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<title>PG&amp;E Corp and Pacific Gas and Electric Co 8-K dated
12-15-03</title>
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<p align="center"><font size="3" color="black" face=
"Times New Roman">SECURITIES AND EXCHANGE COMMISSION</font></p>
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<p align="center"><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<td colspan="7" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">Washington, D.C.&nbsp; 20549</font></p>
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<p align="center"><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<p align="center"><font size="3" color="black" face=
"Times New Roman">FORM 8-K</font></p>
</td>
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<p align="center"><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<td colspan="7" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">CURRENT REPORT</font></p>
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<p align="center"><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<td colspan="7" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934</font></p>
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<tr height="31">
<td colspan="7" height="31" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
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<td colspan="7" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">Date of Report: December 15, 2003</font></p>
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<td colspan="7" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
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<td colspan="7" valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
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<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman"><br />
 Commission<br />
 File<br />
 Number</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">Exact Name of<br />
 Registrant<br />
 as specified in<br />
 its charter</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman"><br />
 State or other<br />
 Jurisdiction of<br />
 Incorporation</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman"><br />
 IRS Employer<br />
 &nbsp; Identification<br />
 Number</font></p>
</td>
</tr>

<tr>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">____________</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">_____________</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">_____________</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">_____________</font></p>
</td>
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<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">1-12609</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">PG&amp;E Corporation</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">California</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">94-3234914</font></p>
</td>
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<tr>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
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<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">1-2348</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">Pacific Gas and<br />
 Electric Company</font></p>
</td>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">California</font></p>
</td>
<td valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">94-0742640</font></p>
</td>
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<tr>
<td colspan="2" valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
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<td colspan="4" valign="top">
<p align="center"><font size="3" color="black" 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="3" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">PG&amp;E Corporation<br />
 One Market, Spear Tower, Suite 2400<br />
 San Francisco, California&nbsp;&nbsp;94105</font></p>
</td>
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<td colspan="7" valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
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<tr>
<td colspan="7" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">(Address of principal executive offices) (Zip
Code)</font></p>
</td>
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<tr>
<td colspan="2" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top"></td>
<td colspan="2" valign="top"></td>
<td valign="top"></td>
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<td colspan="4" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">Pacific Gas and Electric Company<br />
 (415) 973-7000</font></p>
</td>
<td colspan="3" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">PG&amp;E Corporation<br />
 (415) 267-7000</font></p>
</td>
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<tr>
<td colspan="7" valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
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<tr height="28">
<td colspan="7" height="28" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">(Registrant's telephone number, including area
code)</font></p>
</td>
</tr>

<tr>
<td colspan="2" valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top"></td>
<td colspan="2" valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td colspan="7" valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">Inapplicable</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="2" valign="top"></td>
<td colspan="2" valign="top"></td>
<td colspan="2" valign="top"></td>
</tr>
</table>

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

<p><b><font size="3" color="black" face="Times New Roman">Item
5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Events</font></b></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December 12,
2003, the U.S. Bankruptcy Court for the Northern District of
California (Bankruptcy Court) issued a memorandum decision in
Pacific Gas and Electric Company&rsquo;s (Utility) Chapter 11
proceeding approving the proposed settlement agreement (Settlement
Agreement) announced in June 2003 by PG&amp;E Corporation, the
Utility and the staff of the California Public Utilities Commission
(CPUC) to jointly support a new plan of reorganization of the
Utility (Settlement Plan).&nbsp; The Bankruptcy Court overruled all
objections to confirmation of the Settlement Plan and challenges to
the Settlement Agreement.&nbsp; The Court found that all of the
applicable requirements under the U.S. Bankruptcy Code for
confirmation of a plan had been satisfied.&nbsp; The Court stated
that it will enter a separate confirmation order confirming the
Settlement Plan, provided the CPUC approves the Settlement
Agreement.&nbsp; To become effective, among other conditions, the
Settlement Agreement must be entered into by the CPUC by December
31, 2003.&nbsp; As previously disclosed, the CPUC is scheduled to
consider six proposed decisions regarding the Settlement Agreement
at its regular meeting to be held on December 18, 2003.&nbsp; The
CPUC may accept, reject or modify any proposed decision. &nbsp;
PG&amp;E Corporation and the Utility are unable to predict the
outcome of this matter.</font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In its memorandum
decision, the Bankruptcy Court noted, that like the CPUC, it had
the duty to determine that the execution and performance of the
Settlement Agreement will be lawful.</font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bankruptcy
Court noted that the essential purpose of the Settlement Agreement
was to facilitate the Utility&rsquo;s re-attainment of suitable
credit ratings so that the Utility can issue securities to pay its
creditors and emerge from bankruptcy as quickly as possible and
continue to provide safe and reliable electric and gas service at
just and reasonable rates.&nbsp; The Court also noted that the
Settlement Agreement obligates the CPUC to permit the issuance of
securities to pay off claims of the Utility&rsquo;s creditors and,
for a set period of time, to include certain costs as a component
of the Utility&rsquo;s revenue requirements.&nbsp; The Court
pointed out that the Settlement Agreement also provides that the
CPUC shall adopt such orders and decisions as necessary to
implement and carry out provisions of the agreement, and that
retail rates shall be sufficient to provide for payment of
securities and a regulatory asset of $2.21 billion, after tax, to
be included as part of the Utility&rsquo;s rate base.</font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bankruptcy
Court found the Settlement Agreement to be lawful.&nbsp; In
particular, the Court, fter reviewing relevant California case law,
found that, as a matter of California law:</font></p>

