication agent and a lender,
Barclays Bank PLC, BNP Paribas and Deutsche Bank Securities Inc.,
as documentation agents and lenders, ABN Amro Bank N.V., Lehman
Brothers Bank, FSB, Mellon Bank, N.A., Royal Bank of Canada, The
Bank of New York, The Bank of Nova Scotia, UBS Loan Finance LLC,
and Union Bank of California, N.A., as senior managing agents, and
KBC Bank, NV, Morgan Stanley Bank and William Street Commitment
Corporation, as lenders.
The
New Credit Agreement replaces the $850 million credit agreement
that the Utility entered into on March 5, 2004, shortly before the
Utility's plan of reorganization under Chapter 11 of the U.S.
Bankruptcy Code became effective.  The New Credit Agreement
includes a $600 million sublimit for the issuance of letters
of credit and a $100 million sublimit for "swing
line" loans; i.e., loans made available on a same day basis
and repayable in full within thirty days.   Loans under
the New Credit Agreement will be used to cover operating expenses
and seasonal fluctuations in cash flows and may also be used for
bridge financing in connection with the reissuance of tax-exempt
pollution control bonds.  Letters of credit under the New
Credit Agreement will be used primarily to provide credit
enhancements to counterparties for natural gas and electricity
procurement transactions.
Subject
to obtaining any required regulatory approvals and commitments from
existing or new lenders and satisfaction of other specified
conditions, the Utility may obtain an increase in the aggregate
lenders' commitments under the New Credit Agreement of up to
$500 million or, in the event that the Utility's $650
million accounts receivable facility is terminated or expires, of
up to $850
million,
in the aggregate for all such
increases.
The
New Credit Agreement will have a term of five years and all amounts
will be due and payable on April 8, 2010.  At the
Utility's request and at the sole discretion of each lender,
the facility may be extended for additional periods.  The
Utility has the right to replace any lender who does not agree to
an extension.
The
Utility's obligations under the New Credit Agreement have
been secured with a first mortgage bond issued under the indenture
dated as of March 11, 2004, between the Utility and The Bank of New
York Trust Company, N.A., the successor to BNY Western Trust
Company, as trustee (the "Indenture").  The bond
will be returned to the Utility when the lien of the mortgage is
released rendering the credit facility unsecured.  The Utility
is currently taking the required actions to release the lien. 
It is expected that the lien will be released by the end of April
2005.
The
New Credit Agreement includes usual and customary covenants for
credit facilities of this type, including covenants limiting liens
to those permitted under the Indenture, mergers, sales of all or
substantially all of the Utility's assets and other
fundamental changes.  In addition, the New Credit Agreement
also requires that the Utility maintain a ratio of total
consolidated debt to total consolidated capitalization of not more
than 0.65 to 1.00 as of the end of each fiscal quarter.
In
the event of a default by the Utility under the New Credit
Agreement, including cross-defaults relating to specified other
debt of the Utility or any of its significant subsidiaries in
excess of $100 million, the lenders may terminate the commitments
under the New Credit Agreement and declare the amounts outstanding,
including all accrued interest and unpaid fees, payable
immediately.  In addition, the lenders may enforce any and all
rights and remedies created under applicable law, including set-off
rights, the New Credit Agreement and, prior to the release of the
mortgage, the Indenture.  For events of default relating to
insolvency, bankruptcy or receivership, the commitments are
automatically terminated and the amounts outstanding become payable
immediately.
The
fees and interest rates the Utility will pay under the New Credit
Agreement will vary depending on the Utility's senior secured
debt rating (or, at any time following the release of the lien of
the first mortgage bonds), the Utility's senior unsecured
debt ratings by
Standard & Poor's
Ratings Services
("S&P")
and Moody's
Investors Services
("Moody's").
