<SUBMISSION>
<ACCESSION-NUMBER>0001004980-05-000248
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>12
<PERIOD>20050930
<FILING-DATE>20051102
<DATE-OF-FILING-DATE-CHANGE>20051102
<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>10-Q
<ACT>34
<FILE-NUMBER>001-12609
<FILM-NUMBER>051171941
</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>10-Q
<SEQUENCE>1
<FILENAME>pge10q_q3.htm
<DESCRIPTION>CORP Q3 2005 FORM 10-Q
<TEXT>
<HTML>
<HEAD>

<META NAME="Generator" CONTENT="Microsoft Word 97">
<TITLE>Transition</TITLE>
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<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=648>
<TR><TD VALIGN="TOP" COLSPAN=9 BGCOLOR="#000000" HEIGHT=2>
<FONT SIZE=1><P><A NAME="intro_page_and_toc">Transition</FONT></TD>
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<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=3><P></P></TD>
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<TR><TD VALIGN="TOP" COLSPAN=9 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
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<B><FONT SIZE=1><P ALIGN="CENTER">UNITED STATES SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C., 20549<BR>
FORM 10-Q </B></FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP" COLSPAN=3 HEIGHT=10>
<FONT SIZE=1><P ALIGN="CENTER"><A NAME="_Toc21178855"><A NAME="_Toc21178973">(Mark One)</A></A></FONT></TD>
<TD WIDTH="89%" VALIGN="TOP" COLSPAN=6 HEIGHT=10><P></P></TD>
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<TR><TD WIDTH="7%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="93%" VALIGN="TOP" COLSPAN=8 HEIGHT=10><P></P></TD>
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<TR><TD WIDTH="7%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER"><A NAME="_Toc21178856"><A NAME="_Toc21178974">[X]</A></A></FONT></TD>
<TD WIDTH="93%" VALIGN="TOP" COLSPAN=8>
<FONT SIZE=1><P ALIGN="CENTER">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934 </FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>
<FONT SIZE=1><P ALIGN="CENTER">For the quarterly period ended September 30, 2005<BR>
 <BR>
OR</FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP" COLSPAN=7>&nbsp;</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<FONT SIZE=1><P ALIGN="CENTER"><A NAME="_Toc21178857"><A NAME="_Toc21178975">[&nbsp;&nbsp;]</A></A></FONT></TD>
<TD WIDTH="93%" VALIGN="TOP" COLSPAN=8>
<FONT SIZE=1><P ALIGN="CENTER">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP" COLSPAN=7>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>
<FONT SIZE=1><P ALIGN="CENTER">For the transition period from ___________ to __________</FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP" COLSPAN=7>&nbsp;</TD>
</TR>
<TR><TD WIDTH="19%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=1><P><BR>
Commission<BR>
File<BR>
Number<BR>
_______________</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P>Exact Name of <BR>
Registrant<BR>
as specified<BR>
in its charter<BR>
_______________</FONT></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P><BR>
State or other<BR>
Jurisdiction of <BR>
Incorporation<BR>
______________</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=1><P><BR>
IRS Employer<BR>
Identification<BR>
Number<BR>
___________</FONT></TD>
</TR>
<TR><TD WIDTH="19%" VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="19%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=1><P><A NAME="_Toc21178858"><A NAME="_Toc21178976">1-12609</A></A></FONT></TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P><A NAME="_Toc21178859"><A NAME="_Toc21178977">PG&amp;E Corporation</A></A></FONT></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P><A NAME="_Toc21178860"><A NAME="_Toc21178978">California</A></A></FONT></TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=1><P><A NAME="_Toc21178861"><A NAME="_Toc21178979">94-3234914</A></A></FONT></TD>
</TR>
<TR><TD WIDTH="19%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=1><P><A NAME="_Toc21178862"><A NAME="_Toc21178980">1-2348</A></A></FONT></TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P>Pacific Gas and Electric Company</FONT></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=1><P>California</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP">
<FONT SIZE=1><P>94-0742640</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>&nbsp;</TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P>Pacific Gas and Electric Company<BR>
77 Beale Street<BR>
P.O. Box 770000<BR>
San Francisco, California 94177<BR>
________________________________________</FONT></TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P>PG&amp;E Corporation<BR>
One Market, Spear Tower<BR>
Suite 2400<BR>
San Francisco, California 94105<BR>
______________________________________</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>
<FONT SIZE=1><P ALIGN="CENTER"><A NAME="_Toc21178863"><A NAME="_Toc21178981">Address of principal executive offices, <A NAME="_Toc21178864"><A NAME="_Toc21178982"></A></A>including zip code</A></A></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>&nbsp;</TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" COLSPAN=6 HEIGHT=34>
<FONT SIZE=1><P>Pacific Gas and Electric Company<BR>
(415) 973-7000<BR>
________________________________________</FONT></TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=3 HEIGHT=34>
<FONT SIZE=1><P>PG&amp;E Corporation<BR>
(415) 267-7000<BR>
______________________________________</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>
<FONT SIZE=1><P ALIGN="CENTER"><A NAME="_Toc21178865"><A NAME="_Toc21178983">Registrant's telephone number, including area code</A></A></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>
<FONT SIZE=1><P><A NAME="_Toc21178866"><A NAME="_Toc21178984">Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the registrant was required to file such reports), and (2) have been subject to such filing requirements for the past 90 days.</A></A></FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" COLSPAN=6 HEIGHT=5><P></P></TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=3 HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P><A NAME="_Toc21178867"><A NAME="_Toc21178985">Yes<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</A></A>X&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P><A NAME="_Toc21178868"><A NAME="_Toc21178986">No</A></A><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=5><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=10>
<FONT SIZE=1><P>Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P>PG&amp;E Corporation:</FONT></TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P>Yes<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P>No<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=5><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>
<FONT SIZE=1><P>Pacific Gas and Electric Company:</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=1><P>Yes<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=1><P>No<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=5><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=15>
<FONT SIZE=1><P>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" COLSPAN=5 HEIGHT=5><P></P></TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=4 HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" COLSPAN=5 HEIGHT=15>
<FONT SIZE=1><P>Yes<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=4 HEIGHT=15>
<FONT SIZE=1><P>No<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=2><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=15><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=15>
<FONT SIZE=1><P><A NAME="_Toc21178869"><A NAME="_Toc21178987">Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of latest practicable date.</A></A></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>&nbsp;</TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP" COLSPAN=7>
<FONT SIZE=1><P><A NAME="_Toc21178870"><A NAME="_Toc21178988">Common Stock Outstanding, October 27, 2005:</A></A></FONT></TD>
<TD WIDTH="45%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P><A NAME="_Toc21178871"><A NAME="_Toc21178989">PG&amp;E Corporation</A></A></FONT></TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P><A NAME="_Toc21178872"><A NAME="_Toc21178990">374,754,368 shares</A></A> (excluding 24,665,500 shares held by a wholly owned subsidiary)</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" COLSPAN=6>
<FONT SIZE=1><P><A NAME="_Toc21178873"><A NAME="_Toc21178991">Pacific Gas and Electric Company</A></A></FONT></TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=1><P><A NAME="_Toc21178874"><A NAME="_Toc21178992">Wholly owned by PG&amp;E Corporation</A></A></FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP" COLSPAN=6>&nbsp;</TD>
<TD WIDTH="48%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 HEIGHT=3><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9 BGCOLOR="#000000" HEIGHT=2><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="CENTER">PG&amp;E CORPORATION AND<BR>
PACIFIC GAS AND ELECTRIC COMPANY, <BR>
FORM 10-Q<BR>
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2005<BR>
TABLE OF CONTENTS<BR>
</P></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=576>
<TR><TD WIDTH="10%" VALIGN="TOP">
<B><FONT SIZE=2><P>PART I.</B></FONT></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=2><P>FINANCIAL INFORMATION</B></FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="CENTER">PAGE</B></FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P><A HREF="#item_1_cons_fin_state"><FONT SIZE=2>ITEM 1.</FONT></A></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P>CONSOLIDATED FINANCIAL STATEMENTS</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P>PG&amp;E Corporation</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="79%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#cond_cons_state_inc_corp"><FONT SIZE=2>Condensed Consolidated Statements of Income</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">3</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="79%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#corp_balance_sheets"><FONT SIZE=2>Condensed Consolidated Balance Sheets</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">4</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="79%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#_CONDENSED_CONSOLIDATED_STATEMENTS"><FONT SIZE=2>Condensed Consolidated Statements of Cash Flows</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">6</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P>Pacific Gas and Electric Company</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="79%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#utility_statements_of_income"><FONT SIZE=2>Condensed Consolidated Statements of Income</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">8</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="79%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#utility_balance_sheets"><FONT SIZE=2>Condensed Consolidated Balance Sheets</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">9</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="79%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#utility_cash_flows"><FONT SIZE=2>Condensed Consolidated Statements of Cash Flows</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">11</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P>NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#_NOTE_1:_"><FONT SIZE=2>NOTE 1:</FONT></A></TD>
<TD WIDTH="71%" VALIGN="TOP">
<FONT SIZE=2><P>General</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">13</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#note_2"><FONT SIZE=2>NOTE 2:</FONT></A></TD>
<TD WIDTH="71%" VALIGN="TOP">
<FONT SIZE=2><P>The Utility's Emergence from Chapter 11</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">23</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#note_3_debt"><FONT SIZE=2>NOTE 3:</FONT></A></TD>
<TD WIDTH="71%" VALIGN="TOP">
<FONT SIZE=2><P>Debt</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">24</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#note_4"><FONT SIZE=2>NOTE 4:</FONT></A></TD>
<TD WIDTH="71%" VALIGN="TOP">
<FONT SIZE=2><P>Energy Recovery Bonds </FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">29</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P><A NAME="env_lgl_mda"></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#NOTE_5"><FONT SIZE=2>NOTE 5</FONT></A><FONT SIZE=2 COLOR="#0000ff">:</FONT></TD>
<TD WIDTH="71%" VALIGN="TOP">
<FONT SIZE=2><P>Shareholders' Equity</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">29</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<FONT SIZE=2><P></A></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#note_6"><FONT SIZE=2>NOTE 6:</FONT></A></TD>
<TD WIDTH="71%" VALIGN="TOP">
<FONT SIZE=2><P>Risk Management Activities</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">31</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#note_7"><FONT SIZE=2>NOTE 7:</FONT></A></TD>
<TD WIDTH="71%" VALIGN="TOP">
<FONT SIZE=2><P>Commitments and Contingencies</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">33</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=5>&nbsp;</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP" HEIGHT=28>
<P><A HREF="#item_2"><FONT SIZE=2>ITEM 2.</FONT></A></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3 HEIGHT=28>
<FONT SIZE=2><P>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL<BR>
CONDITION AND RESULTS OF OPERATIONS</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=28><P></P></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<P><A HREF="#mda_overview"><FONT SIZE=2>Overview</FONT></A><FONT SIZE=2 COLOR="#0000ff"> </FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">42</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<P><A HREF="#mda_results_of_operations"><FONT SIZE=2>Results of Operations</FONT></A><FONT SIZE=2 COLOR="#0000ff"> </FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">47</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<P><A HREF="#liquidity_and_financial_resources"><FONT SIZE=2>Liquidity and Financial Resources</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">57</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<P><A HREF="#contractual_commitments"><FONT SIZE=2>Contractual Commitments</FONT></A><FONT SIZE=2 COLOR="#0000ff"> </FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">63</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<P><A HREF="#cap_ex"><FONT SIZE=2>Capital Expenditures</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">63</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<P><A HREF="#off_balance_sheet_arrangements"><FONT SIZE=2>Off-Balance Sheet Arrangements</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">64</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<P><A HREF="#contingencies"><FONT SIZE=2>Contingencies</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">65</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<P><A HREF="#mda_risk_management_activities"><FONT SIZE=2>Risk Management Activities</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">72</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<P><A HREF="#mda_critical_accounting_policies"><FONT SIZE=2>Critical Accounting Policies</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">76</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<P><A HREF="#accounting_pronouncements"><FONT SIZE=2>Accounting Pronouncements Issued But Not Yet Adopted</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">78</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<P><A HREF="#mda_additional_security_measures"><FONT SIZE=2>Additional Security Measures</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">78</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<P><A HREF="#environmental_and_legal_matters"><FONT SIZE=2>Environmental and Legal Matters</FONT></A></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">78</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=5>&nbsp;</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P><A HREF="#item_3"><FONT SIZE=2>ITEM 3.</FONT></A></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">78</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P><A HREF="#item_4"><FONT SIZE=2>ITEM 4.</FONT></A></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P>CONTROLS AND PROCEDURES</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">78</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=5>&nbsp;</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<B><FONT SIZE=2><P>PART II.</B></FONT></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=2><P>OTHER INFORMATION</B></FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=5>&nbsp;</TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P><A HREF="#part_2_item_1"><FONT SIZE=2>ITEM 1.</FONT></A></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P>LEGAL PROCEEDINGS</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">79</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P><A HREF="#part_2_item_2"><FONT SIZE=2>ITEM 2.</FONT></A></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P>CHANGES IN SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">81</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P><A HREF="#part_2_item_5"><FONT SIZE=2>ITEM 5.</FONT></A></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P>OTHER INFORMATION</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">81</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP">
<P><A HREF="#part_2_item_6"><FONT SIZE=2>ITEM 6.</FONT></A></TD>
<TD WIDTH="81%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P>EXHIBITS</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">82</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=5>&nbsp;</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" COLSPAN=4>
<P><A HREF="#signatures"><FONT SIZE=2>SIGNATURES</FONT></A><FONT SIZE=2 COLOR="#0000ff"> </FONT></TD>
<TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">83</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P ALIGN="CENTER">&nbsp;</P>
<B><P ALIGN="CENTER"><A NAME="Test"><A NAME="Test_1"><A NAME="corporation_financial_statements"><A NAME="corp_financials"></A>PART I.  FINANCIAL INFORMATION<BR>
<A NAME="item_1_cons_fin_state">ITEM 1</A>: CONSOLIDATED FINANCIAL STATEMENTS<BR>
</P></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=604>
<TR><TD VALIGN="TOP" COLSPAN=13 HEIGHT=16>
<B><FONT SIZE=2><P><A NAME="income">PG&amp;E CORPORATION</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=13 HEIGHT=16>
<B><FONT SIZE=2><P><A NAME="cond_cons_state_inc_corp">CONDENSED CONSOLIDATED STATEMENTS OF INCOME</A></B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="54%" VALIGN="TOP" COLSPAN=11 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">(Unaudited)</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="54%" VALIGN="TOP" COLSPAN=11 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions, except per share amounts)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Operating Revenues</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Electric</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,107&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,042&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,546&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,902&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Natural gas</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">697&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">581&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,424&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,198&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,804&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,623&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7,970&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,100&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>Operating Expenses</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Cost of electricity </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">742&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">792&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,626&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,003&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Cost of natural gas </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">326&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">239&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,293&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,096&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Operating and maintenance</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">740&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">677&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,177&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,297&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Recognition of regulatory assets</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(4,900)</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Depreciation, amortization and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;decommissioning</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">481&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">406&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,320&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,056&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Reorganization professional fees and expenses</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,289&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,114&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,416&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,558&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>Operating Income </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">515&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">509&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,554&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,542&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Reorganization interest income</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Interest income </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">22&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">15&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">60&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">46&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Interest expense</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(145)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(159)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(438)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(565)</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other income (expense), net</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(14)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(16)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(46)</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Income Before Income Taxes</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">378&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">369&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,160&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,985&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Income tax provision</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">139&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">141&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">436&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,352&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Income From Continuing Operations</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">239&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">724&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>Discontinued Operations (Note 7)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Net Income </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">252&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">737&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=8 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>Weighted Average Common Shares Outstanding, Basic</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">372&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">399&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">376&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">397&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="40%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Earnings Per Common Share from Continuing Operations, Basic</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.63&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.55&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1.88&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8.73&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>Net Earnings Per Common Share, Basic</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.66&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.55&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1.91&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8.73&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="40%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Earnings Per Common Share from Continuing Operations, Diluted</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.62&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.53&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1.86&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8.55&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>Net Earnings Per Common Share, Diluted</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.65&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.53&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1.89&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8.55&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="40%" VALIGN="TOP" COLSPAN=8 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Dividends Declared Per Common Share</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.30&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.90&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=13 HEIGHT=16><P></P></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=13 HEIGHT=16>
<FONT SIZE=2><P ALIGN="CENTER">See accompanying Notes to the Condensed Consolidated Financial Statements.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT SIZE=2><P ALIGN="CENTER"></A></P>
<P ALIGN="JUSTIFY"><A NAME="_PG&amp;E_CORPORATION"></A></A></P>
<P ALIGN="JUSTIFY"><A NAME="corp_balance_sheets"></A></A></P></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=586>
<TR><TD VALIGN="BOTTOM" COLSPAN=6 HEIGHT=16>
<B><FONT SIZE=2><P><A NAME="corp_statements_of_income">PG&amp;E CORPORATION</B></FONT></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=6 HEIGHT=16>
<B><FONT SIZE=2><P>CONDENSED CONSOLIDATED BALANCE SHEETS</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Balance At</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">December 31, </B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005<BR>
(Unaudited)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>ASSETS</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Current Assets</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Cash and cash equivalents</FONT></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,233&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">972&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Restricted cash</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,527&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,980&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Accounts receivable:</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customers (net of allowance for doubtful accounts of $105 <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million in 2005 and $93 million in 2004)</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,120&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,085&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory balancing accounts</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">483&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,021&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Inventories:</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gas stored underground and fuel oil</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">265&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">175&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Materials and supplies</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">136&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">129&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Prepaid expenses and other</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">243&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">46&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,007&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,408&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Property, Plant and Equipment</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Electric</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">22,073&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">21,519&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Gas</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,688&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,526&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Construction work in progress</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">679&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">449&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">15&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">15&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property, plant and equipment </B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">31,455&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">30,509&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Accumulated depreciation </FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(11,907)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(11,520)</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net property, plant and equipment</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19,548&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">18,989&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Other Noncurrent Assets</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Regulatory assets</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,000&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,526&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Nuclear decommissioning funds</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,693&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,629&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">912&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">988&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other noncurrent assets</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,605&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">9,143&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>TOTAL ASSETS</B></FONT></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">34,160&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">34,540&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=6 HEIGHT=16><P></P></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=6 HEIGHT=16>
<FONT SIZE=2><P ALIGN="CENTER">See accompanying Notes to the Condensed Consolidated Financial Statements.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT SIZE=2><P ALIGN="JUSTIFY"></A></P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=600>
<TR><TD VALIGN="BOTTOM" COLSPAN=11 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;</P>
<B><P>PG&amp;E CORPORATION</B></FONT></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=11 HEIGHT=16>
<B><FONT SIZE=2><P>CONDENSED CONSOLIDATED BALANCE SHEETS</B></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=16><P></P></TD>
<TD WIDTH="34%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Balance At</B></FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="47%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=6 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>(in millions, except share amounts)</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">December 31, </B></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=28><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=3 HEIGHT=28>
<B><FONT SIZE=2><P ALIGN="CENTER">2005<BR>
(Unaudited)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=28><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=28>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>LIABILITIES AND SHAREHOLDERS' EQUITY</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Current Liabilities</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Short-term borrowings</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">300&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Long-term debt, classified as current</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">758&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Rate reduction bonds, classified as current</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">290&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">290&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Energy recovery bonds, classified as current </FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Accounts payable:</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade creditors</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">568&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">762&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disputed claims and customer refunds</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,841&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,142&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory balancing accounts</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,149&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">369&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">414&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">352&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Interest payable</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">401&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">461&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Income taxes payable</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">199&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">185&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">111&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">394&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,212&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">905&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,415&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,918&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>Noncurrent Liabilities </B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Long-term debt</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,976&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7,323&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Rate reduction bonds</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">366&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">580&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Energy recovery bonds</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,583&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Regulatory liabilities</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,935&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4,035&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Asset retirement obligations</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,370&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,301&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,165&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,531&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Deferred tax credits</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">116&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">121&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=65>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Preferred stock of subsidiary with mandatory redemption provisions<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(redeemable, 6.30% and 6.57%, no shares outstanding at &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 30, 2005, 4,925,000 shares outstanding at December &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31, 2004)</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=65>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=65><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=65>
<FONT SIZE=2><P ALIGN="RIGHT">122&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,747&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,690&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Total noncurrent liabilities </B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19,258&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">18,703&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Commitments and Contingencies (Notes 1, 2, 3, 4 and 7)</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>Preferred Stock of Subsidiaries</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">252&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">286&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Preferred Stock</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=33>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Preferred stock, no par value, 80,000,000 shares, $100 par value,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,000,000 shares, none issued</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=33>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=33><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=33>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Common Shareholders' Equity</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=48>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Common stock, no par value, authorized 800,000,000 shares, <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issued 397,945,522 common and 1,391,028 restricted shares in 2005 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and 414,985,014 common and 1,535,268 restricted shares in 2004</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=48>
<FONT SIZE=2><P ALIGN="RIGHT">6,312&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=48><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=48>
<FONT SIZE=2><P ALIGN="RIGHT">6,518&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Common stock held by subsidiary, at cost, 24,665,500 shares</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(718)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(718)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Unearned compensation</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(26)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(26)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Accumulated earnings </FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,672&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,863&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(5)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(4)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Total common shareholders' equity</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,235&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</B></FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">34,160&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">34,540&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=11 HEIGHT=2><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=11 HEIGHT=22>
<FONT SIZE=2><P ALIGN="CENTER">See accompanying Notes to the Condensed Consolidated Financial Statements.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=572>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4>
<B><FONT SIZE=2><P><A NAME="_CONDENSED_CONSOLIDATED_STATEMENTS"></A>PG&amp;E CORPORATION</B></FONT></TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=5>&nbsp;</TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=9>
<B><FONT SIZE=2><P>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</B></FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4>&nbsp;</TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=5>
<B><FONT SIZE=2><P ALIGN="CENTER">(Unaudited)</B></FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=5>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4>&nbsp;</TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=5>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4>&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<B><FONT SIZE=2><P>Cash Flows From Operating Activities</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Net income</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">737&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Discontinued operations</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(13)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Net income from continuing operations</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">724&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to </P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;net cash provided by operating activities:</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=32><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=32><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=32><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=28>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation, amortization, decommissioning and allowance </P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for equity funds used during construction</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">1,295&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">1,056&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognition of regulatory assets</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(4,900)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes and tax credits, net</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(658)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,360&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other deferred charges and noncurrent liabilities</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(133)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(183)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Net effect of changes in operating assets and liabilities:</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(6)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">58&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">42&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(97)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(61)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(80)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">78&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued taxes</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">14&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory balancing accounts, net </FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">940&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(323)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other working capital</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(58)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">572&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Payments authorized by the bankruptcy court on amounts classified as &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;liabilities subject to compromise</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">(1,022)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other, net</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">118&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">84&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Net cash provided by operating activities</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,117&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,340&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<B><FONT SIZE=2><P>Cash Flows From Investing Activities</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Capital expenditures</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,318)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,110)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Net proceeds from sale of assets</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">28&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Decrease (increase) in restricted cash</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">453&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,601)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other, net</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(55)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Net cash used in investing activities</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(843)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(2,738)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<B><FONT SIZE=2><P>Cash Flows From Financing Activities</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Repayments under credit facilities and short-term <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;borrowings</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">(300)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=27>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Proceeds from issuance of long-term debt, net of issuance costs of $3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million in 2005 and $74 million in 2004</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=27>
<FONT SIZE=2><P ALIGN="RIGHT">451&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=27><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=27>
<FONT SIZE=2><P ALIGN="RIGHT">7,346&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Proceeds from issuance of energy recovery bonds, net of issuance<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;costs of $14 million in 2005</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,874&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Long-term debt matured, redeemed or repurchased</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,556)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(7,553)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Rate reduction bonds matured</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(214)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(213)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Energy recovery bonds matured</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(77)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Preferred stock with mandatory redemption provisions redeemed</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(122)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(15)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Preferred stock without mandatory redemption provisions redeemed</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(36)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Common stock issued</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">231&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">121&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Common stock repurchased</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,087)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Preferred dividends paid</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(12)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(88)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Common stock dividends paid</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(223)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">58&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(2)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<B><FONT SIZE=2><P>Net cash used in financing activities</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,013)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(404)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Net change in cash and cash equivalents</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">261&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,802)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<B><FONT SIZE=2><P>Cash and cash equivalents at January 1</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">972&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,658&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Cash and cash equivalents at September 30</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,233&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,856&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<B><FONT SIZE=2><P>Supplemental disclosures of cash flow information</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Cash received for:</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reorganization interest income</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Cash paid for:</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest (net of amounts capitalized)</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">373&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">522&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid, net</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,051</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">96&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reorganization professional fees and expenses</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">21&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=33>
<B><FONT SIZE=2><P>Supplemental disclosures of noncash investing and financing<BR>
&nbsp;&nbsp;&nbsp;activities</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Common stock dividends declared but not yet paid</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">111&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=33>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Transfer of liabilities and other payables subject to compromise<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to operating assets and liabilities</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=33>
<FONT SIZE=2><P ALIGN="RIGHT">(2,877)</FONT></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=9 HEIGHT=16><P></P></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=9>
<FONT SIZE=2><P ALIGN="CENTER">See accompanying Notes to the Condensed Consolidated Financial Statements.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;</P>
<B><P ALIGN="JUSTIFY">&nbsp;</P>
</B><P ALIGN="JUSTIFY"><A NAME="utility_statements_of_income"></A></P></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=660>
<TR><TD VALIGN="TOP" COLSPAN=13 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="JUSTIFY">PACIFIC GAS AND ELECTRIC COMPANY</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=13 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="JUSTIFY">CONDENSED CONSOLIDATED STATEMENTS OF INCOME</B></FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=11 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">(Unaudited)</B></FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=11 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Operating Revenues</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Electric </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,107&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,042&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,546&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,902&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Natural gas</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">697&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">581&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,424&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,198&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating revenues</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,804&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,623&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7,970&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,100&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>Operating Expenses</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Cost of electricity</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">742&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">792&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,626&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,003&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Cost of natural gas</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">326&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">239&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,293&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,096&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Operating and maintenance</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">738&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">671&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,179&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,271&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Recognition of regulatory assets</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(4,900)</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Depreciation, amortization and decommissioning</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">481&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">405&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,320&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,054&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Reorganization professional fees and expenses</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,287&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,107&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,418&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,530&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>Operating Income </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">517&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">516&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,552&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,570&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Reorganization interest income</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Interest income</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">20&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">11&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">59&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">36&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Interest expense </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(138)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(141)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(416)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(512)</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other income (expense), net</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(3)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">14&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">43&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Income Before Income Taxes</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">396&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">400&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,204&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,145&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Income tax provision </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">148&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">152&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">457&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,410&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Net Income </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">248&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">248&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">747&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,735&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Preferred dividend requirement</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">17&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Income Available for Common Stock</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">244&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">244&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">735&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,718&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=13 HEIGHT=16><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=13 HEIGHT=16>
<FONT SIZE=2><P ALIGN="CENTER">See accompanying Notes to the Condensed Consolidated Financial Statements.</FONT></TD>
</TR>
</TABLE>


<P>&nbsp;</P>
<FONT SIZE=2><P><A NAME="utility_balance_sheets"></A></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=575>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="JUSTIFY">PACIFIC GAS AND ELECTRIC COMPANY</B></FONT></TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="JUSTIFY">CONDENSED CONSOLIDATED BALANCE SHEETS</B></FONT></TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Balance At</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">December 31,</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">(Unaudited)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>ASSETS</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Current Assets</B></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Cash and cash equivalents</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">856&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">783&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Restricted cash</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,527&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,980&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Accounts receivable:</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customers (net of allowance for doubtful accounts of <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$105 million in 2005 and $93 million in 2004)</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">2,120&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">2,085&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related parties</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory balancing accounts</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">483&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,021&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Inventories:</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gas stored underground and fuel oil</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">265&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">175&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Materials and supplies</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">136&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">129&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Prepaid expenses and other</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">239&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">43&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</B></FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,628&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,218&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Property, Plant and Equipment</B></FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Electric</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">22,073&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">21,519&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Gas</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,688&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,526&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Construction work in progress</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">679&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">449&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total property, plant and equipment </B></FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">31,440&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">30,494&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Accumulated depreciation </FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(11,894)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(11,507)</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net property, plant and equipment</B></FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19,546&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">18,987&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Other Noncurrent Assets</B></FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Regulatory assets</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,000&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,526&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Nuclear decommissioning funds</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,693&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,629&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">865&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">942&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other noncurrent assets</B></FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,558&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">9,097&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>TOTAL ASSETS</B></FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">33,732&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">34,302&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=6 HEIGHT=16><P></P></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=6 HEIGHT=16>
<FONT SIZE=2><P ALIGN="CENTER">See accompanying Notes to the Condensed Consolidated Financial Statements.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>


<P>&nbsp;</P>
<P>&nbsp;</P>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=564>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="JUSTIFY">PACIFIC GAS AND ELECTRIC COMPANY</B></FONT></TD>
<TD WIDTH="33%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="JUSTIFY">CONDENSED CONSOLIDATED BALANCE SHEETS</B></FONT></TD>
<TD WIDTH="33%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=16><P></P></TD>
<TD WIDTH="33%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Balance At</B></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>(in millions, except share amounts)</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">December 31,</B></FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">(Unaudited)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>LIABILITIES AND SHAREHOLDERS' EQUITY</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Current Liabilities</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Short term borrowings</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">300&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Long-term debt, classified as current</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">757&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Rate reduction bonds, classified as current</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">290&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">290&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Energy recovery bonds, classified as current</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Accounts payable:</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade creditors</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">568&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">762&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disputed claims and customer refunds</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,841&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,142&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related parties</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">22&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">20&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory balancing accounts</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,149&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">369&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">401&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">337&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Interest payable</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">395&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">461&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Income taxes payable</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">179&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">102&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">85&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">377&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,068&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">869&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,786&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Noncurrent Liabilities </B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Long-term debt</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,696&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7,043&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Rate reduction bonds</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">366&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">580&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Energy recovery bonds</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,583&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Regulatory liabilities</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,935&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4,035&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Asset retirement obligations</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,370&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,301&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,288&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,629&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Deferred tax credits</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">116&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">121&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Preferred stock with mandatory redemption provisions<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(redeemable, 6.30% and 6.57%, no shares outstanding)</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">122&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,615&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,555&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noncurrent liabilities </B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">18,969&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">18,386&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>Commitments and Contingencies (Notes 1, 2, 3, 4 and 7)</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Shareholders' Equity</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Preferred stock without mandatory redemption provisions:</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonredeemable, 5% to 6%, outstanding 5,784,825 shares</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">145&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">145&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redeemable, 4.36% to 5.00%, outstanding 4,534,958 shares in </P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005 and 4.36% to 7.04%, outstanding 5,973,456 shares in 2004</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">113&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=32><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">149&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Common stock, $5 par value, authorized 800,000,000 shares,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issued 299,291,477 shares</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">1,496&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">1,606&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Common stock held by subsidiary, at cost, 19,481,213 shares</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(475)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(475)</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Additional paid-in capital</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,901&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,041&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Reinvested earnings</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,360&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,667&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(5)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(3)</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,535&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">9,130&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</B></FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">33,732&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">34,302&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=10 HEIGHT=9><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=10 HEIGHT=14>
<FONT SIZE=2><P ALIGN="CENTER">See accompanying Notes to the Condensed Consolidated Financial Statements.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;</P>
<P><A NAME="utility_cash_flows"></A></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=596>
<TR><TD WIDTH="72%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P><A NAME="utility_statements_of_cash_flows">PACIFIC GAS AND ELECTRIC COMPANY</B></FONT></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</B></FONT></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">(Unaudited)</B></FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" ROWSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Cash Flows From Operating Activities</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Net income </FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">747&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,735&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by</P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operating activities:</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=32><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=32><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=32><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation, amortization, decommissioning and allowance </P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for equity funds used during construction</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=33>
<FONT SIZE=2><P ALIGN="RIGHT">1,294&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=33>
<FONT SIZE=2><P ALIGN="RIGHT">1,054&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognition of regulatory assets</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(4,900)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes and tax credits, net</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(638)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,395&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other deferred charges and noncurrent liabilities</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(136)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(121)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Net effect of changes in operating assets and liabilities:</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">58&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">42&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(97)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(61)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(83)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">77&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued taxes</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">77&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">87&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory balancing accounts, net </FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">940&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(323)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other working capital</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(55)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">285&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Payments authorized by the bankruptcy court on amounts<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;classified as liabilities subject to compromise </FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=32><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">(1,022)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other, net</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">20&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">10&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Net cash provided by operating activities</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,127&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,258&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Cash Flows From Investing Activities</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Capital expenditures</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,318)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,110)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Net proceeds from sale of assets</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">28&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Decrease (increase) in restricted cash</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">453&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,601)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other, net</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(50)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Net cash used in investing activities</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(843)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(2,733)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Cash Flows From Financing Activities</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Repayments under credit facilities and short-term<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;borrowings</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">(300)</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=32><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Proceeds from issuance of long-term debt, net of issuance costs of<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$3 million in 2005 and $74 million in 2004</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">451&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">7,346&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Proceeds from issuance of energy recovery bonds, net of issuance <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;costs of $14 million in 2005</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">1,874&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=32><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Long-term debt matured, redeemed or repurchased</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,554)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(7,552)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Rate reduction bonds matured</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(214)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(213)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Energy recovery bonds matured</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(77)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Common stock dividends paid</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(330)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Preferred dividends paid</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(12)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(88)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Preferred stock with mandatory redemption provisions redeemed</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(122)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(15)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Preferred stock without mandatory redemption provisions redeemed</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(36)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</P>
<P ALIGN="RIGHT"></FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Common stock repurchased</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(960)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other, net</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">69&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(2)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Net cash used in financing activities</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,211)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(524)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Net change in cash and cash equivalents</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">73&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,999)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Cash and cash equivalents at January 1</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">783&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,979&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Cash and cash equivalents at September 30</B></FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">856&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">980&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Supplemental disclosures of cash flow information</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Cash received for:</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=19>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reorganization interest income</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Cash paid for:</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest (net of amounts capitalized)</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">360&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">466&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid, net</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,047&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">94&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reorganization professional fees and expenses</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">21&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Supplemental disclosures of noncash investing and financing activities</B></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity contribution for settlement of POR payable</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(128)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer of liabilities and other payables subject to compromise <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to operating assets and liabilities</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">(2,877)</FONT></TD>
</TR>
<TR><TD WIDTH="72%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=6 HEIGHT=16>
<FONT SIZE=2><P ALIGN="CENTER">See accompanying Notes to the Condensed Consolidated Financial Statements.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>


<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER"><A NAME="org_and_basis_of_presentation_and_eps"></A>NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</P>
</B><P ALIGN="JUSTIFY"></P>
<B><P><A NAME="_NOTE_1:_"></A>NOTE 1:  GENERAL</P>
</B><P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Organization and Basis of Presentation </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation, incorporated in California in 1995, is a holding company whose primary purpose is to hold interests in energy based businesses.  The company conducts its business principally through Pacific Gas and Electric Company, or the Utility, a public utility operating in northern and central California.  The Utility, which was incorporated in California in 1905, engages primarily in the businesses of electricity and natural gas distribution, electricity generation, electricity transmission, and natural gas procurement, transportation and storage.  PG&amp;E Corporation became the holding company of the Utility and its subsidiaries on January 1, 1997.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Quarterly Report on Form 10-Q is a combined report of PG&amp;E Corporation and the Utility.  Therefore, the Notes to the unaudited Condensed Consolidated Financial Statements apply to both PG&amp;E Corporation and the Utility.  PG&amp;E Corporation's Condensed Consolidated Financial Statements include the accounts of PG&amp;E Corporation, the Utility, and other wholly owned and controlled subsidiaries.  The Utility's Condensed Consolidated Financial Statements include its accounts and those of its wholly owned and controlled subsidiaries, and variable interest entities for which consolidation is required by applicable accounting standards.  All intercompany transactions have been eliminated from the Condensed Consolidated Financial Statements.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying interim unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP, for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission, or SEC, and do not contain all of the information and footnotes required by GAAP and the SEC for annual financial statements.  Both PG&amp;E Corporation's and the Utility's Condensed Consolidated Balance Sheets at December 31, 2004, were derived from the audited Consolidated Balance Sheets included in their joint Current Report on Form 8-K dated October 28, 2005, as amended on October 31, 2005, or the 2004 Financial Report. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accounting policies used by PG&amp;E Corporation and the Utility include those necessary for rate-regulated enterprises, which reflect the ratemaking policies of the California Public Utilities Commission, or CPUC, and the Federal Energy Regulatory Commission, or FERC.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions.  These estimates and assumptions affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingencies and include, but are not limited to, estimates and assumptions used in determining the Utility's regulatory asset and liability balances based on probability assessments of regulatory recovery, revenues earned but not yet billed (including delayed billings), disputed claims, asset retirement obligations, allowance for doubtful accounts receivable, environmental remediation liabilities, pension liabilities, mark-to-market accounting under Statement of Financial Accounting Standards, or SFAS, No. 133 "Accounting for Derivative Instruments and Hedging Activities," as amended, or SFAS No. 133, income tax related liabilities, litigation, and the Utility's review for impairment of long-lived assets and certain identifiable intangibles to be held and used whenever events or changes in circumstances indicate that the carrying amount of its assets might not be recoverable.  As these estimates and assumptions involve judgments based on a wide range of factors, including future regulatory decisions and economic conditions that are difficult to predict, actual results could differ materially from these estimates and assumptions.  A change in management's estimates or assumptions could have a material impact on PG&amp;E Corporation's and the Utility's financial condition and results of operations during the period in which such change occurred.  PG&amp;E Corporation's and the Utility's Condensed Consolidated Financial Statements reflect all adjustments that management believes are necessary for the fair presentation of their financial condition and results of operations for the periods presented.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the Utility's proceeding under Chapter 11 of the U.S. Bankruptcy Code, or Chapter 11, PG&amp;E Corporation's and the Utility's Consolidated Financial Statements were presented in accordance with the American Institute of Certified Public Accountants' Statement of Position 90-7, "Financial Reporting by Entities in Reorganization Under the Bankruptcy Code," or SOP 90-7.  Under SOP 90-7, professional fees and expenses directly related to the Utility's Chapter 11 proceeding and interest income on funds accumulated during the Chapter 11 proceedings were reported separately as reorganization items.  The Utility discontinued the application of SOP 90-7 upon its emergence from Chapter 11 on April 12, 2004 when the Utility's plan of reorganization under Chapter 11 became effective, or the Effective Date.  As discussed below, in Note 2, the U.S. Bankruptcy Court for the Northern District of California, which oversaw the Utility's Chapter 11 proceeding, retains jurisdiction, among other things, to resolve the remaining disputed claims made in the Utility's Chapter 11 proceeding. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This quarterly report should be read in conjunction with PG&amp;E Corporation's and the Utility's Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in their 2004 Financial Report. </P>

<B><I><P ALIGN="JUSTIFY">Earnings Per Common Share </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings per common share is calculated, utilizing the "two-class" method, by dividing the sum of distributed earnings to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding during the period.  In applying the "two-class" method, undistributed earnings are allocated to both common shares and participating securities.  PG&amp;E Corporation's $280 million of 9.50% Convertible Subordinated Notes due 2010, or Convertible Subordinated Notes, are entitled to receive (non-cumulative) dividend payments prior to exercising the conversion option and meet the criteria of a participating security.  The Convertible Subordinated Notes are convertible at the option of the holders into 18,558,655 common shares.  All PG&amp;E Corporation's participating securities participate on a 1:1 basis in dividends with common shareholders.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation applies the treasury stock method of reflecting the dilutive effect of outstanding stock-based compensation in the calculation of diluted earnings per share, or EPS, in accordance with SFAS No. 128, "Earnings Per Share," or SFAS 128.  SFAS 128 requires that proceeds from the exercise of options and warrants shall be assumed to be used to purchase common shares at the average market price during the reported period.  The incremental shares, the difference between the number of shares assumed issued upon exercise and the number of shares assumed purchased, shall be included in weighted average common shares used for the calculation of diluted EPS.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a reconciliation of PG&amp;E Corporation's net income and weighted average common shares outstanding for calculating basic and diluted earnings per common share: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=563>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="23%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="23%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions, except per share amounts)</B></FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="23%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=4 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Net Income </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">252&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">737&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Less: distributed earnings to common shareholders </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">111&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">334&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Undistributed earnings </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">141&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">403&nbsp;  </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Less: Undistributed earnings from discontinued operations</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Undistributed earnings from continuing operations</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">128&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">390&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Common shareholders earnings</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><I><FONT SIZE=2><P>Basic</B></I></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Distributed earnings to common shareholders</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">111&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">334&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Undistributed earnings allocated to common shareholders - continuing operations</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">122&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">218&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">371&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,467&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Undistributed earnings allocated to common shareholders - discontinued operations</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Total common shareholders earnings, basic</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">245&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">218&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">717&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,467&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<B><I><FONT SIZE=2><P>Diluted</B></I></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Distributed earnings to common shareholders</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">111&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">334&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Undistributed earnings allocated to common shareholders - continuing operations</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">122&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">218&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">371&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,471&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Undistributed earnings allocated to common shareholders - discontinued operations</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Total common shareholders earnings, diluted</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">245&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">218&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">717&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,471&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Weighted average common shares outstanding, basic</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">372&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">399&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">376&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">397&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>9.50% Convertible Subordinated Notes</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Weighted average common shares outstanding and participating securities, basic</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">391&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">418&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">395&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">416&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Weighted average common shares outstanding, basic</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">372&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">399&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">376&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">397&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Employee stock-based compensation </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>PG&amp;E Corporation warrants</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Weighted average common shares outstanding, diluted</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">376&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">408&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">380&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">406&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>9.50% Convertible Subordinated Notes</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Weighted average common shares outstanding and participating securities, diluted</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">395&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">427&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">399&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">425&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Net earnings per common share, basic</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Distributed earnings, basic</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.30&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.89&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Undistributed earnings - continuing operations, basic</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.33&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.55&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.99&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8.73&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Undistributed earnings - discontinued operations, basic</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.03&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.03&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Total</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.66&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.55&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1.91&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8.73&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Net earnings per common share, diluted</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Distributed earnings, diluted</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.30&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.88&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Undistributed earnings - continuing operations, diluted</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.32&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.53&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.98&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8.55&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Undistributed earnings - discontinued operations, diluted</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.03&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.03&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Total</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.65&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.53&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1.89&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8.55&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following options to purchase PG&amp;E Corporation common shares were outstanding, but not included in the computation of diluted EPS because the option exercise prices were greater than the average market price: nine months ended September 30, 2005 - 23,000, nine months ended September 30, 2004 - 8,045,805, three months ended September 30, 2005 - 23,000, and three months ended September 30, 2004 - 7,705,881.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation reflects the preferred dividends of subsidiaries as other expense for computation of both basic and diluted earnings per common share.</P>
<P></A></P>
<B><I><P><A NAME="consolidation_of_vies_and_new_acctg_pol">Consolidation of Variable Interest Entities  </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An entity is a variable interest entity, or VIE, if it does not have sufficient equity investment at risk, or if the holders of the entity's equity instruments lack the essential characteristics of a controlling financial interest.  The Financial Accounting Standards Board's, or FASB's, Interpretation No. 46, ''Consolidation of Variable Interest Entities,'' or FIN 46R, requires that the company that is subject to a majority of the risk of loss from a VIE's activities, or is entitled to receive a majority of the entity's residual returns, or both, consolidate the VIE.  A company that consolidates a VIE is called the primary beneficiary.</P>

<I><P>Low-Income Housing Partnerships </P>
</I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility invests in low-income housing partnerships, or LIHPs.  The entities were formed to invest in low-income housing projects sponsored by non-profit organizations in the state of California.  The Utility is the primary beneficiary of one LIHP, resulting in its consolidation and an increase in total assets and total liabilities of $10 million in PG&amp;E Corporation's and the Utility's Consolidated Balance Sheets.  The consolidated LIHP has issued debt in the amount of $2 million, which is secured by assets of the partnership, totaling $25 million, and the Utility's commitment to make capital infusions of approximately $8 million over the next three years.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility is not considered to be the primary beneficiary of any other LIHPs.  The maximum exposure to loss from its investment in unconsolidated LIHPs is the Utility's investment of $4 million at September 30, 2005.</P>
<I>
<P>Power Purchase Agreements</P>
</I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The nature of power purchase agreements is such that the Utility could have a significant variable interest in a power purchase agreement counterparty.  The Utility has determined that none of its current power purchase agreements represent significant variable interests.  The FASB added a project to its agenda in March 2005 to review how companies determine whether an arrangement is a variable interest.  Their findings could impact how the determination is applied to the Utility's power purchase agreements in the future.</P>

<B><P ALIGN="JUSTIFY">New Accounting Policies</P>
</B>
<B><I><P>Accounting and Disclosure Requirements Related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2004, FASB issued Staff Position SFAS No. 106-2, "Accounting and Disclosure Requirements Related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003," or FSP 106-2.  FSP 106-2 provides guidance on the accounting, disclosure, effective date, and transition requirements related to the Medicare Prescription Drug Act.  FSP 106-2 was effective and adopted for the third quarter of 2004.  The Utility's postretirement medical plan, or the Plan, did not qualify for the federal subsidy under the preliminary regulations.  Subsequently on January 21, 2005, the U.S. Department of Health and Human Services issued the final regulations on prescription drug benefits.  The final regulations did not have a material impact on the Condensed Consolidated Financial Statements.  The receipt of the federal subsidy commences in January 2006.  </P>

<B><I><P>Accounting Requirements Related to the Tax Deduction Provided by the American Jobs Creation Act of 2004</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December 2004, FASB issued Staff Position FAS No. 109-1, "Application of FASB Statement No. 109, 'Accounting for Income Taxes,' to the Tax Deduction on Qualified Production Activities Provided by the American Jobs Creation Act of 2004," or FSP 109-1.  FSP 109-1 indicates that the tax deduction on qualified production activities should be accounted for as a special deduction rather than as a rate reduction.  Any benefit from the deduction on qualified production activities is to be reported during the year in which the deduction is claimed.  FSP 109-1 was effective upon issuance.  The adoption of FSP 109-1 did not have a material impact on the Consolidated Financial Statements of PG&amp;E Corporation or the Utility.  </P>

<B><P>Accounting Pronouncements Issued But Not Yet Adopted </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following new accounting standards were issued, but have not yet been adopted by PG&amp;E Corporation and the Utility as of September 30, 2005:</P>

<B><I><P>Share-Based Payment Transactions</I></FONT> </P>
</B><FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December 2004, the FASB issued Statement of Financial Accounting Standards, or SFAS, No. 123 (revised December 2004), "Share-Based Payment," or SFAS No. 123R.  SFAS No. 123R requires that the cost of all share-based payment transactions be recognized in the financial statements and establishes a fair-value measurement objective in determining the value of such costs.  In accordance with SFAS No. 123R, compensation expense for awards that vest should be measured over the requisite service period.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility are currently expensing share-based awards over the stated vesting period regardless of terms that accelerate vesting upon retirement.  Compensation expense for awards granted subsequent to the adoption of SFAS 123R will be recognized over the shorter of 1) the stated vesting period, or 2) the period from the date of grant through the date the employee is no longer required to provide service to vest. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 14, 2005, the SEC amended the compliance date and allowed public companies with calendar year-ends to adopt SFAS No. 123R in the first quarter of 2006.  PG&amp;E Corporation and the Utility are currently evaluating the impact of SFAS No. 123R on their Consolidated Financial Statements.</P>

