Exhibit 99.2

PACIFIC GAS AND ELECTRIC COMPANY

U.S. TRUSTEE BALANCE SHEET

AS OF OCTOBER 31, 2001

(in millions, except share amounts)

October, 2001

ASSETS

Current Assets

Cash and cash equivalents

$ (12)

Short-term investments

4,780

Accounts receivable:

Customers (net of allowance for doubtful accounts of $49 million)

1,583

Related parties

35

Regulatory balancing accounts

132

Inventories:

Gas stored underground and fuel oil

294

Materials and supplies

128

Prepaid expenses and other

105

Total current assets

7,045

Property, Plant, and Equipment

Electric

17,135

Gas

7,619

Construction work in progress

               256

Total property, plant, and equipment (at original cost)

           25,010

Accumulated depreciation and decommissioning

         (11,728)

Net property, plant, and equipment

           13,282

Other Noncurrent Assets

Regulatory assets

1,934

Nuclear decommissioning trust funds

1,281

Other

2,139

Total noncurrent assets

              5,354

TOTAL ASSETS

$         25,681

LIABILITIES AND EQUITY

Liabilities

Accounts payable

Trade creditors

$ 269

Related parties

40

Regulatory Balancing Accounts

268

Other

191

Accrued taxes

570

Rate reduction bonds

1,767

Deferred income taxes

1,187

Deferred tax credits

160

Pre-petition secured debt

3,450

Pre-petition liabilities

5,709

Pre-petition financing debt

5,864

Other liabilities

             3,453

Total liabilities

           22,928

Preferred Stock With Mandatory Redemption Provisions

137

Stockholders' Equity

Preferred stock without mandatory redemption provisions

Nonredeemable--5% to 6%, outstanding 5,784,825 shares

145

Redeemable--4.36% to 7.04%, outstanding 5,973,456 shares

149

Common stock, $5 par value, authorized 800,000,000 shares;

issued 321,314,760 shares

1,606

Additional paid in capital

1,964

Accumulated deficit

(1,246)

Accumulated other comprehensive loss

(2)

Total stockholders' equity

            2,616

                    

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$        25,681

 

 

PACIFIC GAS AND ELECTRIC COMPANY

U.S. TRUSTEE BALANCE SHEET
AS OF OCTOBER 31, 2001

Notes

1

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.

2

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.

3

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.

 

 

Case to date

Month

seven months

ended

ended

October 31, 2001

October 31, 2001

OPERATING REVENUES

$ 964

$ 6,211

OPERATING EXPENSES:

Cost of Electric Energy

132

204

Cost of Gas

43

735

Operating and Maintenance

147

1,411

Depreciation, Decommissioning, and Amortization

74

520

Total Operating Expenses

396

2,870

OPERATING INCOME (LOSS)

568

3,341

Interest Income (Expense)

(60)

(474)

Professional Fees

(1)

(9)

Other Income and (Expense)

(2)

(10)

PRE-TAX INCOME (LOSS)

505

2,848

Income Taxes

189

1,085

EARNINGS (LOSS)

316

1,763

Preferred Dividend Requirement

2

15

EARNINGS (LOSS) AVAILABLE FOR (ALLOCATED TO) COMMON STOCK

$ 314

$ 1,748

 

 

 

PACIFIC GAS AND ELECTRIC COMPANY
U.S. TRUSTEE INCOME STATEMENT
FOR THE MONTH ENDED OCTOBER 31, 2001
AND THE SEVEN MONTHS ENDED OCTOBER 31, 2001

Notes

1

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.

2

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 customers based 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.

The results for the month of October 2001 are not i ndicative 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). On
October 19, 2001, the DWR issued a draft revised revenue requirement which reduces its overall revenue
requirement statewide from $12.6 billion to $10.2 billion for the two year period 2001-2002. On
November 5, 2001, the DWR formally submitted its revised revenue requirement to the CPUC. The revised
DWR revenue requirement does not resolve issues relating to: (1) allocation of DWR's costs among the
three utilities, which are pending before the CPUC in a separate proceeding, (2) how the DWR request
would be reconciled with PG&E's existing rates, including those for its retained generation facilities, and
(3) the dispute between DWR and the CPUC regarding the form and substance of a rate agreement
which DWR has requested for the purpose of financing its bonds.

Further, the income statement does not reflect the DWR revised revenue requirement dated
November 5, 2001, nor does it 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 compared to the amount contained in its earlier request submitted to the
CPUC on August 7, 2001.

3

Items impacting comparability for the month ended October 31, 2001, (net of taxes):

(in millions of dollars)

After-Tax

Generation Regulatory Asset Valuation Reserve

(231)

Interest Expense

12

Other                                                               

           1

Total

$ (218)

4

Case to date results reflect the entire seven month period ended October 31, 2001. The bankruptcy
petition date is April 6, 2001.