The Utility is required to pay a
"facility fee" on the amount of the New Credit
Agreement (regardless of the usage of the commitments) and a
"utilization fee" for each day on which the aggregate
outstanding credit extensions under the New Credit Agreement are
greater than 50% of the aggregate commitments under the New Credit
Agreement calculated by multiplying the applicable percentage by
the outstanding credit extensions. At the Utility's option,
any loan under the New Credit Agreement (other than swing line
loans) will bear interest at a rate equal to the "applicable
margin" plus one of the following indexes: (i) LIBOR
(London Interbank Overnight Rate) or (ii) the base rate (the
higher of (a) the administrative agent's base rate and
(b) the Federal Funds rate plus 0.50%).  Each swing line
loan will bear interest at the applicable margin plus the base
rate. The facility fee, the utilization fee and the applicable
margin will be determined in accordance with the following
table:
S&P/Moody's Rating
Applicable Margin for Base Rate Loans
Applicable Margin for LIBOR Loans
Facility Fee
Rate
Utilization Fee
Rate
A/A2 or higher
0%
0.220%
0.080%
0.100%
A-/A3
0%
0.300%
0.100%
0.100%
BBB+/Baa1
0%
0.350%
0.125%
0.125%
BBB/Baa2
0%
0.425%
0.150%
0.125%
BBB-/Baa3
0%
0.575%
0.175%
0.125%
BB+/Ba1 or lower
0%
0.675%
0.200%
0.250%
If
the Utility's debt ratings from S&P and Moody's are at
different levels, the higher rating applies.  In addition, the
Utility will pay a fee for each letter of credit outstanding under
the New Credit Agreement equal to the applicable margin for LIBOR
loans to be shared by the lenders.  The Utility will also pay
a fronting fee of 0.125% to the individual issuer of a letter of
credit.
The
lenders and agents under the New Credit Agreement and their
affiliates have in the past provided, and may in the future
provide, investment banking, underwriting, lending, commercial
banking and other advisory services to the Utility and PG&E
Corporation.  These parties have received, and may in the
future receive, customary compensation from the Utility and
PG&E Corporation for such services.
Item 1.02 – Termination of a Material Definitive
Agreement
The
information set forth above in Item 1.01 regarding termination of
the Utility's prior $850 million credit agreement dated as of
March 5, 2004, is hereby incorporated into Item 1.02 by
reference.
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
Utility's $1 billion credit agreement is hereby incorporated
into Item 2.03(a) by reference.
Item 8.01 - Other Events
Annual Earnings Assessment Proceedings
On
April 4, 2005, the Utility filed a motion with the California
Public Utilities Commission (CPUC) seeking approval of a settlement
agreement entered into on April 4, 2005 between the Utility and the
CPUC's Office of Ratepayer Advocates (ORA).  The
settlement agreement proposes the resolution of the Utility's
claims that have been pending for several years for shareholder
incentives earned by the Utility for the successful implementation
of demand-side management, energy efficiency, and low-income energy
efficiency programs for past program years (1994 through
2001).  The Utility's claims for shareholder incentives
are addressed in the Utility's Annual Earnings Assessment
Proceeding (AEAP).  In addition to resolving claims made in
the pending AEAPs, the settlement agreement proposes to resolve all
future claims for shareholder incentives relating to past program
years that the Utility would otherwise have made in future AEAPs
through 2010.
The
Utility's total current and future shareholder incentive
claims aggregate to approximately $207 million.  Under the
settlement agreement, the parties have agreed that the results to
date show that the energy savings anticipated in the
Utility's shareholder incentive claims are being
realized.  The parties have proposed that the Utility receive
shareholder incentives of approximately $186 million to resolve the
Utility's claims in the pending and future AEAPs.  
The parties have proposed that approximately $160 million be
allocated to electric customers, and that the remaining $26 million
be allocated to gas customers, in proportion to the relative
allocations of the original claims.
PG&E
Corporation and the Utility cannot predict whether or when the CPUC
will approve the settlement agreement.  Assuming the CPUC
approves the settlement agreement, the Utility would record pre-tax
income of $186 million during the quarter in which the settlement
agreement is approved by the CPUC.   The Utility has
already collected $28 million of the $186 million from electric
customers through the public goods charge.  It is anticipated
that the remaining $158 million would be collected from customers
over a 12-month period beginning on January 1, 2006, assuming prior
CPUC approval of the settlement agreement.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrants have duly caused this report to be signed on
their behalf by the undersigned thereunto duly authorized.
PG&E CORPORATION
By:
CHRISTOPHER P. JOHNS
Christopher P. Johns
Senior Vice President, Chief Financial
Officer and Controller
PACIFIC GAS AND ELECTRIC COMPANY
By:
DINYAR B. MISTRY
Dinyar B. Mistry
Vice President and Controller
Dated:  April 11, 2005