<B><I><P>Conditional Asset Retirement Obligations </P>
</B>
</I><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March 2005, the FASB issued Interpretation No. 47, "Accounting for Conditional Asset Retirement Obligations - an Interpretation of FASB Statement No. 143," or FIN 47.  FIN 47 clarifies that a conditional asset retirement obligation refers to a legal obligation to perform an asset retirement activity.  Accordingly, an entity is required to recognize a liability for the fair value of a conditional asset retirement obligation if the fair value of the obligation can be reasonably estimated.  FIN 47 will be effective for the fourth quarter of 2005.  PG&amp;E Corporation and the Utility are currently evaluating the impact of FIN 47 on their Consolidated Financial Statements.</P>
<B>
<I><P>Accounting Changes and Error Corrections </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2005, the FASB issued FASB Statement No. 154, "Accounting Changes and Error Corrections Disclosure," or SFAS No. 154.  SFAS No. 154 replaces Accounting Principles Board, or APB, Opinion No. 20, "Accounting Changes, " or APB No. 20, and FASB Statement No. 3, "Reporting Accounting Changes in Interim Financial Statements," or SFAS No. 3.  SFAS No. 154 requires retrospective application to prior periods' financial statements of changes in accounting principle unless it is impracticable.  This Statement applies to all voluntary changes in accounting principle.  SFAS No. 154 is effective for the first quarter of 2006.  </P>
<P></A></P>
<B><P ALIGN="JUSTIFY"><A NAME="related_parties">Related Party Agreements and Transactions </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with various agreements, the Utility and other subsidiaries provide and receive various services to and from their parent, PG&amp;E Corporation, and among themselves.  The Utility and PG&amp;E Corporation exchange administrative and professional services in support of operations.  Services provided directly by the Utility to PG&amp;E Corporation are priced either at the fully loaded cost (<I>i.e.</I>, direct costs and allocations of overhead costs) or at the higher of fully loaded cost or fair market value, depending on the nature of the services.  Services provided directly by PG&amp;E Corporation to the Utility are priced either at the fully loaded cost or at the lower of fully loaded cost or fair market value, depending on the nature of the services.  PG&amp;E Corporation also allocates certain other corporate administrative and general costs, at cost, to the Utility and other subsidiaries using agreed upon allocation factors, including the number of employees, operating expenses excluding fuel purchases, total assets, etc.  The Utility purchases natural gas transportation services from Gas Transmission Northwest Corporation, or GTNW, formerly known as PG&amp;E Gas Transmission, Northwest Corporation.  GTNW is no longer a related party after the cancellation of PG&amp;E Corporation's equity interest in National Energy &amp; Gas Transmission, Inc., or NEGT, on the effective date of its plan of reorganization, October 29, 2004.  Through July 7, 2003, all significant intercompany transactions with NEGT and its subsidiaries were eliminated in consolidation; therefore, no profit or loss resulted from these transactions.  Beginning July 8, 2003, the Utility's transactions with NEGT are no longer eliminated in consolidation.  The Utility's significant related party transactions and related receivable (payable) balances were as follows: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=678>
<TR><TD WIDTH="35%" VALIGN="TOP" COLSPAN=2 HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 ROWSPAN=2 HEIGHT=19><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=6 ROWSPAN=2 HEIGHT=19>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 ROWSPAN=2 HEIGHT=19><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=5 ROWSPAN=2 HEIGHT=19>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" ROWSPAN=2 HEIGHT=19><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=19>
<B><FONT SIZE=2><P ALIGN="CENTER">Receivable (Payable)<BR>
 Balance Outstanding at</B></FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=6 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" COLSPAN=6 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">December 31,</B></FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=6 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" COLSPAN=6 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=19>
<B><FONT SIZE=2><P>Utility revenues from:</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P>Administrative services provided to<BR>
&nbsp;&nbsp;&nbsp;PG&amp;E Corporation</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=19><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=20>
<B><FONT SIZE=2><P>Utility expenses from:</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=20><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=20><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P>Administrative services received from<BR>
&nbsp;&nbsp;&nbsp;PG&amp;E Corporation</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=37><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P ALIGN="RIGHT">21&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P ALIGN="RIGHT">23&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=37><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P ALIGN="RIGHT">70&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P ALIGN="RIGHT">65&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P ALIGN="RIGHT">(22)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=37>
<FONT SIZE=2><P ALIGN="RIGHT">(20)</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=19>
<FONT SIZE=2><P>Interest accrued on pre-petition liability due </P>
<P>&nbsp;&nbsp;&nbsp;to PG&amp;E Corporation</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P>Natural gas transportation services received<BR>
&nbsp;&nbsp;&nbsp;from GTNW</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=19><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">14&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=19><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">43&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=19><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=19>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P></A></P>
<B><P><A NAME="regulation_and_sfas_no71">Regulation and Statement of Financial Accounting Standards No.&nbsp;71</B> </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility account for the financial effects of regulation in accordance with SFAS No. 71,"Accounting for the Effects of Certain Types of Regulation," as amended, or SFAS No.&nbsp;71.  SFAS No.&nbsp;71 applies to regulated entities whose rates are designed to recover the costs of providing service.  The Utility is regulated by the CPUC, the FERC and the Nuclear Regulatory Commission, or NRC, among others.  SFAS No.&nbsp;71 applies to all of the Utility's operations except for the operations of a natural gas pipeline.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS No.&nbsp;71 provides for recording regulatory assets and liabilities when certain conditions are met.  Regulatory assets represent the capitalization of incurred costs that would otherwise be charged to expense when it is probable that the incurred costs will be included for ratemaking purposes in the future.  Amortization of regulatory assets is charged to expense during the period that the costs are reflected in regulated revenues.  Regulatory liabilities represent rate actions of a regulator that will result in amounts that are to be credited to customers through the ratemaking process.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent that portions of the Utility's operations cease to be subject to SFAS No.&nbsp;71 or recovery is no longer probable as a result of changes in regulation or the Utility's competitive position, the related regulatory assets and liabilities are written off.</P>
<P></A></P>
<B><P ALIGN="JUSTIFY"><A NAME="reg_assets_liab_and_balancing_accounts">Regulatory Assets  </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory assets are comprised of the following: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=547>
<TR><TD WIDTH="65%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5>
<B><FONT SIZE=2><P ALIGN="CENTER">Balance At</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM">
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">December 31,</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Settlement regulatory asset</FONT></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,190&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,188&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Energy recovery bond regulatory asset</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,734&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Utility retained generation regulatory assets</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,120&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,181<B>&nbsp;</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Rate reduction bond assets</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">527&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">741&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Regulatory assets for deferred income tax</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">525&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">490&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Unamortized loss, net of gain, on reacquired debt</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">328&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">345&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Environmental compliance costs</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">244&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">192&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Regulatory assets associated with plan of reorganization</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">165&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">182&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Post-transition period contract termination costs</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">134&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">142&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Other, net</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">33&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">65&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Total regulatory assets</B></FONT></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,000&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,526&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In light of the satisfaction of various conditions to the implementation of the Utility's plan of reorganization, the accounting probability standard required to be met under SFAS No. 71 in order for the Utility to recognize the regulatory assets provided under the Settlement Agreement (as described in Note 2) was met as of March 31, 2004.  Therefore, the Utility recorded the $3.7 billion, pre-tax ($2.2 billion, after-tax), regulatory asset established under the Settlement Agreement, or the Settlement Regulatory Asset, and $1.2 billion, pre-tax ($0.7 billion, after-tax), for the Utility retained generation regulatory assets in the first quarter of 2004 (see Note 2 for further discussion).  As of December 31, 2004, the Utility had recorded pre-tax offsets to the Settlement Regulatory Asset of approximately $309 million ($183 million, after-tax) for supplier settlements and approximately $233 million ($138 million, after-tax) for amortization of the Settlement Regulatory Asset.  For the nine months ended September 30, 2005, the Utility recorded amortization of the Settlement Regulatory Asset of approximately $125 million ($75 million, after-tax). </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 10, 2005, PG&amp;E Energy Recovery Funding, LLC, or PERF, a limited liability company wholly owned and consolidated by the Utility (but legally separate from the Utility), issued the first series of energy recovery bonds, or ERBs, for approximately $1.9 billion to refinance the remaining after-tax balance of the Settlement Regulatory Asset.  As a result of the issuance of ERBs, the pre-tax Settlement Regulatory Asset was reduced to approximately $1.3 billion (representing the deferred tax liability associated with the collection of the revenues for the ERBs) and the Utility has recorded a regulatory asset related to the ERBs of approximately $1.9 billion.  For the nine months ended September 30, 2005, the Utility recorded amortization of the energy recovery bond regulatory asset of approximately $139 million. </P>
<P ALIGN="JUSTIFY"></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's rate reduction bond asset represents electric industry restructuring costs that the Utility expects to collect over the life of the bonds.  The regulatory assets for deferred income tax represent deferred income tax benefits that have already been passed through to customers and are offset by deferred income tax liabilities.  Tax benefits to customers have been passed through as the CPUC requires utilities under its jurisdiction to follow the "flow through" method of passing benefits to customers.  The "flow through" method ignores the effect of deferred taxes on rates.  The regulatory asset related to unamortized loss, net of gain, on reacquired debt represents costs on debt reacquired or redeemed prior to maturity with associated discount and debt issuance costs.  Environmental compliance costs are costs incurred by the Utility for environmental remediation.  Regulatory assets associated with the plan of reorganization include costs incurred in financing the Utility's exit from Chapter 11 and costs to oversee the environmental enhancement of the Pacific Forest and Watershed Stewardship Council, an entity that was established pursuant to the Utility's plan of reorganization.  The post-transition period contract termination costs represent amounts the Utility incurred in terminating a 30-year power purchase agreement.  These regulatory assets are recoverable from customers in future rates.</P>
<P ALIGN="JUSTIFY"></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In general, the Utility does not earn a return on regulatory assets where the related costs do not accrue interest.  Accordingly, the only regulatory asset on which the Utility earns a return are the regulatory assets relating to the Utility's retained generation and unamortized loss, net of gain on reacquired debt.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Settlement Agreement authorizes the Utility to earn an 11.22% rate of return on equity on its rate base, including the after-tax amount of the Settlement Regulatory Asset and the retained generation regulatory assets.  Since the refinancing of the remaining unamortized after-tax balance of the Settlement Regulatory Asset on February 10, 2005 through the issuance of the first series of ERBs, the Utility no longer earns this 11.22% rate of return on the Settlement Regulatory Asset as it is no longer a part of rate base. </P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">Regulatory Liabilities </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory liabilities are comprised of the following:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=539>
<TR><TD WIDTH="66%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="34%" VALIGN="BOTTOM" COLSPAN=5>
<B><FONT SIZE=2><P ALIGN="CENTER">Balance At</B></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="34%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM">
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">December 31,</B></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Cost of removal obligation</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,100&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,990&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Asset retirement costs</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">708&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">700&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Employee benefit plans</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">547&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">687&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Public purpose programs</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">194&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">191&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Rate reduction bonds</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">167&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">182&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Other</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">219&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">285&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Total regulatory liabilities</B></FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,935&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4,035&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's regulatory liabilities related to costs of removal represent revenues collected for asset removal costs that the Utility expects to incur in the future.  The regulatory liability associated with asset retirement costs represents timing differences between the recognition of nuclear and fossil decommissioning obligations in accordance with GAAP applicable to non-regulated entities under SFAS No. 143, "Accounting for Asset Retirement Obligations," or SFAS No. 143, and the amounts recognized for ratemaking purposes.  The Utility's regulatory liabilities related to employee benefit plan expenses represent the cumulative differences between expenses recognized for financial accounting purposes and expenses recognized for ratemaking purposes.  These balances will be charged against expense to the extent that future financial accounting expenses exceed amounts recoverable for regulatory purposes.  The Utility's regulatory liability related to public purpose programs represents revenues designated for public purpose program costs that are expected to be incurred in the future.  The Utility's regulatory liability for rate reduction bonds represents the deferral of over-collected revenue associated with the rate reduction bonds that the Utility expects to return to customers in the future. </P>

<B><P ALIGN="JUSTIFY">Regulatory Balancing Accounts </P>
</B><P ALIGN="JUSTIFY"></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales balancing accounts accumulate differences between revenues and the Utility's authorized revenue requirements.  Cost balancing accounts accumulate differences between incurred costs and revenues.  Under-collections that are probable of recovery through regulated rates are recorded as regulatory balancing account assets.  Over-collections that are probable of being credited to customers are recorded as regulatory balancing account liabilities.  The Utility's regulatory balancing accounts accumulate balances until they are refunded to or received from the Utility's customers through authorized rate adjustments.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility expects to collect from or refund to its customers the balances included in current balancing accounts receivable and payable within the next twelve months.  Regulatory balancing accounts that the Utility does not expect to collect or refund in the next twelve months are included in non-current regulatory assets and liabilities. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of settlements that the Utility has entered into with various power suppliers (see further discussion in Note 7 of the Notes to the Condensed Consolidated Financial Statements) and other activities related to the ERBs, the balance in the Energy Recovery Bond Balancing Account, or the ERBBA, which tracks recovery of customer costs and benefits related to the ERBs, is a liability of approximately $364 million as of September 30, 2005. </P>
<P></A></P>
<B><I><P ALIGN="JUSTIFY"><A NAME="stock_based_comp_and_restricted_stock">Stock-Based Compensation</I> </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility apply the intrinsic-value method prescribed in APB Opinion No. 25, "Accounting for Stock Issued to Employees," in accounting for employee stock-based compensation, as allowed by SFAS No. 123, "Accounting for Stock-Based Compensation," or SFAS No. 123, as amended by SFAS No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure, an Amendment of FASB Statement No. 123," or SFAS No. 148.  Under the intrinsic-value method, PG&amp;E Corporation and the Utility do not recognize any compensation expense for stock options, as the exercise price is equal to the fair market value of a share of PG&amp;E Corporation common stock at the time the options are granted.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tables below show the effect on net income and earnings per common share for PG&amp;E Corporation and the Utility had it elected to account for its stock-based compensation plans using the fair-value method under SFAS No. 123 for the three and nine months ended September 30, 2005 and 2004: </P>
<P> </P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=643>
<TR><TD WIDTH="50%" VALIGN="BOTTOM">
<B><FONT SIZE=2><P>(in millions, except per share amounts)</B></FONT></TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=7>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="23%" VALIGN="BOTTOM" COLSPAN=7>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=7>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="23%" VALIGN="BOTTOM" COLSPAN=7>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=7 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="23%" VALIGN="BOTTOM" COLSPAN=7 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=14>
<B><FONT SIZE=2><P>Net earnings:</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>As reported</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">252&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">737&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Deduct: Total stock-based employee compensation</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;expense determined under the fair value based method</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for all awards, net of related tax effects</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">10&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">10&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=2><P>Pro forma</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=2><P ALIGN="RIGHT">249&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=2><P ALIGN="RIGHT">225&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=2><P ALIGN="RIGHT">727&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=2><P ALIGN="RIGHT">3,623&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=3 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=3 HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<B><FONT SIZE=2><P>Basic earnings per common share:</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>As reported</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">0.66&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">0.55&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">1.91&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">8.73&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>Pro forma</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">0.65&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">0.54&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">1.88&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">8.71&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=3 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=3 HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<B><FONT SIZE=2><P>Diluted earnings per common share:</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>As reported</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">0.65&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">0.53&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">1.89&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">8.55&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>Pro forma</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">0.64&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">0.53&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">1.86&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">8.57&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If compensation expense had been recognized using the fair value-based method under SFAS No.&nbsp;123, the Utility's pro forma consolidated earnings would have been as follows:</P>
<P> </P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=652>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="23%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Net earnings:</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>As reported</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">244&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">244&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">735&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,718&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" HEIGHT=46>
<FONT SIZE=2><P>Deduct: Total stock-based employee compensation expense </P>
<P>&nbsp;&nbsp;&nbsp;determined under fair value based method for all awards, &nbsp;&nbsp;&nbsp;net of related tax effects</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=46><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=46>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=46><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=46>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=46><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=46>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=46><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=46>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Pro forma</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">242&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">242&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">729&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,712&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<B><P>Restricted Stock </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2005, a total of 2,424,270 shares of restricted PG&amp;E Corporation common stock had been awarded to eligible employees of PG&amp;E Corporation and its subsidiaries, of which 1,603,430 shares were awarded to Utility employees.  PG&amp;E Corporation awarded 335,350 shares of restricted common stock during the nine months ended September 30, 2005, of which 247,300 shares were awarded to Utility employees.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The restricted shares are held in an escrow account.  The shares become available to the employees as the restrictions lapse.  Dividends payable with respect to restricted shares are not paid until the restrictions lapse.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For restricted stock granted in 2003, the restrictions on 80% of the shares lapse automatically over a period of four years at the rate of 20% per year.  The compensation expense for these shares remains fixed at the value of the stock at grant date.  Restrictions on the remaining 20% of the shares will lapse at a rate of 5% per year if PG&amp;E Corporation is in the top quartile of its comparator group as measured by annual total shareholder return for each year ending immediately before each annual lapse date.  The compensation expense recognized for these shares is variable, and changes with the common stock's market price.  As the performance criteria for 2004 were not met, 91,017 shares of restricted stock were forfeited.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted stock awards after 2003 do not contain performance criteria.  The restrictions lapse ratably over four years, from the date of award, subject to forfeiture if employment is terminated before the annual vesting date.  All restricted shares are also subject to accelerated vesting in certain circumstances, including death, disability, and change in control.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation expense associated with all the shares is recognized on a quarterly basis, by amortizing the unearned compensation related to that period.  Total compensation expense resulting from the issuance of restricted shares, as reflected on PG&amp;E Corporation's Condensed Consolidated Statements of Income, was approximately $2 million for the three months ended September 30, 2005 and approximately $3 million for the three months ended September 30, 2004, of which approximately $1 million for the three months ended September 30, 2005 and approximately $2 million for the three months ended September 30, 2004 was recognized by the Utility.  The comparable amount for the nine months ended September 30, 2005 was approximately $8 million and approximately $6 million for the nine months ended September 30, 2004, of which approximately $6 million for the nine months ended September 30, 2005 and approximately $4 million for the nine months ended September 30, 2004 was recognized by the Utility.  The total unamortized balance of unearned compensation resulting from the issuance of restricted shares, as reflected as a reduction in common shareholders' equity on PG&amp;E Corporation's Condensed Consolidated Balance Sheets was approximately $26 million at September 30, 2005 and approximately $26 million at December 31, 2004. </P>
<P></A></P>
<B><P><A NAME="comprehensive_income_and_pension">Comprehensive Income (Loss) </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation's and the Utility's comprehensive income (loss) consists principally of changes in the market value of certain cash flow hedges under SFAS No. 133, and the effects of the remeasurement of the Utility's defined benefit pension plan.</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=648>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">PG&amp;E Corporation</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Utility</B></FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=14>
<B><FONT SIZE=2><P>Three months ended September 30</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<B><FONT SIZE=2><P>Comprehensive income</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">252&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">244&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">244&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>Nine months ended September 30</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Net income available for common stock</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">737&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">735&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,718&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Net gain in other comprehensive income from current period &nbsp;&nbsp;&nbsp;hedging transactions and price changes in accordance with &nbsp;&nbsp;&nbsp;SFAS No. 133 (net of income tax expense of $2 million in 2004)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">3&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Minimum pension liability adjustment (net of income tax benefit &nbsp;&nbsp;&nbsp;of $1 million in 2005)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(2)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Other</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Comprehensive income </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">736&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,637&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">733&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,721&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PG&amp;E Corporation and the Utility did not have any other comprehensive income activity for the three months ended September 30, 2005 and September 30, 2004.</P>

<B><P>Accumulated Other Comprehensive Income (Loss) </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) reports a measure for accumulated changes in equity of an enterprise that results from transactions and other economic events, other than transactions with shareholders.  The following table sets forth the changes in each component of accumulated other comprehensive income (loss):</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=678>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=1><P>(in millions)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<B><FONT SIZE=1><P ALIGN="CENTER"> Hedging Transactions in Accordance with SFAS No. 133</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<B><FONT SIZE=1><P ALIGN="CENTER">Foreign Currency Translation Adjustment</B></FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=1><P ALIGN="CENTER">Minimum Pension Liability Adjustment</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<B><FONT SIZE=1><P ALIGN="CENTER">Other</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<B><FONT SIZE=1><P ALIGN="CENTER">Accumulated Other Comprehensive Income (Loss)</B></FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=3 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=1><P>Balance at December 31, 2003</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(81)</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(4)</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(85)</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=1><P>Period change in:</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=1><P>&nbsp;&nbsp;&nbsp;Mark-to-market adjustments for hedging <BR>
&nbsp;&nbsp;&nbsp;transactions in accordance with SFAS No. 133</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=1><P>&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=1><P>Balance at September 30, 2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(78)</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(4)</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(81)</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=1><P>Balance at December 31, 2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1)</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(4)</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(4)</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=1><P>Period change in:</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=1><P>&nbsp;&nbsp;&nbsp;Minimum pension liability adjustment </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1)</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=1><P>&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=1><P>Balance at September 30, 2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(5)</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(5)</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income (loss) included losses related to discontinued operations of approximately $77 million at December 31, 2003.  During the fourth quarter of 2004, the remaining losses of approximately $77 million included in accumulated other comprehensive income (loss) were recognized in connection with PG&amp;E Corporation's elimination of its equity interest in NEGT.  Excluding the activity related to NEGT, there was no material difference between PG&amp;E Corporation's and the Utility's accumulated other comprehensive income (loss). </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no changes in PG&amp;E Corporation's or the Utility's accumulated other comprehensive income (loss) components for the three months ended September 30, 2005 and September 30, 2004. </P>

<B><P>Pension and Other Postretirement Benefits </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility provide a non-contributory defined benefit pension plan for certain of their employees and retirees (referred to collectively as pension benefits), contributory postretirement medical plans for certain of their employees and retirees and their eligible dependents, and non-contributory postretirement life insurance plans for certain of their employees and retirees (referred to collectively as other benefits).  PG&amp;E Corporation and the Utility use a December 31 measurement date for all of their plans and use publicly quoted market values and independent pricing services depending on the nature of the assets, as reported by the trustee, to determine the fair value of the plan assets.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net periodic benefit cost as reflected in PG&amp;E Corporation's Condensed Consolidated Statements of Income for the three and nine-month periods ended September 30, 2005 and 2004 are as follows:</P>

<B><P>PG&amp;E Corporation</P>
</B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=568>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" HEIGHT=16><DIR>

<B><FONT SIZE=2><P ALIGN="JUSTIFY">(in millions)</DIR>
</B></FONT></TD>
<TD WIDTH="26%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Pension Benefits<BR>
Three Months Ended<BR>
September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Other Benefits <BR>
Three Months Ended<BR>
September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="26%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Service cost for benefits earned</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">53&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">49&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Interest cost</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">125&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">120&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">18&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">21&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Expected return on plan assets</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(151)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(140)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(21)  </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(19)</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Amortization of transition obligation</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Amortization of prior service cost</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">14&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">14&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Amortization of unrecognized loss</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Net periodic benefit cost </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">48&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">46&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">14&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;</P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=570>
<TR><TD WIDTH="45%" VALIGN="BOTTOM"><DIR>

<B><FONT SIZE=2><P ALIGN="JUSTIFY">(in millions)</DIR>
</B></FONT></TD>
<TD WIDTH="26%" VALIGN="BOTTOM" COLSPAN=6>
<B><FONT SIZE=2><P ALIGN="CENTER">Pension Benefits<BR>
Nine Months Ended<BR>
September 30,</B></FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=9>
<B><FONT SIZE=2><P ALIGN="CENTER">Other Benefits <BR>
Nine Months Ended<BR>
September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="26%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=9 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=4>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">
<FONT SIZE=2><P>Service cost for benefits earned</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">161&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">146&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">23&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">24&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM">
<FONT SIZE=2><P>Interest cost</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3>
<FONT SIZE=2><P ALIGN="RIGHT">374&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">361&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3>
<FONT SIZE=2><P ALIGN="RIGHT">55&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">63&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">
<FONT SIZE=2><P>Expected return on plan assets</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">(451)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">(422)</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">(64)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">(57)</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM">
<FONT SIZE=2><P>Amortization of transition obligation</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">
<FONT SIZE=2><P>Amortization of prior service cost</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">41&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">41&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM">
<FONT SIZE=2><P>Amortization of unrecognized loss</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3>
<FONT SIZE=2><P ALIGN="RIGHT">21&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3>
<FONT SIZE=2><P ALIGN="RIGHT">(1)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">
<FONT SIZE=2><P>Settlement loss</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0">
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM">
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Net periodic benefit cost </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">146&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">137&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="BOTTOM">
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">41&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3>
<FONT SIZE=2><P ALIGN="RIGHT">58&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#ffffff" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P><A NAME="_Utility"></A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There was no material difference between the Utility's and PG&amp;E Corporation's consolidated net periodic benefit cost. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under SFAS No. 71, regulatory adjustments are recorded in the Consolidated Statements of Income and Consolidated Balance Sheets of the Utility to reflect the difference between Utility pension expense or income for accounting purposes and Utility pension expense or income for ratemaking, which is based on a funding approach.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility contributed approximately $20 million for Pension Benefits to fund voluntary retirement program obligations during the third quarter 2005 and expect to contribute approximately $57 million for Other Benefits during the fourth quarter 2005.  These anticipated contributions are consistent with PG&amp;E Corporation's and the Utility's funding policy, which is to contribute amounts that are tax deductible, consistent with applicable regulatory decisions and sufficient to meet minimum funding requirements.  None of these benefit plans are subject to a minimum funding requirement in 2005.  The Utility's pension benefit plans met all the funding requirements under the Employee Retirement Income Security Act of 1974, as amended.</P>
<P> </P>
<B><P>Restricted Cash Classification on Statement of Cash Flows </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility have changed the classification of changes in certain restricted cash balances in their Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2005, to present such changes as an investing activity.  These changes in restricted cash balances were previously presented as an operating activity.  In the accompanying Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2004, PG&amp;E Corporation and the Utility have reclassified changes in restricted cash balances to be consistent with the 2005 presentation, which resulted in a $150 million increase in investing cash flows and a corresponding decrease in operating cash flows from the amounts previously reported by both PG&amp;E Corporation and the Utility.</P>
<P></A></P>
<B><P><A NAME="note_2"></A>NOTE 2:  THE UTILITY'S EMERGENCE FROM CHAPTER 11</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the California energy crisis, the Utility filed a voluntary petition for relief under the provisions of Chapter 11 on April 6, 2001.  The Utility retained control of its assets and was authorized to operate its business as a debtor-in-possession during its Chapter 11 proceeding.  PG&amp;E Corporation and the subsidiaries of the Utility, including PG&amp;E Funding LLC, which issued rate reduction bonds and PG&amp;E Holdings LLC, which holds stock of the Utility, were not included in the Utility's Chapter 11 proceeding.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 12, 2004, the Utility emerged from Chapter 11 when its plan of reorganization became effective, or the Effective Date.  The plan of reorganization incorporated the terms of the Settlement Agreement approved by the CPUC on December 18, 2003, and entered into among the CPUC, the Utility and PG&amp;E Corporation on December 19, 2003, to resolve the Utility's Chapter 11 proceeding.  Although the Utility's operations are no longer subject to the oversight of the bankruptcy court, the bankruptcy court retains jurisdiction to hear and determine disputes arising in connection with the interpretation, implementation or enforcement of (1) the Settlement Agreement, (2) the plan of reorganization, and (3) the bankruptcy court's December 22, 2003 order confirming the plan of reorganization.  In addition, the bankruptcy court retains jurisdiction to resolve remaining disputed claims.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In light of the satisfaction of various conditions to the implementation of the plan of reorganization, the accounting probability standard required to be met under SFAS No. 71, in order for the Utility to recognize the regulatory assets provided under the Settlement Agreement was met as of March 31, 2004.  Therefore, the Utility recorded the $2.2 billion, after-tax ($3.7 billion, pre-tax) Settlement Regulatory Asset, and $0.7 billion, after-tax ($1.2 billion, pre-tax), for the Utility retained generation regulatory assets.  Refer to the 2004 Financial Report for further discussion of the Settlement Agreement.  On February 10, 2005, the Utility refinanced the remaining unamortized after-tax portion of the Settlement Regulatory Asset as discussed in Note 4.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September 30, 2005, the Utility had accrued approximately $1.3 billion for remaining net disputed claims, consisting of approximately $1.8 billion of accounts payable-disputed claims primarily payable to the California Independent System Operator, or ISO, and the Power Exchange, or the PX, offset by an accounts receivable amount from the ISO and the PX of approximately $0.5 billion.  At December 31, 2004, the Utility had accrued approximately $2.1 billion for remaining disputed claims.  Since December 31, 2004, the Utility has made payments to creditors of approximately $6 million in settlement of disputed claims and, as a result of settlements reached with creditors, has reduced the disputed claims balance by approximately $295 million.  The Utility held $1.3 billion in escrow for the payment of the remaining disputed claims as of September 30, 2005.  Upon resolution of these claims and under the terms of the Settlement Agreement, any refunds, claims offsets or other credits that the Utility receives from energy suppliers will be returned to customers.  With the approval of the bankruptcy court, the Utility has withdrawn certain amounts from the escrow in connection with settlements with certain ISO and PX sellers.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Two former CPUC commissioners who did not vote to approve the Settlement Agreement filed an appeal of the bankruptcy court's confirmation order with the U.S. District Court for the Northern District of California, or the District Court.  On July 15, 2004, the District Court dismissed their appeal.  The former commissioners have appealed the District Court's order to the U.S. Court of Appeals for the Ninth Circuit, or Ninth Circuit.  Briefing is complete, and the Ninth Circuit is likely to schedule oral arguments on the appeal by the end of the year.  If the bankruptcy court's confirmation order is overturned or modified on appeal, PG&amp;E Corporation's and the Utility's financial condition and results of operations, and the Utility's ability to pay dividends or otherwise make distributions to PG&amp;E Corporation, could be materially adversely affected.  PG&amp;E Corporation and the Utility believe the former commissioners' appeal of the confirmation order is without merit and will be rejected.</P>

<B><P><A NAME="note_3_debt"><A NAME="note_3">NOTE 3:  DEBT</P>
</B>
<B><P>Long-Term Debt</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes PG&amp;E Corporation's and the Utility's long-term debt: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=619>
<TR><TD WIDTH="71%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=6>
<B><FONT SIZE=2><P ALIGN="CENTER">Balance At</B></FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="TOP">
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30, 2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3>
<B><FONT SIZE=2><P ALIGN="CENTER">December 31, 2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=14>
<B><FONT SIZE=2><P>PG&amp;E Corporation </B></FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Convertible subordinated notes, 9.50%, due 2010</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">280&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">280&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other long-term debt</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Less: current portion</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(1)</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">280&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">280&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=14>
<B><FONT SIZE=2><P>Utility </B></FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;First mortgage bonds/senior notes</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.60% to 6.05% bonds, due 2009-2034</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">5,100&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">6,200&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unamortized discount, net of premium</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(17)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(17)</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total first mortgage bonds/senior notes</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">5,083&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">6,183&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Pollution control bond loan agreements, variable rates, due 2026</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">614&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">614&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Pollution control bond loan agreement, 5.35%, due 2016</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">200&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">200&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Pollution control bond loan agreements, 3.50%, due 2023</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">345&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">345&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=15>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Pollution control bond loan agreements, variable rates, due 2016-2026</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">454&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=15><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Pollution control bond reimbursement obligations, variable rates, due 2005</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">454&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Less: current portion</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(2)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(757)</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Long-term debt, net of current portion</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">6,696&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">7,043&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<B><FONT SIZE=2><P>Total consolidated long-term debt, net of current portion</B></FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">6,976&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">7,323&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="71%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the pollution control bond loan agreements, the Utility is obligated to pay on the due dates to the trustee for the account of the conduit state agencies, an amount equal to the principal of, premium, if any, and interest on the bonds, which were issued for the benefit of the Utility.  In order to enhance the credit ratings of these bonds, the Utility has obtained credit support from banks and insurance companies.  These third parties have reimbursement agreements covering the terms of the Utility's debt service repayment amounts.  This additional layer of credit support gives bondholders comfort that, in the event that the Utility does not pay debt servicing costs, the banks or insurance companies will step in and pay the debt servicing costs, which is represented in the following table:  </P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=647>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>Other Long-Term Debt Guarantees<SUP>(1)</B></SUP></FONT></TD>
<TD WIDTH="19%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16><P></P></TD>
<TD WIDTH="19%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="19%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16><P></P></TD>
<TD WIDTH="19%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P>Utility </B></FONT></TD>
<TD WIDTH="19%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">At September 30, 2005</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=26>
<B><FONT SIZE=2><P>Facility</B></FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26>
<B><FONT SIZE=2><P ALIGN="CENTER">Series</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26>
<B><FONT SIZE=2><P ALIGN="CENTER">Termination Date</B></FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=26>
<B><FONT SIZE=2><P ALIGN="RIGHT">Commitment</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=26><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26>
<B><FONT SIZE=2><P ALIGN="CENTER">Outstanding</B></FONT></TD>
</TR>
<TR><TD WIDTH="27%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP" COLSPAN=3 HEIGHT=26>
<FONT SIZE=2><P>Pollution control bond bank reimbursement agreements</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=26>
<FONT SIZE=2><P>96 C, E, F, <BR>
97 B</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>
<FONT SIZE=2><P>April 2010</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=26><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">620</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">620</FONT></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=26>
<FONT SIZE=2><P>Pollution control bond -- bond insurance reimbursement agreements</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=26>
<FONT SIZE=2><P>96A</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26>
<FONT SIZE=2><P>December 2016</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26>
<SUP><FONT SIZE=2><P>(2)</SUP></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">200</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=26><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">200</FONT></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP" COLSPAN=3 HEIGHT=26>
<FONT SIZE=2><P>Pollution control bond -- bond insurance reimbursement agreements</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=26>
<FONT SIZE=2><P>2004 A -- D</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=26>
<FONT SIZE=2><P>December 2023</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=26>
<SUP><FONT SIZE=2><P>(2)</SUP></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">345</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=26><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">345</FONT></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=26>
<FONT SIZE=2><P>Pollution control bond -- bond insurance reimbursement agreements</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=26>
<FONT SIZE=2><P>2005 A -- G</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26>
<FONT SIZE=2><P>2016 -- 2026</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26>
<SUP><FONT SIZE=2><P>(2)</SUP></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">454</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=26><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">454</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP" COLSPAN=3 HEIGHT=26><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=26><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=26><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">1,619</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" HEIGHT=26>
<FONT SIZE=2><P ALIGN="RIGHT">1,619</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP" COLSPAN=3 HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=8><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=8><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=8><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=2><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=2><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=2><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=2><P></P></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP" COLSPAN=3 HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=8><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=8><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=8><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="MIDDLE" COLSPAN=5 HEIGHT=19>
<SUP><FONT SIZE=1><P>(1)</SUP> Off-balance sheet commitments</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=19><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="MIDDLE" COLSPAN=7 HEIGHT=19>
<SUP><FONT SIZE=1><P>(2)</SUP> Principal and debt service insured by the bond insurance company</FONT></TD>
<TD WIDTH="18%" VALIGN="MIDDLE" COLSPAN=3 HEIGHT=19><P></P></TD>
<TD WIDTH="17%" VALIGN="MIDDLE" COLSPAN=2 HEIGHT=19><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=2>
<B><P>PG&amp;E Corporation </P>
</B>
<B><I><P>Convertible Subordinated Notes</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation currently has outstanding $280 million of Convertible Subordinated Notes that are scheduled to mature on June 30, 2010.  These Convertible Subordinated Notes may be converted (at the option of the holder) at any time prior to maturity into 18,558,655 shares of common stock of PG&amp;E Corporation, at a conversion price of approximately $15.09 per share.  The conversion price is subject to adjustment should a significant change occur in the number of PG&amp;E Corporation's outstanding common shares.  To date, the conversion price has not required adjustment.  In addition, holders of the Convertible Subordinated Notes are entitled to receive "pass-through dividends" at the same payout as common stockholders with the number of shares determined by dividing the principal amount of the Convertible Subordinated Notes by the conversion price.  In connection with each common stock dividend that was payable to holders of PG&amp;E Corporation common stock on April 15, July 15 and October 15, 2005, PG&amp;E Corporation paid approximately $6 million of "pass through dividends" to the holders of Convertible Subordinated Notes.  The holders have a one-time right to require PG&amp;E Corporation to repurchase the Convertible Subordinated Notes on June 30, 2007, at a purchase price equal to the principal amount plus accrued and unpaid interest (including liquidated damages and unpaid "pass-through dividends," if any).</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with SFAS No. 133, the dividend participation rights component is considered to be an embedded derivative instrument and, therefore, must be bifurcated from the Convertible Subordinated Notes and recorded at fair value in PG&amp;E Corporation's Consolidated Financial Statements.  Changes in the fair value are recognized in PG&amp;E Corporation's Consolidated Statements of Income as a non-operating expense or income (included in Other income (expense), net).  At September 30, 2005 and 2004, the total estimated fair value of the dividend participation rights component, on a pre-tax basis, was approximately $93 million and $70 million, respectively, of which $21 million and $9 million, respectively, is classified as a current liability (in Current liabilities-Other) and $72 million and $61 million, respectively, is classified as a noncurrent liability (in Noncurrent liabilities-Other).  The change in value of the liability was immaterial for the quarters ended September 30, 2005 and 2004.  </P>

<B><P>Utility </P>
</B>
<B><I><P>First Mortgage Bonds/Senior Notes </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March 23, 2004, the Utility closed a public offering of $6.7 billion of first mortgage bonds, or First Mortgage Bonds.  The First Mortgage Bonds were offered in multiple tranches consisting of 3.60% First Mortgage Bonds due March 1, 2009 in the principal amount of $600 million, 4.20% First Mortgage Bonds due March 1, 2011 in the principal amount of $500 million, 4.80% First Mortgage Bonds due March 1, 2014 in the principal amount of $1 billion, 6.05% First Mortgage Bonds due March 1, 2034 in the principal amount of $3 billion, and Floating Rate First Mortgage Bonds due April 3, 2006 in the principal amount of $1.6 billion.  The Utility received proceeds of $6.7 billion from the offering, net of a discount of $18 million.  The interest rate for the Floating Rate First Mortgage Bonds is based on the three-month London Interbank Offered Rate, or LIBOR, plus 0.70%, which resets quarterly.  The Floating Rate Senior Notes were subsequently redeemed on July 3, 2005.  First Mortgage Bonds in the aggregate amount of $2.5 billion also were used to secure the Utility's obligations under various other debt agreements.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 3, 2004, the Utility partially redeemed Floating Rate First Mortgage Bonds due in 2006 in the aggregate principal amount of $500 million.  On January 3, 2005, in anticipation of the receipt of ERB proceeds, the Utility partially redeemed Floating Rate First Mortgage Bonds due in 2006 in the aggregate principal amount of $300 million.  On February 24, 2005, the Utility used a portion of the ERB proceeds to defease $600 million of Floating Rate First Mortgage Bonds due in 2006.  The defeased bonds were redeemed on April 3, 2005.  On July 3, 2005, the remaining $200 million of Floating Rate Senior Notes (as redesignated below) were redeemed.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The First Mortgage Bonds were secured by a first lien, subject to permitted exceptions, on substantially all of the Utility's real property and certain tangible personal property related to the Utility's facilities.  The lien was released on April 22, 2005, upon satisfaction of various conditions specified in the indenture, including confirmation from Moody's Investors Service, or Moody's, and Standard &amp; Poor's Ratings Service, or S&amp;P, that the Utility's unsecured debt ratings following the release would be at least Baa2 from Moody's and BBB from S&amp;P.  On March 3, 2005, Moody's upgraded the rating on the First Mortgage Bonds from Baa2 to Baa1.  On April 22, 2005, the Utility and the trustee entered into an amended and restated indenture to eliminate the provisions related to the lien of the mortgage.  The First Mortgage Bonds have been redesignated as follows:  </P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=735>
<TR><TD WIDTH="35%" VALIGN="BOTTOM">
<B><FONT SIZE=2><P>First Mortgage Bonds </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="30%" VALIGN="BOTTOM">
<B><FONT SIZE=2><P>Redesignated As</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<B><FONT SIZE=2><P>Amount</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="BOTTOM">
<B><FONT SIZE=2><P>Amount outstanding as of <BR>
9/30/2005</B></FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="30%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=2><P>3.6% First Mortgage Bonds due 2009 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P>3.6% Senior Notes due 2009</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>$600 million</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>$600 million</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=2><P>4.2% First Mortgage Bonds due 2011</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P>4.2% Senior Notes due 2011</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>$500 million </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>$500 million </FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=2><P>4.8% First Mortgage Bonds due 2014</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P>4.8% Senior Notes due 2014</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>$1 billion</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>$1 billion</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=2><P>6.05% First Mortgage Bonds due 2034</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P>6.05% Senior Notes due 2034</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>$3 billion</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>$3 billion</FONT></TD>
</TR>
<TR><TD WIDTH="35%" VALIGN="TOP">
<FONT SIZE=2><P>Floating Rate First Mortgage Bonds due 2006 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="30%" VALIGN="TOP">
<FONT SIZE=2><P>Floating Rate Senior Notes due 2006 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>$200 million</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since the lien has been released there is no collateral securing the First Mortgage Bonds and the bonds, now designated as the Senior Notes as set forth in the table above, have become the Utility's unsecured general obligations ranking <I>pari passu</I> with the Utility's other senior unsecured debt.  Under the indenture for the Senior Notes, the Utility has agreed that it will not incur secured debt (except for (1) debt secured by specified liens, and (2) secured debt in an amount not exceeding 10% of the Utility's net tangible assets, as defined in the indenture) unless the Utility provides that the Senior Notes will be equally and ratably secured with the new secured debt.  </P>

<B><I><P>Pollution Control Bonds </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 22, 2005, the Utility entered into an amendment to four reimbursement agreements totaling $620 million related to letters of credit that had been issued to support certain pollution control bonds aggregating $614 million issued by the California Pollution Control Financing Authority, or CPCFA, on behalf of the Utility.  Interest rates on the $614 million pollution control bonds are variable.  At September 30, 2005, interest rates on these loans ranged from 2.77% to 2.88%.  In addition to reducing pricing and generally conforming the covenants and events of default to those in the $1 billion working capital facility (described below), the term of the amended agreements has been extended by five years until April 22, 2010.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 24, 2005, the Utility entered into seven loan agreements with the California Infrastructure and Economic Development Bank to issue seven series of tax-exempt pollution control bonds, or PC Bonds Series A-G, totaling $454 million.  These series are in auction modes where interest rates are set among investors who submit bids to buy, sell, or hold securities at desired rates.  The initial interest rates ranged from 2.54% to 3.00%.  Four series of the bonds (Series A-D) have auctions every 35 days and three series (Series E-G) have auctions every 7 days.  Maturities on the bonds range from 2016 to 2026.  At September 30, 2005, interest rates on these loans ranged from 2.30% to 2.70%.  </P>

<B><I><P>Repayment Schedule </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2005, PG&amp;E Corporation's and the Utility's combined aggregate amounts of scheduled repayments of long-term debt, rate reduction bonds, and ERBs as scheduled are reflected in the table below: </P>
<P ALIGN="JUSTIFY"></P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=694>
<TR><TD WIDTH="24%" VALIGN="TOP">
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">2006</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">2007</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">2008</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">2009</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">Thereafter</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">Total</B></FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>Long-term debt:</B></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20>
<B><FONT SIZE=2><P>PG&amp;E Corporation </B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Average fixed interest rate</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">9.50%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">9.50%</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Fixed rate obligations</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">280&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">280&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>Utility</B></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Average fixed interest rate</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3.60%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5.42%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5.22%</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Fixed rate obligations</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">600&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,028&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,628&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=28>
<FONT SIZE=2><P>Variable interest rate as of<BR>
&nbsp;&nbsp;&nbsp;September 30, 2005</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">2.68%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">2.68%</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Variable rate obligations</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;     </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,068&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,068&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Other</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;     </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;     </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=28>
<B><FONT SIZE=2><P>Total consolidated long-term<BR>
&nbsp;&nbsp;&nbsp;debt</B></FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">600&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">6,376&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="RIGHT">6,978&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" COLSPAN=6 HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" COLSPAN=6 HEIGHT=15>
<B><FONT SIZE=2><P>Energy Recovery Bonds &amp; Rate Reduction Bonds:</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15>
<B><FONT SIZE=2><P>Utility</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P>Average fixed interest rate </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">6.42%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">6.44%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">6.48%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">6.46%</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P>Rate reduction bonds</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">76&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">290&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">290&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">656&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Average fixed interest rate</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3.32%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3.55%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3.87%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3.87%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4.05%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4.35%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4.05%</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P>Energy recovery bonds</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">63&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">221&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">230&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">239&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">248&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">810&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=15>
<FONT SIZE=2><P ALIGN="RIGHT">1,811&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<B><P>Credit Facilities and Short-Term Borrowings </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes PG&amp;E Corporation's and the Utility's short-term borrowings and outstanding credit facilities at September 30, 2005:</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=672>
<TR><TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=25>
<B><FONT SIZE=1><P>(in millions)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=25><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 HEIGHT=25><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=25><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=25><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=8 HEIGHT=25><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" HEIGHT=25><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=25><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=25><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=25><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 HEIGHT=25><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=25><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=25><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=8 HEIGHT=25>
<B><FONT SIZE=1><P ALIGN="CENTER">At September 30, 2005</B></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=2><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=4 HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=2><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=8 BGCOLOR="#000000" HEIGHT=2><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=25>
<B><FONT SIZE=1><P ALIGN="CENTER">Authorized Borrower</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=25>
<B><FONT SIZE=1><P ALIGN="CENTER">Facility</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=25>
<B><FONT SIZE=1><P ALIGN="CENTER">Termination Date</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=25>
<B><FONT SIZE=1><P ALIGN="CENTER">Facility Limit</B></FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=25>
<B><FONT SIZE=1><P ALIGN="CENTER">Letters of Credit Out-standing</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=25>
<B><FONT SIZE=1><P ALIGN="CENTER">Cash Borrowings</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=25>
<B><FONT SIZE=1><P ALIGN="CENTER">Availability</B></FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=2><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=2><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=2><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=2><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P>PG&amp;E Corporation</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P>Senior credit facility</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=25><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P>December<BR>
 2009</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">200&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<SUP><FONT SIZE=1><P>(1)</SUP></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">200&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=25>
<FONT SIZE=1><P>Utility</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P>Accounts receivable financing</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=25><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=25>
<FONT SIZE=1><P>March 2007</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">650&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">650&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P>Utility</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P>Working capital facility</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=25><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P>April 2010</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">1,000&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<SUP><FONT SIZE=1><P>(2)</SUP></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">52&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">948&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=25>
<FONT SIZE=1><P>Total Credit Facilities</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">1,850&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">52&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=25>
<FONT SIZE=1><P ALIGN="RIGHT">1,798&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=2><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=2><P></P></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=11><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="BOTTOM" COLSPAN=7 BGCOLOR="#000000" HEIGHT=3><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=3><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=3><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=3><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=3><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=3><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=3><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=3><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=3><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=3><P></P></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=12 HEIGHT=19>
<SUP><FONT SIZE=1><P>(1)</SUP> Includes $50 million sublimit for Letters of Credit and $100 million sublimit for swingline loans, which are made available on a same day basis and repayable in full within thirty days.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="BOTTOM" COLSPAN=12 HEIGHT=19>
<SUP><FONT SIZE=1><P>(2)</SUP> Includes a $600 million sublimit for Letters of Credit and $100 million sublimit for swingline loans, which are made available on a same day basis and repayable in full within thirty days.</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=19><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=2>
<P>&nbsp;</P>
<B><P>PG&amp;E Corporation</P>

<I><P>Senior Credit Facility </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 8, 2005, PG&amp;E Corporation entered into an amendment, which became effective on April 12, 2005, to the $200 million revolving senior unsecured credit facility, or the senior credit facility, to extend its term from three years to five years, with all amounts due and payable on December 10, 2009.  In addition, the amendment made other changes to the senior credit facility to conform the covenants, representations and events of default to those in the Utility's working capital facility, discussed below.  At September 30, 2005, PG&amp;E Corporation had not made any borrowings or issued any letters of credit under the senior credit facility. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fees and interest rates PG&amp;E Corporation pays under the senior credit facility vary depending on the Utility's unsecured debt ratings issued by S&amp;P and Moody's.  A facility fee is based on the total amount of the senior credit facility (regardless of the usage) and a utilization fee is based on the average daily amount outstanding under the senior credit facility.  The utilization fee is payable during any quarter in which the average daily amount outstanding under the senior credit facility is in excess of 50% of the aggregate amount of the facility.  At PG&amp;E Corporation's option, any loan under the senior credit facility (other than swingline loans which are made available on a same day basis and repayable in full within thirty days) bears interest at a rate equal to the "applicable margin" plus one of the following indexes: (i) LIBOR or (ii) the base rate (the higher of (a) the administrative agent's base rate and (b) the Federal Funds rate plus 0.50%).  Each swingline loan bears interest at the applicable margin plus the base rate.  The applicable margin ranges between 0.50% and 1.35% for Eurodollar loans, and 0% and 0.5% for base rate loans.  The facility fee ranges between 0.15% and 0.40%, and the utilization fee ranges between 0.125% and 0.25%.  Interest is payable quarterly in arrears, or earlier for loans with shorter interest periods.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Utility's debt ratings from S&amp;P and Moody's are at different levels, the lower rating applies.  In addition, PG&amp;E Corporation pays a fee for each letter of credit outstanding under the senior credit facility equal to the applicable margin for LIBOR loans to be shared by the lenders.  PG&amp;E Corporation also pays a fronting fee of 0.125% to the issuer of a letter of credit.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The senior credit facility includes usual and customary covenants for credit facilities of this type, including covenants limiting liens, mergers, sales of all or substantially all of PG&amp;E Corporation's assets and other fundamental changes.  Refer to the 2004 Financial Report for further details.</P>

<B><P>Utility</P>
</B>
<B><I><P>Working Capital Facility </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 8, 2005, the Utility entered into a $1 billion revolving credit facility, or the working capital facility.  This credit facility replaced the $850 million credit facility that the Utility entered into on March 5, 2004.  The working capital facility includes a $600 million sublimit for the issuance of letters of credit and a $100 million sublimit for swingline loans.  Loans under the working capital facility will be used primarily to cover operating expenses and seasonal fluctuations in cash flows and were used for bridge financing in connection with the reissuance of the tax-exempt pollution control bonds discussed below.  Letters of credit under the working capital facility will be used primarily to provide credit enhancements to counterparties for natural gas and electricity procurement transactions.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to obtaining any required regulatory approvals and commitments from existing or new lenders and satisfaction of other specified conditions, the Utility may increase, in one or more requests given not more frequently than once a year, the aggregate lenders' commitments under the working capital facility by up to $500 million or, in the event that the Utility's $650 million accounts receivable facility is terminated or expires, by up to $850 million, in the aggregate for all such increases. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The working capital facility has a term of five years and all amounts will be due and payable on April 8, 2010.  At the Utility's request and at the sole discretion of each lender, the facility may be extended for additional periods.  The Utility has the right to replace any lender who does not agree to an extension.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The working capital facility includes usual and customary covenants for credit facilities of this type, including covenants limiting liens to those permitted under the Senior Notes indenture, mergers, sales of all or substantially all of the Utility's assets and other fundamental changes.  In addition, the working capital facility also requires that the Utility maintain a debt to capitalization ratio of at most 65% as of the end of each fiscal quarter.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fees and interest rates the Utility pays under the working capital facility vary depending on the Utility's unsecured debt rating by S&amp;P and Moody's.  A facility fee is based on the total amount of the working capital facility (regardless of the usage) and a utilization fee is based on the average daily amount outstanding under the working capital facility.  The utilization fee is payable during any quarter in which the average daily amount outstanding under the working capital facility is in excess of 50% of the aggregate amount of the facility.  At the Utility's option, any loan under the working capital facility (other than swingline loans) bears interest at a rate equal to the "applicable margin" plus one of the following indexes: (i)&nbsp;LIBOR or (ii) the base rate (the higher of (a) the administrative agent's base rate and (b) the Federal Funds rate plus 0.50%).  Each swingline loan bears interest at the applicable margin plus the base rate.  The applicable margin is set at 0% for base rate loans and ranges between 0.22% and 0.675% for LIBOR loans.  The facility fee ranges between 0.08% and 0.20%, and the utilization fee ranges between 0.10% and 0.25%.  Interest is payable quarterly in arrears, or earlier for loans with shorter interest periods. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Utility's debt ratings from S&amp;P and Moody's are at different levels, the higher rating applies.  In addition, the Utility pays a fee for each letter of credit outstanding under the working capital facility equal to the applicable margin for LIBOR loans to be shared by the lenders.  The Utility also pays a fronting fee of 0.125% to the issuer of a letter of credit. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2005, there were no loans outstanding under the $1 billion working capital facility.  At September 30, 2005, there were approximately $52 million of letters of credit outstanding under the $1 billion working capital facility.</P>
<U>
</U><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 20, 2005, the Utility borrowed $454 million under the working capital facility.  The proceeds were used to repay $454 million under certain reimbursement obligations the Utility entered into in April 2004 when its plan of reorganization under Chapter 11 became effective.  These reimbursement obligations replaced the Utility's obligation to certain issuers of letters of credit that were drawn upon during the Chapter 11 proceeding in connection with the redemption of certain pollution control bonds that had been issued for the benefit of the Utility.  The draw under the Utility's working capital facility was repaid with the proceeds of the tax-exempt PC Bonds Series A-G issued for the benefit of the Utility by the California Infrastructure and Economic Development Bank. </P>
<P><A NAME="_DV_M24"></A></A></A></P>
<B><P><A NAME="note_4"></A>NOTE 4:  ENERGY RECOVERY BONDS </P>

