<SUBMISSION>
<ACCESSION-NUMBER>0001004980-02-000014
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20020227
<ITEMS>5
<ITEMS>7
<FILING-DATE>20020228
<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>02560933
</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>final2-27.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<html>
<head>
<title>PG&amp;E&rsquo;S GRC</title>
</head>
<body link="blue" vlink="purple">
<div>
<p align="center">SECURITIES AND EXCHANGE COMMISSION<br />
</p>

<p align="center">Washington, D.C.&nbsp; 20549<br />
<br />
</p>

<p align="center">FORM 8-K<br />
</p>

<p align="center">CURRENT REPORT<br />
</p>

<p align="center">Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934<br />
</p>

<p align="center">Date of Report:&nbsp; February 27, 2002<br />
</p>

<table border="0" cellspacing="0" cellpadding="0" width="651">
<tr>
<td>
<p>&nbsp;</p>
</td>
<td valign="top">
<p align="center"><br />
 Commission<br />
 File<br />
 Number</p>
</td>
<td colspan="2" valign="top">
<p align="center">Exact Name of<br />
 Registrant<br />
 as specified in<br />
 its charter</p>
</td>
<td colspan="2" valign="top">
<p align="center"><br />
 State or other<br />
 Jurisdiction of<br />
 Incorporation</p>
</td>
<td colspan="2" valign="top">
<p align="center"><br />
 IRS Employer<br />
 &nbsp; Identification<br />
 Number</p>
</td>
</tr>

<tr>
<td>
<p>&nbsp;</p>
</td>
<td valign="top">
<p align="center">_____________</p>
</td>
<td colspan="2" valign="top">
<p align="center">_____________</p>
</td>
<td colspan="2" valign="top">
<p align="center">_____________</p>
</td>
<td colspan="2" valign="top">
<p align="center">_____________</p>
</td>
</tr>

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

<p align="center">1-2348</p>
</td>
<td colspan="2" valign="top">
<p align="center">PG&amp;E Corporation</p>

<p align="center">Pacific Gas and<br />
 Electric Company</p>
</td>
<td colspan="2" valign="top">
<p align="center">California</p>

<p align="center">California</p>
</td>
<td colspan="2" valign="top">
<p align="center">94-3234914</p>

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

<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td colspan="3" 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"></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>
<td>
<p>&nbsp;</p>
</td>
</tr>
</table>

<p align="center">(Address of principal executive offices) (Zip
Code)</p>

<table border="0" cellspacing="0" cellpadding="0" width="643">
<tr>
<td valign="top">
<p align="center">Pacific Gas and Electric Company<br />
 (415) 973-7000</p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center">PG&amp;E Corporation<br />
 (415) 267-7000</p>
</td>
</tr>
</table>

<p align="center">(Registrant's telephone number, including area
code)</p>

<div></div>

<p>Item 5. Other Events<br />
</p>

<p>A. Pacific Gas and Electric Company Bankruptcy<br />
</p>

<p>On February 13, 2002, the California Public Utilities Commission
(CPUC) submitted a term sheet to the U.S. Bankruptcy Court for the
Northern District of California (Bankruptcy Court) describing the
CPUC&rsquo;s proposed alternative plan of reorganization for
Pacific Gas and Electric Company (Utility). The Bankruptcy Court
had permitted the CPUC to file a term sheet in order to determine
if the CPUC should be allowed to formally file a proposed plan as a
potential alternative to the proposed plan of reorganization filed
by PG&amp;E Corporation and the Utility on September 20, 2001, as
amended on December 19, 2001 and February 4, 2002 (Plan).&nbsp; The
Bankruptcy Court indicated that the CPUC's term sheet must
demonstrate that the proposed alternative plan would be clearly
credible and capable of being confirmed.&nbsp; On February 20,
2002, PG&amp;E Corporation and the Utility filed a response to the
CPUC&rsquo;s term sheet stating that the CPUC had not met this
burden.&nbsp; Among other comments, PG&amp;E Corporation and the
Utility noted that the proposed plan:<br />
</p>

<ul type="disc">
<li>overstates the amount of available cash by more than $2 billion
and understates the amount of claims that must be resolved by over
$2.5 billion, for a net shortfall of $4.5 billion,&nbsp;<br />
 </li>