<p><font size="3" color="black" face=
"Times New Roman">&bull;&nbsp;&nbsp;&nbsp;&nbsp;The Settlement
Agreement is legal and enforceable as the CPUC has the
constitutional and statutory authority to enter into binding
contracts, is empowered under the California Public Utilities Code
to make the commitments proposed in the Settlement Agreement, and,
citing the California Supreme Court&rsquo;s recent decision
affirming the CPUC&rsquo;s authority to enter into a settlement
agreement with Southern California Edison, the CPUC has the
authority to enter into a binding agreement which compromises
disputes and has prospective effects on ratemaking.</font></p>

<p><font size="3" color="black" face=
"Times New Roman">&bull;&nbsp;&nbsp;&nbsp;&nbsp;The Settlement
Agreement does not improperly delegate ratemaking functions noting
that the Settlement Agreement does not fix or set rates but merely
establishes minimum components to be considered in setting the
Utility&rsquo;s revenue requirements.</font></p>

<p><font size="3" color="black" face=
"Times New Roman">&bull;&nbsp;&nbsp;&nbsp;&nbsp;The Settlement
Agreement is binding on future Commissions.</font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bankruptcy
Court also stated that the binding nature of the Settlement
Agreement is consistent with the requirement of the U.S. Bankruptcy
Code that public utility commissions approve any changes in rates
necessary to effectuate a plan of reorganization for a public
utility.</font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further, the
Bankruptcy Court found the provisions of the Settlement Agreement
by which the Utility releases any and all claims it or the estate
may have against PG&amp;E Corporation, its officers and directors,
to be valid.&nbsp; The Court noted that claims that may be asserted
directly by third parties against nondebtors are not
released.&nbsp; The Court stated that the Utility, the Official
Committee of Unsecured Creditors and many objectors had agreed to
add language to the confirmation order to clarify that the release
sections of the Settlement Plan do not release claims that may be
asserted directly by third parties against nondebtors.</font></p>

<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Bankruptcy
Court will hold a status conference on December 22, 2003 to
consider any action taken by the CPUC on or about December 18,
2003; whether the Bankruptcy Court should enter findings of fact,
conclusions of law and a confirmation order; if so, the form of
those findings, conclusions and order; and any other matters
relevant to the future conduct of the Utility&rsquo;s Chapter 11
case.</font></p>

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

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

<table border="0" cellspacing="0" cellpadding="0" width="656">
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<td valign="top"></td>
</tr>

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<td valign="top">
<p align="center"><font size="3" color="black" face=
"Times New Roman">SIGNATURE</font></p>
</td>
</tr>

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

<tr>
<td valign="top">
<p><font size="3" color="black" 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>
</td>
</tr>

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

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

<table border="0" cellspacing="0" cellpadding="0" width="656">
<tr>
<td valign="top">
<p><font size="3" color="black" 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;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="3" color="black" face="Times New Roman">PG&amp;E
CORPORATION</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="3" color="black" 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;</font></p>
</td>
<td valign="top">
<p><font size="3" color="black" face=
"Times New Roman">By:&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" color="black" face="Times New Roman"><br />
 CHRISTOPHER P. JOHNS</font></p>

<p><font size="3" color="black" face=
"Times New Roman">_______________________________</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="3" color="black" 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;</font></p>
</td>
<td valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" color="black" face="Times New Roman">CHRISTOPHER
P. JOHNS<br />
 Senior Vice President and Controller</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="2" valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr height="53">
<td height="53" valign="top">
<p><font size="3" color="black" 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;</font></p>
</td>
<td colspan="2" height="53" valign="top">
<p><font size="3" color="black" face="Times New Roman">PACIFIC GAS
AND ELECTRIC COMPANY</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="3" color="black" 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;</font></p>
</td>
<td valign="top">
<p><font size="3" color="black" face=
"Times New Roman">By:&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" color="black" face="Times New Roman"><br />
 DINYAR B. MISTRY
________________________________________</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="3" color="black" 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;</font></p>
</td>
<td valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" color="black" face="Times New Roman">DINYAR B.
MISTRY<br />
 Vice President and Controller</font></p>
</td>
</tr>
</table>

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

<table border="0" cellspacing="0" cellpadding="0" width="661">
<tr>
<td valign="top">
<p><font size="3" color="black" face=
"Times New Roman">Dated:&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="3" color="black" face=
"Times New Roman">&nbsp;&nbsp;&nbsp;December 15, 2003</font></p>
</td>
</tr>