</B><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Settlement Agreement, PG&amp;E Corporation and the Utility agreed to seek to refinance the unamortized portion of the Settlement Regulatory Asset and associated federal and state income and franchise taxes, in an aggregate principal amount of up to $3.0 billion in two separate series up to one year apart, using a securitized financing supported by a dedicated rate component, or DRC.  On February 10, 2005, PERF issued $1.9 billion of ERBs.  The proceeds of the ERBs were used by PERF to purchase from the Utility the right, known as "recovery property," to be paid a specified amount from a DRC.  DRC charges are authorized by the CPUC under state legislation and will be paid by the Utility's electricity customers until the ERBs are fully retired.  Under the terms of a recovery property servicing agreement, DRC charges are collected by the Utility and remitted to PERF.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate principal amount of the first series of ERBs issued was approximately $1.9 billion.  They were issued in five classes, with scheduled maturities ranging from September 25, 2006 to December 25, 2012, and final legal maturities ranging from September 25, 2008 to December 25, 2014.  Interest rates on the five classes range from 3.32% for the earliest maturing class to 4.47% for the latest maturing class.  The proceeds of the first series of ERBs were paid by PERF to the Utility and were used by the Utility to refinance the remaining unamortized after-tax balance of the Settlement Regulatory Asset.  The proceeds of the second series of ERBs, anticipated to be issued in November 2005 in an aggregate amount of up to $850 million (reflecting recent energy supplier settlements), will be paid by PERF to the Utility to pre-fund the Utility's tax liability that will be due as the Utility collects the DRC over the term of the first series of ERBs.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total principal amount of ERBs outstanding was $1.811 billion at September 30, 2005.  The scheduled principal payments on the ERBs for the years 2005 through 2009 are $63 million, $221 million, $230 million, $239 million, and $248 million, respectively.  The remaining payments thereafter total $810 million.  While PERF is a wholly owned consolidated subsidiary of the Utility, PERF is legally separate from the Utility.  The assets of PERF (including the recovery property) are not available to creditors of PG&amp;E Corporation or the Utility and the recovery property is not legally an asset of the Utility or PG&amp;E Corporation.  </P>

<B><P><A NAME="note_5">NOTE 5:  SHAREHOLDERS' EQUITY</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation's and the Utility's changes in shareholders' equity for the nine months ended September 30, 2005 were as follows: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=617>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="MIDDLE" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">PG&amp;E Corporation</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="MIDDLE" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Utility</B></FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="MIDDLE" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="MIDDLE" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="MIDDLE" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="MIDDLE" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Total Common Shareholders' Equity</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="MIDDLE" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Total Shareholders' Equity</B></FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="MIDDLE" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="MIDDLE" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="MIDDLE" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Balance at December 31, 2004</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,633&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">9,130&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Net income</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">737&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">747&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P>Common stock issued</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">231&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>PG&amp;E Corporation common stock repurchased:</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Settlement of accelerated share repurchase obligation -<BR>
&nbsp;&nbsp;&nbsp;February 2005</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">(14)</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Accelerated share repurchase - March 2005</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,051)</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=29>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Settlement of accelerated share repurchase obligation - &nbsp;&nbsp;&nbsp;September 2005</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=29><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=29>
<FONT SIZE=2><P ALIGN="RIGHT">(22)</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=29><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=29>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Utility common stock repurchased</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(960)</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Common restricted stock amortization</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=17>
<FONT SIZE=2><P>Common stock dividends paid</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">(223)</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">(330)</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P>Common stock dividends declared but not yet paid</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">(111)</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Preferred stock redeemed</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(36)</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Preferred stock dividends</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(12)</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Minimum pension liability adjustment</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1)</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(2)</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Other</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">48&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(2)</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>Balance at September 30, 2005</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,235&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,535&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="56%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=7 HEIGHT=9><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<B><P>Stock Repurchases  </P>
</B>
<B><I><P>March 2005 Accelerated Share Repurchase Arrangement</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March 4, 2005, PG&amp;E Corporation entered into an accelerated share repurchase arrangement, or the March 2005 arrangement, with Goldman Sachs &amp; Co., or GS&amp;Co., under which PG&amp;E Corporation repurchased 29,489,400 shares of its common stock at an initial price of $35.60 per share (for an aggregate amount including commissions of approximately $1.05 billion).  The repurchase was funded from available cash on hand and the repurchased shares were retired.  PG&amp;E Corporation recorded approximately $460 million to Common Stock and approximately $591 million to Accumulated Earnings within Common Shareholders' Equity in respect of this transaction.  Under the share forward component of the March 2005 arrangement certain payments were required by both PG&amp;E Corporation and GS&amp;Co. upon termination.  Most significantly, PG&amp;E Corporation was to receive from, or be required to pay to, GS&amp;Co. a price adjustment on the repurchased shares based on the difference between the amount it paid and the daily volume weighted average price, or VWAP, over the approximately six month intended arrangement period.  Upon an early termination of the March 2005 arrangement, PG&amp;E Corporation was required to compensate GS&amp;Co. for its losses in connection with the arrangement unless the termination event resulted from the declaration of a dividend and a new share forward was executed to complete the March 2005 arrangement.  As discussed below, on June 15, 2005, the Board of Directors of PG&amp;E Corporation declared a cash dividend on PG&amp;E Corporation common stock for the second quarter of 2005 and terminated the March 2005 arrangement early.  The net of the amounts payable between the parties under the March 2005 arrangement, including the amount of the price adjustment based on the VWAP, was approximately $78,000 and was paid to GS&amp;Co., at PG&amp;E Corporation's option in cash, on June 30, 2005. </P>

<B><I><P>June 2005 Accelerated Share Repurchase Arrangement</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June 16, 2005, PG&amp;E Corporation entered into a new share forward with GS&amp;Co., or the June 2005 arrangement, based on 11,430,000 shares to complete the balance of the March 2005 arrangement.  The June 2005 arrangement is substantially identical to the March 2005 arrangement, requiring certain payments by both PG&amp;E Corporation and GS&amp;Co.  As with the March 2005 arrangement, the most significant of these payments is the price adjustment with respect to the 11,430,000 shares based on the difference between the $35.60 purchase price per share and the VWAP over a period expected to extend to early September 2005.  The net of the amounts payable between the parties under the June 2005 arrangement, including the amount of the price adjustment based on the VWAP, was approximately $22 million, and was paid to GS&amp;Co., at PG&amp;E Corporation's option in cash, on September 12, 2005 to settle the arrangement.  </P>

<B><I><P>December 2004 Accelerated Share Repurchase Arrangement </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On February 22, 2005, under an accelerated share repurchase arrangement entered into on December 15, 2004, PG&amp;E Corporation paid GS&amp;Co. approximately $14 million as a price adjustment to settle the arrangement.  The settlement was based on the VWAP of PG&amp;E Corporation common stock over the term of the arrangement.  PG&amp;E Corporation recorded the payment to Common Stock within Common Shareholders' Equity.</P>

<B><I><P>Utility Common Stock Repurchase</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March 8, 2005, the Utility used proceeds from the issuance of ERBs (discussed in Note 4) to repay debt and to repurchase 22,023,283 shares of its common stock from PG&amp;E Corporation for an aggregate purchase price of approximately $960 million.  The Utility had repurchased $960 million of its common stock as of September 30, 2005.  As a result of this transaction, the Utility recorded reductions of approximately $141 million to Additional Paid-in Capital, approximately $110 million to Common Stock, and approximately $709 million to Reinvested Earnings within Shareholders' Equity.</P>

<B><P>Dividends  </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September 21, 2005, the Board of Directors of the Utility declared a dividend of approximately $117 million that was paid on September 22, 2005 to PG&amp;E Corporation and PG&amp;E Holdings LLC, a wholly owned subsidiary of the Utility that holds approximately 7% of the Utility's common stock.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also, on September 21, 2005 the Board of Directors of PG&amp;E Corporation declared a quarterly common stock dividend of $0.30 per share, payable on October 15, 2005, to shareholders of record on October 3, 2005.  PG&amp;E Corporation paid this dividend which totaled approximately $119 million.  Of this amount, approximately $7 million was paid to Elm Power Corporation, a wholly owned subsidiary of PG&amp;E Corporation.  In addition, PG&amp;E Corporation paid approximately $6 million in dividend equivalent payments to Convertible Subordinated Note holders of record on October 3, 2005.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation recorded dividends declared to Accumulated Earnings and the Utility recorded dividends declared to Reinvested Earnings.</P>

<B><P>Redemption of Preferred Stock with Mandatory Redemption Provisions </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 20, 2005, the Utility's Board of Directors authorized the redemption of all of the outstanding shares of the Utility's 6.57% Redeemable First Preferred Stock and 6.30% Redeemable First Preferred Stock totaling $120 million aggregate par value.  Both issues were redeemed on May 31, 2005.  In addition to the $25 per share redemption price, holders of the 6.57% Redeemable First Preferred Stock and the 6.30% Redeemable First Preferred Stock received an amount equal to all accumulated and unpaid dividends through May 31, 2005 on such shares totaling approximately $644,000.</P>
<P></A></P>
<B><P>Redemption of Preferred Stock without Mandatory Redemption Provisions</P>
</B><I>
</I><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June 15, 2005, the Utility's Board of Directors authorized the redemption of all of the outstanding shares of the Utility's 7.04% Redeemable First Preferred Stock totaling approximately $36 million aggregate par value plus approximately $1 million related to a $0.70 redemption premium.  This issue was fully redeemed on August 31, 2005.  In addition to the $25 per share redemption price, holders of the 7.04% Redeemable First Preferred Stock received an amount equal to all accumulated and unpaid dividends through August 31, 2005 on such shares totaling approximately $211,000. </P>

<B><P><A NAME="note_6"></A>NOTE 6:  RISK MANAGEMENT ACTIVITIES </P>
</B>
<B><P>Commodity Procurement Activities</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility enters into contracts to procure electricity, natural gas and nuclear fuel.  Additionally, the Utility hedges natural gas in the electric and natural gas portfolios on behalf of its customers to reduce commodity price risk.  On PG&amp;E Corporation and the Utility's Consolidated Balance Sheets, price risk management activities are presented at fair value of $205<B> </B>million in Current Assets - Prepaid expenses and other, $138 million in Other Non-Current Assets - Other, and $1 million in Current Liabilities - Other for September 30, 2005, and $5 million in Current Assets - Prepaid expenses and other and $11 million in Current Liabilities - Other for December 31, 2004.  The costs and proceeds of these derivatives are recovered in regulated rates charged to customers and are recorded in the regulatory accounts.</P>

<B><P>Credit Risk </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit risk is the risk of loss that PG&amp;E Corporation and the Utility would incur if customers or counterparties failed to perform their contractual obligations.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation had gross accounts receivable of approximately $2.2 billion at September 30, 2005 and December 31, 2004.  The majority of the accounts receivable are associated with the Utility's residential and small commercial customers.  Based upon historical experience and evaluation of then-current factors, allowances for doubtful accounts of approximately $105 million at September 30, 2005 and $93 million at December 31, 2004 were recorded against those accounts receivable.  In accordance with tariffs, credit risk exposure is limited by requiring deposits from new customers and from those customers whose past payment practices are below standard.  The Utility has a regional concentration of credit risk associated with its receivables from residential and small commercial customers in northern and central California.  However, material loss due to non-performance from these customers is not considered likely. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility manages credit risk for its largest customers or counterparties by assigning credit limits based on an evaluation of their financial condition, net worth, credit rating, and other credit criteria as deemed appropriate.  Credit limits and credit quality are monitored frequently and a detailed credit analysis is performed at least annually.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit exposure for the Utility's largest customers and counterparties is calculated daily.  If exposure exceeds the established limits, the Utility takes action to reduce the exposure or obtain additional collateral, or both.  Further, the Utility relies on master agreements that require security, referred to as credit collateral, in the form of cash, letters of credit, corporate guarantees of acceptable credit quality, or eligible securities if current net receivables and replacement cost exposure exceed contractually specified limits. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility calculates gross credit exposure for each of its wholesale customers and counterparties as the current mark-to-market value of the contract (<I>i.e.</I>, the amount that would be lost if the counterparty defaulted today) plus or minus any outstanding net receivables or payables, before the application of credit collateral.  During 2004, the Utility recognized no material losses due to contract defaults or bankruptcies.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility conducts business with wholesale counterparties mainly in the energy industry, including other California investor-owned electric utilities, municipal utilities, energy trading companies, financial institutions, and oil and natural gas production companies located in the United States and Canada.  This concentration of counterparties may impact the Utility's overall exposure to credit risk because counterparties may be similarly affected by economic or regulatory changes, or other changes in conditions.  Credit losses experienced as a result of electrical and gas procurement activities are expected to be recoverable from customers and are, therefore, not expected to have a material impact on earnings.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The schedule below summarizes the Utility's net credit risk exposure, as well as the Utility's credit risk exposure to its wholesale customers or counterparties with a greater than 10% net credit exposure, at September 30, 2005 and December 31, 2004:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=660>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=3>
<B><FONT SIZE=2><P ALIGN="CENTER">Gross Credit<BR>
Exposure Before<BR>
Credit Collateral <SUP>(1)</B></SUP></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER"><BR>
Credit<BR>
Collateral<SUP> </B></SUP></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER"><BR>
Net Credit<BR>
Exposure <SUP>(2)</B></SUP></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="BOTTOM">
<B><FONT SIZE=2><P ALIGN="CENTER">Number of<BR>
Wholesale<BR>
Customer or<BR>
Counterparties<BR>
&gt;10%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">Net Exposure to<BR>
Wholesale<BR>
Customer or<BR>
Counterparties<BR>
&gt;10%</B></FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>September 30, 2005</B></FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">433&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">95&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">338&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">156&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>December 31, 2004</B><SUP> </SUP></FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">105&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">98&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">62&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=15 HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="25%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="75%" VALIGN="TOP" COLSPAN=13 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=15 HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=73>
<SUP><FONT SIZE=1><P>(1)</SUP></FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=15 HEIGHT=73>
<FONT SIZE=1><P>Gross credit exposure equals mark-to-market value, notes receivable and net receivables (payables) where netting is contractually allowed.  Gross and net credit exposure amounts reported above do not include adjustments for time value, liquidity or credit reserves.  The Utility's gross credit exposure includes wholesale activity only.  Retail activity and payables are not included.  Retail activity at the Utility consists of the accounts receivable from the sale of natural gas and electricity to residential and small commercial customers.</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">
<SUP><FONT SIZE=1><P>(2)</SUP></FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=15>
<FONT SIZE=1><P>Net credit exposure is the gross credit exposure minus credit collateral (cash deposits and letters of credit).  For purposes of this table, parental guarantees are not included as part of the calculation.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The schedule below summarizes the credit quality of the Utility's net credit risk exposure to the Utility's wholesale customers and counterparties at September 30, 2005 and December 31, 2004:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=591>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=34>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=34>
<B><FONT SIZE=2><P ALIGN="CENTER">Net Credit<BR>
Exposure <SUP>(2)</B></SUP></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=34><P></P></TD>
<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=34>
<B><FONT SIZE=2><P ALIGN="CENTER">Percentage of Net<BR>
Credit Exposure</B></FONT></TD>
</TR>
<TR><TD WIDTH="39%" VALIGN="TOP" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=14>
<B><FONT SIZE=2><P>Credit Quality <SUP>(1)</B></SUP></FONT></TD>
<TD WIDTH="39%" VALIGN="TOP" COLSPAN=6 HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=14>
<B><FONT SIZE=2><P>September 30, 2005</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Investment grade <SUP>(3) </SUP></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">335&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">99%</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Non-investment grade</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">1%</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=14>
<B><FONT SIZE=2><P>Total</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">338&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">100%</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="0%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=9><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=14>
<B><FONT SIZE=2><P>December 31, 2004</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Investment grade <SUP>(3)</SUP></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">79&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">81%</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=14>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Non-investment grade</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">19%</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=14>
<B><FONT SIZE=2><P>Total</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">98&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">100%</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=9 HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="76%" VALIGN="TOP" COLSPAN=8 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=9 HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=31>
<SUP><FONT SIZE=1><P>(1)</SUP></FONT></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=9 HEIGHT=31>
<FONT SIZE=1><P>Credit ratings are determined by using publicly available information.  If provided a guarantee by a higher rated entity (e.g., an affiliate), the rating is determined based on the rating of the guarantor.</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=30>
<SUP><FONT SIZE=1><P>(2)</SUP></FONT></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=9 HEIGHT=30>
<FONT SIZE=1><P>Net credit exposure is the gross credit exposure minus credit collateral (cash deposits and letters of credit).  For purposes of this table, parental guarantees are not included as part of the calculation.</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=40>
<SUP><FONT SIZE=1><P>(3)</SUP></FONT></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=9 HEIGHT=40>
<FONT SIZE=1><P>Investment grade is determined using publicly available information, i.e., rated at least Baa3 by Moody's and BBB- by S&amp;P.  The Utility has assessed certain governmental authorities that are not rated through publicly available information as investment grade based upon an internal assessment of credit-worthiness.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<B><P><A NAME="note_7"></A>NOTE 7:  COMMITMENTS AND CONTINGENCIES</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility have substantial financial commitments and contingencies in connection with agreements entered into supporting the Utility's operating activities.</P>

<B><P>Commitments</P>
</B>
<B><P>PG&amp;E Corporation </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the nine months ended September 30, 2005, PG&amp;E Corporation did not have any material new commitments or changes to its material commitments, other than those related to the Utility discussed below.  The Canadian natural gas pipeline firm transportation contracts effective November 1, 2007 through October 31, 2023, are anticipated to be reassigned to the Utility during the fourth quarter of 2005.  See PG&amp;E Corporation's and the Utility's 2004 Financial Report for further discussion. </P>

<B><P>Utility </P>
</B>
<B><I><P>Power Purchase Agreements </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of the ordinary course of business, the Utility enters into various agreements to purchase energy and makes payments on existing power purchase agreements.  As the Utility acts as only an agent for the Department of Water Resources, or DWR, any agreements entered into by the DWR are not disclosed in the Utility's purchase power agreements.  At September 30, 2005, the undiscounted future expected power purchase agreement payments were as follows:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=240>
<TR><TD WIDTH="75%" VALIGN="TOP">
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>2005</FONT></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$ </FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">544&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>2006</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">2,301&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>2007</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">2,447&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>2008</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">2,215&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>2009</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">1,927&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>Thereafter </FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">13,648&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Total </B></FONT></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$ </FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">23,082&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments made by the Utility under power purchase agreements amounted to approximately $1,535 million for the nine months ended September 30, 2005, and $1,752 million for the same period in 2004.</P>

<B><I><P>Natural Gas Supply and Transportation Commitments</B></I> <B> </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility purchases natural gas directly from producers and marketers in both Canada and the United States to serve its core customers.  The contract lengths and natural gas sources of the Utility's portfolio of natural gas procurement contracts have fluctuated, generally based on market conditions. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2005, the Utility's obligations for natural gas purchases and gas transportation services were as follows: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=240>
<TR><TD WIDTH="75%" VALIGN="TOP">
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>2005</FONT></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$ </FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">681&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>2006</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">1,086&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>2007</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">25&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>2008</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>2009</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>Thereafter </FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Total </B></FONT></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$ </FONT></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">1,818&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="75%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="20%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments made by the Utility for natural gas purchases and gas transportation services amounted to approximately $1,583 million for the nine months ended September 30, 2005, and $1,328 million for the same period in 2004.</P>

<B><I><P>Reliability Must Run Agreements  </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The ISO has entered into reliability must run, or RMR, agreements with various power plant owners, including the Utility, that require designated units, known as RMR units, to remain available to generate electricity upon the ISO's demand when needed for local transmission system reliability.  At September 30, 2005, as a party to a Transmission Control Agreement, or TCA, the Utility estimated that it could be obligated to pay the ISO approximately $329 million for costs incurred under these RMR agreements during the period October 1, 2005 to December 31, 2006.  Of this amount, the Utility estimates it would receive approximately $49 million under these RMR agreements during the same period.  These payments and receipts are subject to applicable ratemaking mechanisms and will be recognized in future periods as incurred.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November 2001 the Utility and other interested California parties filed a complaint at the FERC against RMR owners other than the Utility, alleging that certain rates under those owners' RMR agreements with the ISO were unlawfully high and proposing that the FERC apply a ratemaking methodology to these other RMR agreements that would significantly reduce those rates.  In an order issued on June 3, 2005, the FERC dismissed this complaint without a decision on its merits.  On July 5, 2005, the Utility, along with other interested California parties, filed a request for rehearing of the FERC's June 3 order.  On August 3, 2005, the FERC denied the request for rehearing.  On September 23, 2005, the Utility and other interested California parties filed a petition for review of this decision with the United States Court of Appeals for the District of Columbia Circuit.  Any refunds the Utility may obtain will be credited to the Utility's electricity customers.  PG&amp;E Corporation and the Utility are unable to predict the outcome of this matter.</P>
<P ALIGN="JUSTIFY"></P>
<B><I><P>Other Commitments and Operating Leases</I> </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility has other commitments relating to operating leases, capital infusion agreements, equipment replacements, energy efficiency program incentives, self-generation incentive program exchange agreements, telecommunication contracts and the electric generating interconnection project contracts.  At September 30, 2005, the future minimum payments related to other commitments were as follows: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=268>
<TR><TD VALIGN="BOTTOM" COLSPAN=3>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
</TR>
<TR><TD WIDTH="76%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>2005</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">83&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="76%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>2006</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">98&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="76%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>2007</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">18&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="76%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>2008</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="76%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>2009</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="76%" VALIGN="BOTTOM" HEIGHT=14>
<FONT SIZE=2><P>Thereafter</FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">14&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="76%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="76%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Total</B></FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">232&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="76%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="76%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="76%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments made by the Utility for other commitments amounted to approximately $100 million for the nine months ended September 30, 2005, and $102 million for the same period in 2004.</P>

<B><P>Contingencies</P>
</B>
<B><P>PG&amp;E Corporation </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation retains a guarantee related to certain NEGT indemnity obligations issued to the purchaser of an NEGT subsidiary company during 2000, up to $150 million.  The underlying indemnity obligations of NEGT have expired and PG&amp;E Corporation's sole remaining exposure relates to the potential environmental obligations that were known to NEGT at the time of the sale but not disclosed to the purchaser.  PG&amp;E Corporation has never received any claims nor does it consider it probable any claims will occur under the guarantee.  Accordingly, PG&amp;E Corporation has made no provision for this guarantee at September 30, 2005. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation also retains a guarantee of the Utility's underlying obligation to pay workers' compensation claims.  As of September 30, 2005, the actuarially determined workers' compensation liability was approximately $227.8 million.</P>

<B><P>Utility</P>
</B>
<B><I><P>PX Block-Forward Contracts</I> </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility had PX block-forward contracts, which were seized by California's then-Governor Gray Davis in February 2001 for the benefit of the state, acting under California's Emergency Services Act.  At the time the state of California seized them, the block-forward contracts had an estimated unrealized gain of up to $243 million, an amount which was reflected in account receivables in the Utility balance sheet.  The Utility, the PX, and some of the PX market participants have filed claims in state court against the state of California to recover the value of the seized contracts.  The state of California disputes the plaintiffs' rights to recover any valuations.  The Utility has fully reserved the estimated value of the seized contracts.  This state court litigation is pending.  The Utility is unable to predict the outcome of this litigation or the impact on its financial condition or results of operations.</P>

<B><I><P>California Energy Crisis Proceedings </P>
</B></I>
<I><P>FERC Proceedings</P>
</I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Various entities, including the Utility and the state of California are seeking refunds for electricity overcharges on behalf of California electricity purchasers for the period May 2000 to June 2001 through regulatory and judicial proceedings.  A proceeding began at the FERC, the Refund Proceeding, on August 2, 2000 when a complaint was filed against all suppliers in the ISO and PX markets.  A FERC administrative law judge, or ALJ, issued an initial decision in December 2002, finding that power suppliers overcharged the utilities, the state of California and other buyers approximately $1.8 billion from October 2, 2000 to June 20, 2001, but that California buyers still owe $3.0 billion, leaving approximately $1.2 billion in net unpaid bills.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March 2003, the FERC accepted the ALJ's decision but modified the refund methodology to include use of a new natural gas price methodology and indicated that the refunds could be reduced by the amount of the seller's actual natural gas costs that are higher than the prices assumed in the ALJ's refund methodology.  The sellers were directed to submit proof of their actual natural gas costs to the ISO which is responsible for recalculating the refunds according to the new methodology.  It is expected that the sellers' audited fuel cost information will be submitted to the ISO by November 1, 2005.  In subsequent rulings, the FERC also ruled that if any sellers could demonstrate that refunds would result in sales revenue below their costs, their refund obligation would be reduced.  Various sellers submitted information to the FERC trying to make such a showing and the FERC is expected to issue a decision on these filings by November 15, 2005.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The FERC directed the ISO and the PX (which operates solely to reconcile remaining refund amounts owed) to submit new calculations establishing refund amounts based on the new methodology and audited natural gas cost reductions.  The ISO has recently indicated that it plans to file its recalculation in the first quarter of 2006, with the PX to follow.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parties have appealed the applicability and scope of the FERC's refund methodology.  On September 6, 2005, the Ninth Circuit issued a partial decision finding that the FERC did not have the authority to order governmental and municipal utilities to provide refunds.  This finding could substantially reduce refunds and the Utility is reviewing this decision and considering whether to seek rehearing or further appellate review.  A further Ninth Circuit decision on the extent of the FERC's power to order refunds from other sellers is still pending.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility recorded approximately $1.8 billion of claims filed by various electricity generators in its Chapter 11 proceeding as disputed claims.  This amount is subject to a pre-petition offset of approximately $200 million, reducing the net liability recorded to approximately $1.6 billion.  Under a bankruptcy court order, the aggregate allowable amount of unpaid PX and generator claims was limited to approximately $1.6 billion.  The Utility currently estimates that the claims would have been reduced to approximately $1.0 billion based on the refund methodology recommended in the FERC ALJ's initial decision.  The revised methodology adopted by the FERC's March 2003 decision could further reduce the amount by several hundred million dollars.  In addition, refunds could be further reduced by the amount of any FERC-approved fuel cost allowances or cost recovery offsets for suppliers and any refunds not received from municipal entities. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility has entered into settlements with various power suppliers resolving certain disputed claims and the Utility's refund claims against these power suppliers.  As of September 30, 2005, the Utility has recorded total offsets to the Settlement Regulatory Asset and credits to customers of approximately $728 million in connection with these settlements. (The settlement agreements make provision for several contingencies that may affect the final amounts actually received by the Utility).  Approximately $310 million of these credits were recorded as an offset to the Settlement Regulatory Asset that was refinanced through the issuance of the first series of ERBs in February 2005.  The remaining $418 million has been credited to the ERBBA, offset by net interest costs of approximately $83 million related to net disputed claims.  As indicated previously, the resolution of a number of pending FERC and appellate proceedings could affect the net settlement amounts.  Amounts received by the Utility under future settlements for electric market overcharges with energy suppliers will be credited to customers, except for those related to certain wholesale power purchases, either as a reduction to the amount of the second series of ERBs, anticipated to be issued in November 2005, or if refunds are received after the second series of ERBs is issued, as a credit to the ERBBA.</P>

<I><P>Enron Settlement </P>
</I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August 24, 2005, the Utility along with the Attorney General of the State of California, the California Department of Water Resources, Southern California Edison, San Diego Gas &amp; Electric Company, the California Electric Oversight Board and the CPUC, along with the Attorney Generals of the States of Oregon and Washington, and the FERC's Office of Market Oversight and Investigations entered into a definitive agreement with Enron Corporation and various of its subsidiaries, or Enron, to satisfy Enron's liabilities in the Refund Proceeding.  The agreement was also filed with the FERC on August 24, 2005, with a decision requested by year end 2005.  On October 20, 2005, the agreement was approved by Enron's bankruptcy court, however, the agreement will not become effective until approved by the FERC.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The settlement provides that Enron would pay $47 million in cash and allow an unsecured claim of $875 million in the bankruptcy proceeding of Enron Power Marketing, Inc., a subsidiary through which Enron conducted its power marketing operations in California, to settle electric and gas market overcharges.  The actual value of the bankruptcy claim is uncertain and the final amount would not be realized until the conclusion of the bankruptcy case unless liquidated earlier in a secondary market.  The allocation of the amount of the cash payment and the allowed claim among the California parties remains subject to final negotiation and agreement.  The Utility has not yet recorded the amount of refunds to be provided under the settlement agreement as several conditions, including FERC approval, have not yet been met.</P>

<I><P>Reliant Settlement</P>
</I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August 12, 2005, the Utility along with the Attorney Generals of the States of Oregon and Washington, the DWR, the FERC's Office of Market Oversight and Investigations, Southern California Edison and San Diego Gas &amp; Electric Company, entered into a memorandum of understanding with Reliant Energy, Inc. and various of its subsidiaries, or Reliant, to resolve claims against Reliant for gas and electric market manipulation and overcharges during the California energy crisis in 2000 and 2001.  The definitive agreement was executed and submitted to the FERC for approval on October 14, 2005.  The FERC was requested to issue a decision by the end of 2005.  The agreement will not become effective until it is approved by the FERC.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The agreement provides that Reliant will assign to the California parties approximately $300 million of its receivables from the California ISO or PX and related interest of approximately $10 million.  In addition, Reliant will provide the California parties approximately $131 million in cash.  The allocation of these considerations among the California parties remains subject to final negotiation and agreement.  The Utility has not yet recorded the amount of the refunds to be provided under the settlement agreement as several conditions, including FERC approval have not yet been met.  </P>

<I><P>Mirant Settlement</P>
</I><P ALIGN="JUSTIFY"></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January 2005, the Utility and other parties entered into a settlement agreement with Mirant Corporation and certain of its subsidiaries, or Mirant, related to claims outstanding in Mirant's Chapter 11 proceeding.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The first part of the two-part settlement is between Mirant, the California Attorney General's Office, the DWR, the CPUC, Southern California Edison, San Diego Gas &amp; Electric Company, and the Utility, among others, resolving market manipulation claims against Mirant and Mirant's liability for FERC refunds, penalties and civil liabilities arising out of the California energy crisis in 2000 to 2001.  Under this portion of the agreement, Mirant will provide approximately $320 million in cash equivalents and $175 million of allowed claims in the bankruptcy proceeding of Mirant America's Energy Marketing, LP.  Of these amounts, the Utility will receive approximately $130 million in cash and as a reduction in the Utility's payable to the PX, and will receive $40 million in allowed claims.  Most of the consideration has been credited to the Utility's customers through the ERBBA or reflected as a regulatory liability during the quarter as described above.  The final cash value of the allowed claims will not be known until the completion of the bankruptcy proceedings unless liquidated earlier in a secondary market for such claims.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The second part of the settlement is between the Utility and Mirant and is designed to settle claims that Mirant overcharged the Utility under Mirant's RMR contracts and other disputes.  Under the settlement agreement, Mirant has agreed to transfer to the Utility the equipment, permits and contracts for the construction of Contra Costa Unit 8, a modern 530-megawatt electric generating facility Mirant started to build, but never completed.  On June 10, 2005, the Utility and Mirant completed negotiations of an Asset Transfer Agreement, which provides the terms and conditions under which the Contra Costa 8 equipment, permits, and contracts would be transferred to the Utility and development and construction of the plant would be completed.  On June 17, 2005, the Utility filed an application with the CPUC requesting approval of the Asset Transfer Agreement and cost-of-service funding to complete the $310 million construction of the facility, and funding to operate it for up to three years.  The CPUC hearings are scheduled to begin December 5, 2005 and a final decision is expected by March 15, 2006.  If the Utility and Mirant do not receive the necessary approvals, including CPUC authorization, the Utility will be paid at least $70 million in lieu of transferring the assets.  The settlement agreement also includes a contract that gives the Utility the right from 2006 through 2012 to dispatch power from certain RMR units owned by Mirant subsidiaries, subject to continued RMR status, when the facilities are not needed by the ISO to meet local reliability needs.  In addition, Mirant has withdrawn the claim it filed in the Utility's bankruptcy proceeding of approximately $20 million and the Utility will receive approximately $60 million of allowed claims, credits, offsets, and/or cash from Mirant.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The settlement agreement became effective on April 15, 2005, after all regulatory and other approvals required by the settlement agreement were obtained.  As of September 30, 2005, the Utility has recorded a receivable and a corresponding regulatory liability of approximately $171 million, which includes the $70 million discussed above relating to the transfer of the Contra Costa 8 assets, representing the expected value to be received in connection with the Mirant settlement agreement.</P>

<B><I><P>Nuclear Insurance </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility has several types of nuclear insurance for the Diablo Canyon Power Plant, or Diablo Canyon, and Humboldt Bay Unit 3.  The Utility has insurance coverage for property damages and business interruption losses as a member of Nuclear Electric Insurance Limited, or NEIL.  NEIL is a mutual insurer owned by utilities with nuclear facilities.  NEIL provides property damage and business interruption coverage of up to $3.24 billion per incident.  Under this insurance, if any nuclear generating facility insured by NEIL suffers a catastrophic loss causing a prolonged outage, the Utility may be required to pay an additional premium of up to $43.6 million per one-year policy term.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NEIL also provides coverage for damages caused by acts of terrorism at nuclear power plants.  If one or more acts of domestic terrorism cause property damage covered under any of the nuclear insurance policies issued by NEIL to any NEIL member within a 12-month period, the maximum recovery under all those nuclear insurance policies may not exceed $3.24 billion plus the additional amounts recovered by NEIL for these losses from reinsurance.  Under the Terrorism Risk Insurance Act of 2002, there are no policy coverage limitations for an act caused by foreign terrorists because NEIL would be entitled to receive substantial reimbursement by the federal government.  The Terrorism Risk Insurance Act of 2002 expires on December 31, 2005. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Price-Anderson Act, public liability claims from a nuclear incident are limited to $10.8 billion.  As required by the Price-Anderson Act, the Utility purchased the maximum available public liability insurance of $300 million for Diablo Canyon.  The balance of the $10.8 billion of liability protection is covered by a loss-sharing program among utilities owning nuclear reactors.  Under the Price-Anderson Act, owner participation in this loss-sharing program is required for all owners of nuclear reactors that are licensed to operate, designed for the production of electrical energy, and have a rated capacity of 100 megawatts, or MW, or higher.  If a nuclear incident results in costs in excess of $300 million, then the Utility may be responsible for up to $100.6 million per reactor, with payments in each year limited to a maximum of $15 million per incident until the Utility has fully paid its share of the liability.  Since Diablo Canyon has two nuclear reactors each with a rated capacity of over 100 MW, the Utility may be assessed up to $201.2 million per incident, with payments in each year limited to a maximum of $30 million per incident.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, the Utility has $53.3 million of liability insurance for the retired nuclear generating unit at Humboldt Bay power plant and has a $500 million indemnification from the NRC, for public liability arising from nuclear incidents covering liabilities in excess of the $53.3 million of liability insurance.</P>

<B><I><P>California Department of Water Resources Contracts </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electricity from the DWR allocated contracts provided approximately 26% of the electricity delivered to the Utility's customers for the nine-month period ended September 30, 2005.  The DWR purchased the electricity under contracts with various generators.  The Utility is responsible for administration and dispatch of the DWR's electricity procurement contracts allocated to the Utility for purposes of meeting a portion of the Utility's net open position, which is the portion of the demand of a utility's customers, plus applicable reserve margins, not satisfied from that utility's own generation facilities and existing electricity contracts.  The DWR remains legally and financially responsible for its electricity procurement contracts.  The Utility acts as a billing agent for the collection of the DWR's revenue requirements from the Utility's customers.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The DWR contracts currently allocated to the Utility terminate at various times through 2012, and consist of must-take and capacity charge contracts.  Under must-take contracts, the DWR must take and pay for electricity generated by the applicable generating facilities regardless of whether the electricity is needed.  Under capacity charge contracts, the DWR must pay a capacity charge but is not required to purchase electricity unless that electricity is dispatched and delivered.  In the Utility's CPUC-approved long-term integrated energy resource plan, the Utility has not assumed that the DWR contracts will be renewed beyond their current expiration dates.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The DWR has stated publicly that it intends to transfer full legal title to, and responsibility for, the DWR power purchase contracts to the California investor-owned electric utilities as soon as possible.  However, the DWR power purchase contracts cannot be transferred to the Utility without the consent of the CPUC.  The Settlement Agreement provides that the CPUC will not require the Utility to accept an assignment of, or to assume legal or financial responsibility for, the DWR power purchase contracts unless each of the following conditions has been met:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=561>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>After assumption, the Utility's issuer rating by Moody's will be no less than A2 and the Utility's long-term issuer credit rating by S&amp;P will be no less than A;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>The CPUC first makes a finding that the DWR power purchase contracts to be assumed are just and reasonable; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>The CPUC has acted to ensure that the Utility will receive full and timely recovery in its retail electricity rates of all costs associated with the DWR power purchase contracts to be assumed without further review.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="JUSTIFY"></P>
<B><I><P>Defined Benefit Pension Plan Additional Minimum Liability </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If current market conditions continue through the remainder of 2005, the Utility anticipates that its defined benefit retirement plan assets at December 31, 2005 will be less than the accumulated benefit obligations due to changes in certain market yields used to estimate benefit obligations.  The ultimate amount, if any, that the Utility would be required to recognize as an additional minimum pension liability is dependent upon certain market yields at December 31, 2005 and investment returns through the remainder of 2005 and as such, cannot be estimated at this time.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility has recently filed a petition requesting the CPUC to authorize it to resume contributions to its employee pension trust beginning in 2006 based upon the funded status of the pension plan.  The petition estimates the annual revenue requirement associated with the pension contributions for its generation and distribution businesses to be approximately $185 million, and it requests that the amount be recovered in rates beginning January 1, 2006, subject to refund to customers if the CPUC later disapproves the contributions.  The Utility is unable to predict the outcome of the petition to the CPUC, the amount of minimum pension liability to be recognized, if any, or the impact on its financial condition or results of operations. </P>

<B><P>Environmental Matters </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility may be required to pay for environmental remediation at sites where it has been, or may be, a potentially responsible party under the Comprehensive Environmental Response Compensation and Liability Act of 1980, or CERCLA, as amended, and similar state environmental laws.  These sites include former manufactured gas plant sites, power plant sites, and sites used by the Utility for the storage, recycling, or disposal of potentially hazardous materials.  Under federal and California laws, the Utility may be responsible for remediation of hazardous substances even if the Utility did not deposit those substances on the site.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The cost of environmental remediation is difficult to estimate.  The Utility records an environmental remediation liability when site assessments indicate remediation is probable and it can estimate a range of reasonably likely clean-up costs.  The Utility reviews its remediation liability on a quarterly basis for each site where it may be exposed to remediation responsibilities.  The liability is an estimate of costs for site investigations, remediation, operations and maintenance, monitoring and site closure using current technology, enacted laws and regulations, experience gained at similar sites, and an assessment of the probable level of involvement and financial condition of other potentially responsible parties.  Unless there is a better estimate within this range of possible costs, the Utility records the costs at the lower end of this range.  It is reasonably possible that a change in these estimates may occur in the near term due to uncertainty concerning the Utility's responsibility, the complexity of environmental laws and regulations, and the selection of compliance alternatives.  The Utility estimates the upper end of the cost range using reasonably possible outcomes least favorable to the Utility.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility had an undiscounted environmental remediation liability of approximately $414 million at September 30, 2005, and approximately $327 million at December 31, 2004.  During the nine months ended September 30, 2005, the liability increased by approximately $87 million mainly due to reassessment of the estimated cost of remediation and remediation payments.  The approximately $414 million accrued at September 30, 2005, includes approximately $101 million related to the pre-closing remediation liability associated with divested generation facilities and approximately $313 million related to remediation costs for those generation facilities that the Utility still owns, gas gathering sites, compressor stations, third-party disposal sites, and manufactured gas plant sites that either are owned by the Utility or are the subject of remediation orders by environmental agencies or claims by the current owners of the former manufactured gas plant sites.  Of the approximately $414 million environmental remediation liability, approximately $143 million has been included in prior rate setting proceedings and the Utility expects that approximately $205 million will be allowable for inclusion in future rates.  The Utility also recovers its costs from insurance carriers and from other third parties whenever possible.  Any amounts collected in excess of the Utility's ultimate obligations may be subject to refund to customers.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's undiscounted future costs could increase to as much as $584 million if the other potentially responsible parties are not financially able to contribute to these costs, or if the extent of contamination or necessary remediation is greater than anticipated.  The amount of approximately $584 million does not include an estimate for the cost of remediation at known sites owned or operated in the past by the Utility's predecessor corporations for which the Utility has not been able to determine whether a liability exists.</P>

<B><P>Taxation Matters </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Internal Revenue Service, or IRS, has completed its audit of PG&amp;E Corporation's 1997 and 1998 consolidated federal income tax returns and has assessed additional federal income taxes of approximately $81 million (including interest).  PG&amp;E Corporation has filed protests contesting certain adjustments made by the IRS in that audit and currently is discussing these adjustments with the IRS Appeals Office.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The IRS also has completed its audit of PG&amp;E Corporation's 1999 and 2000 consolidated federal income tax returns and refunded $14 million to PG&amp;E Corporation.  As a result of the resolution of this audit, in the second quarter of 2005 PG&amp;E Corporation paid the Utility $18 million relating to the Utility matters that had been included in the audit, the Utility reduced its reserve for outstanding tax audits by $11 million and PG&amp;E Corporation recognized tax benefits of $32 million for NEGT-related matters included in the audit.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The IRS is auditing PG&amp;E Corporation's 2001 and 2002 consolidated federal income tax returns.  The IRS has indicated that it plans to continue the audit into 2006.  At the beginning of its examination the IRS indicated it would disallow synthetic fuel credits claimed by PG&amp;E Corporation.  In addition, the IRS has proposed to disallow a number of deductions, the largest of which is a deduction for abandoned or worthless assets owned by NEGT.  PG&amp;E Corporation believes that it properly reported these transactions in its tax returns and will contest any IRS assessment.  If the IRS includes all of its proposed disallowances in the final Revenue Agent Report, the alleged tax deficiency would approximate $452 million.  Of this deficiency, approximately $104 million relates to the synthetic fuel credits and approximately $316 million is of a timing nature, which would be refunded to PG&amp;E Corporation in the future.  In the second quarter of 2005, PG&amp;E Corporation increased its reserve with respect to NEGT tax issues included in the 2001 and 2002 consolidated federal income tax returns by $32 million.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The IRS began its audit of PG&amp;E Corporation's 2003 and 2004 tax returns in the third quarter of 2005.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the third quarter of 2005, PG&amp;E Corporation received additional information from NEGT regarding income to be included in PG&amp;E Corporation's 2004 federal income tax return.  This information was incorporated in the 2004 tax return, which was filed with the IRS in September 2005.  As a result, the 2004 federal income tax liability was reduced by approximately $19 million.  In addition, NEGT provided additional information with respect to amounts previously included in PG&amp;E Corporation's 2003 federal income tax return.  This change resulted in PG&amp;E Corporation's 2003 federal income tax liability increasing by approximately $6 million.  These two adjustments, netting to $13 million, were recognized in income from discontinued operations in the third quarter of 2005.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September 30, 2005, PG&amp;E Corporation has accrued approximately $138 million to cover potential tax obligations and interest related to outstanding audits, including the $89 million related to NEGT issues discussed above, and $49 million to cover potential tax obligations related to non-NEGT issues.  The increase in PG&amp;E Corporation's accrual at September 30, 2005, compared to December 31, 2004, of approximately $37 million is primarily related to the second quarter increase of $32 million in the accrual for NEGT tax issues included in the 2001-2002 audit discussed above.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September 30, 2005, the Utility has accrued approximately $52 million to cover potential tax obligations discussed above, including interest, related to outstanding audits.  This represents an $11 million reduction from the accrual at December 31, 2004, and reflects the resolution in the second quarter of the 1999-2000 audit discussed above.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Considering these reserves, PG&amp;E Corporation and the Utility do not expect the resolution of the outstanding audits to have a material impact on their financial condition or results of operations. </P>

<B><P>Legal Matters </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the normal course of business, PG&amp;E Corporation and the Utility are named as parties in a number of claims and lawsuits.  The most significant of these are discussed below.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with SFAS No. 5, "Accounting for Contingencies," PG&amp;E Corporation and the Utility make a provision for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.  These provisions are reviewed quarterly and adjusted to reflect the impacts of negotiations, settlements and payments, rulings, advice of legal counsel and other information and events pertaining to a particular case.  In assessing such contingencies, PG&amp;E Corporation's and the Utility's policy is to exclude anticipated legal costs.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accrued liability for legal matters is included in PG&amp;E Corporation's and the Utility's other noncurrent liabilities in the Condensed Consolidated Balance Sheets, and totaled approximately $222 million at September 30, 2005 and $220 million at December 31, 2004.  As to the chromium litigation described below, PG&amp;E Corporation and the Utility are unable to predict whether the ultimate outcome of this matter will have a material adverse effect on PG&amp;E Corporation's or the Utility's financial condition or results of operations.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility do not believe it is probable that losses associated with legal matters other than the chromium litigation, that exceed amounts already recognized will be incurred in amounts that would be material to PG&amp;E Corporation's or the Utility's financial condition or results of operations.</P>

<B><I><P>Chromium Litigation</I> </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are 14 civil suits pending against the Utility in several California state courts in which plaintiffs allege that exposure to chromium at or near the Utility's compressor stations at Hinkley and Kettleman, California, and the area of California near Topock, Arizona, caused personal injuries, wrongful deaths, or other injury, referred to as the Chromium Litigation.  One of these suits also names PG&amp;E Corporation as a defendant.  There are currently about 1,200 plaintiffs in the Chromium Litigation who seek compensatory damages, more than 1,000 of whom are also seeking punitive damages.  Although the plaintiffs' complaints in the Chromium Litigation do not state the amount of compensatory or punitive damages claimed, approximately 1,000 of the current plaintiffs filed claims in the Utility's Chapter 11 case requesting compensatory damages in an approximate aggregate amount of $500 million and others filed claims for an "unknown amount."  (The Utility's exit from Chapter 11 in April 2004 did not affect the plaintiffs' claims for compensatory and punitive damages.)  To assist in managing and resolving litigation with this many plaintiffs, the parties agreed to select 18 plaintiffs for the first trial.  Plaintiffs' counsel selected ten of these initial trial plaintiffs, defense counsel selected seven of the initial trial plaintiffs, and one plaintiff and two alternates were selected at random.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility is responding to the suits in which it has been served and is asserting affirmative defenses.  The Utility is pursuing appropriate legal defenses, including statute of limitations, exclusivity of workers' compensation laws, and factual defenses, including lack of exposure to chromium and the inability of chromium to cause certain of the illnesses alleged.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility has filed 14 motions in the Superior Court for the County of Los Angeles, or Superior Court, challenging the first trial plaintiffs' lack of admissible scientific evidence that chromium caused the alleged injuries.  The Superior Court has denied four of these motions and also has denied the Utility's motions for reconsideration of these orders.  The Utility has sought appellate court review of the Superior Court's denials of the Utility's pre-trial motions based on the argument that they are inconsistent with recent California appellate decisions (one of which is now under review by the California Supreme Court) concerning the admissibility of expert testimony and the requirements for proving medical causation.  The Utility also requested the appellate court to order the Superior Court to stay the upcoming trial until after the California Supreme Court issues its decision.  The appellate court ordered the plaintiffs to file a brief addressing the issues raised by the Utility.  Plaintiffs' brief was filed on September 23, 2005 and the Utility's responses were filed on September 30 and October 3, 2005.  The appellate court's decision as to whether to consider the merits of the Utility's appeal is still pending.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 3, 2005, the Utility received a ruling issued by the Superior Court granting one of the Utility's pre-trial motions.  As a result of the ruling, the Superior Court dismissed one plaintiff who was scheduled to participate in the first trial who claimed that chromium caused her Crohn's disease.  The ruling also applies to seven other plaintiffs who are claiming that exposure to chromium caused them to contract Crohn's disease.  Also, on September 20, 2005, in response to another pre-trial motion that had been filed by the Utility, three plaintiffs who were scheduled to participate in the first trial voluntarily dismissed their claims.  On October 19, 2005, the Superior Court took under submission the Utility's motion for summary judgment that plaintiffs have failed to prove that exposure to chromium caused leukemia.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The trial for the 14 remaining plaintiffs who were selected to participate in the first trial was scheduled to begin on January 9, 2006, but has been moved to February 7, 2006.  Counsel for the Utility and counsel for the plaintiffs are engaged in settlement discussions.  PG&amp;E Corporation and the Utility cannot predict the outcome of these discussions.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously disclosed, the Utility has recorded a $160 million reserve in its financial statements with respect to the Chromium Litigation.  Given the Superior Court's denials of the Utility's pre-trial motions and the uncertainty of the outcome of the Utility's request to the appellate court, PG&amp;E Corporation and the Utility are unable to predict whether the ultimate outcome of this matter, after taking into account the amount already reserved at September 30, 2005, would have a material adverse impact on PG&amp;E Corporation's or the Utility's financial condition or results of operations.  The dismissals entered on September 20 and the October 3 ruling have not altered this assessment of the ultimate outcome of the Chromium Litigation.</P>