<li>deprives the Utility of adequate funds for capital investments
needed to carry on its utility functions,<br />
 </li>

<li>deprives the Utility of a return on its equity capital during
the period before the&nbsp; proposed effective date and immediately
thereafter,<br />
 </li>
</ul>

<ul type="disc">
<li>would not allow the Utility to return to investment grade
status and thus would adversely impact the ability of the Utility
to resume its power procurement function, and<br />
 </li>

<li>would impair the rights of a significant amount of creditors
and equity holders, which could lead those who are disadvantaged to
pursue protracted litigation that could delay the resolution of the
case.<br />
 </li>
</ul>

<p>Pursuant to the Bankruptcy Court&rsquo;s February 7, 2002
decision, on February 21, 2002, PG&amp;E Corporation and the
Utility filed with the Bankruptcy Court a statement indicating that
they intend to amend the Plan and disclosure statement to (1)
eliminate express preemption provisions so they can proceed to a
confirmation hearing where they intend to show that implied
preemption of specified statutes is available to confirm the Plan,
and (2) state with specificity the facts demonstrating that the
State of California (&ldquo;State&rdquo;) and the CPUC have waived
their sovereign immunity, and, in the event the Bankruptcy Court
finds that such immunity has been waived, to provide for
declaratory and injunctive relief against the State and the
CPUC.&nbsp; If the Bankruptcy Court determines that such sovereign
immunity has not been waived, the Bankruptcy Court indicated in its
February 7, 2002 decision that it would still be able to enforce
its confirmation order under certain circumstances.&nbsp; PG&amp;E
Corporation and the Utility also stated that they intend to seek an
expedited interlocutory appeal of an order denying approval of the
disclosure statement on the grounds that the Bankruptcy Court erred
in its February 7, 2002 decision finding that express preemption is
not applicable to the Plan.&nbsp; PG&amp;E Corporation and the
Utility also stated that, upon approval of the amended disclosure
statement, they intend to proceed with the solicitation of consents
and confirmation of the amended Plan while the interlocutory appeal
is pending.&nbsp; (For further information regarding the Bankruptcy
Court&rsquo;s February 7, 2002 decision, see the Current Report on
Form 8-K filed by PG&amp;E Corporation and the Utility with the
Securities and Exchange Commission on February 13, 2002.)<br />
</p>

<p>Finally, on February 26, 2002, the Utility filed its monthly
operating report for the month ended December 31, 2001, with the
Bankruptcy Court. 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 99.1 to this report.
Although not included in Exhibit 99.1, 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.<br />
</p>

<p>B.&nbsp; 2001 Attrition Rate Adjustment<br />
</p>

<p>On February 21, 2002, the CPUC approved the Utility&rsquo;s 2001
attrition rate adjustment request to increase electric distribution
revenues by approximately $151 million, effective January 1,
2001.&nbsp; The 2001 capital-related portion of the increase will
be subject to a true-up based on the Utility&rsquo;s actual 2001
capital costs. The Utility did not request an increase in gas
distribution revenues.&nbsp; As the Utility's electric rates have
been frozen in 2001, the increase in distribution-related revenues
will be offset by a reduction in electric generation-related
revenues in the same amount. Therefore, the adjustment will have no
material impact on 2001 earnings.<br />
</p>

<p>C. Allocation of California Department of Water Resources&rsquo;
Revenue Requirements<br />
</p>

<p>On February 21, 2002, the CPUC approved the California
Department of Water Resources&rsquo; (DWR) state-wide revenue
requirement of $9.045 billion for the two-year period ending
December 31, 2002, which amount reflects an approximate $958
million reduction in the DWR&rsquo;s previous revenue requirement
request of $10.03 billion. The revenue requirement represents the
DWR&rsquo;s total expected expenditures less anticipated proceeds
from the DWR&rsquo;s external financings. The CPUC allocated this
revenue requirement among the Utility and the other two California
investor-owned utilities.&nbsp; The CPUC decision allocates 49.8%
of the adopted DWR revenue requirement, or about $4.5 billion, to
the Utility for the 2001-2002 period. The allocations are subject
to true-up adjustments based on the actual amount of power
purchased by the DWR for the respective utility&rsquo;s customers
during the 2001-2002 period.&nbsp; PG&amp;E Corporation and the
Utility are unable to predict whether future true-ups would have a
material impact on their financial condition or results of
operation.<br />
 </p>

