
                                             Exhibit 16
          [LETTERHEAD OF ARTHUR ANDERSEN LLP]



February 22, 1999




Office of the Chief Accountant
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC  20549

Dear Sir/Madame:

We have read Item 4 included in the Form 8-Ks dated February 17,
1999 of PG&E Corporation, Pacific Gas and Electric Company, PG&E
Funding LLC, and PG&E Gas Transmission, Northwest Corporation
filed with the Securities and Exchange Commission and are in
agreement with the statements contained therein.

Very truly yours,


ARTHUR ANDERSEN LLP




PMS

Copy to:  Mr. Bruce R. Worthington, PG&E Corporation