<P ALIGN="CENTER">&nbsp;</P>
<B><P ALIGN="CENTER"><A NAME="item_2"></A>ITEM 2:  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND<BR>
RESULTS OF OPERATIONS<BR>
</P>
<P><A NAME="mda_overview"></A>OVERVIEW </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation, incorporated in California in 1995, is a holding company whose primary purpose is to hold interests in energy based businesses.  The company conducts its business principally through Pacific Gas and Electric Company, or the Utility, a public utility operating in northern and central California.  The Utility, which was incorporated in California in 1905, engages primarily in the businesses of electricity and natural gas distribution, electricity generation, electricity transmission, and natural gas procurement, transportation and storage.  PG&amp;E Corporation became the holding company of the Utility and its subsidiaries on January 1, 1997.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This is a combined quarterly report of PG&amp;E Corporation and the Utility and includes separate Condensed Consolidated Financial Statements for each of these two entities.  PG&amp;E Corporation's Condensed Consolidated Financial Statements include the accounts of PG&amp;E Corporation, the Utility and other wholly owned and controlled subsidiaries.  The Utility's Condensed Consolidated Financial Statements include the accounts of the Utility and its wholly owned and controlled subsidiaries and a variable interest entity for which it is subject to a majority of the risk of loss or entitled to receive a majority of the entity's residual returns.  This combined Management's Discussion and Analysis of Financial Condition and Results of Operations, or MD&amp;A, of PG&amp;E Corporation and the Utility should be read in conjunction with these Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial Statements, as well as the MD&amp;A, Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in their joint Current Report on Form 8-K dated October 28, 2005, as amended on October 31, 2005, or the 2004 Financial Report..  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility served approximately 5.0 million electricity distribution customers and approximately 4.2 million natural gas distribution customers at September 30, 2005.  The Utility had approximately $34 billion in assets at September 30, 2005 and generated revenues of approximately $8 billion in the nine months ended September 30, 2005.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility is regulated primarily by the California Public Utilities Commission, or CPUC, and the Federal Energy Regulatory Commission, or FERC.  The Utility's revenues are generated mainly through the sale and delivery of electricity and natural gas at rates set by the CPUC and the FERC.  Rates are set to permit the Utility to recover its authorized "revenue requirements" from customers.  Revenue requirements are designed to allow the Utility an opportunity to recover its reasonable costs of providing utility services, including a return of, and a fair rate of return on, its investment in utility facilities, or rate base.  Changes in any individual revenue requirement affect customers' rates and could affect the Utility's revenues.  Pending regulatory proceedings that could result in rate changes and affect the Utility's revenues are discussed in PG&amp;E Corporation's and the Utility's 2004 Financial Report and below under "Regulatory Matters."</P>

<B><P>Factors Affecting Financial Condition and Results of Operations </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Several factors have had, and are expected to continue to have, a significant impact on PG&amp;E Corporation's and the Utility's financial condition and results of operations, including: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=561>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=23>
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP" HEIGHT=23>
<FONT SIZE=2><P>In February 2005, after the first series of Energy Recovery Bonds, or ERBs, were issued (as discussed below under "Regulatory Matters"), the Utility refinanced the after-tax portion of the Settlement Regulatory Asset established by the December 2003 settlement agreement entered into among the Utility, PG&amp;E Corporation and the CPUC to resolve the Utility's Chapter 11 case, or the Settlement Agreement.  While the after-tax portion of the Settlement Regulatory Asset existed, the Utility earned its authorized rate of return on equity, or ROE, of 11.22% on the Settlement Regulatory Asset.  After the elimination of the after-tax portion of the Settlement Regulatory Asset, the Utility no longer was entitled to collect the revenue requirements, including the revenue requirement to recover the 11.22 % ROE, associated with this asset.  As a result, the Utility's net income for the three and nine-month periods ended September 30, 2005 were reduced by approximately $27 million and $73 million, compared to the same periods in 2004, when the Utility earned the 11.22% ROE on the Settlement Regulatory Asset.  Total net income for 2005 is estimated to be reduced by approximately $100 million, compared to 2004, due to the elimination of the 11.22% ROE on the Settlement Regulatory Asset.  The issuance of the second series of ERBs, anticipated to occur in November 2005, is expected to result in a reduction in the Utility's 2006 net income of approximately $56 million.  Net income for 2006 also will be affected by the amount of ROE authorized by the CPUC in the Utility's 2006 cost of capital proceeding.  (See "Regulatory Matters" below);</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=72>
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP" HEIGHT=72>
<FONT SIZE=2><P>During 2005, PG&amp;E Corporation reinstated the payment of a regular quarterly dividend at an annual rate of $1.20 per share.  As discussed below under "Liquidity", the Board of Directors of PG&amp;E Corporation has increased the annual dividend level target, consistent with its dividend policy, to $1.32 per share;  </P>
<P> </FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=106>
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP" HEIGHT=106>
<FONT SIZE=2><P>PG&amp;E Corporation has repurchased common stock under accelerated share repurchase arrangements that have increased both basic and diluted earnings per share by approximately $0.15 and $0.14, respectively, for the nine months ended September 30, 2005.  PG&amp;E Corporation's Board of Directors has authorized additional repurchases of up to $1.6 billion of common stock in 2005 and 2006, as discussed below under "Liquidity - Stock Repurchases;"  </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=213>
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP" HEIGHT=213>
<FONT SIZE=2><P>By December 2, 2005, the Utility intends to file its 2007 General Rate Case, or GRC, application with the CPUC to determine the amount of authorized base revenues to be collected from customers to recover the Utility's basic business and operational costs for its gas and electric distribution and electric generation operations for the period 2007 through 2009.  As compared to the projected authorized 2006 revenue requirements, the Utility's Notice of Intent filed with the CPUC on August 1, 2005 indicated that the Utility's GRC application would request increases in electric and gas distribution revenue requirements of $393 million and $61 million, respectively, and an increase of $48 million related to generation expenses and administrative costs associated with electric procurement activities.  The Utility's GRC application will include a proposed mechanism to share savings with customers that may be achieved through implementation of specific initiatives the Utility has identified to provide better faster and more cost-effective service to its customers (See "Regulatory Matters" below);</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=143>
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP" HEIGHT=143>
<FONT SIZE=2><P>The Utility has requested that the CPUC approve various capital expenditures for electric and gas distribution infrastructure improvements, including the funding for installation of advanced meters, for potential investment in new generation resources, and for ongoing investments in its electric and gas transmission operations.  As discussed below under "Capital Expenditures," it is estimated that the Utility's capital expenditures will approximate $1.9 billion in 2005 and $2.4 billion in 2006 (excluding the capitalized portion of a 2006 pension contribution), resulting in a projected rate base of $15.2 billion in 2005 and $16.2 billion in 2006;  </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=168>
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP" HEIGHT=168>
<FONT SIZE=2><P>In response to rising natural gas prices during the quarter, the CPUC permitted the Utility to implement additional hedging strategies to reduce the impact of higher prices on the Utility's residential and small commercial retail natural gas customers (referred to as core customers) and to reduce the impact of higher natural gas prices on the Utility's electric generation portfolio.  For a further discussion see "Risk Management" below.  Although there are ratemaking mechanisms in place to recover the Utility's natural gas costs, the Utility's implementation of the CPUC-approved hedging strategies is subject to reasonableness review.  In addition, as customer rates rise in response to increasing gas and electricity prices, there may be greater pressure on the CPUC to disallow costs as unreasonable or to defer the Utility's recovery of costs; and </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=84>
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP" HEIGHT=84>
<FONT SIZE=2><P>PG&amp;E Corporation's and the Utility's future results of operation and financial condition may also be affected by the extent to which forecasted or estimated amounts or accrued liabilities differ from the amounts actually incurred for operations, including legal liabilities such as the Chromium Litigation discussed in "Part II, Item 1. Legal Proceedings" below and in Note 7 of the Notes to the Consolidated Financial Statements, or for capital expenditures.  </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to the factors discussed above, PG&amp;E Corporation's and the Utility's future financial condition and results of operations are subject to the uncertainties and risk factors discussed below. </P>

<B><P>Forward-Looking Statements </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This combined Quarterly Report on Form 10-Q, including the MD&amp;A, contains forward-looking statements that are necessarily subject to various risks and uncertainties the realization or resolution of which are outside of management's control.  These statements are based on current expectations and projections about future events, and assumptions regarding these events and management's knowledge of facts at the time the statements were made.  These forward-looking statements are identified by words such as "assume," "expect," "intend," "plan," "project," "believe," "estimate," "predict," "anticipate," "may," "might," "should," "would," "could," "goal," "potential" and similar expressions.  Although PG&amp;E Corporation and the Utility are not able to predict all the factors that may affect future results, some of the factors that could cause future results to differ materially from those expressed or implied by the forward-looking statements, or from historical results, include:</P>

<B><I><P>Operating Environment</P>
</B></I></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=561>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Unanticipated changes in operating expenses or capital expenditures, which may result in material differences between forecasted costs used to determine rates and actual costs incurred that in turn may affect the Utility's ability to earn its authorized rate of return;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>The adequacy of natural gas supplies and the effect of increasing prices for natural gas on the Utility's electric generation portfolio and its natural gas distribution operations, the ability of the Utility to manage and respond to increasing natural gas costs successfully and to timely recovery of its natural gas costs and increased electricity procurement costs;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Weather, storms, earthquakes, fires, floods, other natural disasters, explosions, accidents, mechanical breakdowns and other events or hazards that affect demand, result in power outages, reduce generating output, or cause damage to the Utility's assets or operations or those of third parties on which the Utility relies, and the extent to which the Utility is able to timely recover costs related to such events;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Unanticipated population growth or decline, changes in market demand and demographic patterns, and general economic and financial market conditions, including unanticipated changes in interest or inflation rates, and the extent to which the Utility is able to timely recover its costs in the face of such events;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>The operation of the Utility's Diablo Canyon nuclear power plant, or Diablo Canyon, which exposes the Utility to potentially significant environmental costs and capital expenditure outlays;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Whether the Utility is able to increase its spent nuclear fuel storage capacity at Diablo Canyon by 2007 by completing its dry cask storage project (the timing of which may be affected by the pending federal appeal of the license issued by the Nuclear Regulatory Commission, or NRC), by timely completing the construction of other on-site spent nuclear fuel storage alternatives, or by finding an alternative depository, the risk that the Utility may be required to close Diablo Canyon and purchase electricity from more expensive sources, and the extent to which the Utility is able to timely recover related costs and expenses;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Actions of credit rating agencies;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Significant changes in the Utility's relationship with its employees, the availability of qualified personnel and the potential adverse effects if labor disputes were to occur; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Acts of terrorism.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT SIZE=2>
<I><P>Legislative Actions and Regulatory Proceedings</P>
</I></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=561>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>The outcome of the regulatory proceedings pending at the CPUC and the FERC discussed in "Regulatory Matters" below, including the Utility's 2007 GRC, the Utility's request for a revenue requirement to fund pension contributions that may be required in the future, the outcome of the Utility's application for approval of capital expenditures, and the impact of future ratemaking actions by the CPUC and the FERC; </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Whether the assumptions and forecasts underlying the Utility's CPUC-approved long-term electricity procurement plan prove to be accurate, the terms and conditions of the generation or procurement commitments the Utility enters into in connection with its plan, the extent to which the Utility is able to recover the costs it incurs in connection with these commitments, and the extent to which a failure to perform by any of the counterparties to the Utility's electricity purchase contracts or the California Department of Water Resources, or the DWR, contracts allocated to the Utility's customers affects the Utility's ability to meet its obligations or to recover its costs;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>The impact of the recently enacted Energy Policy Act of 2005 which, among other provisions, repeals the Public Utility Holding Company Act of 1935 making electric utility industry consolidation more possible and authorizing the FERC to review proposed mergers; changes the FERC regulatory scheme applicable to qualifying co-generation facilities; creates an Electric Reliability Organization to be overseen by the FERC to establish electric reliability standards; and modifies certain other aspects of energy regulations and Federal tax policies applicable to the Utility;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Future changes in governmental policies, legislative or regulatory actions by the California legislature, the U.S. Congress, the CPUC, the FERC, and the NRC, with regard to the structure of the electric industry and power markets, the Utility's allowed rates of return, recovery of investments and costs, acquisitions and disposal of assets and facilities, treatment of affiliate contracts and relationships, and operation and construction of facilities;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>The extent to which the CPUC or the FERC delays or denies recovery of the Utility's costs, including electricity or gas purchase costs from customers due to a regulatory determination that such costs were not reasonable or prudent, or for other reasons, resulting in write-offs of regulatory balancing accounts;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>How the CPUC administers the capital structure, stand-alone dividend, and first priority conditions of the CPUC's past decisions permitting the establishment of holding companies for the California investor-owned electric utilities and the outcome of the CPUC's new rulemaking proceeding concerning the relationship between the California investor-owned energy utilities and their holding companies and non-regulated affiliates, which may include (1) establishing reporting requirements for the allocation of capital between utilities and their non-regulated affiliates by the parent holding companies, and (2) changes to the CPUC's affiliate transaction rules;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=39>
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP" HEIGHT=39>
<FONT SIZE=2><P>The terms and conditions under which the CPUC authorizes the Utility to issue debt and equity in the future; </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Whether the Utility is determined to be in compliance with all applicable rules, tariffs and orders relating to electricity and natural gas utility operations, and the extent to which a finding of non-compliance could result in customer refunds, penalties or other non-recoverable expenses; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Whether the Utility is required to incur material costs or capital expenditures or curtail or cease operations at affected facilities to comply with existing and future environmental laws, regulations and policies.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT SIZE=2>
<I><P>Pending Litigation </P>
</I></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=561>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>The outcome of pending litigation, including the outcome of the Chromium Litigation, as discussed below in "Part II, Item 1. Legal Proceedings" and in Note 7 of the Notes to the Consolidated Financial Statements; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>The timing and resolution of the pending appeals of the bankruptcy court order confirming the Utility's plan of reorganization under Chapter 11.</P>
</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT SIZE=2><P>&nbsp;</P>
<I><P>Competition and Bypass</P>
</I></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=561>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Increased competition as a result of the continuing efforts by local public utilities to take over the Utility's distribution assets through exercise of their condemnation power or by duplication of the Utility's distribution assets or service, and other forms of competition that may result in stranded investment capital, decreased customer growth, loss of customer load and additional barriers to cost recovery; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=93>
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP" HEIGHT=93>
<FONT SIZE=2><P>The extent to which the Utility's distribution customers are permitted to switch between purchasing electricity from the Utility and from alternate energy service providers as direct access customers, the extent to which cities, counties and others in the Utility's service territory begin directly serving the Utility's customers, and the extent to which the Utility's customers become self-generators, results in stranded generating asset costs and non-recoverable procurement costs.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See the section entitled "Risk Factors" in PG&amp;E Corporation's and the Utility's 2004 Financial Report for further discussion of the more significant risks that could affect the outcome of these forward-looking statements and PG&amp;E Corporation's and the Utility's future financial condition and results of operations.</P>
</FONT><B>
<FONT SIZE=2><P><A NAME="_OVERVIEW__[Corp."><A NAME="mda_utility_results_of_operations"><A NAME="mda_results_of_operations"></A></A>RESULTS OF OPERATIONS </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below details certain items from the accompanying Consolidated Statements of Income for the three and nine-month periods ended September 30, 2005 and 2004.  </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=1 WIDTH=657>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>Utility</B></FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Electric operating revenues </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,107&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,042&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,546&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,902&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Natural gas operating revenues</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">697&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">581&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,424&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,198&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Total operating revenues</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,804&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,623&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7,970&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,100&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Cost of electricity</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">742&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">792&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,626&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,003&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Cost of natural gas</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">326&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">239&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,293&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,096&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Operating and maintenance</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">738&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">671&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,179&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,271&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Recognition of regulatory assets</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(4,900)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Depreciation, amortization and decommissioning</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">481&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">405&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,320&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,054&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Reorganization professional fees and expenses</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Total operating expenses</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,287&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,107&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,418&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,530&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Operating income </FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">517&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">516&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,552&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,570&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Interest income <SUP>(1)</SUP></FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">20&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">11&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">59&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">44&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Interest expense</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(138)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(141)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(416)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(512)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Other income (expense), net <SUP>(2)</SUP></FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(7)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">10&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(3)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">26&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Income before income taxes</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">392&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">396&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,192&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,128&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Income tax provision</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">148&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">152&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">457&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,410&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Income available for common stock</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">244&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">244&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">735&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,718&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>PG&amp;E Corporation, Eliminations and Other </B><SUP>(3)</SUP></FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT"> </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Operating revenues </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Operating (gain) expenses</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(2)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">28&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Operating income (loss)</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(2)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(7)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(28)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Interest income</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">10&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Interest expense</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(7)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(18)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(22)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(53)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Other expense, net </FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(7)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(6)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(13)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(72)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Loss before income taxes</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(14)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(27)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(32)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(143)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Income tax benefit</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(9)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(11)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(21)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(58)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Income (Loss) From Continuing Operations </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(5)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(16)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(11)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(85)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Discontinued Operations</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Net Income (Loss)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(16)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(85)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="JUSTIFY">Consolidated Total </B></FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Operating revenues</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,804&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,623&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7,970&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">8,100&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Operating expenses</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,289&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,114&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,416&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,558&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Operating income </FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">515&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">509&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,554&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,542&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Interest income <SUP>(1)</SUP></FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">22&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">15&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">60&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">54&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Interest expense</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(145)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(159)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(438)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(565)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Other income (expense), net <SUP>(2)</SUP></FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(14)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(16)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(46)</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Income before income taxes</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">378&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">369&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,160&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,985&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Income tax provision </FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">139&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">141&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">436&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,352&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Income From Continuing Operations </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">239&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">724&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Discontinued Operations</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Net Income</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">252&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">737&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="96%" VALIGN="MIDDLE" COLSPAN=12 HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="50%" VALIGN="MIDDLE" COLSPAN=11 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=16>
<SUP><FONT SIZE=1><P ALIGN="JUSTIFY">(1)</SUP></FONT></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=12 HEIGHT=16>
<FONT SIZE=1><P>Includes reorganization interest income.</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=16>
<SUP><FONT SIZE=1><P ALIGN="JUSTIFY">(2)</SUP></FONT></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=12 HEIGHT=16>
<FONT SIZE=1><P>Includes preferred dividend requirement as other expense.</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=16>
<SUP><FONT SIZE=1><P ALIGN="JUSTIFY">(3)</SUP></FONT></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=12 HEIGHT=16>
<FONT SIZE=1><P>PG&amp;E Corporation eliminates all intercompany transactions in consolidation.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT SIZE=2>
<P>Utility </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under cost of service ratemaking, the Utility's rates are determined based on its costs of service and are adjusted periodically to reflect differences between actual sales or demand compared to forecasted sales or demand used in setting rates.  The Utility's electricity and natural gas distribution rates reflect the sum of individual revenue requirement components.  The Utility collects base revenue requirements for the operation of its assets.  In addition, the Utility recovers costs of purchasing gas and electricity on behalf of its customers.  Changes in any individual revenue requirement affect customers' rates and could affect the Utility's revenues.  Pending regulatory proceedings that could result in rate changes and affect the Utility's revenues are discussed in PG&amp;E Corporation's and the Utility's 2004 Financial Report and below under "Regulatory Matters."</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility currently faces price and volumetric risk for the portion of intrastate natural gas transportation capacity that is not contracted under fixed reservation charges used by core customers (see further discussion in the Transportation and Storage section under Risk Management Activities of this MD&amp;A).  The Utility is also at risk for costs associated with meeting demand and maintaining electric transmission system sufficiency and reliability in the Utility's service area in excess of amounts allowed in its FERC-authorized transmission owner rates.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues collected on behalf of the DWR and the DWR's related costs are not included in the Utility's Consolidated Statements of Operations, reflecting the Utility's role as a billing and collection agent for the DWR's sales to the Utility's customers.</P>

<B><I><P>Electric Operating Revenues </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility records its electric distribution and generation revenues under cost-of-service revenue requirements approved by the CPUC in the Utility's 2003 GRC.  As part of the GRC, the CPUC approved yearly adjustments to the Utility's 2003 base revenue requirements, or attrition adjustments, for 2004, 2005, and 2006 based on changes in the Consumer Price Index.  The Utility's electric distribution and generation revenues for 2007 through 2009 will be determined in the 2007 GRC (see "Regulatory Matters" of this MD&amp;A).  Differences between the authorized revenue requirements and amounts collected by the Utility from customers in rates are tracked in regulatory balancing accounts and are reflected in miscellaneous revenues in the table below.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility is required to dispatch, or schedule, all of the electricity resources within its portfolio, including electricity provided under the DWR allocated contracts, in the most cost-effective way.  This requirement, in certain cases, requires the Utility to schedule more electricity than is necessary to meet its retail load and to sell this additional electricity on the open market.  The Utility typically schedules excess electricity when the expected sales proceeds exceed the variable costs to operate a generation facility or buy electricity under an optional contract.  Proceeds from the sale of surplus electricity are allocated between the Utility and the DWR based on the percentage of volume supplied by each entity to the Utility's total load.  The Utility's net proceeds from the sale of surplus electricity after deducting the portion allocated to the DWR are recorded as a reduction to the cost of electricity.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides a summary of the Utility's electric operating revenues.</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=574>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=8 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=8 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Electric revenues</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,007&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,909&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7,314&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7,218&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P>DWR pass-through revenue</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(400)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(560)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,234)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,479)</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Subtotal</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,607&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,349&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">6,080&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,739&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P>Miscellaneous</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(500)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(307)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(534)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">163&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Total electric operating revenues</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,107&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,042&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,546&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5,902&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P>Total electricity sales (in GWh)<SUP>(1) </SUP></FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">23,306&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">22,932&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">61,572&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">61,313&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="29%" VALIGN="TOP" COLSPAN=10 HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<SUP><FONT SIZE=1><P>(1)</SUP></FONT></TD>
<TD WIDTH="98%" VALIGN="TOP" COLSPAN=19 HEIGHT=16>
<FONT SIZE=1><P>Includes DWR electricity sales.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P> </P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended September 30, 2005, the Utility's electric operating revenues increased approximately $65 million, or 3%, compared to the same period in 2004 mainly due to the following factors:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=535>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>The Utility is authorized to collect and remit a dedicated rate component, or DRC, from its electricity customers to repay the ERBs until they are fully retired in 2012.  Also, in connection with the issuance of the ERBs, the Utility has established a balancing account, the Energy Recovery Bond Balancing Account, or ERBBA, to track various costs and benefits associated with the ERBs (see further discussion in "Regulatory Matters").  The DRC charge and revenue requirements associated with the ERBBA resulted in an increase of approximately $140 million in electric operating revenues for the three months ended September 30, 2005, with no similar amount for the same period in 2004;  </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>Attrition revenues as authorized in the 2003 GRC and revenues authorized in the 2004 cost of capital proceeding resulted in an increase in electric operating revenues of approximately $25 million for the three months ended September 30, 2005, as compared to the same period in 2004; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>Miscellaneous other electric operating revenues, including revenues associated with public purpose programs, sales for resale, and rent from electric property, increased approximately $120 million in the three months ended September 30, 2005, as compared to the same period in 2004. </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><DIR>

<P>The above increases were partially offset by the following decreases to electric operating revenues:</P>
</DIR>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=535>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>Electric operating revenues decreased approximately $100 million during the three months ended September 30, 2005, as compared to the same period in 2004, primarily due to lower electricity procurement and transmission costs, which are passed through to customers; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>Electric operating revenues decreased approximately $120 million as a result of a decrease in the revenue requirement associated with the Settlement Regulatory Asset.  As a result of the refinancing of the Settlement Regulatory Asset on February 10, 2005 through issuance of the ERBs, the Utility was no longer authorized to collect this revenue requirement (see further discussion in the Overview to this MD&amp;A and Note 4 of the Notes to the Condensed Consolidated Financial Statements). </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><DIR>

<P>For the nine months ended September 30, 2005, the Utility's electric operating revenues decreased approximately $356 million, or 6%, compared to the same period in 2004 due to the following factors:</P>
</DIR>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=535>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>Electric operating revenues decreased approximately $500 million compared to the same period in 2004, primarily due to lower electricity procurement and transmission costs which are passed through to customers; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>Electric operating revenues decreased approximately $310 million as a result of a decrease in the revenue requirement associated with the Settlement Regulatory Asset.  As a result of the refinancing of the Settlement Regulatory Asset on February 10, 2005 through issuance of the ERBs, the Utility was no longer authorized to collect this revenue requirement (see further discussion in the Overview to this MD&amp;A and Note 4 of the Notes to the Condensed Consolidated Financial Statements). </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><DIR>

<P>The above decreases were partially offset by the following increases to electric operating revenues:</P>
</DIR>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=535>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>Attrition revenues as authorized in the 2003 GRC and revenues authorized in the 2004 cost of capital proceeding resulted in an increase in electric operating revenues of approximately $70 million for the nine months ended September 30, 2005, as compared to the same period in 2004;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP" HEIGHT=72><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="87%" VALIGN="TOP" HEIGHT=72>
<FONT SIZE=2><P>The Utility's collection of the DRC charge and revenue requirements associated with the ERBBA resulted in an increase of approximately $295 million in electric operating revenue increase for the nine months ended September 30, 2005, with no similar amount in the same period in 2004; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>Miscellaneous other electric operating revenues, including revenues associated with public purpose programs, sales for resale, and revenues associated with the Rate Reduction Bonds, increased approximately $90 million in the nine months ended September 30, 2005, as compared to the same period in 2004. </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<B><I><P>Cost of Electricity  </P>

</B></I><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's cost of electricity includes electricity purchase costs and the cost of fuel used by its owned generation facilities, but excludes costs to operate the Utility's generation facilities, which are included in operating and maintenance expense.  Electricity purchase costs and the cost of fuel used by owned generation facilities are passed through in rates to customers.  The following table provides a summary of the Utility's cost of electricity and the total amount and average cost of purchased power, excluding in each case both the cost and volume of electricity provided by the DWR to the Utility's customers: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=607>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="26%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="26%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="JUSTIFY">(in millions)</B></FONT></TD>
<TD WIDTH="26%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="26%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="26%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="26%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="JUSTIFY">Cost of purchased power</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">798&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">787&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,827&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,027&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="JUSTIFY">Proceeds from surplus sales allocated to the Utility</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(98)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(35)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(331)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(133)</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="JUSTIFY">Fuel used in own generation</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">42&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">40&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">130&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">109&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;<B>Total net cost of electricity</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">742&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">792&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,626&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,003&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Average cost of purchased power per GWh</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.081&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.085&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.074&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.079&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="JUSTIFY">Total purchased power (GWh)</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">9,848&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">9,310&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">24,779&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">25,589&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the nine-months ended September 30, 2005, the Utility produced more electricity from its own generation facilities, thereby reducing the amount of electricity the Utility was required to purchase for its customers.  Also, during the nine months ended September 30, 2005, the Utility's Diablo Canyon power plant was in full operation compared to the same period in 2004 when an approximately 77 day refueling outage at Diablo Canyon required the Utility to purchase replacement power.  In addition, as of January 1, 2005, the Utility was no longer required to procure electricity for customers of the Western Area Power Administration.  As a result, the Utility's cost of electricity decreased in 2005 as compared to 2004.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the three months ended September 30, 2005, the Utility's cost of electricity decreased approximately $50 million, or 6%, compared to 2004 mainly due to the following factors:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=535>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</FONT></TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>The increase in proceeds from surplus sales allocated to the Utility of $63 million in the three months ended September 30, 2005, as compared to the same period in 2004, resulted in a corresponding decrease in the cost of electricity.  The increase in proceeds from surplus sales was primarily a result of above average rainfall during 2005 which increased surplus conditions.</P>
</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>Partially offsetting this decrease was the following increase:</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</FONT></TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>The increase in total purchased power, as compared to the same period in 2004, resulted in an increase of approximately $11 million in the cost of purchased power.  The increase in total purchased power was primarily due to above average rainfall during 2005 which increased hydro runoff production.  </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended September 30, 2005, the Utility's cost of electricity decreased approximately $377 million, or 19%, compared to 2004, mainly due to the following factors:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=535>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</FONT></TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>The increase in proceeds from surplus sales allocated to the Utility of $198 million in the nine months ended September 30, 2005, as compared to the same period in 2004, resulted in a corresponding decrease in the cost of electricity; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP"><DIR>

<FONT SIZE=2><P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</FONT></TD>
<TD WIDTH="87%" VALIGN="TOP">
<FONT SIZE=2><P>The decrease in total purchased power and the decrease in the average cost of purchased power of $0.005 per GWh in 2005, as compared to the same period in 2004, resulted in a decrease of approximately $200 million in the cost of purchased power. </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><I><FONT SIZE=2>
<P>Natural Gas Operating Revenues  </P>
</B></I>
<B><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The Utility sells natural gas and provides natural gas transportation services to its customers.  The Utility's natural gas customers consist of two categories: core and non-core customers.  The core customer class is comprised mainly of residential and smaller commercial natural gas customers.  The non-core customer class is comprised of industrial and larger commercial natural gas customers.  The Utility provides natural gas delivery services to all core and non-core customers connected to the Utility's system in its service territory.  Core customers can purchase natural gas from alternate energy service providers or can elect to have the Utility provide both delivery service and natural gas supply.  While the Utility provides non-core customers with delivery service, it does not provide non-core customers with natural gas supply.  When the Utility provides both supply and delivery, the Utility refers to the service as natural gas bundled service.  In 2004, core customers represented over 99% of the Utility's total customers and approximately 35% of its total natural gas deliveries, while non-core customers comprised less than 1% of the Utility's total customers and approximately 65% of its total natural gas deliveries.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's transportation system transports gas throughout California to the Utility's distribution system, which, in turn, delivers gas to end-use customers.  Utility transportation and distribution services for all customers have historically been bundled or sold together at a combined rate.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides a summary of the Utility's natural gas operating revenues: </P>
<P> </P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=612>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="JUSTIFY">(in millions)</B></FONT></TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="25%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Bundled natural gas revenues</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">640&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">524&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,249&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,006&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Transportation service-only revenues</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">57&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">57&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">175&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">192&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;<B>Total natural gas operating revenues</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">697&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">581&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,424&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,198&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Average bundled revenue per millions of Mcf of natural gas sold </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">16.20&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">13.48&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">10.93&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">9.92&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Total bundled natural gas sales (in millions of Mcf)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">40&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">39&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">207&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">202&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="48%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's natural gas operating revenues increased approximately $116 million, or 20%, during the three months ended September 30, 2005, compared to the same period in 2004 as a result of the following:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=561>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Excluding the impact of the 2003 GRC decision and 2004 cost of capital proceeding discussed below, bundled natural gas operating revenues increased approximately $113 million, or 21%, in the three months ended September 30, 2005 as compared to the same period in 2004.  This increase was primarily due to an increase in the cost of natural gas resulting in an increase in the average bundled revenue per millions of Mcf of natural gas sold of approximately $2.49 per millions of Mcf, or 18%, combined with an increase in volume of approximately 1 million Mcf, or thousand cubic feet, or 3%, for the three months ended September 30, 2005; and </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Attrition revenues as authorized in the 2003 GRC and revenues authorized in the 2004 cost of capital proceeding resulted in an increase in natural gas operating revenues of approximately $3 million for the three months ended September 30, 2005, as compared to the same period in 2004.  </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's natural gas operating revenues increased approximately $226 million, or 10%, for the nine months ended September 30, 2005 compared to the same period in 2004 as a result of the following:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=559>
<TR><TD WIDTH="7%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="93%" VALIGN="TOP">
<FONT SIZE=2><P>Excluding the impact of the 2003 GRC decision and 2004 cost of capital proceeding discussed below, bundled natural gas operating revenues increased approximately $278 million, or 14%, in the nine months ended September 30, 2005 as compared to the same period in 2004.  This increase was primarily due to an increase in the cost of natural gas resulting in an increase in the average bundled revenue per millions of Mcf of natural gas sold of approximately $1.11 per millions of Mcf, or 11%, combined with an increase in volume of approximately 5 million Mcf, or 2%, for the nine months ended September 30, 2005; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="93%" VALIGN="TOP">
<FONT SIZE=2><P>Attrition revenues as authorized in the 2003 GRC and revenues authorized in the 2004 cost of capital proceeding resulted in an increase in natural gas operating revenues of approximately $15 million for the nine months ended September 30, 2005, as compared to the same period in 2005. </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><DIR>
<DIR>

<P>Partially offsetting these increases were the following decreases:</P>
</DIR>
</DIR>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=561>
<TR><TD WIDTH="7%" VALIGN="TOP" HEIGHT=51>
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="93%" VALIGN="TOP" HEIGHT=51>
<FONT SIZE=2><P>The approval of the 2003 GRC in May 2004 resulted in the Utility recording approximately $50 million in revenues related to 2003 in the second quarter of 2004 with no comparable amount in 2005; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="93%" VALIGN="TOP">
<FONT SIZE=2><P>Transportation service-only revenues decreased approximately $17 million, or 9%, in the nine months ended September 30, 2005 as compared to the same period in 2004, primarily as a result of a decrease in rates. </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<B><I><P>Cost of Natural Gas</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's cost of natural gas includes the costs to purchase natural gas and the costs to transport natural gas on interstate pipelines, but excludes the costs associated with the Utility's intrastate pipelines, which are included in operating and maintenance expense.  The following table provides a summary of the Utility's cost of natural gas: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=540>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="28%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="JUSTIFY">(in millions)</B></FONT></TD>
<TD WIDTH="28%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="28%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="24%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="JUSTIFY">Cost of natural gas sold</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">293&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">209&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,189&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">999&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="JUSTIFY">Cost of natural gas transportation</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">33&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">30&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">104&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">97&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;Total cost of natural gas</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">326&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">239&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,293&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,096&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P ALIGN="JUSTIFY">Average cost per millions of Mcf of natural gas sold </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7.33&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5.36&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">5.74&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">4.95&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="JUSTIFY">Total natural gas sold (in millions of Mcf)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">40&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">39&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">207&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">202&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the three months ended September 30, 2005, the Utility's total cost of natural gas increased approximately $87 million, or 36%, compared to the same period in 2004 primarily due to an increase in the average market price of natural gas purchased of approximately $1.97 per millions of Mcf, or 37%, combined with an increase in volume of natural gas sold of 1 million Mcf, or 3%.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the nine months ended September 30, 2005, the Utility's total cost of natural gas increased approximately $197 million, or 18%, compared to the same period in 2004 primarily due to an increase in the average market price of natural gas purchased of approximately $0.79 per millions of Mcf, or 16%, combined with an increase in volume of 5 Mcf, or 2%.</P>

<B><I><P>Operating and Maintenance </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating and maintenance expenses consist mainly of the Utility's costs to operate and maintain its electricity and natural gas facilities, customer accounts and service expenses, public purpose program expenses, and administrative and general expenses.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the three months ended September 30, 2005, the Utility's operating and maintenance expenses increased by approximately $67 million, or 10%, as compared to the same period in 2004, mainly due to the following factors: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=560>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>Operating and maintenance expenses increased approximately $21 million related to an increase in customer rebates and administration expenses for low-income  customer assistance programs and community outreach projects; </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>Operating and maintenance expenses increased approximately $27 million related to an increase in gas transportation charges primarily as a result of rate increases for pipeline demand and transportation; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP" HEIGHT=47><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP" HEIGHT=47>
<FONT SIZE=2><P>Operating and maintenance expenses increased approximately $16 million related to an increase in consulting, contract and legal expenses reflecting increased use of outside services due to various programs and initiatives. </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the nine months ended September 30, 2005, the Utility's operating and maintenance expenses decreased by approximately $92 million, or 4%, as compared to the same period in 2004, mainly due to the following factors:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=568>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>Operating and maintenance expenses decreased approximately $30 million related to the various provisions of the Settlement Agreement, including obligations to invest in clean energy technology and the donation of land in 2004, with no similar amounts for the same period in 2005;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>Operating and maintenance expenses decreased approximately $50 million at Diablo Canyon in the nine months ended September 30, 2005, as compared to the same period in 2004, reflecting costs associated with the scheduled refueling outage in the nine months ended September 30, 2004, with no similar refueling outage in the same period in 2005; and </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>Operating and maintenance expenses decreased approximately $30 million for the nine months ended September 30, 2005, as compared to the same period in 2004, due to expenses paid on behalf of the CPUC for its professional fees incurred in connection with the Chapter 11 proceeding with no similar amount in 2005. </P>
</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Partially offsetting this decrease was the following increase:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=568>
<TR><TD WIDTH="9%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>Operating and maintenance expenses increased approximately $18 million related to an increase in consulting and legal expenses reflecting increased use of outside services due to various programs and initiatives. </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<B><I><P>Recognition of Regulatory Assets  </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In light of the satisfaction of various conditions to the implementation of the Utility's plan of reorganization, the Utility recorded the regulatory assets provided for under the settlement agreement in the first quarter of 2004.  This resulted in the recognition of a one-time non-cash, pre-tax gain of $3.7 billion for the Settlement Regulatory Asset and $1.2 billion for the Utility retained generation regulatory assets, for a total after-tax gain of $2.9 billion.</P>

<B><I><P>Depreciation, Amortization and Decommissioning  </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the three months ended September 30, 2005, the Utility's depreciation, amortization and decommissioning expenses increased by $76 million, or 19%, compared to the same period in 2004, primarily as a result of amortization of the ERB regulatory asset of approximately $70 million with no similar amount in 2004.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the nine months ended September 30, 2005 the Utility's depreciation, amortization and decommissioning expenses increased approximately $266 million, or 25%, compared to the same period in 2004, primarily as a result of the following factors:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=568>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P>The Utility recorded approximately $140 million for amortization of the ERB regulatory asset with no similar amount in 2004;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P>Amortization of the settlement regulatory assets increased approximately $30 million in the nine months ended September 30, 2005 as compared to the same period in 2004.  This increase is mainly due to the settlement regulatory assets being amortized over a six-month period in 2004 as compared to a nine-month period in 2005 combined with a change in the amortization methodology.  In 2004 and prior to the issuance of the ERBs in 2005, the Settlement Regulatory Asset was amortized mortgage-style over a nine year period.  After issuance of the ERBs, amortization of the Settlement Regulatory Asset fluctuates based on the DRC charge, which changes throughout the year due to fluctuations in volume and seasonality, and various expenses associated with the ERBs (see further discussion in "Regulatory Matters");  </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P>As a result of the 2003 GRC decision in May 2004 authorizing lower depreciation rates, the Utility recorded an approximately $37 million decrease to depreciation expense related to 2003 in the second quarter of 2004 with no similar reduction in the same period in 2005; and  </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P>The remaining increase is primarily due to an increase in depreciation expense as a result of plant additions. </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><I><FONT SIZE=2>
<P>Interest Income  </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the three and nine-months ended September 30, 2005, interest income, including reorganization interest income, increased by approximately $9 million and $15 million, respectively, or 82% and 34%, respectively, compared to the same periods in 2004, primarily due to higher average interest rates on the Utility's short-term investments.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility discontinued reporting in accordance with the American Institute of Certified Public Accountants' Statement of Position, or SOP, 90-7, "Financial reporting by Entities in Reorganization Under the Bankruptcy Code," or SOP 90-7, upon its emergence from Chapter 11.  Prior to that date, the Utility reported reorganization interest income separately on its Consolidated Statements of Income.  Reorganization income reported in 2004 mainly included interest earned on cash accumulated during the Utility's Chapter 11 proceedings.</P>
<P> </P>
<B><I><P>Interest Expense  </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the three months ended September 30, 2005, the Utility's interest expense decreased by approximately $3 million, or 2%, compared to the same period in 2004, primarily as a result of the following factors:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=560>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P>A decrease of approximately $25 million due to a lower average amount of debt outstanding and as a result of interest recorded to the ERBBA as a result of settlements with various power suppliers (see "Regulatory Matters" and Note 7 of the Notes to the Condensed Consolidated Financial Statements).</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><DIR>
<DIR>
<DIR>

<P>Partially offsetting this decrease was the following increase:</P>
</DIR>
</DIR>
</DIR>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=560>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P>An increase of approximately $20 million related to interest associated with the ERBs which were issued on February 10, 2005, with no similar amount in 2004. </FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the nine months ended September 30, 2005, the Utility's interest expense decreased by approximately $96 million, or 19%, compared to the same period in 2004, primarily as a result of the following factors:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=560>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=2><P>A decrease of approximately $200 million due to a lower average amount of debt outstanding and as a result interest recorded to the ERBBA as a result of settlements with various power suppliers (see "Regulatory Matters" and Note 7 of the Notes to the Condensed Consolidated Financial Statements).</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2><DIR>
<DIR>
<DIR>

<P>Partially offsetting this decrease were the following increases:</P>
</DIR>
</DIR>
</DIR>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=560>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>An increase of approximately $60 million related to the interest on the First Mortgage Bonds/Senior Notes issued on March 23, 2004.  This increase was mainly due to the First Mortgage Bonds/Senior Notes being outstanding over a six-month period in 2004 as compared to a nine-month period in 2005; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>An increase of approximately $51 million related to interest associated with the ERBs which were issued on February 10, 2005, with no similar amount in 2004.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT SIZE=2><P> </P>
<I><P>Income Tax Expense  </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the three months ended September 30, 2005, the Utility's tax expense decreased approximately $4 million, or 3%, compared to the same period in 2004, mainly due to a decrease in pre-tax income of $4 million and additional fixed asset deductions, for the three months ended September 30, 2005.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the nine months ended September 30, 2005, the Utility's tax expense decreased approximately $2.0 billion, or 81%, compared to the same period in 2004, mainly due to a decrease in pre-tax income of approximately $4.9 billion for the nine months ended September 30, 2005.  This decrease is primarily the result of the recognition of regulatory assets associated with the Settlement Agreement for the nine months ended September 30, 2004 with no similar amount recognized in 2005.  </P>

<B><P><A NAME="mda_corp_results_of_operations"></A>PG&amp;E Corporation, Eliminations and Other </P>

<I><P>Operating Revenues and Expenses</P>

</B></I><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation's revenues consist mainly of billings to the Utility and its other affiliates for services rendered, all of which are eliminated in consolidation.  PG&amp;E Corporation's operating expenses consist mainly of employee compensation and payments to third parties for goods and services.  Generally, PG&amp;E Corporation's operating expenses are allocated to its affiliates.  Operating expenses are allocated to affiliates without mark-up and are eliminated in consolidation.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended September 30, 2005, PG&amp;E Corporation's operating expenses decreased by approximately $5 million, or 71%, compared to the same period in 2004, primarily due to a reduction of general and administrative expenses retained at PG&amp;E Corporation, along with a decrease in depreciation expense.  The decrease in operating expenses of approximately $30 million, or 107%, for the nine months ended September 30, 2005, compared to the same period in 2004, was primarily due to the receipt of insurance proceeds for legal costs and a reduction in general and administrative expenses retained at PG&amp;E Corporation.</P>

<B><I><P>Interest Expense</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation's interest expense is not allocated to its affiliates.  For the three months ended September 30, 2005, PG&amp;E Corporation's interest expense decreased by approximately $11 million, or 61%, compared to the same period in 2004.  For the nine months ended September 30, 2005, PG&amp;E Corporation's interest expense decreased by approximately $31 million, or 58%, compared to the same period in 2004.  These fluctuations were primarily due to a reduction in the amount of outstanding debt, as a result of the redemption of PG&amp;E Corporation's 6&#8542;% Senior Secured Notes due 2008, $600 million principal amount, on November 15, 2004, along with, for the nine months ended September 30, 2005, an increase in interest expense related to an interest payment PG&amp;E Corporation made to the Utility for a refund received from the Internal Revenue Service, or IRS, for the 1999 and 2000 consolidated federal income tax returns.</P>

<B><I><P>Other Income (Expense)</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation's other expense increased by approximately $1 million, or 17%, for the three months ended September 30, 2005, compared to the same period in 2004, primarily due to an increase in a pre-tax charge to earnings related to the changes in the market value of non-cumulative dividend participation rights included within PG&amp;E Corporation's Convertible Subordinated Notes.  In the nine months ended September 30, 2005, PG&amp;E Corporation's other expense decreased by approximately $59 million, or 82%, primarily due to a reduction in the pre-tax charge to earnings related to changes in market value of non-cumulative dividend participation rights included within PG&amp;E Corporation's Convertible Subordinated Notes compared to the change in market value for the same period in the prior year.</P>
<B><I><P></A></P>
<P>Discontinued Operations</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the third quarter of 2005, PG&amp;E Corporation received additional information from National Energy and Gas Transmission, Inc., or NEGT, regarding income to be included in PG&amp;E Corporation's 2004 federal income tax return.  This information was incorporated in the 2004 tax return, which was filed with the IRS in September 2005.  As a result, the 2004 federal income tax liability was reduced by approximately $19 million.  In addition, NEGT provided additional information with respect to amounts previously included in PG&amp;E Corporation's 2003 federal income tax return.  This change resulted in PG&amp;E Corporation's 2003 federal income tax liability increasing approximately $6 million.  These two adjustments, netting to $13 million, were recognized in income from discontinued operations in the third quarter of 2005.</P>

<B><P>LIQUIDITY AND FINANCIAL RESOURCES</P>
</B>
<B><P><A NAME="mda_liquidity_overview">Overview</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The level of PG&amp;E Corporation's and the Utility's current assets and current liabilities is subject to fluctuation as a result of seasonal demand for electricity and natural gas, energy commodity costs, and the timing and effect of regulatory decisions and financings, among other factors.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With the achievement of a 52% equity ratio in January 2005, the Utility reinstated the payment of a regular quarterly dividend.  In addition, during the nine months ended September 30, 2005, the Utility used cash (including the ERB proceeds) in excess of amounts needed for operations, debt service and repayment, capital expenditures, and the payment of a quarterly dividend, to repurchase common stock.  In turn, PG&amp;E Corporation used the cash received from the Utility in the form of dividends and share repurchases to recommence the payment of a regular quarterly dividend and repurchase common stock from shareholders. </P>

<P><A NAME="liquidity_and_financial_resources"></A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility intend to retain sufficient cash for operating needs and to manage debt levels to maintain access to credit.  PG&amp;E Corporation and the Utility target cash balances, which together with credit facilities, accommodate normal and unforeseen demands on their liquidity.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2005, PG&amp;E Corporation and its subsidiaries had consolidated cash and cash equivalents of approximately $1.2 billion, and restricted cash of approximately $1.5 billion.  PG&amp;E Corporation and the Utility maintain separate bank accounts.  At September 30, 2005, PG&amp;E Corporation on a stand-alone basis had cash and cash equivalents of approximately $377 million.  At September 30, 2005, the Utility had cash and cash equivalents of approximately $856 million, and restricted cash of approximately $1.5 billion.  The Utility's restricted cash includes amounts deposited in escrow related to the remaining disputed Chapter 11 claims, collateral required by the California Independent System Operator, or ISO, and deposits under certain third-party agreements.  PG&amp;E Corporation and the Utility primarily invest their cash in money market funds and in short-term obligations of the U.S. Government and its agencies.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility seeks to maintain or strengthen its credit ratings to provide efficient access to financial and trade credit, to ensure adequate liquidity, and to reduce financing cost.  As of September 30, 2005, the credit ratings on various financing instruments from Moody's Investors Service, or Moody's, and Standard &amp; Poor's Rating Service, or S&amp;P, were as follows: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=468>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>Moody's</B></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>S&amp;P</B></FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>Utility</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Corporate credit rating</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Baa1<SUP>(1)</SUP></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>BBB<SUP>(2)</SUP></FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Senior unsecured debt</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Baa1<SUP>(3)(4)</SUP></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>BBB<SUP>(3)</SUP></FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Pollution control bonds backed by bond insurance</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Aaa</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>AAA</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Pollution control bonds backed by letters of credit</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>--</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>AA-/A-1+</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Credit facility</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>--</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>BBB</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Preferred stock</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Baa3<SUP>(5)</SUP></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>BB+<SUP>(5)</SUP></FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>PG&amp;E Funding LLC</B></FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Rate reduction bonds</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Aaa</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>AAA</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>PG&amp;E Energy Recovery Funding LLC</B></FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Energy recovery bonds</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Aaa</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>AAA</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>PG&amp;E Corporation</B></FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Corporate credit rating</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Baa3</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>--<SUP>(7)</SUP></FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Credit facility</FONT></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Baa3<SUP>(6)</SUP></FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>--</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<OL>

<OL>

<FONT SIZE=1><LI>Upgraded on March 3, 2005 from Baa3. </LI>
<LI>Upgraded on February 16, 2005 from BBB-. </LI>
<LI>As discussed in Note 3 in the Notes to the Condensed Consolidated Financial Statements, on April 22, 2005, the lien of the indenture securing the First Mortgage Bonds was released following confirmation by Moody's and S&amp;P that the Utility's unsecured debt would be rated BBB by S&amp;P and Baa1 by Moody's after the release of the lien.  </LI>
<LI>Upgraded on March 3, 2005 from (P)Baa3.</LI>
<LI>Upgraded on March 3, 2005 from Ba2 by Moody's and on February 16, 2005 from BB by S&amp;P.</LI>
<LI>Assigned on March 3, 2005. </LI>
<LI>S&amp;P has not assigned a rating to PG&amp;E Corporation.</LI></OL>
</OL>

</FONT><FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently, PG&amp;E Corporation and the Utility have credit facilities totaling $200 million and $1.65 billion, respectively.  As of September 30, 2005, PG&amp;E Corporation and the Utility's available limits on these credit facilities are $200 million and $1.598 billion, respectively.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August 31, the Utility redeemed all of the outstanding shares of the Utility's 7.04% Redeemable First Preferred Stock, totaling approximately $36 million aggregate par value plus approximately $1 million related to a $0.70 redemption premium.</P>

<B><P>Dividends </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September 21, 2005, the Board of Directors of the Utility declared a dividend of approximately $117 million that was paid on September 22, 2005 to PG&amp;E Corporation and PG&amp;E Holdings LLC, a wholly owned subsidiary of the Utility that held approximately 7% of the Utility's common stock.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also, on September 21, 2005 the Board of Directors of PG&amp;E Corporation declared a quarterly common stock dividend of $0.30 per share, payable on October 15, 2005, to shareholders of record on October 3, 2005.  PG&amp;E Corporation paid this dividend which totaled approximately $119 million.  Of this amount, approximately $7 million was paid to Elm Power Corporation, a wholly owned subsidiary of PG&amp;E Corporation.  In addition, PG&amp;E Corporation paid approximately $6 million in dividend equivalent payments to Convertible Subordinated Note holders of record on October 3, 2005. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation recorded dividends declared to Accumulated Earnings and the Utility recorded dividends declared to Reinvested Earnings.</P>

</FONT><FONT FACE="Times" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2>On October 19, 2005, the PG&amp;E Corporation Board of Directors approved an annual cash dividend target of $1.32 per share ($0.33 quarterly), an increase from the previously approved target of $1.20 per share that reflects the improved financial performance of PG&amp;E Corporation, but balances the forecast level of Utility capital investments.  The new target is consistent with the previously approved dividend policy and dividend payout ratio range (the proportion of earnings paid out as dividends) of 50% to 70%.  The Board of Directors retains authority to change its common stock dividend policy and its dividend payout ratio at any time, especially if unexpected events occur that would change the Board's views as to the prudent level of cash conservation.  No dividend is payable until declared by the Board of Directors.  The Board of Directors expects to declare a quarterly common stock dividend of $0.33 per share based on the new target at its meeting in December 2005.  </P>