<p>The Utility intends to file an application for rehearing of the
decision by March 4, 2002.<br />
</p>

<p>D.&nbsp; PG&amp;E National Energy Group Synthetic Leases<br />
 </p>

<p>PG&amp;E Corporation has previously disclosed that its
subsidiary, PG&amp;E National Energy Group, Inc (PG&amp;E NEG), has
used &ldquo;synthetic leases&rdquo; in connection with some of its
power plant projects and turbine acquisition commitments.&nbsp; A
synthetic lease is a form of lease financing that qualifies for
operating lease accounting treatment and, under generally accepted
accounting principles (GAAP), is kept &ldquo;off balance
sheet.&rdquo; &nbsp; This financial structure was used on three
generating-related projects that completed development in 1999 and
2000 (Lake Road, La Paloma, and Harquahala) and for financing the
acquisition of turbines for future development projects through two
master turbine trusts.&nbsp;<br />
</p>

<p>The synthetic leases related to the Lake Road and La Paloma
generating projects were entered into in August 1999 and March
2000, respectively. The synthetic leases relating to the Harqhahala
generating project and the turbine acquisitions, entered into in
July 2000 and September 2000, respectively, were terminated during
2001.<br />
</p>

<p>Under accounting rules, the equity investors in a synthetic
lease must maintain at least a 3% ownership interest throughout the
life of the lease.&nbsp; PG&amp;E NEG&rsquo;s synthetic lease
documents provide for the equity investors to fund 3% of project
costs.&nbsp; There is a provision in the lease documents for the
lenders and investors to fund and be paid interest, yield and
fees.&nbsp; Under current GAAP rules, the payment of any yield and
fees to the investors during construction is required to be treated
as a return of capital rather than a return on capital.<br />
</p>

<p>The investors in PG&amp;E NEG&rsquo;s synthetic leases received
certain payments during construction of the associated projects.
These payments have been deemed to reduce the investors&rsquo;
equity ownership in the associated projects to between 2.59% and
2.93%, below the required 3% level.&nbsp; Accordingly, these
synthetic leases do not qualify for off balance sheet
treatment.<br />
</p>

<p>PG&amp;E Corporation will revise its consolidated financial
statements for the years ended December 31, 2000 and 1999, and for
the interim periods ended March 31, June 30, and September 30,
2001, to reflect the assets and liabilities associated with these
synthetic leases.<br />
</p>

<p>The revision is not expected to have a material impact on
PG&amp;E Corporation&rsquo;s earnings, equity, or debt covenant
compliance for such periods.<br />
</p>

<p>Item 7. Financial Statements, Pro Forma Financial Information,
and Exhibits<br />
</p>

<p>Exhibit 99.1 - Pacific Gas and Electric Company Income Statement
for the month ended December 31, 2001, and Balance Sheet dated
December 31, 2001.</p>

<div></div>

<p><br />
</p>

<table border="0" cellspacing="0" cellpadding="0">
<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;</p>
</td>
<td valign="top">
<p>SIGNATURE</p>
</td>
</tr>
</table>

<p>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.</p>

<table border="0" cellspacing="0" cellpadding="0" width="649">
<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;</p>
</td>
<td valign="top">
<p>PG&amp;E CORPORATION</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;</p>
</td>
<td valign="top">
<p>By:&nbsp;&nbsp;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;</p>
</td>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></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;</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; CHRISTOPHER P. JOHNS<br />
 &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Senior Vice President and
Controller</p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></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;</p>
</td>
<td valign="top">
<p>PACIFIC GAS AND ELECTRIC COMPANY</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;</p>
</td>
<td valign="top">
<p>By:&nbsp;&nbsp;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;</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp; &nbsp; <u>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></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;</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DINYAR B. MISTRY<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and Controller</p>
</td>
</tr>
</table>

<p>Dated:&nbsp; February 27, 2002</p>
</div>
</body>
</html>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>exhibit99-1.htm
<DESCRIPTION>FINANCIAL STATEMENTS
<TEXT>
<html>
<head>
<title>PACIFIC GAS AND ELECTRIC COMPANY</title>
</head>
<body>
<div>
<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXHIBIT
99.1</p>

