<html>
<head>

<title>Form 8-K</title>
</head>
<body link="blue" vlink="purple">
<div>
<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td colspan="4" valign="top">
<p align="center">SECURITIES AND EXCHANGE COMMISSION</p>
</td>
</tr>

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

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

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

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

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

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

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

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

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

<tr>
<td colspan="4" valign="top">
<p align="center">Date of Report: September 3, 2004</p>

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

<tr>
<td valign="top">
<p align="center"><br />
 Commission<br />
 File<br />
 Number</p>
</td>
<td valign="top">
<p align="center">Exact Name of<br />
 Registrant<br />
 as specified in<br />
 its charter</p>
</td>
<td valign="top">
<p align="center"><br />
 State or other<br />
 Jurisdiction of<br />
 Incorporation</p>
</td>
<td valign="top">
<p align="center"><br />
 IRS Employer<br />
 &nbsp; Identification<br />
 Number</p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">_____________</p>
</td>
<td valign="top">
<p align="center">_____________</p>
</td>
<td valign="top">
<p align="center">_____________</p>
</td>
<td valign="top">
<p align="center">_____________</p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">1-12609</p>

<p align="center">1-2348</p>
</td>
<td valign="top">
<p align="center">PG&amp;E Corporation</p>

<p align="center">Pacific Gas and<br />
 Electric Company</p>
</td>
<td valign="top">
<p align="center">California</p>

<p align="center">California</p>
</td>
<td valign="top">
<p align="center">94-3234914</p>

<p align="center">94-0742640</p>
</td>
</tr>

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

<tr>
<td colspan="2" valign="top">
<p align="center">Pacific Gas and Electric Company<br />
 77 Beale Street, P. O. Box 770000<br />
 San Francisco, California&nbsp;&nbsp;94177</p>
</td>
<td colspan="2" valign="top">
<p align="center">PG&amp;E Corporation<br />
 One Market, Spear Tower, Suite 2400<br />
 San Francisco, California&nbsp;&nbsp;94105</p>
</td>
</tr>

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

<tr>
<td colspan="4" valign="top">
<p align="center">(Address of principal executive offices) (Zip
Code)</p>
</td>
</tr>

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

<tr>
<td colspan="2" valign="top">
<p align="center">Pacific Gas and Electric Company<br />
 (415) 973-7000</p>
</td>
<td colspan="2" valign="top">
<p align="center">PG&amp;E Corporation<br />
 (415) 267-7000</p>
</td>
</tr>

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

<tr>
<td colspan="4" valign="top">
<p align="center">(Registrant's telephone number, including area
code)</p>
</td>
</tr>

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

<tr>
<td colspan="4" valign="top">
<p>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>

<tr>
<td colspan="4" valign="top">
<p>[ ] Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p>[ ] Soliciting Material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p>[ ] Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b)</p>
</td>
</tr>
</table>

<div>
<p style="line-height: 100%; margin-top: 0; margin-bottom: 0">&nbsp;</p>
<hr size="2" width="624" align="left" />
<p style="line-height: 100%; margin-top: 0; margin-bottom: 0">&nbsp;
</div>

<table border="0" cellspacing="0" cellpadding="0" width="623">
<tr>
<td valign="top">
<p>Item 8.01</p>
</td>
<td valign="top">
<p>Other Events</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p style="line-height: 100%; margin-top: 0; margin-bottom: 0">A.</p>
</td>
<td valign="top">
<p style="line-height: 100%; margin-top: 0; margin-bottom: 0">Electric Restructuring Costs Account Application</p>
<p style="line-height: 100%; margin-top: 0; margin-bottom: 0">&nbsp;</p>
</td>
</tr>
</table>