<B><P>Stock Repurchases </P>

</B></FONT><FONT FACE="Times" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2>PG&amp;E Corporation previously disclosed that (i) it anticipated it would use cash received from the Utility to repurchase a total of $1.8 billion of PG&amp;E Corporation common stock in 2005, (ii) its Board of Directors had authorized the repurchase of shares in an aggregate amount of $1.05 billion, and (iii) this authorization was used when PG&amp;E Corporation entered into an accelerated share repurchase arrangement on March 4, 2005 under which it repurchased 29,489,400 shares.  (For a discussion of the accelerated share repurchase arrangements, see Note 5.) </P>

</FONT><FONT FACE="Times" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2>On October 19, 2005, the Board of Directors of PG&amp;E Corporation authorized the repurchase of up to $1.6 billion of common stock, from time to time, but no later than December 31, 2006 (although the actual repurchase or activity under the repurchase arrangements may occur after that date).  The repurchases may be made directly by PG&amp;E Corporation, or through one or more subsidiaries, through brokers and dealers on the New York Stock Exchange and/or the Pacific Exchange or in privately negotiated transactions, which may include accelerated or forward or similar stock purchase programs or the issuance of puts or similar instruments and/or the establishment of one or more "Rule 10b5-1 plans."  Such repurchases are contingent on PG&amp;E Corporation's receipt of sufficient cash from the Utility.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For 2005, PG&amp;E Corporation anticipates that it will receive approximately $950 million from the Utility as payment for the repurchase of the Utility's common stock.  To make this payment, the Utility plans to use some of the proceeds the Utility anticipates receiving from the second series of ERBs expected to be issued in November 2005, and additional cash on hand in excess of the Utility's authorized equity ratio and anticipated capital expenditures.  (The actual amount of proceeds received by the Utility from the second series of ERBs will depend upon the amount of generator refunds received in cash by the Utility before issuance of the ERBs.)  Assuming receipt of $950 million from the Utility, PG&amp;E Corporation expects to enter into an accelerated share repurchase arrangement for approximately $1.1 billion before the end of the year.  This estimated amount includes approximately $150 million of the cash that PG&amp;E Corporation has received through stock option exercises in 2005.  Although additional repurchases of up to $500 million are authorized, PG&amp;E Corporation anticipates that the potential for additional repurchases in 2006, beyond those associated with option exercises, is minimal and depends primarily on the extent to which the CPUC approves the Utility's forecasted capital expenditures.</P>

</FONT><FONT FACE="Times" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=2>It is expected that shares repurchased with cash received through the exercise of stock options would partially offset the number of shares issued pursuant to the exercise of those options, resulting in a minimal impact to the number of shares outstanding and the calculation of earnings per share.  PG&amp;E Corporation's repurchase of common stock under accelerated share repurchase arrangements increased both basic and diluted earnings per share by approximately $0.15 and $0.14, respectively, for the nine months ended September 30, 2005.  Any additional stock repurchases made by PG&amp;E Corporation in 2005 would not materially affect the average number of shares outstanding for purposes of calculating 2005 earnings per share.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The ultimate amount of stock repurchased by PG&amp;E Corporation in 2005 and 2006 will be affected by, among other factors, the amount of proceeds received by the Utility from the second series of ERBs, as discussed above, changes to PG&amp;E Corporation's and the Utility's liquidity needs, actual cash from the Utility's operations, the level of employee stock option exercises, and the actual level of the Utility's capital expenditures.</P>
<P><A NAME="_Overview"></A></A></P>
<B><I><P><A NAME="mda_utility_liquidity">Utility Common Stock Repurchase</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March 8, 2005, the Utility used proceeds from the issuance of ERBs (discussed in Note 4) to repay debt and to repurchase 22,023,283 shares of its common stock from PG&amp;E Corporation for an aggregate purchase price of approximately $960 million.  The Utility had repurchased $960 million of its common stock as of September 30, 2005.  As a result of this transaction, the Utility recorded reductions of approximately $141 million to Additional Paid-in Capital, approximately $110 million to Common Stock, and approximately $709 million to Reinvested Earnings within Shareholders' Equity in respect of this transaction.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility anticipates that it will use some of the proceeds from the second series of ERBs anticipated to be issued in November 2005, along with expected generator refunds, and additional estimated cash on hand of approximately $200 million, to repurchase additional shares of its common stock.  In turn, PG&amp;E Corporation anticipates that it would use the amounts received from the Utility to repurchase its shares as discussed above.</P>

<B><P>Utility</P>
</B>
<B><I><P>Operating Activities</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's cash flows from operating activities consist of sales to its customers and payments of operating expenses, other than expenses such as depreciation that do not require the use of cash.  Cash flows from operating activities are also impacted by collections of accounts receivable and payments of liabilities previously recorded.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's cash flows from operating activities for the nine months ended September 30, 2005 and 2004 were as follows: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=588>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Net income</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">747&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,735&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Non-cash (income) expenses:</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Depreciation, amortization, decommissioning and </P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;allowance for equity funds used during construction</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">1,294&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">1,054&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Recognition of regulatory assets, net of tax</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(2,904)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Deferred income taxes and tax credits, net</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(638)</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">399&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Change in accounts payable</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(83)</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">77&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Change in regulatory balancing accounts, net</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">940&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(323)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Other uses of cash:</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Payments authorized by the bankruptcy court on amounts<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;classified as liabilities subject to compromise</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">(1,022)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Other changes in operating assets and liabilities</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(133)</FONT></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">242&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Net cash provided by operating activities</B></FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,127&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,258&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities increased by approximately $869 million during the nine months ended September 30, 2005, compared to the same period in 2004.  This is mainly due to the following factors:</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=590>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>Net income increased approximately $156 million, including $240 million for the impact of depreciation, amortization, and decommissioning and allowance for equity funds used during construction which are non-cash items and excluding the one-time non-cash gain, after tax, of the approximately $2.9 billion related to the recognition of the regulatory assets established under the Settlement Agreement in 2004;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>Deferred income taxes and tax credits decreased by approximately $1.0 billion primarily due to balancing account activity;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>Accounts payable decreased by approximately $160 million in 2005 primarily due to decreases in power and gas purchases; </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>Regulatory balancing accounts increased by approximately $1.2 billion in 2005.  This is primarily due to an increase in the balancing accounts payable due to seasonality affecting usage;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>Other operating assets and liabilities decreased by approximately $375 million; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP" HEIGHT=66><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP" HEIGHT=66>
<FONT SIZE=2><P>Payments authorized by the bankruptcy court on amounts classified as liabilities subject to compromise decreased by approximately $1.0 billion in 2005.  On the effective date of the Utility's plan of reorganization, the Utility paid all allowed creditor claims, with no comparable amount in 2005.</P>
</FONT></TD>
</TR>
</TABLE>

<B><I><FONT SIZE=2><P>Investing Activities</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's investing activities consist of construction of new and replacement facilities necessary to deliver safe and reliable electricity and natural gas services to its customers.  Cash flows from operating activities have been sufficient to fund the Utility's capital expenditure requirements during the nine months ended September 30, 2005 and 2004.  Year to year variances depend upon the amount and type of construction activities, which can be influenced by storm and other factors. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's cash flows from investing activities for the nine months ended September 30, 2005 and 2004 were as follows: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=491>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=15><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=15>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=15><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=15>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=15>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=15>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P>Capital expenditures</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(1,318)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=14>
<FONT SIZE=2><P ALIGN="RIGHT">(1,110)</FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=10>
<FONT SIZE=2><P>Net proceeds from sale of assets</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=10><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=10>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=10>
<FONT SIZE=2><P ALIGN="RIGHT">28&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=7>
<FONT SIZE=2><P>Decrease (increase) in restricted cash</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=7><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=7>
<FONT SIZE=2><P ALIGN="RIGHT">453&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=7><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=7>
<FONT SIZE=2><P ALIGN="RIGHT">(1,601)</FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" BGCOLOR="#ffffff" HEIGHT=7>
<FONT SIZE=2><P>Other investing activities, net</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#ffffff" HEIGHT=7><P></P></TD>
<TD WIDTH="17%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff" HEIGHT=7>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#ffffff" HEIGHT=7><P></P></TD>
<TD WIDTH="16%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#ffffff" HEIGHT=7>
<FONT SIZE=2><P ALIGN="RIGHT">(50)</FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=7>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;<B>Net cash used in investing activities</B></FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=7><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=7>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=7>
<FONT SIZE=2><P ALIGN="RIGHT">(843)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=7><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=7>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=7>
<FONT SIZE=2><P ALIGN="RIGHT">(2,733)</FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities decreased by approximately $1.9 billion during the nine months ended September 30, 2005, compared to the same period in 2004, mostly due to an increase in restricted cash of approximately $1.6 billion in 2004, with a decrease of approximately $450 million 2005.  In 2004, funds were deposited into escrow to pay disputed claims when resolved.  When disputed claims are resolved, the amounts related to these claims are released from escrow. </P>

<B><I><P>Financing Activities</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2005, the Utility obtained $1.9 billion of proceeds from the ERBs, which refinanced a portion of the Settlement Regulatory Asset.  It used the proceeds to repay debt and repurchase equity. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's cash flows from financing activities for the nine months ended September 30, 2005 and 2004 were as follows: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=636>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=8><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=8>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=8>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=8><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=8>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=8><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=8>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=8>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Repayments under credit facilities and short-term borrowing</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(300)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Proceeds from long-term debt issued</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">451&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7,346&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Net proceeds from energy recovery bonds issued</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,874&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Long-term debt matured, redeemed, or repurchased</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,554)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(7,552)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Rate reduction bonds matured</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(214)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(213)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Energy recovery bonds matured</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(77)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P>Common stock dividends paid</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=11><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">(330)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=11>
<FONT SIZE=2><P>Preferred dividends paid</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">(12)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">(88)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P>Preferred stock with mandatory redemption provisions redeemed</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=11><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">(122)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">(15)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=11>
<FONT SIZE=2><P>Preferred stock without mandatory redemption provisions redeemed</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">(36)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P>Common stock repurchased</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=11><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">(960)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=11>
<FONT SIZE=2><P>Other financing activities</FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">69&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">(2)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Net cash used in financing activities</B></FONT></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=11><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">(1,211)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=11>
<FONT SIZE=2><P ALIGN="RIGHT">(524)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the nine months ended September 30, 2005, net cash used in financing activities increased by approximately $687 million compared to the same period in 2004, mainly due to the following factors:</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=590>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>During the first quarter of 2005, the Utility repaid $300 million it borrowed under its $850 million working capital facility;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>In 2004, in connection with the Utility's plan of reorganization, the Utility issued approximately $7.3 billion, net of issuance costs, in long-term debt. On May 24, 2005, the Utility entered into seven loan agreements with the California Infrastructure and Economic Development Bank to issue PC Bonds Series A-G, totaling $454 million, including issuance costs of $3 million;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>In February 2005, PERF issued approximately $1.9 billion of ERBs with no similar issuance in 2004 (see Note 4 of the Notes to the Condensed Consolidated Financial Statements for further discussion).  In March 2005, the Utility used proceeds from the issuance of ERBs to repurchase $960 million of its common stock from PG&amp;E Corporation;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>In January 2005, the Utility partially redeemed Floating Rate First Mortgage Bonds due in 2006 in the aggregate principal amount of $300 million, and on February 24, 2005, the Utility used a portion of the ERB proceeds to defease $600 million of Floating Rate First Mortgage Bonds. In April 2005, the Utility repaid $454 million under certain reimbursement obligations the Utility entered into in April 2004 when its plan of reorganization under Chapter 11 became effective.  On July 3, 2005, the remaining $200 million of Floating Rate First Mortgage Bonds were redeemed.  During the nine months ended September 30, 2004, repayments on long-term debt totaled approximately $7.5 billion;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>During the nine months ended September 30, 2005, the Utility paid $330 million in common stock dividends to PG&amp;E Corporation and $21 million to PG&amp;E Holdings LLC, a wholly owned subsidiary of the Utility;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP"><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP">
<FONT SIZE=2><P>During the nine months ended September 30, 2005, the Utility redeemed $122 million of preferred stock with mandatory redemption provisions compared to $15 million in 2004; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP" HEIGHT=27><DIR>

<P><FONT FACE="Symbol">&#183;</FONT>
</DIR>
</TD>
<TD WIDTH="91%" VALIGN="TOP" HEIGHT=27>
<FONT SIZE=2><P>During the nine months ended September 30, 2005, the Utility redeemed $36 million of preferred stock without mandatory redemption provisions with no similar redemption in 2004.</P>
</FONT></TD>
</TR>
</TABLE>

<B><FONT SIZE=2><P><A NAME="mda_corp_liquidity"></A>PG&amp;E Corporation</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September 30, 2005, PG&amp;E Corporation had stand-alone cash and cash equivalents of approximately $377 million.  PG&amp;E Corporation's sources of funds are dividends and share repurchases from the Utility, issuance of its common stock and external financing.  The Utility paid a cash dividend of $117 million to PG&amp;E Corporation and PG&amp;E Holdings LLC on September 22, 2005.  The Utility did not pay any dividends to, nor repurchase shares from, PG&amp;E Corporation during 2004.</P>

<B><I><P>Operating Activities</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation's consolidated cash flows from operating activities consist mainly of billings to the Utility and other affiliates for services rendered and payments for employee compensation and goods and services provided by others to PG&amp;E Corporation.  PG&amp;E Corporation also incurs interest costs associated with its debt.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation's consolidated cash flows from operating activities for the nine months ended September 30, 2005 and 2004 were as follows:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=495>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="28%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="28%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="28%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Net income </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">737&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Discontinued operations</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(13)</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Net income from continuing operations</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">724&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>Non-cash (income) expenses:</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Depreciation, amortization, decommissioning and &nbsp;&nbsp;&nbsp;allowance for equity funds used during construction</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,295&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,056&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Deferred income taxes and tax credits, net</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(658)</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">364&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Recognition of regulatory assets, net of tax</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(2,904)</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=16>
<FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Other deferred charges and noncurrent liabilities</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(133)</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(183)</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Other changes in operating assets and liabilities</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="14%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">889&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(626)</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2,117&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,340&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities increased by approximately $777 million during the nine months ended September 30, 2005, compared to the same period in 2004.  This increase was primarily related to an increase in the Utility's net cash provided by operating activities as discussed above, the recognition of tax benefits on the exercise of employee stock options during the nine months ended September 30, 2005, with no similar amount in 2004, and the payment of approximately $84 million to participating individuals in the senior executive retention program in January 2004, with no similar payment in 2005. </P>

<B><I><P>Investing Activities  </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On March 8, 2005, PG&amp;E Corporation received $960 million in proceeds for the repurchase of 22,023,283 shares of Utility common stock by the Utility.  This transaction was eliminated in consolidation. PG&amp;E Corporation, on a stand-alone basis, did not have any other material investing activities during the nine months ended September 30, 2005 or the same period in 2004.  </P>

<B><I><P>Financing Activities</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation's consolidated cash flows from financing activities consist mainly of cash generated from debt refinancing and the issuance of common stock.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation's consolidated cash flows from financing activities for the nine months ended September 30, 2005 and 2004 were as follows: </P>
<P> </P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=553>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="33%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>(in millions)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="33%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="33%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Repayments under credit facilities and short-term borrowings</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(300)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Net proceeds from issuance of energy recovery bonds</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">1,874&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Net proceeds from issuance of long-term debt</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">451&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">7,346&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Long-term debt matured, redeemed or repurchased</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,556)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(7,553)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Rate reduction bonds matured</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(214)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(213)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Energy recovery bonds matured</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(77)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Preferred stock with mandatory redemption provisions redeemed</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(122)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(15)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Preferred stock without mandatory redemption provisions redeemed</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(36)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Common stock issued</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">231&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">121&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Common stock repurchased</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,087)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Preferred dividends paid</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(12)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(88)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P>Common stock dividends paid</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(223)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Other, net</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">58&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(2)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;Net cash used in financing activities </B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(1,013)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">(404)</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation's net cash used in financing activities increased by $609 million for the nine months ended September 30, 2005, compared to the same period in 2004.  The decrease was primarily related to the Utility's financing activities as discussed above, PG&amp;E Corporation's repurchase of approximately 29.5 million shares of PG&amp;E common stock under accelerated share repurchase agreements in March and June of 2005 at an initial purchase price of $1.05 billion, and the first and second quarter dividend payment.  As discussed above, the Utility's repurchase of its common stock from PG&amp;E Corporation totaling $960 million in March 2005 was eliminated in consolidation.</P>
<P></A></P>
<B><P><A NAME="mda_cc_capex_off_bs_arrangements"><A NAME="contractual_commitments"></A>CONTRACTUAL COMMITMENTS</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility enter into contractual obligations and commitments in connection with business activities.  These obligations need to be funded in the future and primarily relate to financing arrangements (such as long-term debt, preferred stock and certain forms of regulatory financing), purchases of transportation capacity, natural gas and electricity to support customer demand and the purchase of fuel and transportation to support the Utility's generation activities.  Refer to Notes 3 and 7 in the Notes to the Condensed Consolidated Financial Statements and PG&amp;E Corporation's and the Utility's 2004 Financial Report for further discussion. </P>
<B><P> </P>
<P>Utility</P>

</B><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's contractual commitments include power purchase agreements (including agreements with qualifying facilities, irrigation districts and water agencies, and renewable energy providers), natural gas supply and transportation agreements, nuclear fuel agreements, operating leases, and other commitments.  </P>

<B><P><A NAME="cap_ex"></A>CAPITAL EXPENDITURES</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's investment in plant and equipment is necessary to replace aging and obsolete equipment and to accommodate anticipated electricity and natural gas load growth.  It is estimated that the Utility's capital expenditures will approximate $1.9 billion in 2005 and $2.4 billion in 2006 (excluding the capitalized portion of a 2006 pension contribution), resulting in a projected rate base of $15.2 billion in 2005 and $16.2 billion in 2006.  The Utility also projects average annual capital expenditures related to its electric and gas distribution and existing generation businesses of $1.5 billion over the 2007-2009 period excluding potential investments in advanced metering infrastructure, as discussed below, and potential investment in new generation and ongoing investments in its electric and gas transmission operations.  If these additional potential investments are made, total capital expenditures could be approximately $2.5 billion per year from 2007-2009.  </P>

<B><I><P>Advanced Metering Infrastructure </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CPUC is assessing the viability of implementing an advanced metering infrastructure, or AMI, for residential and small commercial customers.  This infrastructure would enable California investor-owned electric utilities to measure usage of electricity on a time-of-use basis and to charge demand responsive rates.  The goal of demand responsive rates is to encourage customers to reduce energy consumption during peak demand periods and to reduce peak period procurement costs.  Advanced meters can record usage in time intervals and be read remotely.  The Utility is implementing demand responsive tariffs for large industrial customers who already have advanced metering systems in place, and a statewide pilot program was recently completed to test whether and how much residential and small commercial customers will respond to demand responsive rates.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September 22, 2005, the CPUC approved the Utility's application to spend up to $49 million on pre-deployment activities to implement AMI.  The CPUC authorized the Utility to recover from customers up to $11.7 million in pre-deployment expenses and $37.4 million in pre-deployment capital additions.  The pre-deployment phase consists of activities to prepare the Utility's existing systems to accept data from its proposed advanced metering system, and to establish and test processes for meter and communication system installation and billing.  The authorized pre-deployment funding translates into combined electric and gas distribution revenue requirements of approximately $13.8 million in 2005, $6.3 million in 2006, and $6.2 million in 2007.  On October 24, 2005, the Utility Reform Network, or TURN, filed an application for rehearing of the CPUC's September 22 decision, alleging that the decision is not supported by substantial evidence in the record and would result in an unreasonable rate increase.  The Utility has until November 8, 2005 to respond to TURN's application for rehearing.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility anticipates that the CPUC will issue a decision on the Utility's application for approval of deployment of its full AMI project in May 2006.  In its original application filed in June 2005, the Utility estimated that full deployment of AMI would cost $1.46 billion, including an estimated capital cost of $1.25 billion, based on a five-year installation schedule for virtually all of the Utility's electric and gas customers starting in 2006.  The Utility's application indicated, however, that the incremental revenue requirement (after operational savings are taken into account) will be approximately a one percent increase to the Utility's combined gas and electric revenue requirement.  Over time, AMI benefits are expected to have a positive (reduction) impact on rates as reduction in procurement-related costs due to demand response are reflected in the total costs passed through to customers and as other uses and benefits of advanced metering infrastructure are developed.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 13, 2005, the Utility amended its application to include updated deployment schedules and new cost estimates that are slightly higher than previously estimated, reflecting the revised schedule for regulatory review and recent contract negotiations with potential vendors.  The supplemental filing indicated that with a final CPUC decision on the project expected in May 2006, AMI deployment is expected to begin in the Fall of 2006 and conclude in 2011.  Overall project costs are now estimated to be approximately $1.61 billion, including $1.41 billion of estimated capital expenditures.  It is expected that the additional capital expenditures of $160 million would be incurred primarily in 2010 and 2011.  The Utility expects that approximately 89% of the AMI project costs would be offset by the anticipated operational savings and efficiencies resulting from AMI.  The remaining 11% is expected to be offset by electric procurement savings resulting from voluntary customer participation in demand response options.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility cannot predict whether the CPUC will approve the Utility's application for approval of full deployment of its AMI project.</P>

<B><P><A NAME="off_balance_sheet_arrangements"></A>Off-Balance Sheet Arrangements  </P>

</B><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For financing and other business purposes, PG&amp;E Corporation and the Utility utilize certain arrangements that are not reflected in their Consolidated Balance Sheets.  Such arrangements do not represent a significant part of either PG&amp;E Corporation's or the Utility's activities or a significant ongoing source of financing.  These arrangements are used to enable PG&amp;E Corporation or the Utility to obtain financing or execute commercial transactions on favorable terms, and amounts due under these contracts are contingent upon terms contained in these arrangements.  For further information related to letter of credit agreements, credit facilities, pollution control bond insurance reimbursement agreements, aspects of PG&amp;E Corporation's accelerated share repurchase program, and PG&amp;E Corporation's guarantee related to certain NEGT indemnity obligations and the Utility's workers' compensation obligations, see Notes 3, 5, and 7 of the Notes to the Condensed Consolidated Financial Statements.</P>
<P><A NAME="capital_expenditures"><A NAME="off_balance_sheet"></A></A></A></P>

<B><P><A NAME="mda_cost_of_capital_and_erbba"><A NAME="contingencies"></A>CONTINGENCIES</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility have significant contingencies that are discussed below.  Also, refer to Note 7 in the Notes to the Condensed Consolidated Financial Statements for further discussion.</P>

<B><P>Regulatory Matters  </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This section of the MD&amp;A discusses significant regulatory issues pending before the CPUC, the FERC, or the NRC, the resolution of which may affect the Utility's and PG&amp;E Corporation's financial condition or results of operations.  The information presented below should be read in conjunction with PG&amp;E Corporation's and the Utility's 2004 Financial Report.</P>

<B><I><P>Cost of Capital Proceeding </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Settlement Agreement, the Utility's authorized ROE shall be no less than 11.22% and the authorized equity ratio for ratemaking purposes shall be no less than 52% until the Utility's long-term issuer credit ratings are at least A- from S&amp;P or A3 from Moody's.  The Utility's current long-term issuer credit ratings are BBB from S&amp;P and Baa1 from Moody's.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 9, 2005, the Utility filed a cost of capital application with the CPUC to determine the Utility's authorized capital structure and the authorized rate of return that the Utility may earn on its electricity and natural gas distribution and electricity generation rate base for 2006.  In the cost of capital proceeding, the CPUC (1) establishes the proportions of common equity, preferred equity, and debt that will comprise the Utility's total authorized capital structure for a specific year, and (2) establishes the rate of return that the Utility is authorized to earn on the common equity, preferred equity, and debt components of its capital structure.  The following table compares the currently authorized amounts for 2005 and the requested amounts for 2006: </P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=657>
<TR><TD WIDTH="28%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">2005 Authorized </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">2006 Requested</FONT></TD>
</TR>
<TR><TD WIDTH="28%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="35%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="28%" VALIGN="BOTTOM" HEIGHT=43><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=43>
<FONT SIZE=2><P ALIGN="CENTER">Cost</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=43><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=43>
<FONT SIZE=2><P ALIGN="CENTER">Capital <BR>
Structure </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=43><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=43>
<FONT SIZE=2><P ALIGN="CENTER">Weighted <BR>
Cost </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=43><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=43>
<FONT SIZE=2><P ALIGN="CENTER">Cost </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=43><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=43>
<FONT SIZE=2><P ALIGN="CENTER">Capital <BR>
Structure </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=43><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=43>
<FONT SIZE=2><P ALIGN="CENTER">Weighted <BR>
Cost </FONT></TD>
</TR>
<TR><TD WIDTH="28%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="28%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P>Long-term debt............................ </FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">6.10%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">45.5%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">2.78%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">6.05%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">46.0%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">2.78%</FONT></TD>
</TR>
<TR><TD WIDTH="28%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P>Preferred stock............................. </FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">6.42%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">2.5%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">0.16%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">5.87%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">2.0%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">0.12%</FONT></TD>
</TR>
<TR><TD WIDTH="28%" VALIGN="BOTTOM" HEIGHT=27>
<FONT SIZE=2><P>Common equity............................ </FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=27>
<FONT SIZE=2><P ALIGN="CENTER">11.22%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=27><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=27>
<FONT SIZE=2><P ALIGN="CENTER">52.0%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=27><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=27>
<FONT SIZE=2><P ALIGN="CENTER">5.83%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=27><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=27>
<FONT SIZE=2><P ALIGN="CENTER">11.50%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=27><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=27>
<FONT SIZE=2><P ALIGN="CENTER">52.0%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=27><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=27>
<FONT SIZE=2><P ALIGN="CENTER">5.98%</FONT></TD>
</TR>
<TR><TD WIDTH="28%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P>Return on rate base....................... </FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">8.77%</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=28>
<FONT SIZE=2><P ALIGN="CENTER">8.88%</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's proposed cost of capital would increase the 2006 cost of capital revenue requirement by approximately $22 million over the currently authorized revenue requirement for electricity and natural gas distribution and electricity generation operations, based on the Utility's currently authorized rate base. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility did not include a request for a 2006 rate of return for its electric transmission operations in this application to the CPUC because the FERC regulates electric transmission rates.  Also, the Utility did not include a request for a 2006 rate of return for its gas transmission and storage operations because the CPUC previously set revenue requirements for the Utility's gas transmission and storage assets through 2007 in a separate proceeding. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility has proposed that any changes to its revenue requirement resulting from adjustments to its authorized 2006 cost of capital be effective January 1, 2006.  The Utility expects the CPUC will issue a final decision on this proceeding by the end of 2005.</P>

<B><I><P>Energy Recovery Bond Balancing Account </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Settlement Agreement, PG&amp;E Corporation and the Utility agreed to seek to refinance the unamortized portion of the Settlement Regulatory Asset and associated federal and state income and franchise taxes, in an aggregate principal amount of up to $3.0 billion in two separate series up to one year apart, using a securitized financing supported by a dedicated rate component, or DRC.  On February 10, 2005, PERF issued approximately $1.9 billion of ERBs.  The refinancing of the Settlement Regulatory Asset through issuance of the ERBs, resulted in the elimination of a portion of the Settlement Regulatory Asset on which the Utility was entitled to earn an 11.22% rate of return on equity, or ROE.  As a result, the Utility's net income for the three and nine-month periods ended September 30, 2005 were reduced by approximately $27 million and $73 million, compared to the same periods in 2004, when the Utility earned the 11.22% ROE on the Settlement Regulatory Asset.  Total net income for 2005 is estimated to be reduced by approximately $100 million, compared to 2004, due to the elimination of the 11.22% ROE on the Settlement Regulatory Asset.   </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the issuance of the ERBs, the Utility established a balancing account, or ERBBA, as authorized by the CPUC, to track various costs and benefits associated with the ERBs.  The ERBBA tariff was approved by the CPUC on May 4, 2005.  Among other ERB-related costs and benefits, the Utility is required to use the ERBBA to return to customers the benefits of energy supplier refunds received after the second series of ERBs is issued.  The energy supplier refunds that the Utility receives between the issuance of the first and second series of ERBs will be used to reduce the size of the second series of ERBs.  The ERBBA tariff also provides that reasonable net interest costs on energy supplier claims and refunds incurred subsequent to the issuance of the first series of ERBs shall be deducted in order to calculate the net amount of energy supplier refunds.  </P>
<P> </P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September 30, 2005, the Utility had accrued approximately $1.3 billion of net disputed claims filed by various energy suppliers in its Chapter 11 proceeding.  The ERBBA liability balance was approximately $364 million as of September 30, 2005, which includes approximately $335 million credited to the ERBBA as a result of energy supplier settlements after deduction for net interest costs of approximately $80 million related to net disputed claims.  The ERBBA balance as of September 30, 2005 includes a reserve of approximately $65 million of net interest costs charged to ERBBA related to the net disputed claims for the period between April 12, 2004, the effective date of the Utility's plan of reorganization, and February 10, 2005, when the first series of ERBs was issued, and certain energy supplier refund litigation costs, pending recovery.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is anticipated that the second series would be issued in November 2005 in the aggregate amount of approximately $850 million.  This amount reflects energy supplier settlements credited to the ERBBA.  The proceeds of the second series of ERBs will be paid by PERF to the Utility to pre-fund the Utility's tax liability that will be due as the Utility collects the DRC from its customers over the term of the first series of ERBs.  Until taxes are fully paid, the Utility will compensate customers for the use of the ERB proceeds as well as for the use of the<I> </I>after-tax proceeds of energy supplier refunds received before the second series of ERBs is issued.  The carrying cost to be credited to customers will be computed at the Utility's authorized rate of return on rate base.  It is estimated that the carrying cost credit, assuming the principal amount of the second series of ERBs is $850 million and energy supplier refunds of approximately $335 million ($200 million, after-tax) are received before the ERBs are issued, would be approximately $125 million in 2006.  The equity portion of this carrying cost credit, of approximately $55 million, would reduce 2006 net income.  The actual amount will depend on the principal amount of the second series of ERBs and the after-tax amount of energy supplier refunds received by the Utility before the second series of ERBs is issued.  The carrying cost credit and the resulting reduction to net income will decline as the taxes are paid, reaching zero in 2012 when the ERBs and related taxes are paid in full. </P>
<P><A NAME="_REGULATORY_MATTERS_"></A></A></P>
<B><I><P><A NAME="RegMatters1"><A NAME="mda_electricity_generation_resources">Electricity Generation Resources</P>
</B></I>
<I><P>Procurement Cost Balancing Account and Mandatory Rate Adjustments</P>
</I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;California law allows the Utility to recover its reasonably incurred wholesale electricity procurement costs.  The Energy Resource Recovery Account, or ERRA, a balancing account authorized by the CPUC, tracks the difference between the authorized revenue requirement and the actual costs incurred under the Utility's authorized electricity resource procurement plans, excluding the costs associated with the DWR allocated contracts and certain other items.  The CPUC must review the revenues and costs recorded in the ERRA at least semi-annually and adjust retail electricity rates or order refunds, as appropriate, when the forecast aggregate over-collections or under-collections exceed 5% of the Utility's prior year electricity procurement revenues, excluding amounts collected for the DWR allocated contracts.  On July 12, 2005, the CPUC approved the Utility's 2005 ERRA trigger amount of approximately $164 million.  As of September 30, 2005, the ERRA had an over-collected balance of approximately $202 million.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July 15, 2005, the Utility filed an application to address its current over-collection in the ERRA.  Because the Utility projects its ERRA balance over-collection will decrease below the 5% level by 2005 year end, the Utility does not propose an ERRA rate change as part of this application.  The CPUC approved the application on September 22, 2005.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2005, the Utility filed in 2006 ERRA forecast revenue requirement of $2.41 billion.  On October 14, 2005, the Utility filed an update to its 2006 ERRA forecast revenue requirement to $2.82 billion to reflect the effects of increased natural gas prices and other changes to the electric portfolio that result in higher prices for electricity to the Utility's customers.  A final decision on the 2006 ERRA revenue requirement is expected before the end of 2005.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CPUC performs periodic compliance reviews of the procurement activities recorded in the ERRA to ensure that the Utility's procurement activities are in compliance with its approved procurement plans.  The cost of procurement activities could be disallowed up to a maximum of two times the Utility's administration costs associated with procurement each year.  For 2005, this amount is $36 million.  In April 2005, the CPUC approved the Utility's application related to its procurement activities recorded in the ERRA for the period of January 1, 2003 through May 31, 2003, finding that the Utility's contract administration, least cost dispatch, procurement activities, and generation fuel costs were in compliance with its 2003 updated procurement plan.  In July 2005, the CPUC approved the Utility's application related to the remainder of the record period (i.e., June 1, 2003 to December 31, 2003) and found the Utility's contract administration, least cost dispatch, procurement activities, and generation fuel costs to be in compliance with its 2003 updated procurement plan.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February 2005, the Utility filed an ERRA compliance review application for the January 1, 2004 to December 31, 2004 record period.  On July 1, 2005, the Office of Ratepayer Advocates, or ORA, issued its report on the Utility's ERRA compliance review for the January 1, 2004 to December 31, 2004 record period.  In its report, the ORA found that the Utility's electric contract administration and least cost dispatch of resources were reasonable.  However, the ORA recommends a disallowance of approximately $2 million related to utility retained generation operations.  On October 17, 2005, a CPUC administrative law judge, or ALJ, released a proposed decision finding that the Utility's administration of its power purchase agreements, procurement of least cost dispatch power activities, and associated procurement revenues and expenses for 2004 were reasonable and prudent, thus rejecting the ORA's proposed disallowance.  Final action on the 2004 record period application is expected before the end of 2005.  PG&amp;E Corporation and the Utility are unable to predict whether an actual disallowance will result or the size of any potential disallowance.  In addition, it is uncertain whether the CPUC will modify or eliminate the maximum disallowance for future years.</P>

<I><P>New Long-Term Generation Resource Commitments </P>
</I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with the Utility's CPUC-approved long-term electricity procurement plan, in March 2005 the Utility requested offers from providers of all potential sources of new generation (e.g., conventional or renewable resources to be provided by utility-owned projects or third-party power purchase agreements) for up to 2,200 megawatts, or MW, of peaking and load-following resources, beginning in 2008.  In addition, the Utility requested offers for new sources of generation to replace its existing 135 MW Humboldt Bay generating facility, which is estimated to be retired in 2009.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Initial offers were submitted to the Utility in late April 2005.  The Utility selected participants to provide additional information through second round offers.  Final offers were submitted in late October.  The Utility anticipates completing contract negotiations as early as the end of this year.  The contracts that the Utility ultimately executes will depend on the outcome of these negotiations and an updated assessment of the Utility's future power needs.  Further, as discussed under Note 7 of the Notes to the Consolidated Financial Statements, the Utility has requested that the CPUC permit the Utility to acquire and complete the Contra Costa Unit 8 facility, a modern 530 MW electric generating facility that the Utility has agreed to acquire pursuant to a settlement agreement the Utility entered into with Mirant Corporation and certain of its subsidiaries.  CPUC hearings are scheduled to begin on December 5, 2005 and a final decision is expected on this application by March 15, 2006.  The Utility's assessment of its generation resource needs may be affected by whether the CPUC approves the Utility's application to acquire and complete the Contra Costa 8 facility.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously disclosed, the CPUC's December 2004 decision adopting the long-term procurement plans of the California investor-owned electric utilities, or IOUs, requires load-serving entities, including the IOUs, electric service providers and community choice aggregators, but not local publicly owned utilities, to achieve an electricity planning reserve margin of 15% to 17% in excess of peak loads by June 1, 2006.  On October 27, 2005, the CPUC issued a decision that reaffirms and clarifies the policy framework the CPUC established in previous decisions addressing resource adequacy.  The October 2005 decision sets forth numerous rules in furtherance of that policy, including a penalty provision for failure to acquire sufficient capacity needed to meet resource adequacy requirements.  The penalty is equal to three times the cost of the new capacity the deficient load-serving entity should have secured, but for 2006 only the penalty is set at one-half of the amount.  The Utility's CPUC-approved long-term procurement plan forecasts that the Utility will be able to meet the resource adequacy requirements.  If the CPUC determines that the Utility has not met the requirements, the Utility could be subject to penalties in an amount determined by the CPUC in accordance with the new penalty provision. </P>

<I><P>Renewable Energy Contracts</P>
</I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The California Renewables Portfolio Standard, or RPS, requires California utilities to increase its purchases of renewable energy (such as biomass, wind, solar and geothermal energy) by at least 1% of its retail sales per year beginning in 2003, referred to as the RPS target, so that the amount of electricity purchased from renewable resources equals at least 20% of its bundled retail sales by the end of 2017.  The CPUC intends that the 20% goal be met by 2010.  The CPUC has also stated that compliance with the 20% goal must be met through actual deliveries of power, although it has adopted flexible compliance rules that allow the Utility to meet a portion of its RPS target through the execution of contracts for future delivery of power.  Unless waived by the CPUC, and subject to the CPUC's flexible compliance rules, the penalty for failing to procure at least 75% of the annual RPS target is 5 cents per each kWh of the shortfall, subject to an overall annual penalty maximum of $25 million per utility.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July and August 2005, the CPUC approved the Utility's execution of four new renewable power purchase contracts that will help the Utility meet its 2005 RPS target.  In addition, the CPUC approved the 2005 RPS solicitation for bids from renewable energy providers, which the Utility issued on August 4, 2005.  As a result of this solicitation, the Utility may enter into additional contracts for future deliveries that would fully satisfy its end of year 2005 and 2006 RPS targets.</P>

<B><I><P>DWR Allocated Contracts </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility acts as a billing agent for the collection of the DWR's revenue requirements from the Utility's customers. The DWR's revenue requirements consist of a power charge to pay for the DWR's costs of purchasing electricity under its contracts and a bond charge to pay for the DWR's costs associated with its $11.3 billion bond offering completed in November 2002. In December 2004, the CPUC issued a decision on the permanent cost allocation methodology for the DWR's power charge revenue requirements in 2004 and subsequent years, among the three California investor-owned electric utilities.  In January 2005, the CPUC granted limited rehearing of its permanent cost allocation decision to address how to calculate the above-market costs of the DWR power contracts.  In June 2005, the CPUC issued an alternate decision on the permanent cost allocation methodology used to allocate DWR's costs of purchasing electricity among the three California investor-owned electric utilities.  In August 2005, a Petition to Modify the alternate decision was filed.  A final decision on the petition to modify the DWR permanent cost allocation is expected by year end 2005.  The Utility anticipates its DWR annual revenue requirement will increase in 2006.  However, since the DWR revenue requirement is a pass-through to the Utility customers, any adjustments thereto should not affect the Utility's results of operations.</P>
<P></A></P>
<B><I><P><A NAME="mda_diablo_canyon">Diablo Canyon Steam Generator Replacement Projects</P>

</B></I><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August 15, 2005, the final environmental impact report, or EIR, required by the California Environmental Quality Act was issued with respect to the Utility's proposal to replace the turbines, steam generators and other equipment at the two nuclear operating units at the Utility's Diablo Canyon nuclear power plant, referred to as the Steam Generator Replacement Project, or SGRP.  The final EIR found that, for the SGRP as a whole, there are no environmental impacts that are significant, provided certain mitigation measures are implemented.  On October 13, 2005, a CPUC ALJ issued a proposed decision that, if approved by the CPUC, would certify the EIR as final and approve the Utility's SGRP.  The proposed decision also recommends the adoption of the CPUC's findings made in its February 24, 2005 interim decision that the SGRP is cost-effective, that $706 million, as adjusted for actual inflation and cost of capital, is a reasonable estimate of the SGRP cost, and that the Utility cannot recover costs in excess of $815 million, as adjusted for actual inflation and cost of capital.  The proposed decision also would adopt the interim decision's finding that (i) if the costs did not exceed $706 million, the CPUC did not intend to conduct an after-the-fact reasonableness review of the SGRP costs but that such a review was not precluded, and (ii) if the SGRP cost exceeds $706 million, as adjusted for actual inflation and cost of capital, or the CPUC later finds that it has reason to believe the costs may be unreasonable regardless of the amount, the entire SGRP cost will be subject to a reasonableness review.  It is expected that the CPUC will issue a final decision by the end of 2005.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of September 30, 2005, the Utility has incurred approximately $50.8 million in SGRP costs under various construction and installation contracts the Utility has executed.  The Utility estimates it will spend up to an additional $27.5 million before the CPUC issues a final decision.  If the CPUC does not approve the SGRP, then the Utility would terminate the contracts and seek to recover the SGRP costs that it incurred before termination from customers through the abandoned project process.</P>
<P></A></P>
<B><I><P><A NAME="mda_annual_earnings_assessment">Annual Earnings Assessment Proceeding for Energy Efficiency Program Activities and Public Purpose Programs </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 27, 2005, the CPUC approved a settlement agreement entered into between the Utility and the CPUC's ORA on April 4, 2005.  The settlement resolved the Utility's claims that have been pending for several years for shareholder incentives earned by the Utility for the successful implementation of demand-side management, energy efficiency, and low-income energy efficiency programs for past program years 1994 through 2001, which were addressed in the Utility's Annual Earnings Assessment Proceeding, or AEAP.  In addition to resolving claims made in the AEAPs, the settlement resolved all future claims for shareholder incentives relating to past program years that the Utility would otherwise have made in future AEAPs through 2010.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's total current and future shareholder incentive claims aggregate to approximately $207 million.  Under the settlement agreement, the parties have agreed that the results to date show that the energy savings anticipated in the Utility's shareholder incentive claims are being realized.  The decision approved shareholder incentives of approximately $186 million to resolve the Utility's claims in the pending and future AEAPs.  Of this amount, approximately $160 million will be collected from electric customers and approximately $26 million will be collected from gas customers, in proportion to the relative allocations of the original claims.  The Utility has already collected $28 million of the $160 million from electric customers.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the CPUC's decision, the Utility will record pre-tax income of approximately $186 million in the fourth quarter 2005.  </P>

<B><I><P>CPUC Energy Efficiency Programs </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September 22, 2005, the CPUC authorized 2006 through 2008 energy efficiency portfolio plans and program funding levels for the Utility and the other investor-owned California utilities.  The decision approves over $850 million in the Utility's energy efficiency programs over the next three years, 20% of which is to be awarded to third-parties through a competitive bid process.  The energy efficiency funding is part of a larger effort by the state of California to secure California's energy future and reduce consumption of fossil fuels that are linked to global climate change.  The funding level for 2005 program year is approximately $190 million.  The increased funding level will enable both residential and business customers to take more advantage of the diverse mix of energy efficiency programs.  The decision also authorizes the Utility to begin implementation of selected programs immediately to help customers with their winter gas bills.  The CPUC has authorized the Utility to recover the funding for energy efficiency programs from customers through rates.</P>
<P></A></P>
<B><I><P><A NAME="mda_pending_cpuc_investigations">Pending CPUC Investigations </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 18, 2005, the Utility, the CPUC'S Consumer Protection and Safety Division, or CPSD, and the City and County of San Francisco, entered into a settlement agreement to resolve the issues raised in the CPUC's investigation into the circumstances surrounding a fire that occurred at the Utility's Mission Street substation in San Francisco in December 2003 and the ensuing power outage.  Under the settlement, the Utility will make payments totaling $6.5 million, for which it will not seek rate recovery, consisting of (1) $3 million to hire an independent consultant to implement reliability improvements in San Francisco; (2) $1 million in capital expenditures to make improvements at the Hunters Point substation; (3) $750,000 for a fire safety program and specialized equipment for the San Francisco Fire Department; (4) $750,000 to the City and County of San Francisco to spend on infrastructure to improve public safety in the event of electric outages; (5) $500,000 to support development of a CPUC substation inspection program; and (6) $500,000 to be paid to the State of California's General Fund.  The settlement agreement is subject to approval of the CPUC.  A final decision on the settlement is expected during the first quarter of 2006.  PG&amp;E Corporation and the Utility believe that the ultimate outcome of this matter will not have a material adverse effect on PG&amp;E Corporation's or the Utility's financial condition or results of operations.</P>
<P></A></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CPUC also is conducting an investigation into the Utility's billing and collection practices that began at the request of TURN after the CPUC's January 13, 2005 decision that characterized the definition of "billing error" in a revised Utility tariff to include delayed bills and Utility-caused estimated bills as being consistent with "existing CPUC policy, tariffs, and requirements."  The Utility contends that prior to this decision, "billing error" under the Utility's former tariffs did not encompass delayed bills or Utility-caused estimated bills.  On August 11, 2005, the CPUC approved a schedule proposed by the Utility and the CPSD that would require CPSD's report to be due on December 16, 2005, the Utility's response to be due on February 17, 2006, and rebuttal testimony to be due on March 31, 2006, with hearings to begin on April 24, 2006.  On September 22, 2005, the CPUC denied the Utility's application for rehearing of the CPUC's January 13, 2005 decision and on October 28, 2005 the Utility filed a petition asking the appellate court to review the CPUC's decision denying rehearing of its earlier decision.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the CPUC finds that the Utility violated applicable tariffs or the CPUC's orders or rules, the CPUC may impose penalties on the Utility or order the Utility to refund any amounts collected in violation of tariffs, plus interest, to customers who paid such amounts.  PG&amp;E Corporation and the Utility continue to believe that the ultimate outcome of this matter will not have a material adverse effect on PG&amp;E Corporation's or the Utility's financial condition or results of operations.</P>

<B><I><P><A NAME="mda_2007_grc">2007 GRC </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August 1, 2005, the Utility tendered its Notice of Intent, or NOI, to file its 2007 GRC application.  On October 3, 2005, the CPUC accepted the Utility's NOI.  In the 2007 GRC, the CPUC will determine the amount of authorized base revenues to be collected from customers to recover the Utility's basic business and operational costs for its gas and electric distribution and electric generation operations for the period 2007 through 2009.  These revenue requirements are determined based on a forecast of costs for 2007 (the "test year").  The NOI indicates that the Utility's GRC application will request an increase in electric and gas distribution revenue requirements of $393 million and $61 million, respectively, over the projected authorized 2006 revenue requirements to maintain current service levels to support increased investment in distribution infrastructure as plant in service is upgraded and replaced, and to adjust for wages and inflation.  The NOI also indicates the Utility will request an increase of $48 million, over the projected authorized 2006 revenue requirement, to cover increases in operational costs for the Utility's fossil, hydro, and nuclear generation facilities and administrative costs associated with electric procurement activities.  (The projected 2006 revenue requirements assume the minimum increase over 2003 revenues approved by the CPUC in the Utility's 2003 GRC).  The NOI indicated that the Utility's preliminary forecast of average annual distribution and generation capital expenditures over the 2007-2009 period would be approximately $1.5 billion. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In its NOI, the Utility also has indicated that it will seek an increase of $167 million for 2008 and $242 million for 2009 designed to avoid a reduction in earnings in years between GRCs that would otherwise occur because of increases in rate base and expenses.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The NOI proposes that the Utility's 2008 and 2009 total gas and electric revenue requirements be reduced by $41 million in 2008 and $97 million in 2009 to capture an estimate of net savings that the Utility anticipates may be realized from the operating and cost efficiencies achieved through implementation of specific initiatives identified by the Utility to provide better, faster and more cost-effective service to its customers.  In addition, due to uncertainty about savings to be realized from these initiatives, the Utility will propose a sharing mechanism by which shareholders and customers would share equally in any earnings that would exceed an actual ROE equal to the then-authorized ROE plus 50 basis points, with the customers receiving 100% of the earnings that would exceed an actual ROE equal to the then-authorized ROE plus 3.00%.  If the Utility's actual ROE would be less than an amount equal to the then-authorized ROE minus 50 basis points, shareholders and customers would share the shortfall equally.  The following table summarizes the proposed sharing mechanism based on the Utility's currently authorized ROE of 11.22%:</P>
</FONT>
<P ALIGN="LEFT"><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=408>
<TR><TD WIDTH="41%" VALIGN="TOP">
<B><FONT SIZE=2><P>ROE</B></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<B><FONT SIZE=2><P>Customer</B></FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<B><FONT SIZE=2><P>Shareholder</B></FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="29%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="29%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>Below 10.72%</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P>50%</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P>50%</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>10.72% - 11.72%</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P>0%</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P>100%</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>11.73% - 14.22%</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P>50%</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P>50%</FONT></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<FONT SIZE=2><P>Above 14.22%</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P>100%</FONT></TD>
<TD WIDTH="29%" VALIGN="TOP">
<FONT SIZE=2><P>0%</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility intends to file its GRC application with the CPUC by December 2, 2005.  After the GRC application is filed, the ALJ overseeing the 2007 GRC will set a schedule to determine the expected dates for hearings, the issuance of a proposed decision, the issuance of a final decision, and other procedural events.  A final decision is expected from the CPUC by the end of 2006.</P>
<P> </P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility are unable to predict what amount of revenue requirements the CPUC will authorize for the 2007 through 2009 period, when a final decision in this proceeding will be received, or the impact it will have on their financial condition or results of operations.</P>
<P></A></P>
<B><I><P><A NAME="mda_ferc_transmission_rate_case">FERC Transmission Rate Case</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August 1, 2005, the Utility filed an application with FERC requesting rates that would provide a revenue requirement increase of approximately $110 million over current retail transmission rates.  On September 26, 2005, FERC accepted the filing and suspended the requested rate changes for five months, to become effective March 1, 2006, subject to refund.  FERC also established hearing and settlement judge procedures.  PG&amp;E Corporation and the Utility are unable to predict what amount of revenue requirements FERC will authorize, when a final decision will be received from FERC, or the impact it will have on the results of operations.</P>
</FONT><P></A> </P>
<B><I><FONT SIZE=2><P><A NAME="RegMatters4"><A NAME="mda_def_benefit_pension_plan_cont">Defined Benefit Pension Plan Contributions</I> </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July 13, 2005, the Utility filed a petition requesting the CPUC to authorize it to resume contributions to its employee pension trust beginning in 2006 based on the funded status of the pension fund.  If the CPUC grants the petition, the Utility will file an application before December 2005 requesting approval of the revenue requirement increase necessary to fund the contributions, separate from the 2007 GRC application to be filed in early December 2005.  The petition estimates the annual revenue requirement associated with the pension contributions for its generation and distribution businesses to be approximately $185 million, and it requests that the amount be recovered in rates beginning January 1, 2006, subject to refund to customers if the CPUC later disapproves the contributions.  Should the CPUC not grant the petition, the Utility will include a pension request in its 2007 GRC application.  In the Utility's last GRC decision in 2004, the CPUC denied the Utility's request to resume pension contributions based on a finding that the pension plan's funded status was in excess of 100%.  The Utility is also asking FERC in its transmission owner rate case filing discussed above to allow approximately $14 million annual revenue requirement associated with the pension contributions for its electric transmission business to be recovered in rates beginning March 1, 2006.</P>

