EXHIBIT 99.1

PACIFIC GAS AND ELECTRIC COMPANY
U.S. TRUSTEE BALANCE SHEET
AS OF DECEMBER 31, 2001
 (in millions, except share amounts)

December, 2001

ASSETS

Current Assets

Cash and cash equivalents

$                   (39)

Short-term investments

4,259

Accounts receivable:

Customers (net of allowance for doubtful accounts of $48 million)

                  1,867

Related parties

                       34

Regulatory balancing accounts

                      75

Inventories:

Gas stored underground and fuel oil

                     218

Materials and supplies

                     119

Prepaid expenses and other

                     103

Total current assets

6,636

Property, Plant, and Equipment

Electric

                18,219

Gas

                  7,780

Construction work in progress

                     323

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

26,322

Accumulated depreciation and decommissioning

               (12,934)

Net property, plant, and equipment

13,388

Other Noncurrent Assets

Regulatory assets

                  2,025

Nuclear decommissioning trust funds

                  1,337

Other

                  2,135

Total noncurrent assets

5,497

TOTAL ASSETS

  $             25,521

LIABILITIES AND EQUITY

Liabilities

Accounts payable

  

Trade creditors

  $                  269

Related parties

                     106

Regulatory Balancing Accounts

                     228

Other

                     184

   Accrued taxes

                     296

Rate reduction bonds

                  1,731

Deferred income taxes

                  1,025

Deferred tax credits

                      153

Pre-petition secured debt

                  3,372

Pre-petition liabilities

                  5,787

Pre-petition financing debt

                  5,960

Other liabilities

                  3,414

Total liabilities

22,525

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

                  (1,003)

Accumulated other comprehensive loss

                       (2)

Total stockholders' equity

2,859

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

  $             25,521

PACIFIC GAS AND ELECTRIC COMPANY

U.S. TRUSTEE BALANCE SHEET

AS OF DECEMBER 31, 2001

       Notes

 

 

 

 

 

 

1

These unaudited 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.

2

These unaudited financial 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 Annual Report, Form 10-K and 10-Q,

uncleared checks are treated as an accounts payable liability.

PACIFIC GAS AND ELECTRIC COMPANY
 U.S. TRUSTEE INCOME STATEMENT
FOR THE MONTH ENDED DECEMBER 31, 2001
AND THE NINE MONTHS ENDED DECEMBER 31, 2001
(in millions)

Case to date

Month

nine months

ended

ended

December 31, 2001

December 31, 2001

OPERATING REVENUES

  $            1,041

  $         7,900

OPERATING EXPENSES:

Cost of Electric Energy

                 176

               457

Cost of Gas

                 130

              946

Operating and Maintenance

                 275

           1,911

Depreciation, Decommissioning, and Amortization

                   82

              678

Total Operating Expenses

                 663

 

           3,992

OPERATING INCOME (LOSS)

                 378

 

           3,908

Interest Income (Expense)

                (128)

             (657)

Professional Fees

                    (1)

               (11)

Other Income and (Expense)

                     1

               (10)

PRE-TAX INCOME (LOSS)

                 250

 

           3,230

Income Taxes

                   99

           1,220

EARNINGS (LOSS)

                 151

           2,010

Preferred Dividend Requirement

                     2

                19

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

  $               149

 

  $         1,991

PACIFIC GAS AND ELECTRIC COMPANY

U.S. TRUSTEE INCOME STATEMENT

FOR THE MONTH ENDED DECEMBER 31, 2001

AND THE NINE MONTHS ENDED DECEMBER 31, 2001

       Notes

 

 

 

 

 

 

 

 

1

These unaudited financial 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.

2

These unaudited 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 December 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

requirement.  On February 21, 2002, the CPUC approved a final decision establishing a total statewide

revenue requirement for the DWR for the two-year period ending December 31, 2002, of $9 billion,

representing total DWR expected expenditures of $18 billion less anticipated proceeds from its external

financings of $9 billion.  In this decision, the CPUC determined that the $9 billion revenue requirement would

be allocated among the three California investor-owned utilities based on designated per-kWh charges. 

Specifically, the decision orders that the Utility's share of the total $9 billion revenue requirement is

$4.5 billion (for the period from January 2001 through December 2002).
 

The Utility is required to pass through the commensurate amount of revenues to the DWR.  The Utility

currently has accrued payables to the ISO for costs that it believes are included in the DWR's revenue

requirement.  The Utility believes that any additional amount of revenues to be passed through to the DWR

as a result of the approval of the revenue requirement would not exceed the amount of ISO payables currently

recorded. 

In addition, the decision also requires the Utility to submit, over a 6 month period, the shortfall in DWR

remittances from January 17, 2001, through March 15, 2002, resulting from the rates approved in the

order less the amounts already submitted to DWR.

3

Case to date results reflect the entire nine month period ended December 31, 2001.  The bankruptcy

petition date is April 6, 2001.