<p></p>

<table border="0" cellspacing="0" cellpadding="0" width="563">
<tr>
<td nowrap colspan="2" valign="bottom">
<p align="center"><b>PACIFIC GAS AND ELECTRIC COMPANY<br />
 U.S. TRUSTEE BALANCE SHEET<br />
 AS OF DECEMBER 31, 2001<br />
</b> <b>(in millions, except share amounts)</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p align="right">December, 2001</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>ASSETS</b></p>
</td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>Current Assets</b></p>
</td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Cash and cash equivalents</p>
</td>
<td nowrap valign="bottom">
<p align="right">
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(39)</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Short-term investments</p>
</td>
<td nowrap valign="bottom">
<p align="right">4,259</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Accounts receivable:</p>
</td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td valign="bottom">
<p>Customers (net of allowance for doubtful accounts of $48
million)</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,867</p>
</td>
</tr>

<tr>
<td valign="bottom">
<p>Related parties</p>
</td>
<td nowrap valign="bottom">
<p align="right">&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
34</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Regulatory balancing accounts</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
75</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Inventories:</p>
</td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Gas stored underground and fuel oil</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
218</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Materials and supplies</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
119</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Prepaid expenses and other</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
103</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>Total current assets</b></p>
</td>
<td nowrap valign="bottom">
<p align="right"><b>6,636</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p></p>
</td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>Property, Plant, and Equipment</b></p>
</td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Electric</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
18,219</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Gas</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7,780</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Construction work in progress</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
323</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>Total property, plant, and equipment (at original
cost)</b></p>
</td>
<td nowrap valign="bottom">
<p align="right"><b>26,322</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Accumulated depreciation and decommissioning</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(12,934)</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>Net property, plant, and equipment</b></p>
</td>
<td nowrap valign="bottom">
<p align="right"><b>13,388</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p align="right"></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>Other Noncurrent Assets</b></p>
</td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Regulatory assets</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2,025</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Nuclear decommissioning trust funds</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,337</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Other</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2,135</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>Total noncurrent assets</b></p>
</td>
<td nowrap valign="bottom">
<p align="right"><b>5,497</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>TOTAL ASSETS</b></p>
</td>
<td nowrap valign="bottom">
<p align="right"><b>&nbsp;
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
25,521</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>LIABILITIES AND EQUITY</b></p>
</td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>Liabilities</b></p>
</td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Accounts payable</p>
</td>
<td nowrap valign="bottom">
<p align="right">&nbsp;&nbsp;</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Trade creditors</p>
</td>
<td nowrap valign="bottom">
<p align="right">&nbsp;
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
269</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Related parties</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
106</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Regulatory Balancing Accounts</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
228</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Other</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
184</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>&nbsp;&nbsp;&nbsp;Accrued taxes</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
296</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Rate reduction bonds</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,731</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Deferred income taxes</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,025</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Deferred tax credits</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; 153</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Pre-petition secured debt</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3,372</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Pre-petition liabilities</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5,787</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Pre-petition financing debt</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5,960</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Other liabilities</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3,414</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>Total liabilities</b></p>
</td>
<td nowrap valign="bottom">
<p align="right"><b>22,525</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>Preferred Stock With Mandatory Redemption Provisions</b></p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
137</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>Stockholders' Equity</b></p>
</td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Preferred stock without mandatory redemption provisions</p>
</td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Nonredeemable--5% to 6%, outstanding 5,784,825 shares</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
145</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Redeemable--4.36% to 7.04%, outstanding 5,973,456 shares</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
149</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Common stock, $5 par value, authorized 800,000,000 shares;</p>
</td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>issued 321,314,760 shares</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,606</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Additional paid in capital</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,964</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Accumulated deficit</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1,003)</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Accumulated other comprehensive loss</p>
</td>
<td nowrap valign="bottom">
<p align="right">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(2)</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>Total stockholders' equity</b></p>
</td>
<td nowrap valign="bottom">
<p align="right"><b>2,859</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p><b>TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</b></p>
</td>
<td nowrap valign="bottom">
<p align="right"><b>&nbsp;
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
25,521</b></p>
</td>
</tr>
</table>