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

<tr height="29">
<td height="29" valign="top"></td>
<td height="29" valign="top"></td>
</tr>
</table>

<p><font size="3" face="Times New Roman"></font></p>
</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": "031055379"}, "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 Corp and Pacific Gas and Electric Co 8-K dated
12-15-03
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 15, 2003
Commission
File
Number
Exact Name of
Registrant
as specified in
its charter
State or other
Jurisdiction of
Incorporation
IRS Employer
Identification
Number
____________
_____________
_____________
_____________
1-12609
PG&E Corporation
California
94-3234914
1-2348
Pacific Gas and
Electric Company
California
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)
Inapplicable
Item
5.     Other Events
On December 12,
2003, the U.S. Bankruptcy Court for the Northern District of
California (Bankruptcy Court) issued a memorandum decision in
Pacific Gas and Electric Company's (Utility) Chapter 11
proceeding approving the proposed settlement agreement (Settlement
Agreement) announced in June 2003 by PG&E Corporation, the
Utility and the staff of the California Public Utilities Commission
(CPUC) to jointly support a new plan of reorganization of the
Utility (Settlement Plan).  The Bankruptcy Court overruled all
objections to confirmation of the Settlement Plan and challenges to
the Settlement Agreement.  The Court found that all of the
applicable requirements under the U.S. Bankruptcy Code for
confirmation of a plan had been satisfied.  The Court stated
that it will enter a separate confirmation order confirming the
Settlement Plan, provided the CPUC approves the Settlement
Agreement.  To become effective, among other conditions, the
Settlement Agreement must be entered into by the CPUC by December
31, 2003.  As previously disclosed, the CPUC is scheduled to
consider six proposed decisions regarding the Settlement Agreement
at its regular meeting to be held on December 18, 2003.  The
CPUC may accept, reject or modify any proposed decision.  
PG&E Corporation and the Utility are unable to predict the
outcome of this matter.
In its memorandum
decision, the Bankruptcy Court noted, that like the CPUC, it had
the duty to determine that the execution and performance of the
Settlement Agreement will be lawful.
The Bankruptcy
Court noted that the essential purpose of the Settlement Agreement
was to facilitate the Utility's re-attainment of suitable
credit ratings so that the Utility can issue securities to pay its
creditors and emerge from bankruptcy as quickly as possible and
continue to provide safe and reliable electric and gas service at
just and reasonable rates.  The Court also noted that the
Settlement Agreement obligates the CPUC to permit the issuance of
securities to pay off claims of the Utility's creditors and,
for a set period of time, to include certain costs as a component
of the Utility's revenue requirements.  The Court
pointed out that the Settlement Agreement also provides that the
CPUC shall adopt such orders and decisions as necessary to
implement and carry out provisions of the agreement, and that
retail rates shall be sufficient to provide for payment of
securities and a regulatory asset of $2.21 billion, after tax, to
be included as part of the Utility's rate base.
The Bankruptcy
Court found the Settlement Agreement to be lawful.  In
particular, the Court, fter reviewing relevant California case law,
found that, as a matter of California law:
•    The Settlement
Agreement is legal and enforceable as the CPUC has the
constitutional and statutory authority to enter into binding
contracts, is empowered under the California Public Utilities Code
to make the commitments proposed in the Settlement Agreement, and,
citing the California Supreme Court's recent decision
affirming the CPUC's authority to enter into a settlement
agreement with Southern California Edison, the CPUC has the
authority to enter into a binding agreement which compromises
disputes and has prospective effects on ratemaking.
•    The Settlement
Agreement does not improperly delegate ratemaking functions noting
that the Settlement Agreement does not fix or set rates but merely
establishes minimum components to be considered in setting the
Utility's revenue requirements.
•    The Settlement
Agreement is binding on future Commissions.
The Bankruptcy
Court also stated that the binding nature of the Settlement
Agreement is consistent with the requirement of the U.S. Bankruptcy
Code that public utility commissions approve any changes in rates
necessary to effectuate a plan of reorganization for a public
utility.
Further, the
Bankruptcy Court found the provisions of the Settlement Agreement
by which the Utility releases any and all claims it or the estate
may have against PG&E Corporation, its officers and directors,
to be valid.  The Court noted that claims that may be asserted
directly by third parties against nondebtors are not
released.  The Court stated that the Utility, the Official
Committee of Unsecured Creditors and many objectors had agreed to
add language to the confirmation order to clarify that the release
sections of the Settlement Plan do not release claims that may be
asserted directly by third parties against nondebtors.
The Bankruptcy
Court will hold a status conference on December 22, 2003 to
consider any action taken by the CPUC on or about December 18,
2003; whether the Bankruptcy Court should enter findings of fact,
conclusions of law and a confirmation order; if so, the form of
those findings, conclusions and order; and any other matters
relevant to the future conduct of the Utility's Chapter 11
case.
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:
December 15, 2003