<B><I><P>Natural Gas Supply and Transportation</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December 2004, the CPUC issued a final decision approving the Gas Accord III Settlement Agreement that sets the Utility's gas transmission and storage rates and market structure for a three-year term, commencing January&nbsp;1, 2005.  The decision extends the terms of a settlement agreement originally reached in 1997 called the Gas Accord.  Under the agreement, the Utility agreed to not have a balancing account for the over-collections or under-collections of natural gas transportation or storage revenues, thus assuming the risk of not recovering its full natural gas transportation and storage costs that have not been contracted for under fixed reservation charges with its core customers.  (See discussion below under "Risk Management Activities - "Transportation and Storage"). </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The original Gas Accord market structure included an incentive mechanism for recovery of core procurement costs, or CPIM, which is used to determine the reasonableness of the Utility's costs of purchasing natural gas for its customers.  Under the CPIM, the Utility's purchase costs for a twelve month period are compared to an aggregate market-based benchmark based on a weighted average of published monthly and daily natural gas price indices at the points where the Utility typically purchases natural gas.  Costs that fall within a tolerance band, which is 99% to 102% of the benchmark, are considered reasonable and are fully recovered in customers' rates.  One-half of the costs above 102% of the benchmark are recoverable in customers' rates, and the Utility's customers receive in their rates three-fourths of any savings resulting from the Utility's cost of natural gas that is less than 99% of the benchmark.  The shareholder award is capped at the lower of 1.5% of total natural gas commodity costs or $25&nbsp;million.  While this cost recovery mechanism remains in place, changes in the price of natural gas are not expected to materially impact net income.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 6, 2005, the CPUC granted the Utility authority to purchase hedges on behalf of the Utility's core gas customers, and to book the costs of such hedges in a separate balancing account, outside of CPIM.  This action was undertaken because of rapidly rising natural gas prices in the wake of Hurricanes Katrina and Rita.  The CPUC's decision authorizes enhanced hedging activity on behalf of core customers for the winter of 2005-2006 and for two subsequent winters.  The Utility also has agreed to forego a shareholder award under the CPIM for the 2004-2005 CPIM year.</P>

<B><I><P>Spent Nuclear Fuel Storage Proceedings</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 17, 2005, the U.S. Court of Appeals for the Ninth Circuit, or Ninth Circuit, heard oral argument on an appeal filed by several interveners challenging the NRC's March 2004 decision to authorize the Utility to construct a dry cask storage facility at Diablo Canyon to store spent nuclear fuel through approximately 2021 for Unit 1 and to 2024 for Unit 2.  A decision is anticipated in late in 2005 or the first quarter of 2006.  Construction of the on-site dry cask storage facility began in the third quarter 2005.  The Utility also has requested the NRC to approve an alternative on-site storage project to install a temporary storage rack in each unit's existing spent fuel storage pool that would permit the Utility to operate Unit 1 until 2010 and Unit 2 until 2011.  At the projected level of operation for Diablo Canyon, the Utility's current facilities are able to store on-site all spent fuel produced through approximately 2007.  If the Utility is unable to complete the dry cask storage facility, or if construction is delayed beyond 2007, and if the Utility is otherwise unable to increase its on-site storage capacity, it is possible that the operation of Diablo Canyon may have to be curtailed or halted as early as 2007 and until such time as additional spent fuel can be safely stored.  If electricity from Diablo Canyon were unavailable, the Utility would be required to purchase electricity from other more expensive sources to meet its customers' demand.  </P>
<P></A></A></P>
<B><I><P>CPUC Proceeding Regarding Holding Companies and their Affiliates</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 27, 2005 the CPUC issued an Order Instituting Rulemaking, or OIR, to allow the CPUC to re-examine the relationship between California energy utilities and their parent holding companies and affiliates.  The OIR was issued in response to the recent enactment by Congress of the Energy Policy Act of 2005, which, among other things, repealed the Public Utility Holding Company Act of 1935 and ordered the FERC to review its rules regarding dispositions, consolidations, or acquisitions made by entities that are subject to the FERC's jurisdiction under the Federal Power Act.  The CPUC noted that as a result of these changes, the parent holding companies of the California energy utilities may try to expand the unregulated activities of the utilities' affiliates, may try to merge with or acquire other companies or may be acquired by other companies and that it was necessary for the CPUC to review its existing regulations and to consider whether additional, new rules or regulations are needed.  The CPUC requires that the California energy utilities and their parent holding companies submit certain financial and other information by November 30, 2005.  The CPUC set forth a preliminary procedural schedule that calls for proposed rules to be issued in January 2006 and a final decision in March 2006.  The CPUC may propose rules to ensure that the California energy utilities retain sufficient capital and the ability to access capital in order to meet their customers' needs, and to address the potential conflicts between the utilities' ratepayers' interests and the parent holding companies' and affiliates' interests in order to ensure that these conflicts do not undermine the utilities' ability to meet their public service obligations at the lowest possible cost.  After reviewing the information submitted by the California energy utilities and their parent holding companies, the CPUC may propose additional rules or regulations regarding, but not necessarily limited to, (1) reporting requirements for the allocation of capital between utilities and their non-regulated affiliates by the parent holding companies, and (2) changes to the CPUC's affiliate transaction rules.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility cannot predict whether any rules that the CPUC may adopt will have a material impact on their results of operations or financial condition.  </P>

<B><P><A NAME="mda_risk_management_activities"></A>RISK MANAGEMENT ACTIVITIES </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility and PG&amp;E Corporation, mainly through its ownership of the Utility, are exposed to market risk, which is the risk that changes in market conditions will adversely affect net income or cash flows.  PG&amp;E Corporation and the Utility face market risk associated with their operations, financing arrangements, the marketplace for electricity, natural gas, electricity transmission, natural gas transportation and storage, other goods and services, and other aspects of their business.  PG&amp;E Corporation and the Utility categorize market risks as price risk, interest rate risk and credit risk.  The Utility actively manages market risks through risk management programs that are designed to support business objectives, reduce costs, discourage unauthorized risk-taking, reduce earnings volatility and manage cash flows.  The Utility uses derivative instruments only for non-trading purposes (i.e., risk mitigation) and not for speculative purposes.  The Utility's risk management activities include the use of energy and financial instruments, including forward contracts, futures, swaps, options, and other instruments and agreements, most of which are accounted for as derivative instruments.  Some contracts are accounted for as leases.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility estimates fair value of derivative instruments using the midpoint of quoted bid and asked forward prices, including quotes from customers, brokers, electronic exchanges and public indices, supplemented by online price information from news services.  When market data is not available, the Utility uses models to estimate fair value.</P>

<B><P>Price Risk  </P>
<I>
<P>Convertible Subordinated Notes </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation currently has outstanding $280 million of 9.50% Convertible Subordinated Notes that are scheduled to mature on June 30, 2010.  These Convertible Subordinated Notes may be converted (at the option of the holder) at any time prior to maturity into 18,558,655 shares of common stock of PG&amp;E Corporation, at a conversion price of approximately $15.09 per share.  The conversion price is subject to adjustment should a significant change occur in the number of PG&amp;E Corporation's outstanding common shares.  To date, the conversion price has not required adjustment.  In addition, holders of the Convertible Subordinated Notes are entitled to receive pass-through dividends at the same payout as common stockholders with the number of shares determined by dividing the principal amount of the Convertible Subordinated Notes by the conversion price.  In connection with each common stock dividend that was payable to holders of PG&amp;E Corporation common stock on April 15, July 15 and October 15, 2005, PG&amp;E Corporation paid approximately $6 million of "pass through dividends" to the holders of Convertible Subordinated Notes.  The holders have a one-time right to require PG&amp;E Corporation to repurchase the Convertible Subordinated Notes on June 30, 2007, at a purchase price equal to the principal amount plus accrued and unpaid interest (including liquidated damages and unpaid "pass-through dividends," if any).</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with Statement of Financial Accounting Standards, or SFAS, No. 133, "Accounting for Derivative Instruments and Hedging Activities," or SFAS No. 133, the dividend participation rights component is considered to be an embedded derivative instrument and, therefore, must be bifurcated from the Convertible Subordinated Notes and recorded at fair value in PG&amp;E Corporation's Consolidated Financial Statements.  Changes in the fair value are recognized in PG&amp;E Corporation's Consolidated Statements of Income as a non-operating expense or income (included in Other income (expense), net).  At September 30, 2005 and 2004, the total estimated fair value of the dividend participation rights component, on a pre-tax basis, was approximately $93 million and $70 million, respectively, of which $21 million and $9 million, respectively, is classified as a current liability (in Current liabilities-Other) and $72 million and $61 million, respectively, is classified as a noncurrent liability (in Noncurrent liabilities-Other).  The change in value of the liability was immaterial for the quarters ended September 30, 2005 and 2004.<B>  </P>
<I>
<P>Electricity</I> </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility relies on electricity from a diverse mix of resources, including third-party contracts, amounts allocated under DWR contracts and its own electricity generation facilities.  In addition, the Utility purchases and sells electricity on the spot market and the short-term forward market (contracts with delivery times ranging from one hour ahead to one year ahead).</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is estimated that the residual net open position (the amount of energy needed to meet the demands of customers, plus applicable capacity or reserve margins that is not satisfied from the Utility's own generation facilities, purchase contracts or DWR contracts allocated to the Utility's customers) will change over time for a number of reasons, including:</P>
</FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=561>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Periodic expirations of existing energy and capacity purchase contracts, or entering into new energy and capacity purchase contracts;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Fluctuation in the output of hydroelectric and other power facilities owned or under contract;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>Changes in the Utility's customers' electricity demands due to customer and economic growth and weather, and implementation of new energy efficiency and demand response programs, community choice aggregation, and a core/noncore retail market structure;</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>The reallocation of the DWR power purchase contracts among California investor-owned electric utilities; and</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT FACE="Symbol">&#183;</FONT>
</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT SIZE=2><P>The acquisition, retirement or closure of generation facilities.</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT SIZE=2>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, lengthy, unexpected outages of the Utility's generation or contracted facilities, or a failure to perform by any of the counterparties to electricity purchase contracts or the DWR allocated contracts, would immediately increase the Utility's residual net open position.  As noted (see "Spent Nuclear Fuel Storage Proceedings" above) it is possible that the operation of Diablo Canyon may have to be curtailed or halted as early as 2007, if suitable storage facilities are not available for spent nuclear fuel, which would cause an increase in the Utility's residual net open position.  The Utility expects to satisfy at least some of the residual net open position through new contracts.  In December 2004, the CPUC approved, with certain modifications, the Utility's long-term electricity procurement plan, or LTPP, for the 2005 through 2014 period.  The LTPP is discussed above under "Regulatory Matters" and in the "Regulatory Matters" section of the MD&amp;A in PG&amp;E Corporation's and the Utility's combined 2004 Financial Report.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Settlement Agreement provides that the Utility will recover its reasonable costs of providing utility service, including power procurement costs.  In addition, California law requires that the CPUC review revenues and expenses associated with a CPUC-approved procurement plan at least semi-annually through 2006 and adjust retail electricity rates, or order refunds when there is an under- or over-collection exceeding 5% of the Utility's prior year electricity procurement revenues, excluding the revenue collected on behalf of the DWR.  In addition, the CPUC has established a maximum procurement disallowance of approximately $36 million for the Utility's administration of the DWR contracts and least-cost dispatch.  Adverse market price changes are not expected to impact the Utility's net income while these cost recovery regulatory mechanisms remain in place.  However, the Utility is at risk to the extent that the CPUC may in the future disallow portions or the full costs of transactions.  Additionally, market price changes could impact the timing of the Utility's cash flows.</P>

<B><I><P>Natural Gas (Electric Portfolio) </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A portion of the Utility's electric portfolio is exposed to natural gas price risk.  The Utility manages this risk in accordance with its risk management strategies, which are included in procurement plans approved by the CPUC.  Gas price risk is expected to increase when the fixed price amendments to the Utility's contracts with qualifying facility generators expire in July 2006.  Following expiration, payments under these contracts will be based on gas price indices.  Due to recent natural gas price volatility, the Utility sought changes to its gas hedging strategy for its electric portfolio.  On September 22, 2005 the CPUC approved the Utility's proposed electric portfolio gas hedging plan.  The expenses associated with the hedging plan are expected to be recovered in the ERRA (see the "Electricity Generation Resources" section of this MD&amp;A).</P>

<B><I><P>Natural Gas (Core Customers)</P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility generally enters into physical and financial natural gas commodity contracts from one to thirty months in length to fulfill the needs of its retail core customers.  Changes in temperature cause natural gas demand to vary daily, monthly and seasonally.  Consequently, significant volumes of gas may be purchased in the monthly and, to a lesser extent, daily spot market.  The Utility's cost of natural gas purchased for its core customers includes the commodity cost, the cost of Canadian and interstate transportation, intrastate gas transmission and storage costs.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the CPIM the Utility's purchase costs for a fixed twelve-month period are compared to an aggregate market-based benchmark based on a weighted average of published monthly and daily natural gas price indices at the points where the Utility typically purchases natural gas.  Costs that fall within a tolerance band, which is 99% to 102% of the benchmark, are considered reasonable and are fully recovered in customers' rates.  One-half of the costs above 102% of the benchmark are recoverable in customers' rates, and the Utility's customers receive, in their rates, three-fourths of any savings resulting from the Utility's cost of natural gas that is less than 99% of the benchmark.  The shareholder award is capped at the lower of 1.5% of total natural gas commodity costs or $25 million.  While this cost recovery mechanism remains in place, changes in the price of natural gas are not expected to materially impact net income.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 6, 2005, the CPUC approved the Utility's hedging plan for the winters of 2005-06, 2006-07, and 2007-08.  Core customers will pay the cost of these hedges and receive any payouts as these transactions are handled outside of the CPIM.  The Utility is at risk to the extent that the CPUC may disallow portions of the hedging cost if the Utility does not follow its filed plan.  As part of the hedging plan the Utility also has agreed to forego a shareholder award under the CPIM for the 2004-2005 CPIM year.</P>

<B><I><P>Nuclear Fuel </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility purchases nuclear fuel for Diablo Canyon through contracts with terms ranging from two to five years.  These long-term nuclear fuel agreements are with large, well-established international producers in order to diversify its commitments and provide security of supply.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some nuclear fuel purchases are subject to tariffs of up to 20% on imports from certain countries.  The Department of Commerce ruling that imposed these tariffs is currently under appeal.  The prices under existing and future contracts may be higher as a result of such tariffs.  In addition, because of an increase in the United States' demand for uranium compared with the domestic supply, uranium prices are trending higher in 2005.  During the quarter ended September 30, 2005, the Utility entered into two nuclear fuel purchase agreement for delivery of uranium concentrates in years 2005 through 2008, one agreement for the delivery of uranium enrichment services in 2005, and one agreement for the delivery of uranium enrichment services in years 2007 through 2009.  These contracts do not meet the definition of derivative instruments as they are not subject to net settlement.  Therefore, these contracts are subject to accrual accounting and will not be marked to market on the financial statements. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the Utility continues to replace contracts that expired at the end of 2004 with new higher priced uranium contracts, nuclear fuel costs will rise.  These costs are recovered in the ERRA (see the "Electricity Generation Resources" section of this MD&amp;A), therefore, the changes in nuclear fuel prices are not expected to materially impact net income.</P>

<B><I><P>Transportation and Storage </P>
</B></I>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility currently faces price and volumetric risk for the portion of intrastate natural gas transportation capacity that is not contracted under fixed reservation charges used by core customers.  Non-core customers contract with the Utility for natural gas transportation and storage, along with natural gas parking and lending (market center) services.  The Utility is at risk for any natural gas transportation and storage revenue volatility.  Transportation is sold at competitive market-based rates within a cost-of-service tariff framework.  There are significant seasonal and annual variations in the demand for natural gas transportation and storage services.  The Utility sells most of its pipeline capacity based on the volume of natural gas that is transported by its customers.  As a result, the Utility's natural gas transportation revenues fluctuate.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility uses value-at-risk to measure the Utility's exposure to market conditions that could impact transportation and storage revenues based on changes in market prices and demand for pipeline and storage services over a rolling 12-month holding period.  This calculation is based on a 99% confidence level, which means that there is a 1% probability that the impact to revenues on a pre-tax basis will be at least as large as the reported value-at-risk.  The Utility's value-at-risk calculated under this methodology was approximately $39 million at September 30, 2005.  The Utility's high, low, and average value-at-risk during the three months ended September 30, 2005 were approximately $42 million, $33 million and $36 million, respectively. Value-at-risk has several limitations as a measure of portfolio risk, including, but not limited to, inadequate indication of the exposure of a portfolio to extreme price movements and not capturing the intra-day risk related to position changes.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning January 1, 2005, the Utility began calculating value-at-risk using the methodology described above on a prospective basis only.  For comparative purposes in 2005, the Utility will continue to report value-at-risk for the transportation and storage portfolio under the methodology formerly used in addition to value-at-risk calculated under the enhanced methodology.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to January 1, 2005, the Utility used value-at-risk to measure the expected maximum change over a one-day period in the rolling 18-month forward value of its transportation and storage portfolio.  This calculation is based on a 95% confidence level, which means that there is a 5% probability that the portfolio will incur a loss in value in one day at least as large as the reported value-at-risk.  For example, if the value-at-risk is calculated at $5 million, there is a 95% probability that the value of the portfolio resulting from a one-day price movement would not decline by more than $5 million.  This value-at-risk methodology provides an indication of the Utility's exposure to potential market conditions that could impact revenues based on one-day price changes.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's daily value-at-risk for its transportation and storage portfolio calculated under the methodology used prior to January 1, 2005 was approximately $5 million at September 30, 2005 and approximately $4 million at September 30, 2004.  A comparison of daily values-at-risk is included in order to provide context around the one-day amounts.  The Utility's high, low and average transportation and storage value-at-risk during the nine months ended September 30, 2005 were approximately $5 million, $1 million and $2 million, respectively.  The Utility's high, low and average transportation and storage value-at-risk during the nine months ended September 30, 2004 were approximately $6 million, $2 million and $3 million, respectively.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Value-at-risk calculated under the methodology used prior to January 1, 2005 has several limitations as a measure of portfolio risk, including, but not limited to, underestimation of the risk of a portfolio with significant options exposure, mismatch of one-day liquidation period assumed in the value-at-risk methodology as compared to the longer term holding period of the storage and transportation portfolio, and inadequate indication of the exposure of a portfolio to extreme price movements.  In addition, this value-at-risk methodology does not measure intra-day risk from position changes nor does it measure volumetric uncertainty in the demand for pipeline services.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to the limitations of this value-at-risk methodology, the Utility enhanced the calculation methodology as described above to (1) capture uncertainty with respect to demand (volumetric uncertainty) for pipeline services, (2) reflect the market conditions in which the pipeline operates by increasing the holding period to 12 months, and (3) include the uncertainty associated with the option exposure in the pipeline portfolio. </P>

<B><P>Interest Rate Risk </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk is the risk that changes in interest rates could adversely affect earnings or cash flows.  Specific interest rate risks for PG&amp;E Corporation and the Utility include the risk of increasing interest rates on variable rate obligations.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate risk sensitivity analysis is used to measure interest rate risk by computing estimated changes in cash flows as a result of assumed changes in market interest rates.  At September 30, 2005, if interest rates changed by 1% for all current variable rate debt issued by PG&amp;E Corporation and the Utility, the change would affect net income by an immaterial amount, based on net variable rate debt and other interest rate-sensitive instruments outstanding. </P>

<B><P>Credit Risk </P>

</B><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit risk is the risk of loss that PG&amp;E Corporation and the Utility would incur if customers or counterparties failed to perform their contractual obligations.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation had gross accounts receivable of approximately $2.2 billion at September 30, 2005 and December 31, 2004.  The majority of the accounts receivable were associated with the Utility's residential and small commercial customers.  Based upon historical experience and evaluation of then-current factors, allowances for doubtful accounts of approximately $105 million at September 30, 2005 and approximately $93 million at December 31, 2004 were recorded against those accounts receivable.  In accordance with tariffs, credit risk exposure is limited by requiring deposits from new customers and from those customers whose past payment practices are below standard.  The Utility has a regional concentration of credit risk associated with its receivables from residential and small commercial customers in northern and central California.  However, material loss due to non-performance from these customers is not considered likely.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility manages credit risk for its wholesale customers and counterparties by assigning credit limits based on an evaluation of their financial condition, net worth, credit rating and other credit criteria as deemed appropriate.  Credit limits and credit quality are monitored frequently and a detailed credit analysis is performed at least annually.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit exposure for the Utility's wholesale customers and counterparties is calculated daily.  If exposure exceeds the established limits, the Utility takes action to reduce the exposure or obtain additional collateral, or both.  Further, the Utility relies heavily on master agreements that require security, referred to as credit collateral, in the form of cash, letters of credit, corporate guarantees of acceptable credit quality, or eligible securities if current net receivables and replacement cost exposure exceed contractually specified limits.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility calculates gross credit exposure for each of its wholesale customers and counterparties as the current mark-to-market value of the contract (<I>i.e.</I>, the amount that would be lost if the counterparty defaulted today), plus or minus any outstanding net receivables or payables, before the application of credit collateral.  During the three months ended September 30, 2005, the Utility recognized no material losses due to contract defaults or bankruptcies.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility conducts business with wholesale counterparties mainly in the energy industry, including other California investor-owned electric utilities, municipal utilities, energy trading companies, financial institutions, and oil and natural gas production companies located in the United States and Canada.  This concentration of counterparties may impact the Utility's overall exposure to credit risk because counterparties may be similarly affected by economic or regulatory changes, or other changes in conditions.  Credit losses experienced as a result of electrical and gas procurement activities are expected to be recoverable from customers and are, therefore, not expected to have a material impact on earnings.</P>

<B><P><A NAME="mda_critical_accounting_policies"></A>CRITICAL ACCOUNTING POLICIES</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The preparation of Consolidated Financial Statements in accordance with Generally Accepted Accounting Principles, or GAAP, involves the use of estimates and assumptions that affect the recorded amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  The accounting policies described below are considered to be critical accounting policies, due, in part, to their complexity and because their application is relevant and material to the financial condition and results of operations of PG&amp;E Corporation and the Utility, and because these policies require the use of material judgments and estimates.  Actual results may differ substantially from these estimates.  These policies and their key characteristics are outlined below.</P>

<B><P>Regulatory Assets and Liabilities </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility account for the financial effects of regulation in accordance with SFAS No.71, "Accounting for the Effects of Certain Types of Regulation," as amended, or SFAS No. 71.  SFAS No. 71 applies to regulated entities whose rates are designed to recover the cost of providing service.  SFAS No. 71 applies to all of the Utility's operations except for the operations of a natural gas pipeline.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under SFAS No. 71, regulatory assets represent capitalized costs that otherwise would be recorded to expense under GAAP.  These costs are later recovered through regulated rates.  Regulatory liabilities are created by rate actions of a regulator that will later be credited to customers through the ratemaking process.  Regulatory assets and liabilities are recorded when it is probable, as defined in SFAS No. 5, "Accounting for Contingencies," or SFAS No. 5, that these items will be recovered or reflected in future rates.  Determining probability requires significant judgment on the part of management and includes, but is not limited to, consideration of testimony presented in regulatory hearings, CPUC and FERC administrative law judge proposed decisions, final regulatory orders and the strength or status of applications for regulatory rehearings or state court appeals.  The Utility also maintains regulatory balancing accounts, which are comprised of sales and cost balancing accounts.  These balancing accounts are used to record the differences between revenues and costs that can be recovered through rates.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Utility determined that it could not apply SFAS No. 71 to its operations or, if under SFAS No. 71 it could not conclude that it is probable that revenues or costs would be recovered or reflected in future rates, the revenues or costs would be recorded to income in the period in which they were incurred.  If it is determined that a regulatory asset is no longer probable of recovery in rates, then SFAS No. 71 requires that it be written off at that time.  At September 30, 2005, PG&amp;E Corporation and the Utility reported regulatory assets (including current regulatory balancing accounts receivable) of approximately $6.5<B> </B>billion and regulatory liabilities (including current balancing accounts payable) of approximately $5.1 billion.</P>

<B><P>Unbilled Revenues </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility records revenue as electricity and natural gas are delivered.  A portion of the revenue recognized has not yet been billed.  Unbilled revenues are determined by factoring an estimate of the electricity and natural gas load delivered with recent historical usage and rate patterns.  At September 30, 2005, the Utility had recorded approximately $580 million in unbilled revenues.</P>

<B><P>Environmental Remediation Liabilities </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Given the complexities of the legal and regulatory environment regarding environmental laws, the process of estimating environmental remediation liabilities is a subjective one.  The Utility records a liability associated with environmental remediation activities when it is determined that remediation is probable, as defined in SFAS No. 5, and the cost can be estimated in a reasonable manner.  The liability can be based on many factors, including site investigations, remediation, operations, maintenance, monitoring and closure.  This liability is recorded at the lower range of estimated costs, unless a more objective estimate can be achieved.  The recorded liability is re-examined every quarter.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At September 30, 2005, the Utility's accrual for undiscounted environmental liability was approximately $414 million.  The Utility's undiscounted future costs could increase to as much as $584 million if other potentially responsible parties are not able to contribute to the settlement of these costs or the extent of contamination or necessary remediation is greater than anticipated.</P>

<B><P>Asset Retirement Obligations </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility accounts for its nuclear generation and certain fossil generation facilities under SFAS No. 143, "Accounting for Asset Retirement Obligations," or SFAS No. 143.  SFAS No. 143 requires that an asset retirement obligation be recorded at fair value in the period in which it is incurred if a reasonable estimate of fair value can be made.  In the same period, the associated asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset.  Rate-regulated entities may recognize regulatory assets or liabilities as a result of timing differences between the recognition of costs as recorded in accordance with SFAS No. 143 and costs recovered through the ratemaking process.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are uncertainties regarding the ultimate cost associated with retiring the assets the Utility has accounted for in accordance with SFAS No. 143.  These include, but are not limited to changes in assumed dates of decommissioning, regulatory requirements, technology, cost of labor, materials, and equipment.  At September 30, 2005, the Utility's estimated cost of retiring these assets was approximately $1.4 billion.</P>

<B><P>Pension and Other Postretirement Plans </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain employees and retirees of PG&amp;E Corporation and its subsidiaries participate in qualified and non-qualified non-contributory defined benefit pension plans.  Certain retired employees and their eligible dependents of PG&amp;E Corporation and its subsidiaries also participate in contributory medical plans, and certain retired employees participate in life insurance plans (referred to collectively as other benefits).  Amounts that PG&amp;E Corporation and the Utility recognize as costs and obligations to provide pension benefits under SFAS No. 87, "Employers' Accounting for Pensions," and other benefits under SFAS&nbsp;No.&nbsp;106, "Employers Accounting for Postretirement Benefits other than Pensions," are based on a variety of factors.  These factors include the provisions of the plans, employee demographics and various actuarial calculations, assumptions and accounting mechanisms.  Because of the complexity of these calculations, the long-term nature of these obligations and the importance of the assumptions utilized, PG&amp;E Corporation's and the Utility's estimate of these costs and obligations is a critical accounting estimate.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In accordance with accounting rules, changes in benefit obligations associated with these assumptions may not be recognized as costs on the income statement.  Differences between actuarial assumptions and actual plan results are deferred and are amortized into cost only when the accumulated differences exceed 10% of the greater of the projected benefit obligation or the market-value of the related plan assets.  If necessary, the excess is amortized over the average remaining service period of active employees.  As such, significant portions of benefit costs recorded in any period may not reflect the actual level of cash benefits provided to plan participants.  Under SFAS No. 71, regulatory adjustments have been recorded in the Consolidated Statements of Income and Consolidated Balance Sheets of the Utility to reflect the difference between Utility pension expense or income for accounting purposes and Utility pension expense or income for ratemaking, which is based on a funding approach.  The CPUC has authorized the Utility to recover the costs associated with its other benefits for 1993 and beyond.  Recovery is based on the lesser of the amounts collected in rates or the annual contributions on a tax-deductible basis to the appropriate trusts.</P>

<B><P><A NAME="mda_additional_security_environment_leg"><A NAME="accounting_pronouncements"></A>ACCOUNTING PRONOUNCEMENTS ISSUED BUT NOT YET ADOPTED</P>

</B><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refer to Note 1 in the Notes to the Condensed Consolidated Financial Statements for further discussion.</P>

<B><P><A NAME="mda_additional_security_measures"></A>ADDITIONAL SECURITY MEASURES</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Various federal regulatory agencies have issued guidance and the NRC has issued orders regarding additional security measures to be taken at various facilities, including generation facilities, transmission substations and natural gas transportation facilities.  The guidance and the orders require additional capital investment and increased operating costs.  However, neither PG&amp;E Corporation nor the Utility believes that these costs will have a material impact on its respective consolidated financial condition or results of operations.</P>

<B><P><A NAME="environmental_and_legal_matters"></A>ENVIRONMENTAL AND LEGAL MATTERS </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility are subject to laws and regulations established both to maintain and improve the quality of the environment.  Where PG&amp;E Corporation's and the Utility's properties contain hazardous substances, these laws and regulations may require PG&amp;E Corporation and the Utility to remove those substances or to remedy effects on the environment.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the normal course of business, PG&amp;E Corporation and the Utility are named as parties in a number of claims and lawsuits.  See Note 7 of the Notes to the Condensed Consolidated Financial Statements for further discussion.  As previously disclosed, the Utility has recorded a $160 million reserve in its financial statements with respect to the chromium litigation described in Note 7.  Given recent rulings and appellate writs regarding the Utility's motions, and the California Supreme Court's current review of similar issues in unrelated litigation, PG&amp;E Corporation and the Utility are unable to predict whether the ultimate outcome of this matter, after taking into account the amount already reserved at September 30, 2005, would have a material adverse impact on PG&amp;E Corporation's or the Utility's financial condition or results of operations. </P>
<P><A NAME="_TAXATION_MATTERS"><A NAME="_DV_M623"><A NAME="_DV_M624"><A NAME="_DV_M625"><A NAME="_DV_M626"><A NAME="_DV_M627"><A NAME="_DV_M628"><A NAME="_DV_M629"><A NAME="_DV_M631"><A NAME="_DV_M632"><A NAME="_DV_M635"><A NAME="add_security_mda"></A></A></A></A></A></A></A></A></A></A></A></A></A></P>
<B><P><A NAME="item_3_and_4"><A NAME="item_3"></A>ITEM 3:  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation's and the Utility's primary market risk results from changes in energy prices.  PG&amp;E Corporation and the Utility engage in price risk management, or PRM, activities for non-trading purposes only.  Both PG&amp;E Corporation and the Utility may engage in these PRM activities using forward contracts, futures, options, and swaps to hedge the impact of market fluctuations on energy commodity prices, interest rates, and foreign currencies.  (See the "Risk Management Activities" section included in Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations).</P>
<B>
<P><A NAME="item_4"></A>ITEM 4:  CONTROLS AND PROCEDURES </P>

</B><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on an evaluation of PG&amp;E Corporation's and the Utility's disclosure controls and procedures as of September 30, 2005, PG&amp;E Corporation's and the Utility's respective principal executive officers and principal financial officers have concluded that such controls and procedures are effective to ensure that information required to be disclosed by PG&amp;E Corporation and the Utility in reports the companies file or submit under the Securities and Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission rules and forms.</P>
</FONT><FONT FACE="Dutch801BT-Roman" SIZE=2>
</FONT><FONT SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of January 1, 2004, PG&amp;E Corporation and the Utility adopted Financial Accounting Standards Board, or FASB, revision to FASB Interpretation No. 46, ''Consolidation of Variable Interest Entities,'' or FIN 46R.  In accordance with FIN 46R, the Utility consolidated the assets, liabilities and non-controlling interests of low-income housing partnerships that were determined to be variable interest entities, or VIEs, under FIN 46R. PG&amp;E Corporation and the Utility do not have the legal right or authority to assess the internal controls of VIEs.  Therefore, PG&amp;E Corporation's and the Utility's evaluation of disclosure controls and procedures performed as of September 30, 2005 did not include these entities in that evaluation. PG&amp;E Corporation and the Utility have not designed, established, or maintained disclosure controls and procedures for consolidated VIEs.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no changes in internal controls over financial reporting that occurred during the quarter ended September 30, 2005, that have materially affected, or are reasonably likely to materially affect, PG&amp;E Corporation's or the Utility's internal controls over financial reporting.</P>
<P><A NAME="_ITEM_4._"></A></A></P>
<B><P ALIGN="CENTER"><A NAME="part_2">PART II.  OTHER INFORMATION</P>
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER"><A NAME="part_2_item_1"></A>ITEM 1.  LEGAL PROCEEDINGS</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For additional information regarding certain of the legal proceedings presented below, see Note 7 of the Notes to the Condensed Consolidated Financial Statements.</P>

<B><P>Pacific Gas and Electric Company Chapter 11 Filing</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's Chapter 11 proceeding has been previously disclosed in PG&amp;E Corporation's and the Utility's combined 2004 Annual Report on Form 10-K in "Part I, Item 3: Legal Proceedings" and in PG&amp;E Corporation's and the Utility's combined Quarterly Report on Form 10-Q for the quarters ended March 31, 2005 and June 30, 2005 in "Part II, Item 1: Legal Proceedings."  For additional information, see Note 2 of the Notes to the Condensed Consolidated Financial Statements.</P>

<B><P>Pacific Gas and Electric Company v. Michael Peevey, et al.</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For information regarding this matter, see "Part I, Item 3: Legal Proceedings" in PG&amp;E Corporation's and the Utility's combined 2004 Annual Report on Form 10-K.</P>

<B><P>In re: Natural Gas Royalties Qui Tam Litigation</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For information regarding this matter, see "Part I, Item 3: Legal Proceedings" in PG&amp;E Corporation's and the Utility's combined 2004 Annual Report on Form 10-K.</P>

<B><P>Diablo Canyon Power Plant</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For information regarding matters relating to the Diablo Canyon Power Plant, see PG&amp;E Corporation's and the Utility's combined 2004 Annual Report on Form 10-K.</P>

<B><P>Compressor Station Chromium Litigation</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 3, 2005, the Utility received a ruling issued by the Superior Court for the County of Los Angeles, or Superior Court, granting one of the Utility's pre-trial motions in litigation brought against the Utility by plaintiffs who allege that exposure to chromium at or near certain of the Utility's natural gas compressor stations caused personal injuries, wrongful deaths, or other injuries, or the Chromium Litigation.  As a result of the ruling, the Superior Court dismissed one plaintiff who was scheduled to participate in the first trial who claimed that chromium caused her Crohn's disease.  The ruling also applies to seven other plaintiffs who are claiming that exposure to chromium caused them to contract Crohn's disease.  Also, on September 20, 2005, in response to another pre-trial motion that had been filed by the Utility, three plaintiffs who were scheduled to participate in the first trial voluntarily dismissed their claims.  These pre-trial motions challenged the plaintiffs' lack of admissible scientific evidence that chromium caused the alleged injuries.  However, as previously disclosed, the Superior Court has denied other pre-trial motions made by the Utility and also has denied the Utility's motions for reconsideration of the denials.  On October 19, 2005, the Superior Court took under submission the Utility's motion for summary judgment that plaintiffs have failed to prove that exposure to chromium caused leukemia.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility has sought appellate court review of the Superior Court's denials of the Utility's earlier pre-trial motions based on the argument that they are inconsistent with recent California appellate decisions (one of which is now under review by the California Supreme Court) concerning the admissibility of expert testimony and the requirements for proving medical causation.  The Utility also requested the appellate court to order the Superior Court to stay the upcoming trial until after the California Supreme Court issues its decision.  The appellate court ordered the plaintiffs to file a brief addressing the issues raised by the Utility.  Plaintiffs' brief was filed on September 23, 2005 and the Utility's responses were filed on September 30 and October 3, 2005.  The appellate court's decision as to whether to consider the merits of the Utility's appeal is still pending. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The trial for the 14 remaining plaintiffs who were selected to participate in the first trial was scheduled to begin on January 9, 2006, but has been moved to February 7, 2006.  Counsel for the Utility and counsel for the plaintiffs are engaged in settlement discussions.  PG&amp;E Corporation and the Utility cannot predict the outcome of these discussions. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously disclosed, the Utility has recorded a $160 million reserve in its financial statements with respect to the chromium litigation.  Given recent rulings and appellate writs regarding the Utility's motions, and the California Supreme Court's current review of similar issues in unrelated litigation, PG&amp;E Corporation and the Utility are no longer able to predict whether the ultimate outcome of this matter, after taking into account the amount already reserved at September 30, 2005, would have a material adverse impact on PG&amp;E Corporation's or the Utility's financial condition or results of operations.  The dismissals entered on September 20 and the October 3 ruling have not altered this assessment of the ultimate outcome of the Chromium Litigation.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For more information regarding the Chromium Litigation, see "Part I, Item 3: Legal Proceedings" in PG&amp;E Corporation's and the Utility's combined 2004 Annual Report on Form 10-K, "Part II, Item 1: Legal Proceedings" in PG&amp;E Corporation's and the Utility's combined Quarterly Report on Form 10-Q for the quarters ended March 31, 2005, and June 30, 2005, and Note 7 to the Notes to the Condensed Consolidated Financial Statements.</P>

<B><P>Complaints Filed by the California Attorney General and the City and County of San Francisco</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For more information regarding these cases, see "Part I, Item 3: Legal Proceedings" of PG&amp;E Corporation's and the Utility's combined 2004 Annual Report on Form 10-K and "Part II, Item 1: Legal Proceedings" of PG&amp;E Corporation's and the Utility's combined Quarterly Reports on Form 10-Q for the quarters ended March 31, 2005 and June 30, 2005.</P>

<B><P>Nuclear Regulatory Commission Findings Regarding Retired Nuclear Facility at Humboldt Bay </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On August 19, 2005, the NRC issued an inspection report concluding that the Utility was unable to account for the location of three 18-inch segments of used nuclear fuel at its retired nuclear generation facility at Humboldt Bay near Eureka, California.  The NRC issued its report after the Utility filed its final report in May 2005 updating the NRC as to the Utility's efforts to locate the used fuel.  In June 2004, the Utility notified the NRC when the Utility discovered that it had conflicting records on the location of three, 18-inch long cut segments.  These records indicate that the segments were either stored in the used fuel pool in 1968 or were shipped to a licensed nuclear waste reprocessing facility in 1969.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's final report to the NRC in May 2005 details the work that was conducted to determine the possible location of the segments and to rule out unlikely locations and scenarios.  These activities included: 1) a meticulous review of the records, record-keeping processes and reporting associated with the used fuel pool and with shipments of used fuel and other radioactive materials; 2) interviews of former and current plant personnel and contractors; 3) a physical search of the used fuel pool and the rest of the Humboldt Bay site; 4) an analysis of the possibility of theft or diversion; and 5) an analysis of the cause of the problem.  In the process, the Utility also established a more accurate inventory for all spent nuclear material stored onsite.  In its report, the Utility reaffirmed to the NRC that the Utility has current controls in place for storing and accounting for these materials.  The Utility's exhaustive investigation points to two reasonable possibilities regarding the location of the fuel segments: 1) they remain in the used fuel pool as broken, fragments rather than as intact, 18-inch cut segments, or 2) they were shipped offsite to one of three licensed facilities.  The condition of the apparently cut fuel rod fragments - after nearly 40 years of storage in a container within the used fuel pool under other irradiated material - makes conclusive positive identification very difficult.  The conclusion that the fuel fragments may have been found in the used fuel pool over the last year is supported by an independent expert analysis.  The Utility's final report also documents findings related to four very small pieces of non-fuel nuclear material which could not be located during the comprehensive physical inventory.  The Utility's report concludes that it is very likely that these pieces were shipped to a low level radioactive waste facility.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In its August 19, 2005 report, the NRC determined that the Utility's inability to conclusively locate the used fuel did not pose any threat to the health and safety of the public.  The NRC's report states that it is considering taking escalated enforcement action against the Utility and may impose penalties on the Utility for failure to keep full and complete inventory records of these materials.  </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation and the Utility do not believe that the ultimate outcome of this matter will have a material adverse effect on their results of operations or financial condition.  </P>

<P>&nbsp;</P>
<B><P ALIGN="CENTER"><A NAME="part_2_item_2"></A>ITEM 2.  CHANGES IN SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously disclosed, in connection with its entry into certain credit agreements, in June&nbsp;2002 and October&nbsp;2002, PG&amp;E Corporation issued warrants to purchase 5,066,931 shares of common stock of PG&amp;E Corporation at an exercise price of $0.01 per share.  During the quarter ended September 30, 2005, warrant holders exercised, on a net exercise basis, warrants to purchase 18,919 shares, and received 18,913 shares of PG&amp;E Corporation common stock.  As of September 30, 2005, warrant holders had exercised, on a net exercise basis, warrants to purchase 4,941,468 shares, and had received 4,939,671 shares of PG&amp;E Corporation common stock since the warrants were issued.</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility did not make any sales of unregistered equity securities during the quarter ended September 30, 2005, the period covered by this report.</P>

<B><I><P>Issuer Purchases of Equity Securities</P>
</B></I><P> </P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=692>
<TR><TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=40>
<B><FONT SIZE=1><P>Period</B></FONT></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=40>
<B><FONT SIZE=1><P ALIGN="CENTER">Total Number of Shares Purchased</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=40><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=40>
<B><FONT SIZE=1><P ALIGN="CENTER">Average Price Paid Per Share</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=40><P></P></TD>
<TD WIDTH="19%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=40>
<B><FONT SIZE=1><P ALIGN="CENTER">Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs</B><SUP>(2)(3)(4)</SUP></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=40><P></P></TD>
<TD WIDTH="21%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=40>
<B><FONT SIZE=1><P ALIGN="CENTER">Approximate Dollar Value of Shares that may yet be Purchased Under the Plans or Programs</B></FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="19%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=20>
<FONT SIZE=1><P ALIGN="CENTER">Preferred Stock</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=20>
<FONT SIZE=1><P ALIGN="CENTER">Common Stock</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=20>
<FONT SIZE=1><P ALIGN="CENTER">Preferred Stock</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=20>
<FONT SIZE=1><P ALIGN="CENTER">Common Stock</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=20>
<FONT SIZE=1><P ALIGN="CENTER">Preferred Stock</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=20>
<FONT SIZE=1><P ALIGN="CENTER">Common Stock</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=20>
<FONT SIZE=1><P ALIGN="CENTER">Preferred Stock</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=20>
<FONT SIZE=1><P ALIGN="CENTER">Common<BR>
Stock</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P>July1 through July&nbsp;31, 2005</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=40><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="CENTER">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=40>
<FONT SIZE=1><P>August &nbsp;1 through August 31, 2005</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=40><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">1,438,498<SUP>(1)</SUP></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=40><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=40>
<FONT SIZE=1><P ALIGN="CENTER">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">25.84667&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=40><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=40><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P>September&nbsp;1 through September&nbsp;30, 2005</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" BGCOLOR="#c0c0c0" HEIGHT=40><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=40>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" COLSPAN=3 HEIGHT=9>
<B><FONT SIZE=1><P>Total</B></FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=9>
<FONT SIZE=1><P ALIGN="RIGHT">1,438,498&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=9>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=9>
<FONT SIZE=1><P ALIGN="CENTER">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=9>
<FONT SIZE=1><P ALIGN="RIGHT">25.84667&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=9>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=9>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=9>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=9>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9>
<FONT SIZE=1><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=9>
<FONT SIZE=1><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
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</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=49>
<SUP><FONT FACE="Times" SIZE=2><P>(1)</SUP></FONT></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=17 HEIGHT=49>
<FONT SIZE=1><P>On August 31, 2005, the Utility redeemed all outstanding shares of the Utility's 7.04% Redeemable First Preferred Stock totaling approximately $36 million aggregate par value plus approximately $1 million related to a $0.70 redemption premium.  In addition to the $25.70 per share redemption price, holders of the 7.04% Redeemable First Preferred Stock received an amount equal to all accumulated and unpaid dividends on such shares to and including August 31, 2005. </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=70>
<SUP><FONT FACE="Times" SIZE=2><P>(2)</SUP></FONT></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=17 HEIGHT=70>
<FONT SIZE=1><P>On September&nbsp;15, 2004, the PG&amp;E Corporation Board of Directors authorized PG&amp;E Corporation and its subsidiaries to repurchase shares of PG&amp;E Corporation's common stock with an aggregate purchase price not to exceed PG&amp;E Corporation's net cash proceeds from sales of PG&amp;E Corporation's common stock upon exercise of options granted under PG&amp;E Corporation's Stock Option Plan. The program was publicly announced in a Form&nbsp;8-K filed by PG&amp;E Corporation on October&nbsp;14, 2004. Repurchases may be made from time to time until the program expires on December&nbsp;31, 2005. Amounts remaining under this program are not determinable as PG&amp;E Corporation cannot predict how many options will be exercised before December&nbsp;31, 2005.</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=86>
<SUP><FONT FACE="Times" SIZE=2><P>(3)&nbsp;</SUP></FONT></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=17 HEIGHT=86>
<FONT SIZE=1><P>As previously reported, on December&nbsp;15, 2004, the PG&amp;E Corporation Board of Directors authorized the repurchase of up to $975&nbsp;million of its outstanding common stock.  The program was publicly announced in a Form&nbsp;8-K filed by PG&amp;E Corporation on December&nbsp;16, 2004.  On February&nbsp;16, 2005, the Board of Directors of PG&amp;E Corporation increased the repurchase authorization to $1.05&nbsp;billion with such repurchases to be effected from time to time, but no later than June&nbsp;30, 2006.  As disclosed in a Form&nbsp;8-K filed on March 4, 2005, PG&amp;E Corporation entered into accelerated share repurchase arrangements with a broker on March 4, 2005, under which PG&amp;E Corporation repurchased 29,489,400 shares for an aggregate purchase price of approximately $1.05 billion.  On June 16, 2005, PG&amp;E Corporation entered into a new share forward agreement with the broker based on 11,430,000 shares to complete the balance of the March 4, 2005 arrangement.  For further information, see the "Liquidity and Financial Resources" section included in Part I, Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations.   </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=86>
<SUP><FONT FACE="Times" SIZE=2><P>(4)</SUP></FONT></TD>
<TD WIDTH="96%" VALIGN="TOP" COLSPAN=17 HEIGHT=86>
<FONT SIZE=1><P>On October 19, 2005, the PG&amp;E Corporation Board of Directors authorized PG&amp;E Corporation and its subsidiaries to repurchase up to $1.6 billion in shares of PG&amp;E Corporation's common stock, from time to time, but no later than December 31, 2006 (although the actual repurchase or activity under the repurchase arrangements may occur after that date).  The program was publicly announced in a Form 8-K filed by PG&amp;E Corporation on October 21, 2005.  Such repurchases are contingent on PG&amp;E Corporation's receipt of sufficient cash from the Utility.  For further information, see the "Liquidity and Financial Resources" section included in Part I, Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations.</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2>
<B><P ALIGN="CENTER"><A NAME="part_2_item_5"></A>ITEM 5.  OTHER INFORMATION</P>
</B>
<B><P>Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends </P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Utility's, earnings to fixed charges ratio for the three months and nine months ended September 30, 2005, was 3.71 and 3.74, respectively.  The Utility's earnings to combined fixed charges and preferred stock dividends ratio for the three months and nine months ended September 30, 2005, was 3.59 and 3.57, respectively.  The statement of the foregoing ratios, together with the statements of the computation of the foregoing ratios filed as Exhibits 12.1 and 12.2 hereto, are included herein for the purpose of incorporating such information and exhibits into the Utility's Registration Statement Nos. 33-62488 and 333-109994 relating to various series of the Utility's first preferred stock and its senior notes, respectively.</P>

<P>&nbsp;</P>
<B><P ALIGN="CENTER"><A NAME="part_2_item_6"></A>ITEM 6.  EXHIBITS</P>
</B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=658>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">3.1</FONT></TD>
<TD WIDTH="89%" VALIGN="BOTTOM">
<FONT SIZE=2><P>Bylaws of PG&amp;E Corporation amended as of October 19, 2005</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">3.2</FONT></TD>
<TD WIDTH="89%" VALIGN="BOTTOM">
<FONT SIZE=2><P>Bylaws of Pacific Gas and Electric Company amended as of October 19, 2005  </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">10.1*</FONT></TD>
<TD WIDTH="89%" VALIGN="BOTTOM">
<FONT SIZE=2><P>Severance Agreement and Release by and between Pacific Gas and Electric Company and Gordon R. Smith dated September 21, 2005 </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">10.2*</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=2><P>Actions taken by the Nominating, Compensation and Governance Committee of the PG&amp;E Corporation Board of Directors on October 19, 2005 </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">11</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=2><P>Computation of Earnings Per Common Share<BR>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">12.1</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=2><P>Computation of Ratios of Earnings to Fixed Charges for Pacific Gas and Electric Company<BR>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">12.2</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=2><P>Computation of Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends for Pacific Gas and Electric Company<BR>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP" HEIGHT=43>
<FONT SIZE=2><P ALIGN="CENTER">31.1</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP" HEIGHT=43>
<FONT SIZE=2><P>Certifications of the Chief Executive Officer and the Chief Financial Officer of PG&amp;E Corporation required by Section 302 of the Sarbanes-Oxley Act of 2002<BR>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">31.2</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=2><P>Certifications of the Chief Executive Officer and the Chief Financial Officer of Pacific Gas and Electric Company required by Section 302 of the Sarbanes-Oxley Act of 2002<BR>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP" HEIGHT=9>
<FONT SIZE=2><P ALIGN="CENTER">32.1**</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP" HEIGHT=9>
<FONT SIZE=2><P>Certifications of the Chief Executive Officer and the Chief Financial Officer of PG&amp;E Corporation required by Section 906 of the Sarbanes-Oxley Act of 2002<BR>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">32.2**</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=2><P>Certifications of the Chief Executive Officer and the Chief Financial Officer of Pacific Gas and Electric Company required by Section 906 of the Sarbanes-Oxley Act of 2002<BR>
</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>* Management contract or compensatory agreement</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>** Pursuant to Item 601(b) (32) of SEC Regulation S-K, these exhibits are furnished rather than filed with this report.   </FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2>
<P ALIGN="CENTER">&nbsp;</P>
<B><P ALIGN="CENTER"><A NAME="signatures"></A>SIGNATURES</P>
</B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this Quarterly Report on Form 10-Q to be signed on their behalf by the undersigned thereunto duly authorized.</P>