<div>
<p></p>
</div>

<p align="center"><b></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="685">
<tr>
<td nowrap colspan="8" valign="bottom">
<h4>PACIFIC GAS AND ELECTRIC COMPANY</h4>
</td>
</tr>

<tr>
<td nowrap colspan="8" valign="bottom">
<p align="center"><b>U.S. TRUSTEE BALANCE SHEET</b></p>
</td>
</tr>

<tr>
<td nowrap colspan="8" valign="bottom">
<p align="center"><b>AS OF DECEMBER 31, 2001</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap colspan="2" valign="bottom">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes</b></p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p align="center">1</p>
</td>
<td nowrap colspan="7" valign="bottom">
<p>These unaudited financial statements were prepared using certain
assumptions</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="7" valign="bottom">
<p>and estimates.&nbsp; These assumptions and estimates are subject
to revision and</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="7" valign="bottom">
<p>actual results could differ materially from the information
provided in this statement.<br />
 </p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p align="center">2</p>
</td>
<td nowrap colspan="7" valign="bottom">
<p>These unaudited financial statements are prepared for the U.S.
Trustee and differ from</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="7" valign="bottom">
<p>the requirements of generally accepted accounting principles in
that they exclude</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="7" valign="bottom">
<p>certain financial statements (statements of cash flows,
stockholders equity, and</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="7" valign="bottom">
<p>other comprehensive income), relevant footnotes and certain
reclassifications.<br />
 </p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p align="center">3</p>
</td>
<td nowrap colspan="7" valign="bottom">
<p>Cash and cash equivalents have been reduced for uncleared
checks.&nbsp; On the</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="7" valign="bottom">
<p>balance sheet included with the Utility's Annual Report, Form
10-K and 10-Q,</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="5" valign="bottom">
<p>uncleared checks are treated as an accounts payable
liability.</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>
</table>

<div>
<p></p>
</div>

<p align="center"><b></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="673">
<tr>
<td nowrap colspan="4" valign="bottom">
<p align="center"><b>PACIFIC GAS AND ELECTRIC COMPANY<br />
</b> <b>U.S. TRUSTEE INCOME STATEMENT<br />
 FOR THE MONTH ENDED DECEMBER 31, 2001<br />
 AND THE NINE MONTHS ENDED DECEMBER 31, 2001<br />
 (in millions)</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<h4>Case to date</h4>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<h4>Month</h4>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p align="center"><b>nine months</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p align="center"><b>ended</b></p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p align="center"><b>ended</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p align="center"><b>December 31, 2001</b></p>
</td>
<td valign="bottom"></td>
<td nowrap valign="bottom">
<p align="center"><b>December 31, 2001</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>OPERATING REVENUES</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,041</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p>&nbsp; $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7,900</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>OPERATING EXPENSES:</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Cost of Electric Energy</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
176</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p>&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
457</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Cost of Gas</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
130</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
946</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Operating and Maintenance</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
275</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,911</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Depreciation, Decommissioning, and Amortization</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
82</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
678</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Total Operating Expenses</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
663</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3,992</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>OPERATING INCOME (LOSS)</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
378</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3,908</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Interest Income (Expense)</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(128)</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(657)</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Professional Fees</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(1)</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(11)</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Other Income and (Expense)</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(10)</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>PRE-TAX INCOME (LOSS)</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
250</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3,230</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Income Taxes</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
99</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,220</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>EARNINGS (LOSS)</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
151</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2,010</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>Preferred Dividend Requirement</p>
</td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
19</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p>EARNINGS (LOSS) AVAILABLE FOR (ALLOCATED TO) COMMON STOCK</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
149</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp; $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1,991</p>
</td>
</tr>
</table>

<div>
<p></p>
</div>

<p align="center"></p>

<table border="0" cellspacing="0" cellpadding="0" width="825">
<tr>
<td nowrap colspan="10" valign="bottom">
<p align="center"><b>PACIFIC GAS AND ELECTRIC COMPANY</b></p>
</td>
</tr>

<tr>
<td nowrap colspan="10" valign="bottom">
<p align="center"><b>U.S. TRUSTEE INCOME STATEMENT</b></p>
</td>
</tr>