<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td valign="top">
<p>On August 26, 2004, hearings were held and concluded at the
California Public Utilities Commission (CPUC) in Pacific Gas and
Electric Company&rsquo;s (Utility) Electric Restructuring Costs
Account (ERCA) proceeding.&nbsp; The hearings addressed the
proposed settlement agreement to resolve issues in this proceeding
reached between the Utility and the CPUC&rsquo;s Office of
Ratepayer Advocates (ORA), Aglet Consumer Alliance, and The Utility
Reform Network (TURN).&nbsp; The parties submitted the proposed
settlement agreement to the CPUC for approval on August 13,
2004.&nbsp; As previously reported in PG&amp;E Corporation&rsquo;s
and the Utility&rsquo;s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2004, on April 16, 2004, the Utility filed
an updated ERCA application to recover certain costs related to the
implementation of electric industry restructuring totaling $117
million for the period 1999 through 2002.&nbsp; Because the Utility
previously could not determine that the applicable accounting
probability standard was met, the Utility has not recorded a
regulatory asset for the costs included in its ERCA
application.</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>Under the proposed settlement agreement, the Utility would be
authorized to collect $80 million in revenue requirements to
recover these costs through rates charged to certain of the
Utility&rsquo;s customers beginning January 1, 2005.&nbsp;
Additionally, beginning January 1, 2007, the Utility would remove
from rate base all remaining net plant in service associated with
the Utility's capital plant at issue in this application, projected
to be approximately $30 million at the end of 2006.</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>If the CPUC approves the proposed settlement, the Utility would
record a net pre-tax regulatory asset of approximately $50 million,
resulting in an&nbsp; increase of approximately $30 million in
after-tax net income.&nbsp;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>A final decision is expected before the end of the year.&nbsp;
PG&amp;E Corporation and the Utility are unable to predict the
ultimate outcome of this proceeding.</p>
</td>
</tr>
</table>

<p></p>

<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td valign="top" width="106">
<p style="line-height: 100%; margin-top: 0; margin-bottom: 0">B.</p>
</td>
<td valign="top" width="514">
<p style="line-height: 100%; margin-top: 0; margin-bottom: 0">Recovery of System Safety and Reliability Expenditures</p>
<p style="line-height: 100%; margin-top: 0; margin-bottom: 0">&nbsp;</p>
</td>
</tr>
</table>

<table border="0" cellspacing="0" cellpadding="0" width="624">
<tr>
<td valign="top">
<p>In 1996, pursuant to the California electric industry
restructuring legislation, the CPUC authorized the Utility to
collect a total of approximately $405 million in base revenues in
1997 and 1998 to enhance its transmission and distribution system
safety and reliability.&nbsp; The CPUC retained the authority to
determine how much of the authorized base revenue increases
collected by the Utility were actually spent on system safety and
reliability during 1997 and 1998.&nbsp; As required by the CPUC, in
early 1999, the Utility filed its application for review and
approval of its expenditures related to these enhancements.&nbsp;
As previously reported, in March 2004, a proposed decision was
issued which proposed to disapprove approximately $44.2 million in
expenses and $24 million in capital for 1997 and 1998.&nbsp; The
proposed decision also would have deferred review of storm-related
expenses of $17.2 million and storm-related capital expenditures of
$34.9 million for 1997 and 1998, to another CPUC proceeding.</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>On September 2, 2004, the CPUC voted to adopt a decision
approving the Utility's expenditures in 1997 and 1998 to enhance
its transmission and distribution system safety and reliability,
subject to a disallowance of $0.930 million in capital incurred in
1997 and $2.499 million in expense incurred in 1998.&nbsp; In
addition, the decision defers review of&nbsp; $20.7 million in
storm-related capital expenditures incurred in 1997 and 1998 and
$8.4 million in storm-related expenses incurred in 1998 and directs
the Utility to seek approval of these costs in a different
proceeding.&nbsp;</p>
</td>
</tr>

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

<tr>
<td valign="top">
<p>As a result of the CPUC&rsquo;s decision, the Utility expects to
record a net pre-tax gain, after taking into account a previously
accrued reserve related to these costs, of approximately $10
million.&nbsp;</p>
</td>
</tr>
</table>

<p style="line-height: 100%; margin-top: 0; margin-bottom: 0">&nbsp;</p>
<hr size="2" width="624" align="left" />

<p style="line-height: 100%; margin-top: 0; margin-bottom: 0">&nbsp;
</p>

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

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

<tr>
<td valign="top">
<p style="line-height: 100%; margin-top: 0; margin-bottom: 0">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 style="line-height: 100%; margin-top: 0; margin-bottom: 0">&nbsp;</p>
</td>
</tr>
</table>

