<SUBMISSION>
<ACCESSION-NUMBER>0001004980-01-500054
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20011002
<ITEMS>5
<ITEMS>7
<FILING-DATE>20011002
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>PG&E CORP
<CIK>0001004980
<ASSIGNED-SIC>4931
<IRS-NUMBER>943234914
<STATE-OF-INCORPORATION>CA
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-12609
<FILM-NUMBER>1750902
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ONE MARKET SPEAR TOWER
<STREET2>SUITE 2400
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94105
<PHONE>4152677000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE MARKET SPEAR TOWER
<STREET2>SUITE 2400
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94105
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>PG&E PARENT CO INC
<DATE-CHANGED>19951214
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>final1002.txt
<DESCRIPTION>FORM 8-K
<TEXT>
                   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:  October 2, 2001



              Exact Name of
  Commission  Registrant        State or other   IRS Employer
  File        as specified      Jurisdiction of  Identification
  Number      in its charter    Incorporation    Number
----------  --------------    ---------------  --------------

  1-12609     PG&E Corporation  California       94-3234914

  1-2348      Pacific Gas and   California       94-0742640
              Electric Company




 Pacific Gas and Electric Company    PG&E Corporation
 77 Beale Street, P.O. Box 770000    One Market, Spear Tower, Suite 2400
 San Francisco, California  94177    San Francisco, California 94105

        (Address of principal executive offices) (Zip Code)


 Pacific Gas and Electric Company         PG&E Corporation
 (415) 973-7000                           (415) 267-7000

     (Registrant's telephone number, including area code)







Item 5. Other Events.

     On October 1, 2001, Pacific Gas and Electric Company (Utility), a
subsidiary of PG&E Corporation, filed its monthly operating report for
the month ended August 31, 2001, with the U.S. Bankruptcy Court for the
Northern District of California.  The Utility's monthly operating report
includes an unaudited income statement for the month and an unaudited
balance sheet dated as of the end of the month.  These unaudited
financial statements are attached as Exhibit 99 to this report.  The
monthly operating report also includes a statement of receipts and
disbursements, as well as other information.  The preliminary financial
statements were prepared using certain assumptions and estimates that
are subject to revision.  Any adjustments for these estimates (based
upon changes in facts and circumstances, further analysis, and other
factors) will be reflected in the financial statements in the period
during which such adjustments are made.  These adjustments could have a
material impact on reported results in the future.


Item 7. Financial Statements, Pro Forma Financial Information, and
Exhibits

Exhibit 99 - Pacific Gas and Electric Company Income Statement for the
month ended August 31, 2001, and Balance Sheet dated August 31, 2001.









				        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
                                  Vice President and Controller



                              PACIFIC GAS AND ELECTRIC COMPANY

                              By: DINYAR B. MISTRY
                                  -----------------------------
                                  DINYAR B. MISTRY
                                  Vice President and Controller





Dated:  October 2, 2001



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>ex-99.htm
<TEXT>
<HTML>
<HEAD>
<META NAME="Generator" CONTENT="Microsoft Word 97">
<TITLE>Pacific Gas and Electric Company</TITLE>
<META NAME="Template" CONTENT="C:\PROGRAM FILES\MICROSOFT OFFICE\OFFICE\html.dot">
</HEAD>
<BODY LINK="#0000ff" VLINK="#800080">