<tr>
<td nowrap colspan="10" valign="bottom">
<p align="center"><b>FOR THE MONTH ENDED DECEMBER 31, 2001</b></p>
</td>
</tr>

<tr>
<td nowrap colspan="10" valign="bottom">
<p align="center"><b>AND THE NINE MONTHS ENDED DECEMBER 31,
2001</b></p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap colspan="2" valign="bottom">
<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes</b></p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
<td nowrap valign="bottom">
<p>&nbsp;</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p align="center">1</p>
</td>
<td nowrap colspan="9" valign="bottom">
<p>These unaudited financial statements are prepared for the U.S.
Trustee and differ from the requirements</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>of generally accepted accounting principles in that they exclude
certain financial statements (statements</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>of cash flows, stockholders equity, and other comprehensive
income), relevant footnotes and certain</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="2" valign="bottom">
<p>reclassifications.<br />
 </p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p align="center">2</p>
</td>
<td nowrap colspan="9" valign="bottom">
<p>These unaudited financial statements were prepared using certain
assumptions and estimates, including</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>the estimated amount payable to the California Department of
Water Resources (DWR) for the estimated</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>amount of power purchased by the DWR on behalf of retail
customers based on approximately 10 cents</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>per kilowatt hour (kWh).&nbsp; The Utility acts solely as a
billing agent for the DWR.&nbsp; While the rate freeze</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>is in effect, to the extent revenue is allocable to the DWR,
there will be a corresponding reduction in the</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>Utility's revenues.&nbsp; Therefore, the amounts paid to the DWR
for deliveries are not recorded as expense</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>and the revenue billed by the Utility to its customers
associated with this energy is excluded from</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>revenues.&nbsp; These assumptions and estimates are subject to
revision and actual results could differ</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="5" valign="bottom">
<p>materially from the information provided in this
statement.<br />
 </p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>The results for the month of December 2001 are not indicative of
future earnings.&nbsp; While the rate freeze</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>is in effect, earnings could differ materially as a result of
the implementation of the DWR's revenue</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>requirement.&nbsp; On February 21, 2002, the CPUC approved a
final decision establishing a total statewide</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>revenue requirement for the DWR for the two-year period ending
December 31, 2002, of $9 billion,</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>representing total DWR expected expenditures of $18 billion less
anticipated proceeds from its external</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>financings of $9 billion.&nbsp; In this decision, the CPUC
determined that the $9 billion revenue requirement would</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>be allocated among the three California investor-owned utilities
based on designated per-kWh charges.&nbsp;</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>Specifically, the decision orders that the Utility's share of
the total $9 billion revenue requirement is</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="6" valign="bottom">
<p>$4.5 billion (for the period from January 2001 through December
2002).<br />
 &nbsp;</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>The Utility is required to pass through the commensurate amount
of revenues to the DWR.&nbsp; The Utility</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>currently has accrued payables to the ISO for costs that it
believes are included in the DWR's revenue</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>requirement.&nbsp; The Utility believes that any additional
amount of revenues to be passed through to the DWR</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>as a result of the approval of the revenue requirement would not
exceed the amount of ISO payables currently</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="2" valign="bottom">
<p>recorded.&nbsp;<br />
 </p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>In addition, the decision also requires the Utility to submit,
over a 6 month period, the shortfall in DWR</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="9" valign="bottom">
<p>remittances from January 17, 2001, through March 15, 2002,
resulting from the rates approved in the</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="5" valign="bottom">
<p>order less the amounts already submitted to DWR.<br />
 </p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>

<tr>
<td nowrap valign="bottom">
<p align="center">3</p>
</td>
<td nowrap colspan="9" valign="bottom">
<p>Case to date results reflect the entire nine month period ended
December 31, 2001.&nbsp; The bankruptcy</p>
</td>
</tr>

<tr>
<td nowrap valign="bottom"></td>
<td nowrap colspan="3" valign="bottom">
<p>petition date is April 6, 2001.</p>
</td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
<td nowrap valign="bottom"></td>
</tr>
</table>

<p></p>
</div>
</body>
</html>


</TEXT>
</DOCUMENT>
</SUBMISSION>