<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">&nbsp;</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">
<p style="border-bottom-style: solid">CHRISTOPHER P. JOHNS</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"></td>
<td valign="top">
<p>Christopher P. Johns<br />
 Senior Vice President and Controller</p>
</td>
</tr>

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

<tr>
<td valign="top"></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">
<p style="border-bottom-style: solid">DINYAR B. MISTRY</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"></td>
<td valign="top">
<p>Dinyar B. Mistry<br />
 Vice President and Controller</p>
</td>
</tr>

<tr>
<td valign="top">
<p>Dated:&nbsp; September 3, 2004</p>
</td>
<td colspan="2" valign="top">&nbsp;</td>
</tr>
</table>
</div>
</body>
</html>
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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": "041015711"}, "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
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: September 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)
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)
Item 8.01
Other Events
A.
Electric Restructuring Costs Account Application
On August 26, 2004, hearings were held and concluded at the
California Public Utilities Commission (CPUC) in Pacific Gas and
Electric Company's (Utility) Electric Restructuring Costs
Account (ERCA) proceeding.  The hearings addressed the
proposed settlement agreement to resolve issues in this proceeding
reached between the Utility and the CPUC's Office of
Ratepayer Advocates (ORA), Aglet Consumer Alliance, and The Utility
Reform Network (TURN).  The parties submitted the proposed
settlement agreement to the CPUC for approval on August 13,
2004.  As previously reported in PG&E Corporation's
and the Utility's Quarterly Report on Form 10-Q for the
quarter ended June 30, 2004, on April 16, 2004, the Utility filed
an updated ERCA application to recover certain costs related to the
implementation of electric industry restructuring totaling $117
million for the period 1999 through 2002.  Because the Utility
previously could not determine that the applicable accounting
probability standard was met, the Utility has not recorded a
regulatory asset for the costs included in its ERCA
application.
Under the proposed settlement agreement, the Utility would be
authorized to collect $80 million in revenue requirements to
recover these costs through rates charged to certain of the
Utility's customers beginning January 1, 2005. 
Additionally, beginning January 1, 2007, the Utility would remove
from rate base all remaining net plant in service associated with
the Utility's capital plant at issue in this application, projected
to be approximately $30 million at the end of 2006.
If the CPUC approves the proposed settlement, the Utility would
record a net pre-tax regulatory asset of approximately $50 million,
resulting in an  increase of approximately $30 million in
after-tax net income.
A final decision is expected before the end of the year. 
PG&E Corporation and the Utility are unable to predict the
ultimate outcome of this proceeding.
B.
Recovery of System Safety and Reliability Expenditures
In 1996, pursuant to the California electric industry
restructuring legislation, the CPUC authorized the Utility to
collect a total of approximately $405 million in base revenues in
1997 and 1998 to enhance its transmission and distribution system
safety and reliability.  The CPUC retained the authority to
determine how much of the authorized base revenue increases
collected by the Utility were actually spent on system safety and
reliability during 1997 and 1998.  As required by the CPUC, in
early 1999, the Utility filed its application for review and
approval of its expenditures related to these enhancements. 
As previously reported, in March 2004, a proposed decision was
issued which proposed to disapprove approximately $44.2 million in
expenses and $24 million in capital for 1997 and 1998.  The
proposed decision also would have deferred review of storm-related
expenses of $17.2 million and storm-related capital expenditures of
$34.9 million for 1997 and 1998, to another CPUC proceeding.
On September 2, 2004, the CPUC voted to adopt a decision
approving the Utility's expenditures in 1997 and 1998 to enhance
its transmission and distribution system safety and reliability,
subject to a disallowance of $0.930 million in capital incurred in
1997 and $2.499 million in expense incurred in 1998.  In
addition, the decision defers review of  $20.7 million in
storm-related capital expenditures incurred in 1997 and 1998 and
$8.4 million in storm-related expenses incurred in 1998 and directs
the Utility to seek approval of these costs in a different
proceeding.
As a result of the CPUC's decision, the Utility expects to
record a net pre-tax gain, after taking into account a previously
accrued reserve related to these costs, of approximately $10
million.
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
PACIFIC GAS AND ELECTRIC COMPANY
By:
DINYAR B. MISTRY
Dinyar B. Mistry
Vice President and Controller
Dated:  September 3, 2004