Exhibit 99
PG&E Corporation:
Strategic Value Creation
Edison Electric Institute International Utility Conference
London Hilton on Park Lane, London, UK
March 4 – March 7, 2007

2
Cautionary Statement Regarding Forward-Looking
Information

3
Discussion Outline
•
PG&E Company Overview
•
Value Creation Strategy
•
Climate Change Profile

Electric and gas distribution customers | 5.1 MM electric 4.2 MM gas
Electric transmission circuits | 18,640 miles (29,880 kilometers)
Gas transmission backbone | 6,138 miles (9,839 kilometers)
Electric generation capacity | 6,271 MW
Workforce | 20,400 employees

4
Pacific Gas and Electric Company (PG&E)
•
Provides energy to nearly 1 in 20 people in the United States
•
70,000 square-mile (112,000 square-kilometer) service territory
•
2007 projected rate base of $17.3 B

We act with integrity and communicate honestly and openly.
We are passionate about meeting our customers’ needs
and delivering for our shareholders.
We are accountable for all of our own actions: these include
safety, protecting the environment, and supporting our communities.
We work together as a team and are committed to excellence and innovation.
We respect each other and celebrate our diversity.
The
leading
utility in the
United States
Delighted Energized Rewarded
customers employees shareholders
Our values
Operational excellence
Transformation
Our strategies
Our goals
Our vision
5
Strategic Direction

6
PG&E’s Business Priorities 2006-2010
1. Advance business transformation
2. Provide attractive shareholder returns
3. Increase utility infrastructure investment
4. Implement effective energy procurement plan
5. Improve reputation through effective
communications
6. Evaluate the evolving industry for related investment
opportunities

7
Value Creation Strategy
•
Solid Regulated Growth
•
Business Transformation
•
Environmental Leadership
Nationally-recognized energy efficiency programs
-
-
Growing renewable resource portfolio
-
Clean conventional generation additions
Helping to shape California and U.S. greenhouse gas
legislation
-

* CPUC jurisdictional equity ratio is mandated by the Bankruptcy Settlement until PG&E achieves an A- rating or its equivalent from S&P or
Moody’s.
** The remainder of rate base is FERC jurisdictional – with a targeted 12% ROE.
8
Solid Regulated Growth
•
Regulated Earnings Drivers:
Authorized equity ratio: 52%; Authorized ROE: 11.35% (CPUC)*
Projected 2007 total rate base: $17.3 B (CPUC ~85% of rate base)**
•
Regulatory Environment
Forward-looking approvals for revenue and cost recovery
“Decoupling” of sales levels and revenue requirement collection
Pass-through for energy procurement cost differences from revenue requirements
•
2006 Rate Base Levels (CPUC jurisdictional unless indicated):
Electric and gas distribution: $10.3 B
Electric procurement and owned generation: $1.8 B
Natural gas transmission: $1.5 B
Electric transmission: $2.3 B (FERC regulated)
•
Credit Ratings
Utility issuer rating: BBB (S&P) and Baa1 (Moody’s)
Utility unsecured debt: BBB (S&P) and Baa1 (Moody’s)

Proceeding | Status
2007 GRC Settlement | • Final decision after March 15, 2007
2007 Renewable Energy Solicitation | • RPS solicitation filed March 12, 2007 • Expect contracts executed by 2007 year end
2006 Long-Term Procurement (Electric resource needs beyond 2011) | • L-T Plan filed in December 2006 • Final decision expected mid-2007 or later
FERC TO9 (2008 electric transmission rates) | • Settlement filed February 2007 • Final decision expected May 2007
Gas Accord III (Post-2007 gas transmission and storage rates) | • Filing expected March 15, 2007 • Final decision expected 2007 year end

9
Key Regulatory Proceedings

4,714
4,927
5,052
5,212
5,302
10
2007 GRC Proposed Settlement:
Distribution and Generation

*Reg G reconciliation to GAAP for 2005 and 2006 EPS from Operations, and 2007 EPS Guidance available in
Appendix and at www.pge-corp.com
$2.70-2.80
11
EPS Guidance and Growth
EPS from Operations*: 2007 guidance of $2.70-$2.80 per share
5-Year projected EPS growth of at least 7.5%

Year | Gross Costs | Gross Benefits | Percentage
2006 | $265 MM | $175 MM | 65%
2005 | $125 MM | $20 M | 15%

•
2006 benefits result from initiatives that were
implemented in 2005 and 2006
•
44 of 77 planned Transformation initiatives
deployed
•
Net benefits anticipated in 2008 and beyond
12
Business Transformation Progress
Benefits from Transformation are increasingly
offsetting the costs:

13
PG&E Environmental Leadership
Electric Resources “Preferred Loading Order”:
•
Energy Efficiency/Demand-Side Management Programs
•
Renewable Resources
•
Distributed Generation
•
Clean Conventional Generation

Source: California Energy
Commission
Why is California successful?
•
Regulatory policy of “decoupling” sales from revenues to support conservation
•
Large scale, sustained energy efficiency programs over the past 30 years
•
Highly effective building codes and standards programs
14
Per Capita Electricity Consumption

Energy Efficiency Savings: Past and Future
MW Savings: Historic & Target
15

•
Renewable Portfolio Standard target is 20% by 2010
•
For 2006, PG&E is currently at 12% RPS deliveries, or 16%-18% including all signed
contracts*
•
1% of load = 730 GWh
* Assumes all signed contracts perform.
16
PG&E’s Renewable Resource Procurement