<P>&nbsp;</P></FONT>
<P ALIGN="RIGHT"><TABLE CELLSPACING=0 BORDER=0 WIDTH=331>
<TR><TD VALIGN="TOP">
<FONT SIZE=2><P>PG&amp;E CORPORATION</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT SIZE=2><P>G. ROBERT POWELL</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" HEIGHT=46>
<FONT SIZE=2><P>G. Robert Powell<BR>
Vice President and Controller<BR>
(duly authorized officer and principal accounting officer)</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=2>
<P>&nbsp;</P></FONT>
<P ALIGN="RIGHT"><TABLE CELLSPACING=0 BORDER=0 WIDTH=331>
<TR><TD VALIGN="TOP">
<FONT SIZE=2><P>PACIFIC GAS AND ELECTRIC COMPANY</FONT></TD>
</TR>
<TR><TD VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP">
<FONT SIZE=2><P>DINYAR B. MISTRY</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" HEIGHT=42>
<FONT SIZE=2><P>Dinyar B. Mistry<BR>
Vice President and Controller<BR>
(duly authorized officer and principal accounting officer)</FONT></TD>
</TR>
</TABLE>
</P>

<FONT SIZE=2>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>Dated:  November 2, 2005</P>
<B><P ALIGN="CENTER"></P>
</B><P ALIGN="CENTER">&nbsp;</P>
<B><P ALIGN="CENTER"><A NAME="exhibit_index"></A>EXHIBIT INDEX</P>
</B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=658>
<TR><TD WIDTH="11%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="89%" VALIGN="BOTTOM">&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">3.1</FONT></TD>
<TD WIDTH="89%" VALIGN="BOTTOM">
<FONT SIZE=2><P>Bylaws of PG&amp;E Corporation amended as of October 19, 2005</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">3.2</FONT></TD>
<TD WIDTH="89%" VALIGN="BOTTOM">
<FONT SIZE=2><P>Bylaws of Pacific Gas and Electric Company amended as of October 19, 2005  </P>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">10.1*</FONT></TD>
<TD WIDTH="89%" VALIGN="BOTTOM">
<FONT SIZE=2><P>Severance Agreement and Release by and between Pacific Gas and Electric Company and Gordon R. Smith dated September 21, 2005</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">10.2*</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=2><P>Actions taken by the Nominating, Compensation and Governance Committee of the PG&amp;E Corporation Board of Directors on October 19, 2005</P>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">11</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=2><P>Computation of Earnings Per Common Share<BR>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">12.1</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=2><P>Computation of Ratios of Earnings to Fixed Charges for Pacific Gas and Electric Company<BR>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">12.2</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=2><P>Computation of Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends for Pacific Gas and Electric Company<BR>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP" HEIGHT=43>
<FONT SIZE=2><P ALIGN="CENTER">31.1</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP" HEIGHT=43>
<FONT SIZE=2><P>Certifications of the Chief Executive Officer and the Chief Financial Officer of PG&amp;E Corporation required by Section 302 of the Sarbanes-Oxley Act of 2002<BR>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">31.2</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=2><P>Certifications of the Chief Executive Officer and the Chief Financial Officer of Pacific Gas and Electric Company required by Section 302 of the Sarbanes-Oxley Act of 2002<BR>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP" HEIGHT=9>
<FONT SIZE=2><P ALIGN="CENTER">32.1**</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP" HEIGHT=9>
<FONT SIZE=2><P>Certifications of the Chief Executive Officer and the Chief Financial Officer of PG&amp;E Corporation required by Section 906 of the Sarbanes-Oxley Act of 2002<BR>
</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">32.2**</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=2><P>Certifications of the Chief Executive Officer and the Chief Financial Officer of Pacific Gas and Electric Company required by Section 906 of the Sarbanes-Oxley Act of 2002<BR>
</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>* Management contract or compensatory agreement</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>** Pursuant to Item 601(b) (32) of SEC Regulation S-K, these exhibits are furnished rather than filed with this report.   </FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2>
<P>&nbsp;</P>
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<DOCUMENT>
<TYPE>EX-3.1
<SEQUENCE>2
<FILENAME>q305_ex3-1.htm
<DESCRIPTION>BYLAWS OF  CORP AMENDED AS OF 10-19-05
<TEXT>
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<BODY><B><FONT face=Arial>
<P align=right>Exhibit 3.1</P>
<P align=center>Bylaws<BR>of<BR></FONT><FONT face=Arial size=5>PG&amp;E
Corporation<BR></FONT><FONT face=Arial>amended as of October 19,
2005<BR><BR><BR><BR>Article I.<BR>SHAREHOLDERS.</P></B>
<P>&nbsp;</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>1.&nbsp;&nbsp;&nbsp;<B>Place
of Meeting</B>. All meetings of the shareholders shall be held at the office of
the Corporation in the City and County of San Francisco, State of California, or
at such other place, within or without the State of California, as may be
designated by the Board of Directors.</P><B>
<P><A name=OLE_LINK1><A
name=OLE_LINK2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</A></A></B>2.&nbsp;&nbsp;&nbsp;<B>Annual
Meetings</B>. The annual meeting of shareholders shall be held each year on a
date and at a time designated by the Board of Directors.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Written notice of
the annual meeting shall be given not less than ten (or, if sent by third-class
mail, thirty) nor more than sixty days prior to the date of the meeting to each
shareholder entitled to vote thereat. The notice shall state the place, day, and
hour of such meeting, and those matters which the Board, at the time of mailing,
intends to present for action by the shareholders.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Notice of any
meeting of the shareholders shall be given by mail or telegraphic or other
written communication, postage prepaid, to each holder of record of the stock
entitled to vote thereat, at his address, as it appears on the books of the
Corporation.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>At an annual
meeting of shareholders, only such business shall be conducted as shall have
been properly brought before the annual meeting. To be properly brought before
an annual meeting, business must be (i) specified in the notice of the annual
meeting (or any supplement thereto) given by or at the direction of the Board,
or (ii)&nbsp;otherwise properly brought before the annual meeting by a
shareholder. For business to be properly brought before an annual meeting by a
shareholder, including the nomination of any person (other than a person
nominated by or at the direction of the Board) for election to the Board, the
shareholder must have given timely and proper written notice to the Corporate
Secretary of the Corporation. To be timely, the shareholder's written notice
must be received at the principal executive office of the Corporation not less
than forty-five days before the date corresponding to the mailing date of the
notice and proxy materials for the prior year's annual meeting of shareholders;
provided, however, that if the annual meeting to which the shareholder's written
notice relates is to be held on a date that differs by more than thirty days
from the date of the last annual meeting of shareholders, the shareholder's
written notice to be timely must be so received not later than the close of
business on the tenth day following the date on which public disclosure of the
date of the annual meeting is made or given to shareholders. Any shareholder's
written notice that is delivered after the close of business (5:00 p.m. local
time) will be considered received on the following business day. To be proper,
the shareholder's written notice must set forth as to each matter the
shareholder proposes to bring before the annual meeting (a) a brief description
of the business desired to be brought before the annual meeting, (b)&nbsp;the
name and address of the shareholder as they appear on the Corporation's books,
(c) the class and number of shares of the Corporation that are beneficially
owned by the shareholder, and (d) any material interest of the shareholder in
such business. In addition, if the shareholder's written notice relates to the
nomination at the annual meeting of any person for election to the Board, such
notice to be proper must also set forth (a) the name, age, business address, and
residence address of each person to be so nominated, (b) the principal
occupation or employment of each such person, (c) the number of shares of
capital stock of the Corporation beneficially owned by each such person, and (d)
such other information concerning each such person as would be required under
the rules of the Securities and Exchange Commission in a proxy statement
soliciting proxies for the election of such person as a Director, and must be
accompanied by a consent, signed by each such person, to serve as a Director of
the Corporation if elected. Notwithstanding anything in the Bylaws to the
contrary, no business shall be conducted at an annual meeting except in
accordance with the procedures set forth in this Section.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>3.&nbsp;&nbsp;&nbsp;<B>Special
Meetings</B>. Special meetings of the shareholders shall be called by the
Corporate Secretary or an Assistant Corporate Secretary at any time on order of
the Board of Directors, the Chairman of the Board, the Vice Chairman of the
Board, the Chairman of the Executive Committee, or the President. Special
meetings of the shareholders shall also be called by the Corporate Secretary or
an Assistant Corporate Secretary upon the written request of holders of shares
entitled to cast not less than ten percent of the votes at the meeting. Such
request shall state the purposes of the meeting, and shall be delivered to the
Chairman of the Board, the Vice Chairman of the Board, the Chairman of the
Executive Committee, the President, or the Corporate Secretary.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>A special meeting
so requested shall be held on the date requested, but not less than thirty-five
nor more than sixty days after the date of the original request. Written notice
of each special meeting of shareholders, stating the place, day, and hour of
such meeting and the business proposed to be transacted thereat, shall be given
in the manner stipulated in Article I, Section 2, Paragraph 3 of these Bylaws
within twenty days after receipt of the written request.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>4.&nbsp;&nbsp;&nbsp;<B>Voting
at Meetings</B>. At any meeting of the shareholders, each holder of record of
stock shall be entitled to vote in person or by proxy. The authority of proxies
must be evidenced by a written document signed by the shareholder and must be
delivered to the Corporate Secretary of the Corporation prior to the
commencement of the meeting.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>5.&nbsp;&nbsp;&nbsp;<B>Shareholder
Action by Written Consent.</B> Subject to Section 603 of the California
Corporations Code, any action which, under any provision of the California
Corporations Code, may be taken at any annual or special meeting of shareholders
may be taken without a meeting and without prior notice if a consent in writing,
setting forth the action so taken, shall be signed by the holders of outstanding
shares having not less than the minimum number of votes that would be necessary
to authorize or take such action at a meeting at which all shares entitled to
vote thereon were present and voted.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Any party seeking
to solicit written consent from shareholders to take corporate action must
deliver a notice to the Corporate Secretary of the Corporation which requests
the Board of Directors to set a record date for determining shareholders
entitled to give such consent. Such written request must set forth as to each
matter the party proposes for shareholder action by written consents (a) a brief
description of the matter and (b) the class and number of shares of the
Corporation that are beneficially owned by the requesting party. Within ten days
of receiving the request in the proper form, the Board shall set a record date
for the taking of such action by written consent in accordance with California
Corporations Code Section 701 and Article IV, Section 1 of these Bylaws. If the
Board fails to set a record date within such ten-day period, the record date for
determining shareholders entitled to give the written consent for the matters
specified in the notice shall be the day on which the first written consent is
given in accordance with California Corporations Code Section 701.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Each written
consent delivered to the Corporation must set forth (a) the action sought to be
taken, (b) the name and address of the shareholder as they appear on the
Corporation's books, (c) the class and number of shares of the Corporation that
are beneficially owned by the shareholder, (d) the name and address of the
proxyholder authorized by the shareholder to give such written consent, if
applicable, and (d) any material interest of the shareholder or proxyholder in
the action sought to be taken. </P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Consents to
corporate action shall be valid for a maximum of sixty days after the date of
the earliest dated consent delivered to the Corporation. Consents may be revoked
by written notice (i) to the Corporation, (ii) to the shareholder or
shareholders soliciting consents or soliciting revocations in opposition to
action by consent proposed by the Corporation (the "Soliciting Shareholders"),
or (iii) to a proxy solicitor or other agent designated by the Corporation or
the Soliciting Shareholders.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Within three
business days after receipt of the earliest dated consent solicited by the
Soliciting Shareholders and delivered to the Corporation in the manner provided
in California Corporations Code Section 603 or the determination by the Board of
Directors of the Corporation that the Corporation should seek corporate action
by written consent, as the case may be, the Corporate Secretary shall engage
nationally recognized independent inspectors of elections for the purpose of
performing a ministerial review of the validity of the consents and revocations.
The cost of retaining inspectors of election shall be borne by the
Corporation.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Consents and
revocations shall be delivered to the inspectors upon receipt by the
Corporation, the Soliciting Shareholders or their proxy solicitors, or other
designated agents. As soon as consents and revocations are received, the
inspectors shall review the consents and revocations and shall maintain a count
of the number of valid and unrevoked consents. The inspectors shall keep such
count confidential and shall not reveal the count to the Corporation, the
Soliciting Shareholder or their representatives, or any other entity. As soon as
practicable after the earlier of (i) sixty days after the date of the earliest
dated consent delivered to the Corporation in the manner provided in California
Corporations Code Section 603, or (ii) a written request therefor by the
Corporation or the Soliciting Shareholders (whichever is soliciting consents),
notice of which request shall be given to the party opposing the solicitation of
consents, if any, which request shall state that the Corporation or Soliciting
Shareholders, as the case may be, have a good faith belief that the requisite
number of valid and unrevoked consents to authorize or take the action specified
in the consents has been received in accordance with these Bylaws, the
inspectors shall issue a preliminary report to the Corporation and the
Soliciting Shareholders stating: (a) the number of valid consents, (b) the
number of valid revocations, (c) the number of valid and unrevoked consents,
(d)&nbsp;the number of invalid consents, (e) the number of invalid revocations,
and (f) whether, based on their preliminary count, the requisite number of valid
and unrevoked consents has been obtained to authorize or take the action
specified in the consents.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Unless the
Corporation and the Soliciting Shareholders shall agree to a shorter or longer
period, the Corporation and the Soliciting Shareholders shall have forty-eight
hours to review the consents and revocations and to advise the inspectors and
the opposing party in writing as to whether they intend to challenge the
preliminary report of the inspectors. If no written notice of an intention to
challenge the preliminary report is received within forty-eight hours after the
inspectors' issuance of the preliminary report, the inspectors shall issue to
the Corporation and the Soliciting Shareholders their final report containing
the information from the inspectors' determination with respect to whether the
requisite number of valid and unrevoked consents was obtained to authorize and
take the action specified in the consents. If the Corporation or the Soliciting
Shareholders issue written notice of an intention to challenge the inspectors'
preliminary report within forty-eight hours after the issuance of that report, a
challenge session shall be scheduled by the inspectors as promptly as
practicable. A transcript of the challenge session shall be recorded by a
certified court reporter. Following completion of the challenge session, the
inspectors shall as promptly as practicable issue their final report to the
Soliciting Shareholders and the Corporation, which report shall contain the
information included in the preliminary report, plus all changes in the vote
totals as a result of the challenge and a certification of whether the requisite
number of valid and unrevoked consents was obtained to authorize or take the
action specified in the consents. A copy of the final report of the inspectors
shall be included in the book in which the proceedings of meetings of
shareholders are recorded.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Unless the consent
of all shareholders entitled to vote have been solicited in writing, the
Corporation shall give prompt notice to the shareholders in accordance with
California Corporations Code Section 603 of the results of any consent
solicitation or the taking of the corporate action without a meeting and by less
than unanimous written consent.</P>
<P>&nbsp;</P><B>
<P align=center>Article II.<BR>DIRECTORS.</P></B>
<P>&nbsp;</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>1.&nbsp;&nbsp;&nbsp;<B>Number</B>.
As stated in paragraph I of Article Third of this Corporation's Articles of
Incorporation, the Board of Directors of this Corporation shall consist of such
number of directors, not less than seven (7) nor more than thirteen (13). The
exact number of directors shall be ten (10) until changed, within the limits
specified above, by an amendment to this Bylaw duly adopted by the Board of
Directors or the shareholders.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>2.&nbsp;&nbsp;&nbsp;<B>Powers</B>.
The Board of Directors shall exercise all the powers of the Corporation except
those which are by law, or by the Articles of Incorporation of this Corporation,
or by the Bylaws conferred upon or reserved to the shareholders.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>3.&nbsp;&nbsp;&nbsp;<B>Committees</B>.
The Board of Directors may, by resolution adopted by a majority of the
authorized number of directors, designate and appoint one or more committees as
the Board deems appropriate, each consisting of two or more directors, to serve
at the pleasure of the Board; provided, however, that, as required by this
Corporation's Articles of Incorporation, the members of the Executive Committee
(should the Board of Directors designate an Executive Committee) must be
appointed by the affirmative vote of two-thirds of the authorized number of
directors. Any such committee, including the Executive Committee, shall have the
authority to act in the manner and to the extent provided in the resolution of
the Board of Directors designating such committee and may have all the authority
of the Board of Directors, except with respect to the matters set forth in
California Corporations Code Section&nbsp;311.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>4.&nbsp;&nbsp;&nbsp;<B>Time
and Place of Directors' Meetings</B>. Regular meetings of the Board of Directors
shall be held on such days and at such times and at such locations as shall be
fixed by resolution of the Board, or designated by the Chairman of the Board or,
in his absence, the Vice Chairman of the Board, or the President of the
Corporation and contained in the notice of any such meeting. Notice of meetings
shall be delivered personally or sent by mail or telegram at least seven days in
advance.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>5.&nbsp;&nbsp;&nbsp;<B>Special
Meetings</B>. The Chairman of the Board, the Vice Chairman of the Board, the
Chairman of the Executive Committee, the President, or any five directors may
call a special meeting of the Board of Directors at any time. Notice of the time
and place of special meetings shall be given to each Director by the Corporate
Secretary. Such notice shall be delivered personally or by telephone (or other
system or technology designed to record and communicate messages, including
facsimile, electronic mail, or other such means) to each Director at least four
hours in advance of such meeting, or sent by first-class mail or telegram,
postage prepaid, at least two days in advance of such meeting.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>6.&nbsp;&nbsp;&nbsp;<B>Quorum</B>.
A quorum for the transaction of business at any meeting of the Board of
Directors or any committee thereof shall consist of one-third of the authorized
number of directors or committee members, or two, whichever is larger.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>7.&nbsp;&nbsp;&nbsp;<B>Action
by Consent</B>. Any action required or permitted to be taken by the Board of
Directors may be taken without a meeting if all Directors individually or
collectively consent in writing to such action. Such written consent or consents
shall be filed with the minutes of the proceedings of the Board of
Directors.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>8.&nbsp;&nbsp;&nbsp;<B>Meetings
by Conference Telephone</B>. Any meeting, regular or special, of the Board of
Directors or of any committee of the Board of Directors, may be held by
conference telephone or similar communication equipment, provided that all
Directors participating in the meeting can hear one another.</P>
<P>&nbsp;</P><B>
<P align=center>Article III.<BR>OFFICERS.</P></B>
<P>&nbsp;</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>1.&nbsp;&nbsp;&nbsp;<B>Officers</B>.
The officers of the Corporation shall be a Chairman of the Board, a Vice
Chairman of the Board, a Chairman of the Executive Committee (whenever the Board
of Directors in its discretion fills these offices), a President, a Chief
Financial Officer, a General Counsel, one or more Vice Presidents, a Corporate
Secretary and one or more Assistant Corporate Secretaries, a Treasurer and one
or more Assistant Treasurers, and a Controller, all of whom shall be elected by
the Board of Directors. The Chairman of the Board, the Vice Chairman of the
Board, the Chairman of the Executive Committee, and the President shall be
members of the Board of Directors.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>2.&nbsp;&nbsp;&nbsp;<B>Chairman
of the Board</B>. The Chairman of the Board, if that office be filled, shall
preside at all meetings of the shareholders and of the Directors, and shall
preside at all meetings of the Executive Committee in the absence of the
Chairman of that Committee. The Chairman of the Board shall be the chief
executive officer of the Corporation if so designated by the Board of Directors.
The Chairman of the Board shall have such duties and responsibilities as may be
prescribed by the Board of Directors or the Bylaws. The Chairman of the Board
shall have authority to sign on behalf of the Corporation agreements and
instruments of every character, and, in the absence or disability of the
President, shall exercise the President's duties and responsibilities.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>3.&nbsp;&nbsp;&nbsp;<B>Vice
Chairman of the Board</B>. The Vice Chairman of the Board, if that office be
filled, shall have such duties and responsibilities as may be prescribed by the
Board of Directors, the Chairman of the Board, or the Bylaws. The Vice Chairman
of the Board shall be the chief executive officer of the Corporation if so
designated by the Board of Directors. In the absence of the Chairman of the
Board, the Vice Chairman of the Board shall preside at all meetings of the Board
of Directors and of the shareholders; and, in the absence of the Chairman of the
Executive Committee and the Chairman of the Board, the Vice Chairman of the
Board shall preside at all meetings of the Executive Committee. The Vice
Chairman of the Board shall have authority to sign on behalf of the Corporation
agreements and instruments of every character.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>4.&nbsp;&nbsp;&nbsp;<B>Chairman
of the Executive Committee</B>. The Chairman of the Executive Committee, if that
office be filled, shall preside at all meetings of the Executive Committee. The
Chairman of the Executive Committee shall aid and assist the other officers in
the performance of their duties and shall have such other duties as may be
prescribed by the Board of Directors or the Bylaws.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>5.&nbsp;&nbsp;&nbsp;<B>President</B>.
The President shall have such duties and responsibilities as may be prescribed
by the Board of Directors, the Chairman of the Board, or the Bylaws. The
President shall be the chief executive officer of the Corporation if so
designated by the Board of Directors. If there be no Chairman of the Board, the
President shall also exercise the duties and responsibilities of that office.
The President shall have authority to sign on behalf of the Corporation
agreements and instruments of every character.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>6.&nbsp;&nbsp;&nbsp;<B>Chief
Financial Officer</B>. The Chief Financial Officer shall be responsible for the
overall management of the financial affairs of the Corporation. The Chief
Financial Officer shall render a statement of the Corporation's financial
condition and an account of all transactions whenever requested by the Board of
Directors, the Chairman of the Board, the Vice Chairman of the Board, or the
President.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The Chief Financial
Officer shall have such other duties as may from time to time be prescribed by
the Board of Directors, the Chairman of the Board, the Vice Chairman of the
Board, the President, or the Bylaws.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>7.&nbsp;&nbsp;&nbsp;<B>General
Counsel</B>. The General Counsel shall be responsible for handling on behalf of
the Corporation all proceedings and matters of a legal nature. The General
Counsel shall render advice and legal counsel to the Board of Directors,
officers, and employees of the Corporation, as necessary to the proper conduct
of the business. The General Counsel shall keep the management of the
Corporation informed of all significant developments of a legal nature affecting
the interests of the Corporation.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The General Counsel
shall have such other duties as may from time to time be prescribed by the Board
of Directors, the Chairman of the Board, the Vice Chairman of the Board, the
President, or the Bylaws.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>8.&nbsp;&nbsp;&nbsp;<B>Vice
Presidents</B>. Each Vice President, if those offices are filled, shall have
such duties and responsibilities as may be prescribed by the Board of Directors,
the Chairman of the Board, the Vice Chairman of the Board, the President, or the
Bylaws. Each Vice President's authority to sign agreements and instruments on
behalf of the Corporation shall be as prescribed by the Board of Directors. The
Board of Directors, the Chairman of the Board, the Vice Chairman of the Board,
or the President may confer a special title upon any Vice President.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>9.&nbsp;&nbsp;&nbsp;<B>Corporate
Secretary</B>. The Corporate Secretary shall attend all meetings of the Board of
Directors and the Executive Committee, and all meetings of the shareholders, and
the Corporate Secretary shall record the minutes of all proceedings in books to
be kept for that purpose. The Corporate Secretary shall be responsible for
maintaining a proper share register and stock transfer books for all classes of
shares issued by the Corporation. The Corporate Secretary shall give, or cause
to be given, all notices required either by law or the Bylaws. The Corporate
Secretary shall keep the seal of the Corporation in safe custody, and shall
affix the seal of the Corporation to any instrument requiring it and shall
attest the same by the Corporate Secretary's signature.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The Corporate
Secretary shall have such other duties as may be prescribed by the Board of
Directors, the Chairman of the Board, the Vice Chairman of the Board, the
President, or the Bylaws.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The Assistant
Corporate Secretaries shall perform such duties as may be assigned from time to
time by the Board of Directors, the Chairman of the Board, the Vice Chairman of
the Board, the President, or the Corporate Secretary. In the absence or
disability of the Corporate Secretary, the Corporate Secretary's duties shall be
performed by an Assistant Corporate Secretary.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>10.&nbsp;&nbsp;&nbsp;<B>Treasurer</B>.
The Treasurer shall have custody of all moneys and funds of the Corporation, and
shall cause to be kept full and accurate records of receipts and disbursements
of the Corporation. The Treasurer shall deposit all moneys and other valuables
of the Corporation in the name and to the credit of the Corporation in such
depositaries as may be designated by the Board of Directors or any employee of
the Corporation designated by the Board of Directors. The Treasurer shall
disburse such funds of the Corporation as have been duly approved for
disbursement.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The Treasurer shall
perform such other duties as may from time to time be prescribed by the Board of
Directors, the Chairman of the Board, the Vice Chairman of the Board, the
President, the Chief Financial Officer, or the Bylaws.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The Assistant
Treasurers shall perform such duties as may be assigned from time to time by the
Board of Directors, the Chairman of the Board, the Vice Chairman of the Board,
the President, the Chief Financial Officer, or the Treasurer. In the absence or
disability of the Treasurer, the Treasurer's duties shall be performed by an
Assistant Treasurer.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>11.&nbsp;&nbsp;&nbsp;<B>Controller</B>.
The Controller shall be responsible for maintaining the accounting records of
the Corporation and for preparing necessary financial reports and statements,
and the Controller shall properly account for all moneys and obligations due the
Corporation and all properties, assets, and liabilities of the Corporation. The
Controller shall render to the officers such periodic reports covering the
result of operations of the Corporation as may be required by them or any one of
them.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The Controller
shall have such other duties as may from time to time be prescribed by the Board
of Directors, the Chairman of the Board, the Vice Chairman of the Board, the
President, the Chief Financial Officer, or the Bylaws. The Controller shall be
the principal accounting officer of the Corporation, unless another individual
shall be so designated by the Board of Directors. </P>
<P>&nbsp;</P><B>
<P align=center>Article IV.<BR>MISCELLANEOUS.</P></B>
<P>&nbsp;</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>1.&nbsp;&nbsp;&nbsp;<B>Record
Date</B>. The Board of Directors may fix a time in the future as a record date
for the determination of the shareholders entitled to notice of and to vote at
any meeting of shareholders, or entitled to receive any dividend or
distribution, or allotment of rights, or to exercise rights in respect to any
change, conversion, or exchange of shares. The record date so fixed shall be not
more than sixty nor less than ten days prior to the date of such meeting nor
more than sixty days prior to any other action for the purposes for which it is
so fixed. When a record date is so fixed, only shareholders of record on that
date are entitled to notice of and to vote at the meeting, or entitled to
receive any dividend or distribution, or allotment of rights, or to exercise the
rights, as the case may be.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>2.&nbsp;&nbsp;&nbsp;<B>Transfers
of Stock</B>. Upon surrender to the Corporate Secretary or Transfer Agent of the
Corporation of a certificate for shares duly endorsed or accompanied by proper
evidence of succession, assignment, or authority to transfer, and payment of
transfer taxes, the Corporation shall issue a new certificate to the person
entitled thereto, cancel the old certificate, and record the transaction upon
its books. Subject to the foregoing, the Board of Directors shall have power and
authority to make such rules and regulations as it shall deem necessary or
appropriate concerning the issue, transfer, and registration of certificates for
shares of stock of the Corporation, and to appoint and remove Transfer Agents
and Registrars of transfers.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>3.<B>&nbsp;&nbsp;&nbsp;Lost
Certificates</B>. Any person claiming a certificate of stock to be lost, stolen,
mislaid, or destroyed shall make an affidavit or affirmation of that fact and
verify the same in such manner as the Board of Directors may require, and shall,
if the Board of Directors so requires, give the Corporation, its Transfer
Agents, Registrars, and/or other agents a bond of indemnity in form approved by
counsel, and in amount and with such sureties as may be satisfactory to the
Corporate Secretary of the Corporation, before a new certificate may be issued
of the same tenor and for the same number of shares as the one alleged to have
been lost, stolen, mislaid, or destroyed.</P>
<P>&nbsp;</P><B>
<P align=center>Article V.<BR>AMENDMENTS.</P></B>
<P>&nbsp;</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>1.<B>&nbsp;&nbsp;&nbsp;Amendment
by Shareholders</B>. Except as otherwise provided by law, these Bylaws, or any
of them, may be amended or repealed or new Bylaws adopted by the affirmative
vote of a majority of the outstanding shares entitled to vote at any regular or
special meeting of the shareholders.</P><B>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>2.&nbsp;&nbsp;&nbsp;<B>Amendment
by Directors</B>. To the extent provided by law, these Bylaws, or any of them,
may be amended or repealed or new Bylaws adopted by resolution adopted by a
majority of the members of the Board of Directors. </P></FONT></BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.2
<SEQUENCE>3
<FILENAME>q305_ex3-2.htm
<DESCRIPTION>BYLAWS OF UTILITY AMENDED AS OF 10-19-05
<TEXT>
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<P align=right>Exhibit 3.2</P></FONT><FONT face=Arial size=4>
<P align=center>Bylaws<BR>of<BR>Pacific Gas and Electric Company<BR><U>amended
as of October 19, 2005 <BR><BR></P></U></FONT><FONT face=Arial>
<P align=center>Article I.<BR>SHAREHOLDERS.<BR></P>
<P align=center></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>1.&nbsp;&nbsp;&nbsp;<B>Place
of Meeting. </B>All meetings of the shareholders shall be held at the office of
the Corporation in the City and County of San Francisco, State of California, or
at such other place, within or without the State of California, as may be
designated by the Board of Directors.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>2.&nbsp;&nbsp;&nbsp;<B>Annual
Meetings. </B>The annual meeting of shareholders shall be held each year on a
date and at a time designated by the Board of Directors.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Written
notice of the annual meeting shall be given not less than ten (or, if sent by
third-class mail, thirty) nor more than sixty days prior to the date of the
meeting to each shareholder entitled to vote thereat. The notice shall state the
place, day, and hour of such meeting, and those matters which the Board, at the
time of mailing, intends to present for action by the shareholders.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Notice
of any meeting of the shareholders shall be given by mail or telegraphic or
other written communication, postage prepaid, to each holder of record of the
stock entitled to vote thereat, at his address, as it appears on the books of
the Corporation.</P>
<P align=justify></P><B>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>At an
annual meeting of shareholders, only such business shall be conducted as shall
have been properly brought before the annual meeting. To be properly brought
before an annual meeting, business must be (i) specified in the notice of the
annual meeting (or any supplement thereto) given by or at the direction of the
Board, or (ii)&nbsp;otherwise properly brought before the annual meeting by a
shareholder. For business to be properly brought before an annual meeting by a
shareholder, including the nomination of any person (other than a person
nominated by or at the direction of the Board) for election to the Board, the
shareholder must have given timely and proper written notice to the Corporate
Secretary of the Corporation. To be timely, the shareholder's written notice
must be received at the principal executive office of the Corporation not less
than forty-five days before the date corresponding to the mailing date of the
notice and proxy materials for the prior year's annual meeting of shareholders;
provided, however, that if the annual meeting to which the shareholder's written
notice relates is to be held on a date that differs by more than thirty days
from the date of the last annual meeting of shareholders, the shareholder's
written notice to be timely must be so received not later than the close of
business on the tenth day following the date on which public disclosure of the
date of the annual meeting is made or given to shareholders. Any shareholder's
written notice that is delivered after the close of business (5:00 p.m. local
time) will be considered received on the following business day. To be proper,
the shareholder's written notice must set forth as to each matter the
shareholder proposes to bring before the annual meeting (a) a brief description
of the business desired to be brought before the annual meeting, (b)&nbsp;the
name and address of the shareholder as they appear on the Corporation's books,
(c) the class and number of shares of the Corporation that are beneficially
owned by the shareholder, and (d) any material interest of the shareholder in
such business. In addition, if the shareholder's written notice relates to the
nomination at the annual meeting of any person for election to the Board, such
notice to be proper must also set forth (a) the name, age, business address, and
residence address of each person to be so nominated, (b) the principal
occupation or employment of each such person, (c) the number of shares of
capital stock of the Corporation beneficially owned by each such person, and (d)
such other information concerning each such person as would be required under
the rules of the Securities and Exchange Commission in a proxy statement
soliciting proxies for the election of such person as a Director, and must be
accompanied by a consent, signed by each such person, to serve as a Director of
the Corporation if elected. Notwithstanding anything in the Bylaws to the
contrary, no business shall be conducted at an annual meeting except in
accordance with the procedures set forth in this<B> </B>Section</FONT><FONT
face=Arial size=2>.</P></FONT><FONT face=Arial>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>3.&nbsp;&nbsp;&nbsp;<B>Special
Meetings. </B>Special meetings of the shareholders shall be called by the
Corporate Secretary or an Assistant Corporate Secretary at any time on order of
the Board of Directors, the Chairman of the Board, the Vice Chairman of the
Board, the Chairman of the Executive Committee, or the President. Special
meetings of the shareholders shall also be called by the Corporate Secretary or
an Assistant Corporate Secretary upon the written request of holders of shares
entitled to cast not less than ten percent of the votes at the meeting. Such
request shall state the purposes of the meeting, and shall be delivered to the
Chairman of the Board, the Vice Chairman of the Board, the Chairman of the
Executive Committee, the President or the Corporate Secretary.</P>
<P align=justify></P><B>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>A
special meeting so requested shall be held on the date requested, but not less
than thirty-five nor more than sixty days after the date of the original
request. Written notice of each special meeting of shareholders, stating the
place, day, and hour of such meeting and the business proposed to be transacted
thereat, shall be given in the manner stipulated in Article I, Section 2,
Paragraph 3 of these Bylaws within twenty days after receipt of the written
request.</P></FONT><FONT face=Arial size=3>
<P align=justify></P></FONT><B><FONT face=Arial>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>4.&nbsp;&nbsp;&nbsp;<B>Voting
at Meetings. </B>At any meeting of the shareholders, each holder of record of
stock shall be entitled to vote in person or by proxy. The authority of proxies
must be evidenced by a written document signed by the shareholder and must be
delivered to the Corporate Secretary of the Corporation prior to the
commencement of the meeting.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>5.&nbsp;&nbsp;&nbsp;<B>No
Cumulative Voting. </B>No shareholder of the Corporation shall be entitled to
cumulate his or her voting power.</P></FONT><FONT face=Arial size=3>
<P align=justify></P>
<P align=justify>&nbsp;</P></FONT><B><FONT face=Arial>
<P align=center>Article II.<BR>DIRECTORS.<BR><BR></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>1.&nbsp;&nbsp;&nbsp;<B>Number.
</B>The Board of Directors of this Corporation shall consist of such number of
directors, not less than nine (9) nor more than seventeen (17). The exact number
of directors shall be eleven (11) until changed, within the limits specified
above, by an amendment to this Bylaw duly adopted by the Board of Directors or
the shareholders.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>2.&nbsp;&nbsp;&nbsp;<B>Powers.
</B>The Board of Directors shall exercise all the powers of the Corporation
except those which are by law, or by the Articles of Incorporation of this
Corporation, or by the Bylaws conferred upon or reserved to the
shareholders.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>3.&nbsp;&nbsp;&nbsp;<B>Committees.</B>
The Board of Directors may, by resolution adopted by a majority of the
authorized number of directors, designate and appoint one or more committees as
the Board deems appropriate, each consisting of two or more directors, to serve
at the pleasure of the Board; provided, however, that, as required by this
Corporation's Articles of Incorporation, the members of the Executive Committee
(should the Board of Directors designate an Executive Committee) must be
appointed by the affirmative vote of two-thirds of the authorized number of
directors. Any such committee, including the Executive Committee, shall have the
authority to act in the manner and to the extent provided in the resolution of
the Board of Directors designating such committee and may have all the authority
of the Board of Directors, except with respect to the matters set forth in
California Corporations Code Section&nbsp;311.</P></FONT><FONT face=Arial
size=3>
<P align=justify></P></FONT><B><FONT face=Arial>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>4.&nbsp;&nbsp;&nbsp;<B>Time
and Place of Directors' Meetings. </B>Regular meetings of the Board of Directors
shall be held on such days and at such times and at such locations as shall be
fixed by resolution of the Board, or designated by the Chairman of the Board or,
in his absence, the Vice Chairman of the Board, or the President of the
Corporation and contained in the notice of any such meeting. Notice of meetings
shall be delivered personally or sent by mail or telegram at least seven days in
advance.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>5.&nbsp;&nbsp;&nbsp;<B>Special
Meetings. </B>The Chairman of the Board, the Vice Chairman of the Board, the
Chairman of the Executive Committee, the President, or any five directors may
call a special meeting of the Board of Directors at any time. Notice of the time
and place of special meetings shall be given to each Director by the Corporate
Secretary. Such notice shall be delivered personally or by telephone (or other
system or technology designed to record and communicate messages, including
facsimile, electronic mail, or other such means) to each Director at least four
hours in advance of such meeting, or sent by first-class mail or telegram,
postage prepaid, at least two days in advance of such meeting.</P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>6.&nbsp;&nbsp;&nbsp;
<B>Quorum.</B> A quorum for the transaction of business at any meeting of the
Board of Directors or any committee thereof shall consist of one-third of the
authorized number of directors or committee members, or two, whichever is
larger.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>7.&nbsp;&nbsp;&nbsp;<B>Action
by Consent.</B> Any action required or permitted to be taken by the Board of
Directors may be taken without a meeting if all Directors individually or
collectively consent in writing to such action. Such written consent or consents
shall be filed with the minutes of the proceedings of the Board of
Directors.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>8.&nbsp;&nbsp;&nbsp;<B>Meetings
by Conference Telephone.</B> Any meeting, regular or special, of the Board of
Directors or of any committee of the Board of Directors, may be held by
conference telephone or similar communication equipment, provided that all
Directors participating in the meeting can hear one another.</P></FONT><FONT
face=Arial size=3>
<P align=justify></P>
<P align=justify>&nbsp;</P></FONT><B><FONT face=Arial>
<P align=center>Article III.<BR>OFFICERS.</P></B></FONT><FONT face=Arial size=3>
<P align=justify></P>
<P align=justify>&nbsp;</P></FONT><B><FONT face=Arial>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>1.&nbsp;&nbsp;&nbsp;<B>Officers.</B>
The officers of the Corporation shall be a Chairman of the Board, a Vice
Chairman of the Board, a Chairman of the Executive Committee (whenever the Board
of Directors in its discretion fills these offices), a President, one or more
Vice Presidents, a Corporate Secretary and one or more Assistant Corporate
Secretaries, a Treasurer and one or more Assistant Treasurers, a General
Counsel, a General Attorney (whenever the Board of Directors in its discretion
fills this office), and a Controller, all of whom shall be elected by the Board
of Directors. The Chairman of the Board, the Vice Chairman of the Board, the
Chairman of the Executive Committee, and the President shall be members of the
Board of Directors.</P></FONT><FONT face=Arial size=3>
<P align=justify></P></FONT><B><FONT face=Arial>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>2.&nbsp;&nbsp;&nbsp;<B>Chairman
of the Board.</B> The Chairman of the Board, if that office be filled, shall
preside at all meetings of the shareholders, of the Directors, and of the
Executive Committee in the absence of the Chairman of that Committee. The
Chairman of the Board shall be the chief executive officer of the Corporation if
so designated by the Board of Directors. The Chairman of the Board shall have
such duties and responsibilities as may be prescribed by the Board of Directors
or the Bylaws. The Chairman of the Board shall have authority to sign on behalf
of the Corporation agreements and instruments of every character, and in the
absence or disability of the President, shall exercise his duties and
responsibilities.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>3.&nbsp;&nbsp;&nbsp;<B>Vice
Chairman of the Board.</B> The Vice Chairman of the Board, if that office be
filled, shall have such duties and responsibilities as may be prescribed by the
Board of Directors, the Chairman of the Board, or the Bylaws. The Vice Chairman
of the Board shall be the chief executive officer of the Corporation if so
designated by the Board of Directors. In the absence of the Chairman of the
Board, the Vice Chairman of the Board shall preside at all meetings of the Board
of Directors and of the shareholders; and, in the absence of the Chairman of the
Executive Committee and the Chairman of the Board, The Vice Chairman of the
Boardshall preside at all meetings of the Executive Committee. The Vice Chairman
of the Board shall have authority to sign on behalf of the Corporation
agreements and instruments of every character.</P></FONT><FONT face=Arial
size=3>
<P align=justify></P></FONT><B><FONT face=Arial>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>4.&nbsp;&nbsp;&nbsp;<B>Chairman
of the Executive Committee.</B> The Chairman of the Executive Committee, if that
office be filled, shall preside at all meetings of the Executive Committee. The
Chairman of the Executive Committee shall aid and assist the other officers in
the performance of their duties and shall have such other duties as may be
prescribed by the Board of Directors or the Bylaws.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>5.&nbsp;&nbsp;&nbsp;<B>President.</B>
The President shall have such duties and responsibilities as may be prescribed
by the Board of Directors, the Chairman of the Board, or the Bylaws. The
President shall be the chief executive officer of the Corporation if so
designated by the Board of Directors. If there be no Chairman of the Board, the
President shall also exercise the duties and responsibilities of that office.
The President shall have authority to sign on behalf of the Corporation
agreements and instruments of every character.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>6.&nbsp;&nbsp;&nbsp;<B>Vice
Presidents. </B>Each Vice President shall have such duties and responsibilities
as may be prescribed by the Board of Directors, the Chairman of the Board, the
Vice Chairman of the Board, the President, or the Bylaws. Each Vice President's
authority to sign agreements and instruments on behalf of the Corporation shall
be as prescribed by the Board of Directors. The Board of Directors of this
company, the Chairman of the Board of this company, the Vice Chairman of the
Board of this company, or the Chief Executive Officer of PG&amp;E Corporation
may confer a special title upon any Vice President.</P></FONT><FONT face=Arial
size=3>
<P align=justify></P></FONT><B><FONT face=Arial>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>7.&nbsp;&nbsp;&nbsp;<B>Corporate
Secretary.</B> The Corporate Secretary shall attend all meetings of the Board of
Directors and the Executive Committee, and all meetings of the shareholders, and
the Corpoate Secretary shall record the minutes of all proceedings in books to
be kept for that purpose. The Corporate Secretary shall be responsible for
maintaining a proper share register and stock transfer books for all classes of
shares issued by the Corporation. The Corporate Secretary shall give, or cause
to be given, all notices required either by law or the Bylaws. The Corporate
Secretary shall keep the seal of the Corporation in safe custody, and shall
affix the seal of the Corporation to any instrument requiring it and shall
attest the same by the Corporate Secretary's signature.</P>
<P align=justify></P><B>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The
Corporate Secretary shall have such other duties as may be prescribed by the
Board of Directors, the Chairman of the Board, the Vice Chairman of the Board,
the President, or the Bylaws.</P>
<P align=justify></P><B>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The
Assistant Corporate Secretaries shall perform such duties as may be assigned
from time to time by the Board of Directors, the Chairman of the Board, the Vice
Chairman of the Board, the President, or the Corporate Secretary. In the absence
or disability of the Corporate Secretary, the Corporate Secretary's duties shall
be performed by an Assistant Corporate Secretary.</P></FONT><FONT face=Arial
size=3>
<P align=justify></P></FONT><B><FONT face=Arial>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>8.&nbsp;&nbsp;&nbsp;<B>Treasurer.</B>
The Treasurer shall have custody of all moneys and funds of the Corporation, and
shall cause to be kept full and accurate records of receipts and disbursements
of the Corporation. The Treasurer shall deposit all moneys and other valuables
of the Corporation in the name and to the credit of the Corporation in such
depositaries as may be designated by the Board of Directors or any employee of
the Corporation designated by the Board of Directors. The Treasurer shall
disburse such funds of the Corporation as have been duly approved for
disbursement.</P>
<P align=justify></P><B>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The
Treasurer shall perform such other duties as may from time to time be prescribed
by the Board of Directors, the Chairman of the Board, the Vice Chairman of the
Board, the President, or the Bylaws.</P>
<P align=justify></P><B>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The
Assistant Treasurer shall perform such duties as may be assigned from time to
time by the Board of Directors, the Chairman of the Board, the Vice Chairman of
the Board, the President, or the Treasurer. In the absence or disability of the
Treasurer, the Treasurer's duties shall be performed by an Assistant
Treasurer.</P></FONT><FONT face=Arial size=3>
<P align=justify></P></FONT><B><FONT face=Arial>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>9.&nbsp;&nbsp;&nbsp;<B>General
Counsel.</B> The General Counsel shall be responsible for handling on behalf of
the Corporation all proceedings and matters of a legal nature. The General
Counsel shall render advice and legal counsel to the Board of Directors,
officers, and employees of the Corporation, as necessary to the proper conduct
of the business. The General Counsel shall keep the management of the
Corporation informed of all significant developments of a legal nature affecting
the interests of the Corporation.</P>
<P align=justify></P><B>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The
General Counsel shall have such other duties as may from time to time be
prescribed by the Board of Directors, the Chairman of the Board, the Vice
Chairman of the Board, the President, or the Bylaws.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>10.&nbsp;&nbsp;&nbsp;<B>Controller.</B>
The Controller shall be responsible for maintaining the accounting records of
the Corporation and for preparing necessary financial reports and statements,
and the Controller shall properly account for all moneys and obligations due the
Corporation and all properties, assets, and liabilities of the Corporation. The
Controller shall render to the officers such periodic reports covering the
result of operations of the Corporation as may be required by them or any one of
them.</P>
<P align=justify></P><B>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The
Controller shall have such other duties as may from time to time be prescribed
by the Board of Directors, the Chairman of the Board, the Vice Chairman of the
Board, the President, or the Bylaws. The Controller shall be the principal
accounting officer of the Corporation, unless another individual shall be so
designated by the Board of Directors.</P></FONT><FONT face=Arial size=3>
<P align=justify></P></FONT><B><FONT face=Arial>
<P align=center>Article IV.<BR>MISCELLANEOUS.</P>
<P align=center></P></FONT><FONT face=Arial size=1>
<P align=center>&nbsp;</P></FONT><FONT face=Arial>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>1.&nbsp;&nbsp;&nbsp;<B>Record
Date.</B> The Board of Directors may fix a time in the future as a record date
for the determination of the shareholders entitled to notice of and to vote at
any meeting of shareholders, or entitled to receive any dividend or
distribution, or allotment of rights, or to exercise rights in respect to any
change, conversion, or exchange of shares. The record date so fixed shall be not
more than sixty nor less than ten days prior to the date of such meeting nor
more than sixty days prior to any other action for the purposes for which it is
so fixed. When a record date is so fixed, only shareholders of record on that
date are entitled to notice of and to vote at the meeting, or entitled to
receive any dividend or distribution, or allotment of rights, or to exercise the
rights, as the case may be.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>2.&nbsp;&nbsp;&nbsp;<B>Transfers
of Stock.</B> Upon surrender to the Corporate Secretary or Transfer Agent of the
Corporation of a certificate for shares duly endorsed or accompanied by proper
evidence of succession, assignment, or authority to transfer, and payment of
transfer taxes, the Corporation shall issue a new certificate to the person
entitled thereto, cancel the old certificate, and record the transaction upon
its books. Subject to the foregoing, the Board of Directors shall have power and
authority to make such rules and regulations as it shall deem necessary or
appropriate concerning the issue, transfer, and registration of certificates for
shares of stock of the Corporation, and to appoint and remove Transfer Agents
and Registrars of transfers.</P></FONT><FONT face=Arial size=3>
<P align=justify></P></FONT><B><FONT face=Arial>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>3.&nbsp;&nbsp;&nbsp;<B>Lost
Certificates.</B> Any person claiming a certificate of stock to be lost, stolen,
mislaid, or destroyed shall make an affidavit or affirmation of that fact and
verify the same in such manner as the Board of Directors may require, and shall,
if the Board of Directors so requires, give the Corporation, its Transfer
Agents, Registrars, and/or other agents a bond of indemnity in form approved by
counsel, and in amount and with such sureties as may be satisfactory to the
Corporate Secretary of the Corporation, before a new certificate may be issued
of the same tenor and for the same number of shares as the one alleged to have
been lost, stolen, mislaid, or destroyed.</P></FONT><FONT face=Arial size=3>
<P align=justify></P>
<P align=justify>&nbsp;</P></FONT><B><FONT face=Arial>
<P align=center>Article V.<BR>AMENDMENTS.<BR><BR></P>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>1.&nbsp;&nbsp;&nbsp;<B>Amendment
by Shareholders.</B> Except as otherwise provided by law, these Bylaws, or any
of them, may be amended or repealed or new Bylaws adopted by the affirmative
vote of a majority of the outstanding shares entitled to vote at any regular or
special meeting of the shareholders.</P>
<P align=justify></P><B>
<P
align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>2.&nbsp;&nbsp;&nbsp;<B>Amendment
by Directors.</B> To the extent provided by law, these Bylaws, or any of them,
may be amended or repealed or new Bylaws adopted by resolution adopted by a
majority of the members of the Board of Directors.</P></FONT></BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>4
<FILENAME>q305_ex10-1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>

<META NAME="Generator" CONTENT="Microsoft Word 97">
<TITLE>&#9;AGREEMENT AND RELEASE</TITLE>
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<BODY>