<TABLE BORDER CELLSPACING=1 BORDERCOLOR="#000000" CELLPADDING=2 WIDTH=682>
<TR><TD VALIGN="TOP" COLSPAN=2 HEIGHT=81>
<P ALIGN="CENTER"><B><FONT FACE="Arial" SIZE=2>Pacific Gas and Electric Company<BR>
U.S. Trustee Balance Sheet<BR>
As of August 31, 2001<BR>
(in millions, except share amounts)</B></FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">August 2001</B></FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>ASSETS</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>Current Assets</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Cash and cash equivalents</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ (17)</FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Short-term investments</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3,998 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Accounts receivable:</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=19>
<FONT FACE="Arial" SIZE=2><P>Customers (net of allowance for doubtful accounts of $52 million)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=19>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,728 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Related parties</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">34 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Regulatory balancing accounts</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">63 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Inventories:</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Gas stored underground and fuel oil</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">268 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Materials and supplies</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">129 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Prepaid expenses and other</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">119 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>Total current assets</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">6,322 </B></FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>Property, Plant, and Equipment</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Electric</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">16,895 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Gas</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7,573 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Construction work in progress</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">227 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>Total property, plant, and equipment (at original cost)</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">24,695 </B></FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Accumulated depreciation and decommissioning</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(11,573)</FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>Net property, plant, and equipment</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">13,122 </B></FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>Other Noncurrent Assets</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Regulatory assets</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,914 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Nuclear decommissioning trust funds</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,337 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Other</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,083 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>Total noncurrent assets</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5,334 </B></FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=21>
<B><FONT FACE="Arial" SIZE=2><P>TOTAL ASSETS</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=21>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 24,778 </B></FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=21><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>LIABILITIES AND EQUITY</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>Liabilities</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Accounts payable</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Trade creditors</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 355 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Related parties</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">37 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Regulatory Balancing Accounts</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">371 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Other</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">192 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Accrued taxes</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">373 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Rate reduction bonds</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,809 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Deferred income taxes</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,126 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Deferred tax credits</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">166 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Pre-petition secured debt</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3,411 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Pre-petition liabilities</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5,496 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Pre-petition financing debt</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5,811 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Other liabilities</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3,353 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>Total liabilities </B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">22,500 </B></FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>Preferred Stock With Mandatory Redemption Provisions</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">137 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>Stockholders' Equity</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Preferred stock without mandatory redemption provisions</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Nonredeemable--5% to 6%, outstanding 5,784,825 shares</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">145 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Redeemable--4.36% to 7.04%, outstanding 5,973,456 shares</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">149 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Common stock, $5 par value, authorized 800,000,000 shares; </FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>issued 321,314,760 shares</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,606 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Additional paid in capital</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,964 </FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Accumulated deficit</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(1,722)</FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Accumulated other comprehensive loss</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(1)</FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P>Total stockholders' equity</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,141 </B></FONT></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="83%" VALIGN="TOP" HEIGHT=21>
<B><FONT FACE="Arial" SIZE=2><P>TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=21>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 24,778 </B></FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P></FONT>
<TABLE BORDER CELLSPACING=1 CELLPADDING=2 WIDTH=659>
<TR><TD VALIGN="TOP" COLSPAN=2 HEIGHT=63>
<P ALIGN="CENTER"><B><FONT FACE="Arial" SIZE=2>Pacific Gas and Electric Company<BR>
U.S. Trustee Balance Sheet<BR>
As of August 31, 2001</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=2 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Notes</FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="93%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" HEIGHT=147>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">1</FONT></TD>
<TD WIDTH="93%" VALIGN="TOP" HEIGHT=147>
<FONT FACE="Arial" SIZE=2><P>These preliminary financial statements were prepared using certain assumptions and estimates. These assumptions and estimates are subject to revision and actual results could differ materially from the information provided in this statement. Further, the amounts shown in this statement, when reported on a quarterly basis, may differ materially due to adjustments in accruals, changes in facts and circumstances, changes in estimates, further analysis, and other factors.</FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" HEIGHT=105>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2</FONT></TD>
<TD WIDTH="93%" VALIGN="TOP" HEIGHT=105>
<FONT FACE="Arial" SIZE=2><P>These unaudited statements are prepared for the U.S. Trustee and differ from the requirements of generally accepted accounting principles in that they exclude certain financial statements (statements of cash flows, stockholders equity, and other comprehensive income), relevant footnotes and certain reclassifications. </FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" HEIGHT=63>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">3</FONT></TD>
<TD WIDTH="93%" VALIGN="TOP" HEIGHT=63>
<FONT FACE="Arial" SIZE=2><P>Cash and cash equivalents have been reduced for uncleared checks. On the balance sheet included with the Utility's 10-Q, uncleared checks are treated as an accounts payable liability.</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P></FONT>