* Approximately 12% of total retail sales are supplied by eligible renewable resources coming from utility-owned, QF,
Irrigation District, and other sources. Other generation includes diesel fuel and petroleum coke (charcoal)
2006 Energy Portfolio *
17
PG&E: Existing Resource Mix

Note: Construction costs for the utility-owned generation are estimated to be in the range of $900 – 1,100 per KW.
18
2006 Long-Term RFO Contract Approvals

2004 CO 2 Emissions and Emission Rates*
Source: Natural Resources Defense Council and Innovest
* Comparison companies selected by Innovest. Data include emissions of regulated and unregulated
plants. 2004 is the most recent data available.
19
Relative Generation CO 2 Emissions Rates

20
PCG: Investment Conclusion
ü
Delivering solid regulated returns with upside
ü
Well positioned for the future
Focused on operational excellence and the customer
Leader in energy efficiency and energy policy
Helping to shape future legislation/regulation

Appendix
•
Business Profile
•
Ratemaking Framework
•
Reg G Reconciliations

22
Electric Sales Outlook
Average Electric Sales Growth of Approx. 1% Per Yr.

23
Gas Sales Outlook
Average Gas Sales Growth of Approx. 1% Per Yr.

Gas Customers: 4.2 Million
(836 bcf delivered)
Electric Customers: 5.1 Million
(84,310 GWH delivered)
Commercial
40%
Residential
37%
Industrial
18%
Agricultural
& Other
5%
24
2006 PG&E Customer Profiles – % by Sales

* Authorized revenues = operating costs + (rate of return x rate base)
Rate base = net plant ± adjustments to approximate invested capital
25
Electric & Gas Distribution
Business Scope
•
Retail electricity and natural gas distribution service (construction,
operations, and maintenance)
•
Customer services (call centers, meter reading, billing)
•
5.1 million electric and 4.2 million gas customer accounts
•
Service territory covers 70,000 square miles and 47 counties
Primary Assets
•
$10.3 billion of rate base (2006 wtd. avg.)
Revenues/Margins
•
Cost of service ratemaking*
•
Formulaic attrition revenue increases (through 2006)
•
Revenues stabilized by sales balancing accounts

Business Scope
•
Wholesale electric transmission services (construction,
maintenance)
•
Operation by CA Independent System Operator
Primary Assets
•
$2.3 billion of rate base (2006 wtd. avg.)
Revenues/Margins
•
Federally regulated (FERC)
•
Cost of service ratemaking
•
Significant growth in rate base
•
Revenues vary with system load
transmission lines
18,640 circuit miles
of electric
Electric Transmission
26

6,138 miles of backbone transportation import capacity
of 2.0 bcf/day Canadian gas,
1.1 bcf/day Southwest gas
•
•
Three storage facilities with 42.0 bcf cycle capacity
Malin
, OR
Topock
Burney
Tionesta
Gerber
Delevan
Bethany
Panoche
Kettleman
Kern River Station
Hinkley
C
C
C
C
S
C
S
Los
Medanos
McDonald Island
Milpitas
C
C
C
Antioch
Malin
, OR
Topock
Burney
Tionesta
Gerber
Delevan
Bethany
Panoche
Kettleman
Kern River Station
Hinkley
C
C
C
C
C
C
C
C
S
S
C
C
S
S
Los
Medanos
McDonald Island
Milpitas
C
C
C
C
C
C
Antioch
27
Natural Gas Transmission
Gas Transmission Business Scope
•
Natural gas transportation, storage, parking and lending services
•
C
businesses, industrial customers, California electric generators, and
marketers
ustomers: PG&E’s natural gas distribution and electric generation
Primary Assets
•
$1.5 billion of rate base (2006 wtd. avg.)
Revenues/Margins
•
State-regulated (CPUC)
•
Incentive ratemaking framework (Gas Accord)
•
Revenues vary with throughput

Helms
Pumped
Storage
Humboldt
Diablo Canyon
Nuclear Plant
Conventional
Hydroelectric
facilities
28
Electric Procurement and Owned Generation
Business Scope
•
Electricity and ancillary services from owned/controlled
resources
•
Energy procurement program
Primary Assets
•
Diablo Canyon nuclear power plant (2,240 MW)
•
Largest privately owned hydro system (3,896 MW)
•
$1.8 billion rate base (2006 wtd. avg.)
•
Funded nuclear plant decommissioning trusts of $1.6 billion
Revenues/Margins
•
Cost of service ratemaking for utility owned generation
•
Power procurement cost recovery in place
•
More than 2,700 MW of new generation to be owned/contracted by 2010

Balancing Accounts = | • Cost of procuring energy • Sales volume • Selected other elements of operating costs such as energy conservation programs

Ratemaking = Projected Test Year
w/ Attrition adjustments

Rate Base = | Net Plant (in service) - deferred taxes from accelerated depreciation +/- net working capital (may exclude many balance sheet assets or liabilities)

29
Ratemaking Summary

30
2005 and 2006 EPS - Reg G Reconciliation

31
2007 EPS Guidance - Reg G Reconciliation

* Rate Reduction Bonds are fully retired at the end of 2007.
Carrying cost credit is a reduction to utility earnings (e.g. average rate base x equity ratio x ROE).
Estimated carrying cost credits assume a utility equity ratio of 52% and ROE at 11.35%.

| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012
Rate Reduction Bond and Energy Recovery Bond Average Deferred Tax Balance | $1,125 | $878 | $683 | $542 | $396 | $242 | $82
Estimated Carrying Cost Credit * | ($66) | ($52) | ($40) | ($32) | ($23) | ($14) | ($5)

Estimated Average Deferred Tax Balances and Carrying Cost Credit Impacts ($MM)
32
Carrying Cost Credit Impacts