<B><P ALIGN="RIGHT">Exhibit 10.1</P>
<P ALIGN="CENTER">SEVERANCE AGREEMENT AND RELEASE</P>
</B><P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Severance Agreement and Release (this "Agreement") is made and entered into by and between Gordon R. Smith and Pacific Gas and Electric Company (the "Company") (collectively the "Parties") and sets forth the terms and conditions of Mr. Smith's separation from employment with the Company.  The "Effective Date" of this Agreement is defined in paragraph&nbsp;17(a).</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Resignation.</B>  Effective the close of business on December 31, 2005, Mr. Smith will resign from his positions as President and Chief Executive Officer of the Company and as an officer and/or director of any and all subsidiary, parent, and affiliate companies of the Company and the Company's parent, and from employment with the Company (for purposes of this Agreement, the "Date of Resignation").  Mr. Smith shall have until October 12, 2005, to accept this Agreement by submitting a signed copy to the Company.  Regardless of whether Mr. Smith accepts this Agreement, on his Date of Resignation, he will be paid all salary or wages and vacation accrued, unpaid and owed to him as of that date, he will remain entitled to any other benefits to which he is otherwise entitled under the provisions of the Company's plans and programs, and he will receive notice of the right to continue his existing health-insurance coverage pursuant to COBRA.  </P>
<P ALIGN="JUSTIFY">The benefits set forth in paragraph 2 below are conditioned upon Mr. Smith's acceptance of this Agreement.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Severance benefits.</B>  Even though Mr. Smith is not otherwise entitled to them, in consideration of his acceptance of this Agreement, the Company will provide to Mr. Smith the following severance benefits:</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;<B>Severance payment.</B>  Under the terms of the PG&amp;E Corporation Officer Severance Policy, Mr. Smith's severance payment amount is Two Million Eight Hundred Thirty-Five Thousand Dollars ($2,835,000).  Within five business days after the Date of Resignation, but conditioned on the occurrence of the Effective Date of this Agreement as set forth in paragraph 17(a) below, the Company will make a lump-sum payment to Mr. Smith in the gross amount of Two Million Eight Hundred Thirty-Five Thousand Dollars ($2,835,000), less applicable withholdings and deductions.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;<B>Payment of COBRA premiums.  </B>If Mr. Smith elects and is otherwise eligible to continue his existing health-insurance coverage pursuant to COBRA, the Company will pay his monthly COBRA premiums for the eighteen-month period commencing the first full month after the Date of Resignation and until and unless Mr. Smith becomes covered under the health-insurance plan of another employer or through self-employment.  Mr. Smith will promptly notify the PG&amp;E Corporation's Human Resources Officer if he becomes employed within that period.  </P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Defense and indemnification in third-party claims.  </B>The Company and/or its parent, affiliate, or subsidiary will provide Mr. Smith with legal representation and indemnification protection in any legal proceeding in which he is a party or is threatened to be made a party by reason of the fact that he is or was an employee or officer of the Company and/or its parent, affiliate or subsidiary, in accordance with the terms of the resolution of the Board of Directors of PG&amp;E Corporation dated December 18, 1996.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Cooperation with legal proceedings.</B>  Mr. Smith will, upon reasonable notice, furnish information and proper assistance to the Company and/or its parent, affiliate or subsidiary (including truthful testimony and document production) as may reasonably be required by them or any of them in connection with any legal, administrative or regulatory proceeding in which they or any of them is, or may become, a party, or in connection with any filing or similar obligation imposed by any taxing, administrative or regulatory authority having jurisdiction, provided, however, that the Company and/or its parent, affiliate or subsidiary will pay all reasonable expenses incurred by Mr. Smith in complying with this paragraph.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Release of claims and covenant not to sue.</P>
</B><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;In consideration of the severance benefits and other benefits the Company is providing under this Agreement, Mr. Smith, on behalf of himself and his representatives, agents, heirs and assigns, waives, releases, discharges and promises never to assert any and all claims, liabilities or obligations of every kind and nature, whether known or unknown, suspected or unsuspected that he ever had, now has or might have as of the Effective Date against the Company or its predecessors, parent, affiliates, subsidiaries, shareholders, owners, directors, officers, employees, agents, attorneys, successors, or assigns.  These released claims include, without limitation, any claims arising from or related to Mr. Smith's employment with the Company, its parent or any of its affiliates and subsidiaries, and the termination of that employment.  These released claims also specifically include, but are not limited, any claims arising under any federal, state and local statutory or common law, such as (as amended and as applicable) Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Americans With Disabilities Act, the Employee Retirement Income Security Act, the California Fair Employment and Housing Act, the California Labor Code, any other federal, state or local law governing the terms and conditions of employment or the termination of employment, and the law of contract and tort; and any claim for attorneys' fees.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;Mr. Smith acknowledges that there may exist facts or claims in addition to or different from those which are now known or believed by him to exist.  Nonetheless, this Agreement extends to all claims of every nature and kind whatsoever, whether known or unknown, suspected or unsuspected, past or present, and Mr. Smith specifically waives all rights under Section 1542 of the California Civil Code which provides that:</P><DIR>
<DIR>

<P>A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN TO HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.</P></DIR>
</DIR>

<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.&nbsp;&nbsp;With respect to the claims released in the preceding paragraphs, Mr. Smith will not initiate or maintain any legal or administrative action or proceeding of any kind against the Company or its predecessors, parent, affiliates, subsidiaries, shareholders, owners, directors, officers, employees, agents, attorneys, successors, or assigns, for the purpose of obtaining any personal relief, nor (except as otherwise required or permitted by law) assist or participate in any such proceedings, including any proceedings brought by any third parties.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.&nbsp;&nbsp;Mr. Smith acknowledges that, in addition to the release of claims contained in this paragraph 5, he will be required to execute an additional release substantially in the form of this paragraph 5 on or about the date of resignation as a condition to his receiving the benefits set forth in paragraph 2 of this Agreement.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Re-employment.</B>  Mr. Smith will not seek any future re-employment with the Company, its parent or any of its subsidiaries or affiliates.  This paragraph will not, however, preclude Mr. Smith from accepting an offer of future employment from the Company, its parent or any of its subsidiaries or affiliates.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Non-disclosure.</P>
</B><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;Mr. Smith will not disclose, publicize, or circulate to anyone in whole or in part, any information concerning the existence, terms, and/or conditions of this Agreement without the express written consent of the PG&amp;E Corporation's Chief Legal Officer unless otherwise required or permitted by law.  Notwithstanding the preceding sentence, Mr. Smith may disclose the terms and conditions of this Agreement to his family members, and any attorneys or tax advisors, if any, to whom there is a <I>bona fide</I> need for disclosure in order for them to render professional services to him, provided that the person first agrees to keep the information confidential and not to make any disclosure of the terms and conditions of this Agreement unless otherwise required or permitted by law.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;Mr. Smith will not use, disclose, publicize, or circulate any confidential or proprietary information concerning the Company or its subsidiaries or affiliates, which has come to his attention during his employment with the Company, unless doing so is expressly authorized in writing by the PG&amp;E Corporation's Chief Legal Officer, or is otherwise required or permitted by law.  Before making any legally-required or permitted disclosure, Mr. Smith will give the Company notice at least ten (10) business days in advance.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>No unfair competition.</P>
</B><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;Mr. Smith will not engage in any unfair competition against the Company, its parent or any of its subsidiaries or affiliates.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;For a period of one year after the Effective Date, Mr. Smith will not, directly or indirectly, solicit or contact for the purpose of diverting or taking away or attempt to solicit or contact for the purpose of diverting or taking away:</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any existing customer of the Company or its parent, affiliates or subsidiaries;</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any prospective customer of the Company or its parent, affiliates or subsidiaries about whom Mr. Smith acquired information as a result of any solicitation efforts by the Company or its parent, affiliates or subsidiaries, or by the prospective customer, during Mr. Smith's employment with the Company;</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any existing vendor of the Company or its parent, affiliates or subsidiaries;</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any prospective vendor of the Company or its parent, affiliates or subsidiaries, about whom Mr. Smith acquired information as a result of any solicitation efforts by the Company or its parent, affiliates or subsidiaries, or by the prospective vendor, during Mr. Smith's employment with the Company;</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any existing employee, agent or consultant of the Company or its parent, affiliates or subsidiaries, to terminate or otherwise alter the person's or entity's employment, agency or consultant relationship with the Company or its parent, affiliates or subsidiaries; or</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any existing employee, agent or consultant of the Company or its parent, affiliates or subsidiaries, to work in any capacity for or on behalf of any person, company or other business enterprise that is in competition with the Company or its parent, affiliates or subsidiaries.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Material breach by Employee.</B>  In the event that Mr. Smith breaches any material provision of this Agreement, including but not necessarily limited to paragraphs 4, 5, 6, 7, and/or 8, the Company will have no further obligation to pay or provide to him any unpaid amounts or benefits specified in this Agreement and will be entitled to immediate return of any and all amounts or benefits previously paid or provided to him under this Agreement.  Despite any breach by Mr. Smith, his other duties and obligations under this Agreement, including his waivers and releases, will remain in full force and effect.  In the event of a breach or threatened breach by Mr. Smith of any of the provisions in paragraphs 4, 5, 6, 7, and/or 8, the Company will, in addition to any other remedies provided in this Agreement, be entitled to equitable and/or injunctive relief and, because the damages for such a breach or threatened breach will be difficult to determine and will not provide a full and adequate remedy, the Company will also be entitled to specific performance by Mr. Smith of his obligations under paragraphs 4, 5, 6, 7, and/or 8.  Pursuant to paragraph 14, and except as otherwise prohibited or limited by law, Mr. Smith will also be liable for any litigation costs and expenses that the Company incurs in successfully seeking enforcement of its rights under this Agreement, including reasonable attorney's fees.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Material breach by the Company.</B>  Mr. Smith will be entitled to recover actual damages in the event of any material breach of this Agreement by the Company, including any unexcused late or non-payment of any amounts owed under this Agreement, or any unexcused failure to provide any other benefits specified in this Agreement.  In the event of a breach or threatened breach by the Company of any of its material obligations to him under this Agreement, Mr. Smith will be entitled to seek, in addition to any other remedies provided in this Agreement, specific performance of the Company's obligations and any other applicable equitable or injunctive relief.  Pursuant to paragraph 14, and except as prohibited or limited by law, the Company will also be liable for any litigation costs and expenses that Mr. Smith incurs in successfully seeking enforcement of his rights under this Agreement, including reasonable attorney's fees.  Despite any breach by the Company, its other duties and obligations under this Agreement will remain in full force and effect.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>No admission of liability.</B>  This Agreement is not, and will not be considered, an admission of liability or of a violation of any applicable contract, law, rule, regulation, or order of any kind.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Complete agreement.</B>  This Agreement sets forth the entire agreement between the Parties pertaining to the subject matter of this Agreement and fully supersedes any prior or contemporaneous negotiations, representations, agreements, or understandings between the Parties with respect to any such matters, whether written or oral (including any that would have provided Mr. Smith with any different severance arrangements).  The Parties acknowledge that they have not relied on any promise, representation or warranty, express or implied, not contained in this Agreement.  Parol evidence will be inadmissible to show agreement by and among the Parties to any term or condition contrary to or in addition to the terms and conditions contained in this Agreement.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Severability.</B>  If any provision of this Agreement is determined to be invalid, void, or unenforceable, the remaining provisions will remain in full force and effect except that, should paragraphs 4, 5, 6, 7, and/or 8 be held invalid, void or unenforceable, either jointly or separately, the Company will be entitled to rescind the Agreement and/or recover from Mr. Smith any payments made and benefits provided to him under this Agreement.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Arbitration.</B>  With the exception of any request for specific performance, injunctive or other equitable relief, any dispute or controversy of any kind arising out of or related to this Agreement, Mr. Smith's employment with the Company (or with the employing subsidiary), the separation of Mr. Smith from that employment and from his positions as an officer and/or director of the Company or any subsidiary or affiliate, or any claims for benefits, will be resolved exclusively by final and binding arbitration using a three-member arbitration panel in accordance with the Commercial Arbitration Rules of the American Arbitration Association currently in effect, provided, however, that in rendering their award, the arbitrators will be limited to accepting the position of Mr. Smith or the Company.  The only claims not covered by this paragraph are any non-waivable claims for benefits under workers' compensation or unemployment insurance laws, which will be resolved under those laws.  Any arbitration pursuant to this paragraph will take place in San Francisco, California.  The Parties may be represented by legal counsel at the arbitration but must bear their own fees for such representation in the first instance.  The prevailing party in any dispute or controversy covered by this paragraph, or with respect to any request for specific performance, injunctive or other equitable relief, will be entitled to recover, in addition to any other available remedies specified in this Agreement, all litigation expenses and costs, including any arbitrator, administrative or filing fees and reasonable attorneys' fees, except as prohibited or limited by law.  The Parties specifically waive any right to a jury trial on any dispute or controversy covered by this paragraph.  Judgment may be entered on the arbitrators' award in any court of competent jurisdiction.  Subject to the arbitration provisions of this paragraph, the sole jurisdiction and venue for any action related to the subject matter of this Agreement will be the California state and federal courts having within their jurisdiction the location of the Company's principal place of business in California at the time of such action, and both Parties hereby consent to the jurisdiction of such courts for any such action.  </P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Governing law.</B>  This Agreement will be governed by and construed under the laws of the United States and, to the extent not preempted by such laws, by the laws of the State of California, without regard to their conflicts of laws provisions.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>No waiver.</B>  The failure of either Party to exercise or enforce, at any time, or for any period of time, any of the provisions of this Agreement will not be construed as a waiver of that provision, or any portion of that provision, and will in no way affect that party's right to exercise or enforce such provisions.  No waiver or default of any provision of this Agreement will be deemed to be a waiver of any succeeding breach of the same or any other provisions of this Agreement.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Acceptance of Agreement.</P>
</B><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.&nbsp;&nbsp;&nbsp;Mr. Smith was provided up to 21 days to consider and accept the terms of this Agreement and was advised to consult with an attorney about the Agreement before signing it.  The provisions of the Agreement are, however, not subject to negotiation.  After signing the Agreement, Mr. Smith will have an additional seven (7) days in which to revoke in writing acceptance of this Agreement.  To revoke, Mr. Smith will submit a signed statement to that effect to PG&amp;E Corporation's Senior Human Resources Officer before the close of business on the seventh day.  If Mr. Smith does not submit a timely revocation, the Effective Date of this Agreement will be the eighth day after he has signed it.</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.&nbsp;&nbsp;&nbsp;Mr. Smith acknowledges reading and understanding the contents of this Agreement, being afforded the opportunity to review carefully this Agreement with an attorney of his choice, not relying on any oral or written representation not contained in this Agreement, signing this Agreement knowingly and voluntarily, and, after the Effective Date of this Agreement, being bound by all of its provisions.</P>
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<P><BR>
<BR>
Dated:  9-21-2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=28>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH="56%" VALIGN="BOTTOM" HEIGHT=28>
<P>PACIFIC GAS AND ELECTRIC COMPANY</TD>
</TR>
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<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
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<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=28><P></P></TD>
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<P>By:&nbsp;&nbsp;&nbsp;<U>RUSSELL M.  JACKSON&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
</TR>
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<P>Dated:&nbsp;&nbsp;9-21-2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</TD>
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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
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<P>GORDON R. SMITH</TD>
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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
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<P>By:&nbsp;&nbsp;&nbsp;<U>GORDON R. SMITH&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></TD>
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<P ALIGN="JUSTIFY"></P></BODY>
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<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>5
<FILENAME>q305_ex10-2.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
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<HTML><HEAD><TITLE>Actions Taken by the Nominating, Compensation and Governance Committee of the PG&E Corporation Board of Directors on October 19, 2005</TITLE>

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<P align=right>Exhibit 10.2</P>
<P align=center></P>
<P align=center>&nbsp;</P>
<P align=center>Actions Taken by the Nominating, Compensation and Governance
Committee of the PG&amp;E Corporation Board of Directors on October 19,
2005</P><FONT size=2>
<P align=center></P></B></FONT><FONT face=Times>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>On
October 19, 2005, the Nominating, Compensation and Governance Committee of the
PG&amp;E Corporation Board of Directors (Committee) approved portions of the
2006 Officer Compensation Program, including (i) an annual salary increase
budget of 3.5 percent for base pay adjustments, mid-year discretionary
increases, and lump-sum payments, and (ii) target participation rates for cash
awards under the PG&amp;E Corporation Short-Term Incentive Plan (STIP) ranging
from 30% to 100% of base salary depending on officer level, with a maximum
payout of 200% of base salary. Actual STIP awards are determined by the
Committee based on the extent to which certain pre-established performance
criteria are met. The Committee deferred taking final action on the long-term
incentive portion of the 2006 Officer Compensation Program until its meeting in
December 2005. </P></BODY></HTML>
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<DOCUMENT>
<TYPE>EX-11
<SEQUENCE>6
<FILENAME>q305_ex11.htm
<DESCRIPTION>EXHIBIT 11
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<B><FONT SIZE=2><P ALIGN="CENTER">EXHIBIT 11</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=13>
<B><FONT SIZE=2><P ALIGN="CENTER">PG&amp;E CORPORATION</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=13>
<B><FONT SIZE=2><P ALIGN="CENTER">COMPUTATION OF EARNINGS PER COMMON SHARE</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=13>&nbsp;</TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=5>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=5>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=5>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=5>
<B><FONT SIZE=2><P ALIGN="CENTER">September 30,</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>(in millions, except share amounts)</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="CENTER">2004</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="TOP" COLSPAN=2 HEIGHT=21><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=5 HEIGHT=21><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>Net income</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">252&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">737&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=33>
<FONT SIZE=2><P>Less: distributed earnings to common shareholders</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33>
<FONT SIZE=2><P ALIGN="RIGHT">111&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33>
<FONT SIZE=2><P ALIGN="RIGHT">334&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=33>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Undistributed earnings</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">141&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">403&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Less:  discontinued operations</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">13&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=9>
<FONT SIZE=2><P>Undistributed earnings from continuing operations</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=9>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=9>
<FONT SIZE=2><P ALIGN="RIGHT">128&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=9>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=9>
<FONT SIZE=2><P ALIGN="RIGHT">228&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=9>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=9>
<FONT SIZE=2><P ALIGN="RIGHT">390&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=9>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=9>
<FONT SIZE=2><P ALIGN="RIGHT">3,633&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=12><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=12><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=12><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=12><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=12><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=12><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=12><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=12><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>Common shareholders earnings</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><I><FONT SIZE=2><P>Basic</B></I></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Distributed earnings to common shareholders</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">111&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">334&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=36>
<FONT SIZE=2><P>Undistributed earnings allocated to common shareholders - continuing operations</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=36><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=36>
<FONT SIZE=2><P ALIGN="RIGHT">122&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=36><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=36><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=36>
<FONT SIZE=2><P ALIGN="RIGHT">218&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=36><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=36><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=36>
<FONT SIZE=2><P ALIGN="RIGHT">371&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=36><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=36><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=36>
<FONT SIZE=2><P ALIGN="RIGHT">3,467&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=34>
<FONT SIZE=2><P>Undistributed earnings allocated to common shareholders - discontinued operations</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=34><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=34>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=34><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=34><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=34>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=34><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=34><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=34>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=34><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=34><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=34>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>Total common shareholders earnings, basic</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">245&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">218&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">717&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">3,467&nbsp;</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><I><FONT SIZE=2><P>Diluted</B></I></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P>Distributed earnings to common shareholders</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">111&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">334&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=39>
<FONT SIZE=2><P>Undistributed earnings allocated to common shareholders - continuing operations</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=39><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=39>
<FONT SIZE=2><P ALIGN="RIGHT">122&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=39><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=39><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=39>
<FONT SIZE=2><P ALIGN="RIGHT">218&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=39><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=39><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=39>
<FONT SIZE=2><P ALIGN="RIGHT">371&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=39><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=39><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=39>
<FONT SIZE=2><P ALIGN="RIGHT">3,471&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=42>
<FONT SIZE=2><P>Undistributed earnings allocated to common shareholders - discontinued operations</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=42><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=42>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=42><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=42><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=42>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=42><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=42><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=42>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=42><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=42><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=42>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>Total common shareholders earnings, diluted</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">245&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">218&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">717&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">3,471&nbsp;</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=29>
<B><FONT SIZE=2><P>Weighted average common shares outstanding, basic</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=29><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=29>
<B><FONT SIZE=2><P ALIGN="RIGHT">372&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=29><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=29><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=29>
<B><FONT SIZE=2><P ALIGN="RIGHT">399&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=29><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=29><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=29>
<B><FONT SIZE=2><P ALIGN="RIGHT">376&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=29><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=29><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=29>
<B><FONT SIZE=2><P ALIGN="RIGHT">397&nbsp;</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>9.50% Convertible Subordinated Notes</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=30>
<FONT SIZE=2><P>Weighted average common shares outstanding and participating securities, basic</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">391&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">418&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">395&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">416&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=30>
<FONT SIZE=2><P>Weighted average common shares outstanding, basic</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=30><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">372&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=30><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=30><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">399&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=30><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=30><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">376&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=30><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=30><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">397&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P>Employee stock-based compensation</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">7&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=17>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>PG&amp;E Corporation warrants</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=31>
<B><FONT SIZE=2><P>Weighted average common shares outstanding, diluted <SUP>(1)</B></SUP></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=31><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=31>
<B><FONT SIZE=2><P ALIGN="RIGHT">376&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=31><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=31><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=31>
<B><FONT SIZE=2><P ALIGN="RIGHT">408&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=31><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=31><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=31>
<B><FONT SIZE=2><P ALIGN="RIGHT">380&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=31><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=31><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=31>
<B><FONT SIZE=2><P ALIGN="RIGHT">406&nbsp;</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>9.50% Convertible Subordinated Notes</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">19&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=30>
<FONT SIZE=2><P>Weighted average common shares outstanding and participating securities, diluted</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">395&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">427&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">399&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">425&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>Net earnings per common share, basic</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Distributed earnings, basic</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.30&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.89&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P>Undistributed earnings - continuing operations, basic</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">0.33&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">0.55&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">0.99&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">8.73&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1>
<FONT SIZE=2><P>Undistributed earnings - discontinued operations, basic</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1>
<FONT SIZE=2><P ALIGN="RIGHT">0.03&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1>
<FONT SIZE=2><P ALIGN="RIGHT">0.03&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Total</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">0.66&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">0.55&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">1.91&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">8.73&nbsp;</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<B><FONT SIZE=2><P>Net earnings per common share, diluted</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16>
<FONT SIZE=2><P>Distributed earnings, diluted</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.30&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">0.88&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P>Undistributed earnings - continuing operations, diluted</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">0.32&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">0.53&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">0.98&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=32>
<FONT SIZE=2><P ALIGN="RIGHT">8.55&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1>
<FONT SIZE=2><P>Undistributed earnings - discontinued operations, diluted</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1>
<FONT SIZE=2><P ALIGN="RIGHT">0.03&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1>
<FONT SIZE=2><P ALIGN="RIGHT">0.03&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P>Total</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">0.65&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">0.53&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">1.89&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=16>
<B><FONT SIZE=2><P ALIGN="RIGHT">8.55&nbsp;</B></FONT></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=1>
<SUP><FONT SIZE=2><P ALIGN="RIGHT">(1)</SUP></FONT></TD>
<TD WIDTH="95%" VALIGN="BOTTOM" COLSPAN=12 HEIGHT=1>
<FONT SIZE=1><P>Options to purchase 23,000 PG&amp;E Corporation common shares were outstanding during the three and nine months ended September 30, 2005 and, 7,705,881 and 8,045,805 for the three and nine months ended September 30, 2004, respectively, but not included in the computation of diluted earnings per common share because the option exercise prices were greater than the average market price.</FONT></TD>
</TR>
</TABLE>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-12.1
<SEQUENCE>7
<FILENAME>q305_ex12-1.htm
<DESCRIPTION>EXHIBIT 12.1
<TEXT>
<HTML>
<HEAD>

<META NAME="Generator" CONTENT="Microsoft Word 97">
<TITLE>Exhibit 12</TITLE>
</HEAD>
<BODY>

<TABLE CELLSPACING=0 BORDER=0 WIDTH=756>
<TR><TD VALIGN="BOTTOM" COLSPAN=44 HEIGHT=15>
<B><FONT SIZE=2><P>Exhibit 12.1</B></FONT></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=44 HEIGHT=15>
<B><FONT SIZE=2><P>Pacific Gas and Electric Company</B></FONT></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=44 HEIGHT=15>
<B><FONT SIZE=2><P>Computation of Ratios of Earnings to Fixed Charges</B></FONT></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=44 HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=58><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=58>
<B><FONT SIZE=2><P ALIGN="CENTER">Three <BR>
Months <BR>
Ended<BR>
September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=58><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=58>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine<BR>
Months<BR>
Ended<BR>
September 30,</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=58><P></P></TD>
<TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=23 HEIGHT=58>
<B><FONT SIZE=2><P ALIGN="CENTER">Year Ended December 31,</B></FONT></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="44%" VALIGN="BOTTOM" COLSPAN=23 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=20>
<B><FONT SIZE=2><P>(dollars in millions)</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=20><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;2005</B></FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;2003</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;2002</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;2001</B></FONT></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;2000</B></FONT></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=9><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=9><P></P></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=20>
<B><FONT SIZE=2><P>Earnings <SUP>(1)</B></SUP></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=20><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=20><P></P></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P>Pre-tax income (loss) from continuing operations</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">396&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,204&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">6,543&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,451&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">2,997&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$ </FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,611&nbsp;</FONT></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$ </FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">(5,637)</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>
<FONT SIZE=2><P>Add:</FONT></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18>
<FONT SIZE=2><P>Fixed Charges</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">146&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">439&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">671&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">964&nbsp; </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,029&nbsp; </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,019&nbsp; </FONT></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">648&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>
<FONT SIZE=2><P>Less:</FONT></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P>Preferred dividend requirements of subsidiaries</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18>
<B><FONT SIZE=2><P>Total Earnings (Loss)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">542&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,643&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">7,214&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">2,415&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">4,026&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">2,630&nbsp;</FONT></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">(4,989)</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=9><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=9><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=9><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="BOTTOM" COLSPAN=8 HEIGHT=18>
<B><FONT SIZE=2><P>Fixed Charges<SUP> (2)</B></SUP></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18><P></P></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="9%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P>Interest expense, net, including amortization of debt issue costs, </FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P>premiums and discounts</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">138&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">417&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">668&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">939&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">990&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">976&nbsp;</FONT></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">609&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18>
<FONT SIZE=2><P>AFUDC Debt</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">10&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">(12)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">16&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">21&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P>Estimate of interest expense within rents</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">15&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">8&nbsp; </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">7&nbsp;</FONT></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18>
<FONT SIZE=2><P>Preferred dividend requirements of subsidiaries</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P>Preferred security requirements of wholly-owned trust</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">10&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">24&nbsp;</FONT></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">24&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18>
<B><FONT SIZE=2><P>Total Fixed Charges</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">146&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">439&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">671&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">964&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,029&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,019&nbsp;</FONT></TD>
<TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">648&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16><P></P></TD>
<TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="0%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="31%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="BOTTOM" COLSPAN=8 BGCOLOR="#c0c0c0" HEIGHT=18>
<B><FONT SIZE=2><P>Ratio of Earnings (Loss) to Fixed Charges<SUP> (3)</B></SUP></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">3.71&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=7 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">3.74&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">10.75&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">2.51&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=5 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">3.91&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">2.58</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">(7.70)</FONT></TD>
</TR>
<TR><TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=16><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="68%" VALIGN="BOTTOM" COLSPAN=36 HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=6 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="68%" VALIGN="BOTTOM" COLSPAN=36 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" COLSPAN=6 HEIGHT=49>
<SUP><FONT SIZE=2><P ALIGN="CENTER">(1)</SUP></FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=38 HEIGHT=49>
<FONT SIZE=2><P>For purposes of computing the ratio of earnings to fixed charges, "earnings" represents pre-tax income from continuing operations adjusted for minority interest in consolidated subsidiaries and equity in income or loss from subsidiaries accounted for using the equity method plus fixed charges, as computed, less the pre-tax earnings required to cover the preferred dividend requirements of subsidiaries.</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=5><P></P></TD>
<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=5><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=5><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=5><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=5><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=5><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=5><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=5><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=5><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=5><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" COLSPAN=6 HEIGHT=39>
<SUP><FONT SIZE=2><P ALIGN="CENTER">(2)</SUP></FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=38 HEIGHT=39>
<FONT SIZE=2><P>"Fixed charges" include interest, including amortization of debt issue costs, premiums and discounts, the debt portion of the allowance for funds used during construction, an estimate of the amount of interest within rents, and the preferred security requirements of consolidated subsidiaries.</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="BOTTOM" COLSPAN=6 HEIGHT=15><P></P></TD>
<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=15><P></P></TD>
<TD WIDTH="18%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" COLSPAN=6 HEIGHT=20>
<SUP><FONT SIZE=2><P ALIGN="CENTER">(3)</SUP></FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=38 HEIGHT=20>
<FONT SIZE=2><P>The ratio of earnings to fixed charges for the year 2000 indicates a ratio of less than one-to-one.  The dollar amount of the deficiency is approximately $5.6 billion.</FONT></TD>
</TR>
</TABLE>

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<DOCUMENT>
<TYPE>EX-12.2
<SEQUENCE>8
<FILENAME>q305_ex12-2.htm
<DESCRIPTION>EXHIBIT 12.2
<TEXT>
<HTML>
<HEAD>

<META NAME="Generator" CONTENT="Microsoft Word 97">
<TITLE>Exhibit 12</TITLE>
</HEAD>
<BODY>

<TABLE CELLSPACING=0 BORDER=0 WIDTH=756>
<TR><TD VALIGN="BOTTOM" COLSPAN=27 HEIGHT=15>
<B><FONT SIZE=2><P>Exhibit 12.2</B></FONT></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=27 HEIGHT=15>
<B><FONT SIZE=2><P>Pacific Gas and Electric Company</B></FONT></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=27 HEIGHT=15>
<B><FONT SIZE=2><P>Computation of Ratios of Earnings to Combined Fixed Charges and Preferred Dividends</B></FONT></TD>
</TR>
<TR><TD VALIGN="BOTTOM" COLSPAN=27 HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=58><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=58>
<B><FONT SIZE=2><P ALIGN="CENTER">Three<BR>
Months<BR>
Ended<BR>
September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=58><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=58>
<B><FONT SIZE=2><P ALIGN="CENTER">Nine<BR>
Months<BR>
Ended<BR>
September 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=58><P></P></TD>
<TD WIDTH="48%" VALIGN="BOTTOM" COLSPAN=19 HEIGHT=58>
<B><FONT SIZE=2><P ALIGN="CENTER">Year Ended December 31,</B></FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="48%" VALIGN="BOTTOM" COLSPAN=19 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20>
<B><FONT SIZE=2><P>(dollars in millions)</B></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;2005</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;2004</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;2003</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;2002</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;2001</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20>
<B><FONT SIZE=2><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2000</B></FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20>
<B><FONT SIZE=2><P>Earnings <SUP>(1)</B></SUP></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=20><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=20><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=20><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P>Pre-tax income (loss) from continuing &nbsp;&nbsp;&nbsp;operations</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">396&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,204&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">6,543&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,451&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">2,997&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$ </FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,611&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">(5,637)</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P>Add:</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P>Fixed Charges</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">146&nbsp; </FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">439&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">671&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">964&nbsp; </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,029&nbsp; </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,019&nbsp; </FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">648&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P>Less:</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P>Preferred dividend requirements of &nbsp;&nbsp;&nbsp;subsidiaries</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<B><FONT SIZE=2><P>Total Earnings (Loss)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">542&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,643&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">7,214&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">2,415&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">4,026&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">2,630&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">(4,989)</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=11><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<B><FONT SIZE=2><P>Fixed Charges<SUP> (2)</B></SUP></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=4 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P>Interest expense, net, including <BR>
&nbsp;&nbsp;&nbsp;amortization of debt issue costs,<BR>
&nbsp;&nbsp;&nbsp;premiums and discounts</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">138&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">417&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">668&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">939&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">990&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">976&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">609&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P>AFUDC Debt</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">10&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">(12)</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">16&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">21&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P>Estimate of interest expense within rents</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">15&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">8&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">7&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P>Preferred dividend requirements of &nbsp;&nbsp;&nbsp;subsidiaries</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P>Preferred security requirements of <BR>
&nbsp;&nbsp;&nbsp;wholly-owned trust</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">-&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">10&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">24&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">24&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<B><FONT SIZE=2><P>Total Fixed Charges</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">146&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">439&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">671&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">964&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,029&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,019&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">648&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=11><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18>
<B><FONT SIZE=2><P>Preferred Stock Dividends</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P>Tax deductible dividends</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">3&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">9&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P>Pre-tax earnings required to cover <BR>
&nbsp;&nbsp;&nbsp;non-tax deductible preferred stock<BR>
&nbsp;&nbsp;&nbsp;dividend requirements</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">12&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">34&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">27&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">28&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">27&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">27&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<B><FONT SIZE=2><P>Total Preferred Stock Dividends</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">5&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">21&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">43&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">36&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">37&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">36&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">36&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="13%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=11><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=11><P></P></TD>
<TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<B><FONT SIZE=2><P>Total Fixed Charges and Preferred Stock Dividends</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">151&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">460&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">714&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,000&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,066&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">1,055&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">684&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="29%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="19%" VALIGN="BOTTOM" COLSPAN=5 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=11><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=11><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<B><FONT SIZE=2><P>Ratio of Earnings (Loss) to Combined Fixed Charges and Preferred Stock Dividends<SUP> (3)</B></SUP></FONT></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">3.59&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">3.57&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">10.10&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">2.42&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">3.78&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">2.49&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" BGCOLOR="#c0c0c0" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" COLSPAN=3 BGCOLOR="#c0c0c0" HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">(7.29)</FONT></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="30%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="6%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="7%" VALIGN="BOTTOM" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=1><P></P></TD>
<TD WIDTH="8%" VALIGN="BOTTOM" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" COLSPAN=2 HEIGHT=6><P></P></TD>
<TD WIDTH="97%" VALIGN="TOP" COLSPAN=25 HEIGHT=6><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="70%" VALIGN="TOP" COLSPAN=24 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" COLSPAN=2 BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="70%" VALIGN="TOP" COLSPAN=24 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" COLSPAN=2 HEIGHT=1><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" HEIGHT=1><P></P></TD>
<TD WIDTH="70%" VALIGN="TOP" COLSPAN=24 HEIGHT=1><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" COLSPAN=2 HEIGHT=49>
<SUP><FONT SIZE=2><P>(1)</SUP></FONT></TD>
<TD WIDTH="97%" VALIGN="TOP" COLSPAN=25 HEIGHT=49>
<FONT SIZE=2><P>For purposes of computing the ratio of earnings to fixed charges, "earnings" represents pre-tax income from continuing operations adjusted for minority interest in consolidated subsidiaries and equity in income or loss from subsidiaries accounted for using the equity method plus fixed charges, as computed, less the pre-tax earnings required to cover the preferred dividend requirements of subsidiaries.</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="97%" VALIGN="BOTTOM" COLSPAN=25 HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" COLSPAN=2 HEIGHT=39>
<SUP><FONT SIZE=2><P>(2)</SUP></FONT></TD>
<TD WIDTH="97%" VALIGN="TOP" COLSPAN=25 HEIGHT=39>
<FONT SIZE=2><P>"Fixed charges" include interest, including amortization of debt issue costs, premiums and discounts, the debt portion of the allowance for funds used during construction, an estimate of the amount of interest within rents, and the preferred security requirements of consolidated subsidiaries.</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=9><P></P></TD>
<TD WIDTH="97%" VALIGN="BOTTOM" COLSPAN=25 HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" COLSPAN=2 HEIGHT=20>
<SUP><FONT SIZE=2><P>(3)</SUP></FONT></TD>
<TD WIDTH="97%" VALIGN="TOP" COLSPAN=25 HEIGHT=20>
<FONT SIZE=2><P>The ratio of earnings to fixed charges for the year 2000 indicates a ratio of less than one-to-one.  The dollar amount of the deficiency is approximately $5.6 billion.</FONT></TD>
</TR>
</TABLE>

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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>9
<FILENAME>q305_ex31-1.htm
<DESCRIPTION>CORP CEO/CFO SECTION 302 CERTIFICATION
<TEXT>
<HTML>
<HEAD>

<META NAME="Generator" CONTENT="Microsoft Word 97">
<TITLE>San Francisco -- Pacific Gas and Electric Company today announced it has filed in federal district court in San Francisco, asking the court to declare that the federally-approved wholesale power costs the utility has incurred to serve its customers are r</TITLE>
</HEAD>
<BODY LINK="#0000ff" VLINK="#800080">

<FONT SIZE=3><P ALIGN="RIGHT">Exhibit 31.1</P>
<P ALIGN="CENTER">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER<BR>
PURSUANT TO SECURITIES AND EXCHANGE COMMISSION RULE 13a-14(a)</P>
</FONT><FONT FACE="Courier New" SIZE=3><P ALIGN="CENTER"></P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">I, Peter A. Darbee, certify that:</P>
</FONT><FONT FACE="Courier New" SIZE=3>
<OL>

</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 of PG&amp;E Corporation;</LI></P>
</FONT><FONT FACE="Courier New" SIZE=3>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </LI></P>
</FONT><FONT FACE="Courier New" SIZE=3>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </LI></P>
</FONT><FONT FACE="Courier New" SIZE=3>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)</FONT><FONT SIZE=3 COLOR="#808080">) </FONT><FONT SIZE=3>for the registrant and have:</LI></P></OL>

</FONT><FONT FACE="Courier New" SIZE=3><P ALIGN="JUSTIFY"></P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=730>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and</FONT></TD>
</TR>
</TABLE>

<OL START=5>

<FONT SIZE=3><P ALIGN="JUSTIFY"><LI>The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</LI></P></OL>

</FONT><FONT FACE="Courier New" SIZE=3><P ALIGN="JUSTIFY"></P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=730>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</FONT></TD>
</TR>
</TABLE>

<FONT FACE="Courier New" SIZE=3></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=838>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Date: November 2, 2005</FONT></TD>
<TD WIDTH="78%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>PETER A. DARBEE&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="78%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Peter A. Darbee</FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="78%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Officer </FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3><P ALIGN="CENTER">CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER<BR>
PURSUANT TO SECURITIES AND EXCHANGE COMMISSION RULE 13a-14(a)</P>
</FONT><FONT FACE="Courier New" SIZE=3><P ALIGN="CENTER"></P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">I, Christopher P. Johns, certify that:</P>
</FONT><FONT FACE="Courier New" SIZE=3>
<OL>

</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 of PG&amp;E Corporation;</LI></P>
</FONT><FONT FACE="Courier New" SIZE=3>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </LI></P>
</FONT><FONT FACE="Courier New" SIZE=3>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </LI></P>
</FONT><FONT FACE="Courier New" SIZE=3>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) </FONT><FONT SIZE=3 COLOR="#808080">and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) </FONT><FONT SIZE=3>for the registrant and have:</LI></P>
</FONT><FONT FACE="Courier New" SIZE=3></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=730>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3><P ALIGN="JUSTIFY"><LI>The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</LI></P></OL>

</FONT><FONT FACE="Courier New" SIZE=3><P ALIGN="JUSTIFY"></P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=730>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</FONT></TD>
</TR>
<TR><TD WIDTH="10%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="90%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</FONT></TD>
</TR>
</TABLE>

<FONT FACE="Courier New" SIZE=3></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=838>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Date: November 2, 2005</FONT></TD>
<TD WIDTH="78%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>CHRISTOPHER P. JOHNS&nbsp;&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></FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="78%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Christopher P. Johns</FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="78%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President, Chief Financial Officer and Treasurer</FONT></TD>
</TR>
</TABLE>

<FONT FACE="Courier New" SIZE=2></FONT></BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>10
<FILENAME>q305_31-2.htm
<DESCRIPTION>UTILITY CEO/CFO SECTION 302 CERTIFICATION
<TEXT>
<HTML>
<HEAD>

<META NAME="Generator" CONTENT="Microsoft Word 97">
<TITLE>San Francisco -- Pacific Gas and Electric Company today announced it has filed in federal district court in San Francisco, asking the court to declare that the federally-approved wholesale power costs the utility has incurred to serve its customers are r</TITLE>
</HEAD>
<BODY LINK="#0000ff" VLINK="#800080">

<FONT SIZE=3><P ALIGN="RIGHT">Exhibit 31.2</P>
<P ALIGN="CENTER">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER<BR>
PURSUANT TO SECURITIES AND EXCHANGE COMMISSION RULE 13a-14(a)</P>
</FONT><FONT FACE="Courier New" SIZE=3><P ALIGN="CENTER"></P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">I, Gordon R. Smith, certify that:</P>
</FONT><FONT FACE="Courier New" SIZE=3>
<OL>

</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 of Pacific Gas and Electric Company;</LI></P>
</FONT><FONT FACE="Courier New" SIZE=3>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </LI></P>
</FONT><FONT FACE="Courier New" SIZE=3>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </LI></P>
</FONT><FONT FACE="Courier New" SIZE=3>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)</FONT><FONT SIZE=3 COLOR="#808080">) </FONT><FONT SIZE=3>for the registrant and have:</LI></P></OL>

</FONT><FONT FACE="Courier New" SIZE=3><P ALIGN="JUSTIFY"></P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=655>
<TR><TD WIDTH="11%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and</FONT></TD>
</TR>
</TABLE>

<FONT FACE="Courier New" SIZE=3><P ALIGN="JUSTIFY"></P>
<OL START=5>

</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</LI></P></OL>

</FONT><FONT FACE="Courier New" SIZE=3><P ALIGN="JUSTIFY"></P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=655>
<TR><TD WIDTH="11%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</FONT></TD>
</TR>
</TABLE>

<FONT FACE="Courier New" SIZE=3></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=838>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Date: November 2, 2005</FONT></TD>
<TD WIDTH="78%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>GORDON R. SMITH&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="78%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gordon R. Smith</FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="78%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Officer </FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3><P ALIGN="CENTER">CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER<BR>
PURSUANT TO SECURITIES AND EXCHANGE COMMISSION RULE 13a-14(a)</P>
</FONT><FONT FACE="Courier New" SIZE=3><P ALIGN="CENTER"></P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY">I, Christopher P. Johns, certify that:</P>
</FONT><FONT FACE="Courier New" SIZE=3>
<OL>

</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 of Pacific Gas and Electric Company;</LI></P>
</FONT><FONT FACE="Courier New" SIZE=3>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </LI></P>
</FONT><FONT FACE="Courier New" SIZE=3>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </LI></P>
</FONT><FONT FACE="Courier New" SIZE=3>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"><LI>The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) </FONT><FONT SIZE=3 COLOR="#808080">and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) </FONT><FONT SIZE=3>for the registrant and have:</LI></P>
</FONT><FONT FACE="Courier New" SIZE=3></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=655>
<TR><TD WIDTH="11%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3><P ALIGN="JUSTIFY"><LI>The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</LI></P></OL>

</FONT><FONT FACE="Courier New" SIZE=3><P ALIGN="JUSTIFY"></P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=655>
<TR><TD WIDTH="11%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and</FONT></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP"><DIR>

<FONT SIZE=3><P ALIGN="JUSTIFY">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</DIR>
</FONT></TD>
<TD WIDTH="89%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</FONT></TD>
</TR>
</TABLE>

<FONT FACE="Courier New" SIZE=3></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=838>
<TR><TD WIDTH="22%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">Date: November 2, 2005</FONT></TD>
<TD WIDTH="78%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>CHRISTOPHER P. JOHNS&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="78%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Christopher P. Johns</FONT></TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="78%" VALIGN="TOP">
<FONT SIZE=3><P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President, Chief Financial Officer</P>
<P ALIGN="JUSTIFY">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and Treasurer</P>
</FONT><FONT SIZE=1><P ALIGN="JUSTIFY"></P>
</FONT><FONT SIZE=3><P ALIGN="JUSTIFY"> </FONT></TD>
</TR>
</TABLE>

<FONT SIZE=1><P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P></FONT></BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>11
<FILENAME>q305_ex32-1corp906cert.htm
<DESCRIPTION>CORP CEO/CFO SECTION 906 CERTIFICATION
<TEXT>
<HTML>
<HEAD>

<META NAME="Generator" CONTENT="Microsoft Word 97">
<TITLE>Exhibit A</TITLE>
<META NAME="Template" CONTENT="C:\Office97\Office\html.dot">
</HEAD>
<BODY LINK="#0000ff" VLINK="#800080">

<B><P ALIGN="RIGHT">Exhibit 32.1</P>
<FONT SIZE=4><P ALIGN="CENTER">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER<BR>
PURSUANT TO 18 U.S.C. SECTION 1350</P>
</B></FONT><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the accompanying Quarterly Report on Form 10-Q of PG&amp;E Corporation for the quarter ended September 30, 2005, I, Peter A. Darbee, President and Chief Executive Officer of PG&amp;E Corporation, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that:</P>
<P ALIGN="RIGHT"><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=547>
<TR><TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)</TD>
<TD WIDTH="80%" VALIGN="TOP">
<P>such Quarterly Report on Form 10-Q of PG&amp;E Corporation for the quarter ended September 30, 2005, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and </TD>
</TR>
<TR><TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="80%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
<TR><TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)</TD>
<TD WIDTH="80%" VALIGN="TOP">
<P>the information contained in such Quarterly Report on Form 10-Q of PG&amp;E Corporation for the quarter ended September 30, 2005, fairly presents, in all material respects, the financial condition and results of operations of PG&amp;E Corporation.</TD>
</TR>
<TR><TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="80%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
</TABLE>
</P>

<P ALIGN="RIGHT">&nbsp;</P>
<P>&nbsp;</P>
<P ALIGN="RIGHT"><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=522>
<TR><TD WIDTH="37%" 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;</TD>
<TD WIDTH="63%" VALIGN="TOP">
<P>PETER A. DARBEE</TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="63%" VALIGN="TOP">
<U><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;</U></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="63%" VALIGN="TOP">
<P>PETER A. DARBEE.</TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="63%" VALIGN="TOP">
<P>President and Chief Executive Officer</TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="63%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
</TABLE>
</P>

<P ALIGN="RIGHT">November 2, 2005 </P>
<P>&nbsp;</P>
<B><P>&nbsp;</P>
<FONT SIZE=4><P ALIGN="CENTER">CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER<BR>
PURSUANT TO 18 U.S.C. SECTION 1350</P>
</B></FONT><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the accompanying Quarterly Report on Form 10-Q of PG&amp;E Corporation for the quarter ended September 30, 2005, I, Christopher P. Johns, Senior Vice President, Chief Financial Officer and Treasurer of PG&amp;E Corporation, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that:</P>
<P ALIGN="RIGHT"><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=547>
<TR><TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)</TD>
<TD WIDTH="80%" VALIGN="TOP">
<P>such Quarterly Report on Form 10-Q of PG&amp;E Corporation for the quarter ended September 30, 2005, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and </TD>
</TR>
<TR><TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="80%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
<TR><TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)</TD>
<TD WIDTH="80%" VALIGN="TOP">
<P>the information contained in such Quarterly Report on Form 10-Q of PG&amp;E Corporation for the quarter ended September 30, 2005, fairly presents, in all material respects, the financial condition and results of operations of PG&amp;E Corporation.</TD>
</TR>
<TR><TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="80%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
</TABLE>
</P>

<P ALIGN="RIGHT">&nbsp;</P>
<P>&nbsp;</P>
<P ALIGN="RIGHT"><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=486>
<TR><TD WIDTH="32%" 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;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>CHRISTOPHER P. JOHNS</TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<U><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;</U></TD>
</TR>
<TR><TD WIDTH="32%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">
<P>CHRISTOPHER P. JOHNS </TD>
</TR>
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<P>&nbsp;</TD>
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<P>Senior Vice President, </TD>
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<P>Chief Financial Officer and Treasurer </TD>
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<P>&nbsp;</TD>
<TD WIDTH="68%" VALIGN="TOP">&nbsp;</TD>
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<TYPE>EX-32.2
<SEQUENCE>12
<FILENAME>q305_ex32-2906cert.htm
<DESCRIPTION>UTILITY CEO/CFO SECTION 906 CERTIFICATION
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<B><P ALIGN="RIGHT">Exhibit 32.2</P>

<FONT SIZE=4><P ALIGN="CENTER">CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER<BR>
PURSUANT TO 18 U.S.C. SECTION 1350 <BR>
</P>
</B></FONT>
<P>&#9;In connection with the accompanying Quarterly Report on Form 10-Q of Pacific Gas and Electric Company for the quarter ended September 30, 2005, I, Gordon R. Smith, President and Chief Executive Officer of Pacific Gas and Electric Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that:</P>

<P ALIGN="RIGHT"><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=542>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;</TD>
<TD WIDTH="86%" VALIGN="TOP">
<P>such Quarterly Report on Form 10-Q of Pacific Gas and Electric Company for the quarter ended September 30, 2005, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and </TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="86%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;</TD>
<TD WIDTH="86%" VALIGN="TOP">
<P>the information contained in such Quarterly Report on Form 10-Q of Pacific Gas and Electric Company for the quarter ended September 30, 2005, fairly presents, in all material respects, the financial condition and results of operations of Pacific Gas and Electric Company.</TD>
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<P><BR>
<BR>
<BR>
</P>

<P>&nbsp;</P>
<P>&nbsp;</P>
<P ALIGN="RIGHT"><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=463>
<TR><TD WIDTH="43%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="57%" VALIGN="TOP">
<P>GORDON R. SMITH</TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="57%" VALIGN="TOP">
<U><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;</U></TD>
</TR>
<TR><TD WIDTH="43%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="57%" VALIGN="TOP">
<P>GORDON R. SMITH</TD>
</TR>
<TR><TD WIDTH="43%" 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;</TD>
<TD WIDTH="57%" VALIGN="TOP">
<P>President and Chief Executive Officer </TD>
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</TABLE>
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<P>November 2, 2005 </P>

<P>&nbsp;</P>
<P>&nbsp;</P>
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<P>&nbsp;</P>
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<B><P> </P>
<FONT SIZE=4><P ALIGN="CENTER">CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER<BR>
PURSUANT TO 18 U.S.C. SECTION 1350<BR>
</P>
</B></FONT><P>&#9;In connection with the accompanying Quarterly Report on Form 10-Q of Pacific Gas and Electric Company for the quarter ended September 30, 2005, I, Christopher P. Johns, Senior Vice President, Chief Financial Officer and Treasurer of Pacific Gas and Electric Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief, that:</P>

<P ALIGN="RIGHT"><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=542>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;</TD>
<TD WIDTH="86%" VALIGN="TOP">
<P>such Quarterly Report on Form 10-Q of Pacific Gas and Electric Company for the quarter ended September 30, 2005, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and </TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="86%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;</TD>
<TD WIDTH="86%" VALIGN="TOP">
<P>the information contained in such Quarterly Report on Form 10-Q of Pacific Gas and Electric Company for the quarter ended September 30, 2005, fairly presents, in all material respects, the financial condition and results of operations of Pacific Gas and Electric Company.</TD>
</TR>
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<P>&nbsp;</P>
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<TR><TD WIDTH="36%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64%" VALIGN="TOP">&nbsp;</TD>
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<TR><TD WIDTH="36%" VALIGN="TOP">&nbsp;</TD>
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<U><P>CHRISTOPHER P. JOHNS___________</U></TD>
</TR>
<TR><TD WIDTH="36%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64%" VALIGN="TOP">
<P>CHRISTOPHER P. JOHNS</TD>
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<TR><TD WIDTH="36%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="64%" VALIGN="TOP">
<P>Senior Vice President, Chief Financial Officer</TD>
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<P>and Treasurer </TD>
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<P>November 2, 2005</P>

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