<TABLE BORDER CELLSPACING=1 BORDERCOLOR="#000000" CELLPADDING=2 WIDTH=741>
<TR><TD VALIGN="TOP" COLSPAN=4 HEIGHT=107>
<P ALIGN="CENTER"><B><FONT FACE="Arial" SIZE=2>Pacific Gas and Electric Company<BR>
U.S. Trustee Income Statement<BR>
For the month ended August 31, 2001<BR>
and the five months ended August 31, 2001<BR>
(in millions)</B></FONT></TD>
</TR>
<TR><TD WIDTH="78%" VALIGN="TOP" COLSPAN=3 HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" ROWSPAN=2 HEIGHT=20>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Case to date <BR>
five months <BR>
ended <BR>
August 31, 2001</B></FONT></TD>
</TR>
<TR><TD WIDTH="60%" VALIGN="TOP" COLSPAN=2 HEIGHT=64><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=64>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Month <BR>
ended <BR>
August 31, 2001</B></FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" ROWSPAN=24 HEIGHT=20><P></P></TD>
<TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>OPERATING REVENUES</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>$ 1,031</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>$ 4,363</FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>OPERATING EXPENSES:</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Cost of Electric Energy</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">156 </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(90)</FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Cost of Gas</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">161 </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">571 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Operating and Maintenance</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">169 </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,084 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Depreciation, Decommissioning, and Amortization</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">74 </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">373 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Total Operating Expenses</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">560 </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,938 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>OPERATING INCOME (LOSS)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">471 </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,425 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Interest Income (Expense)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(67)</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(344)</FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Professional Fees</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(1)</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(7)</FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Other Income and (Expense)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(1)</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(4)</FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>PRE-TAX INCOME (LOSS)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">402 </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,070 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Income Taxes</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">155 </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">788 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>EARNINGS (LOSS)</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">247 </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,282 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Preferred Dividend Requirement</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2 </FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">10 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=21>
<FONT FACE="Arial" SIZE=2><P>EARNINGS (LOSS) AVAILABLE FOR (ALLOCATED TO) COMMON STOCK</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=21>
<FONT FACE="Arial" SIZE=2><P>$ 245</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=21>
<FONT FACE="Arial" SIZE=2><P>$ 1,272</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2><P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P></FONT>
<TABLE BORDER CELLSPACING=1 BORDERCOLOR="#000000" CELLPADDING=2 WIDTH=769>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=85>
<P ALIGN="CENTER"><B><FONT FACE="Arial" SIZE=2>Pacific Gas and Electric Company<BR>
U.S. Trustee Income Statement<BR>
For the month ended August 31, 2001<BR>
and the five months ended August 31, 2001</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Notes</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">1</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP" COLSPAN=6 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>These preliminary financial statements were prepared using certain assumptions and estimates. These assumptions and estimates are subject to revision and actual results could differ materially from the information provided in this statement. Further, the amounts shown in this statement, when reported on a quarterly basis, may differ materially due to adjustments in accruals, changes in facts and circumstances, changes in estimates, further analysis, and other factors.</FONT></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2 HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2</FONT></TD>
<TD WIDTH="85%" VALIGN="TOP" COLSPAN=7 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>These financial statements were prepared using certain assumptions and estimates, including the estimated amount payable to the California Department of Water Resources (DWR) for the estimated amount of power purchased by the DWR on behalf of retail customersbased on approximately 10 cents per kilowatt hour (kWh). The Utility acts solely as a billing agent for the DWR. While the rate freeze is in effect, to the extent revenue is allocable to the DWR, there will be a corresponding reduction in the Utility's revenues. Therefore, the amounts paid to the DWR for deliveries are not recorded as expense and the revenue billed by the Utility to its customers associated with this energy is excluded from revenues. These assumptions and estimates are subject to revision and actual results could differ materially from the information provided in this statement. </P>
<P>The results for the month of August 2001 are not indicative of future earnings. While the rate freeze is in effect, earnings could differ materially as a result of the implementation of the DWR's revenue requirements when and if adopted by the California Public Utilities Commission (CPUC). The DWR has provided the following revenue requirement request to the CPUC for 2001 and 2002, by quarter, based on the DWR's projected retail sales to the Utility's customers</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2001</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2002</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>1st Quarter</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$542,003,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$691,501,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>2nd Quarter</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,319,835,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">452,819,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>3rd Quarter</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">719,188,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">639,895,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>4th Quarter</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">780,906,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">781,635,000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=8 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Further, the income statement does not reflect the CPUC's Proposed Decision issued on September 4, 2001, to increase the amount of the allocation of the DWR revenue requirement to be collected from the Utility's customers as compared to the amount contained in its most recent request submitted to the CPUC.</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">3</FONT></TD>
<TD WIDTH="85%" VALIGN="TOP" COLSPAN=7 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Items impacting comparability for the month ended August 31, 2001, (net of taxes):</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">(in millions of dollars)</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">After-Tax</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=4 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Generation Regulatory Asset Valuation Reserve</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(239)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=3 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>California Tax Adjustment</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(5)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Interest Expense</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Other</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">55 </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Total</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(175)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">4</FONT></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=8 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P>Case to date results reflect the entire five month period ended August 31, 2001. The bankruptcy petition date is April 6, 2001.</FONT></TD>
</TR>
</TABLE>

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