Exhibit 99.2

Table 1: PG&E Corporation Business Priorities 2007-2011

1.    Advance business transformation

2.    Provide attractive shareholder returns

3.    Increase investment in utility infrastructure

4.    Implement an effective energy procurement plan

5.    Improve reputation through more effective communications

6.    Evaluate the evolving industry and related investment opportunities

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Table 2: Reconciliation of PG&E Corporation’s Earnings from Operations to Consolidated Net Income in Accordance with Generally Accepted Accounting Principles ("GAAP")

Second Quarter and Year-to-Date, 2007 vs. 2006

(in millions, except per share amounts)

	Three months ended June 30,																Six months ended June 30,
	Earnings (Loss)								Earnings (Loss) per Common Share (Diluted)								Earnings (Loss)								Earnings (Loss) per Common Share (Diluted)
	2007				2006				2007				2006				2007				2006				2007				2006
PG&E Corporation Earnings from Operations (1)	$	269			$	228			$	0.74			$	0.64			$	525			$	442			$	1.45			$	1.24
Items Impacting     Comparability (2)
Scheduling Coordinator Cost Recovery (3)		-				22				-				0.06				-				22				-				0.06
Environmental Remediation Liability (4)		-				(18	)			-				(0.05	)			-				(18	)			-				(0.05	)
Total		-				4				-				0.01				-				4				-				0.01
PG&E Corporation Earnings on a GAAP basis	$	269			$	232			$	0.74			$	0.65			$	525			$	446			$	1.45			$	1.25

1.	Earnings from operations exclude items impacting comparability.
2.	Items impacting comparability reconcile earnings from operations with consolidated net income as reported in accordance with GAAP.  For the three and six months ended June 30, 2007, PG&E Corporation did not have any items impacting comparability to report.
3.	Items impacting comparability for the three and six months ended June 30, 2006 reflect the recognition of approximately $22 million ($0.06 per common share), after tax, of a regulatory asset related to certain scheduling coordinator ("SC") costs incurred from 1998 to 2005 and a reversal of a reserve for SC costs under the Scheduling Coordinator Services ("SCS") Tariff offset by SCS refunds to the existing wholesale transmission customers.
4.	Items impacting comparability for the three and six months ended June 30, 2006 reflect an increase of approximately $18 million ($0.05 per common share), after-tax, in the estimated cost of environmental remediation associated with the Utility’s gas compressor station located near Hinkley, California as a result of changes in the California Regional Water Quality Control Board’s imposed remediation levels.

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Table 3: Reconciliation of Pacific Gas and Electric Company’s Earnings from Operations to Consolidated Net Income in Accordance with GAAP

Second Quarter and Year-to-Date, 2007 vs. 2006

(in millions)

		Three months ended June 30,								Six months ended June 30,
		Earnings (Loss)								Earnings (Loss)
		2007				2006				2007				2006
Pacific Gas and Electric Company Earnings from Operations (1)		$	270			$	223			$	528			$	437
Items Impacting Comparability (2)
Scheduling Coordinator Cost Recovery (3)			-				22				-				22
Environmental Remediation Liability (4)			-				(18	)			-				(18	)
Total			-				4				-				4
Pacific Gas and Electric Company Earnings on a GAAP basis		$	270			$	227			$	528			$	441

1.	Earnings from operations exclude items impacting comparability.
2.	Items impacting comparability reconcile earnings from operations with consolidated net income as reported in accordance with GAAP.  For the three and six months ended June 30, 2007, Pacific Gas and Electric Company did not have any items impacting comparability to report.
3.	Items impacting comparability for the three and six months ended June 30, 2006 reflect the recognition of approximately $22 million, after tax, of a regulatory asset related to certain SC costs incurred from 1998 to 2005 and a reversal of a reserve for SC costs under the SCS Tariff offset by SCS refunds to the existing wholesale transmission customers.
4.	Items impacting comparability for the three and six months ended June 30, 2006 reflect an increase of approximately $18 million, after-tax, in the estimated cost of environmental remediation associated with the Utility’s gas compressor station located near Hinkley, California as a result of changes in the California Regional Water Quality Control Board’s imposed remediation levels.

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Table 4: PG&E Corporation Earnings per Common Share ("EPS") from Operations

Second Quarter 2007 vs. Second Quarter 2006

 ($/Share, Diluted)

Q2 2006 EPS from Operations (1)		$	0.64
Rate base revenue increase			0.09
Gas transmission revenue			0.02
Miscellaneous items			0.01
Environmental remediation			(0.01	)
Share variance			(0.01	)
Q2 2007 EPS from Operations (1)		$	0.74

Year-to-Date 2007 vs. Year-to-Date 2006

 ($/Share, Diluted)

Q2 2006 YTD EPS from Operations (1)		$	1.24
Rate base revenue increase			0.16
Gas transmission revenue			0.02
Storm costs (2)			0.02
Miscellaneous items			0.03
Environmental remediation			(0.01	)
Share variance			(0.01	)
Q2 2007 YTD EPS from Operations (1)		$	1.45

1.	See Table 2 for a reconciliation of EPS from operations to EPS on a GAAP basis.
2.	Costs incurred in 2006 with lower level of costs in 2007.

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Table 5: PG&E Corporation Share Statistics

Second Quarter 2007 vs. Second Quarter 2006

(in millions, except per share amounts)

		Second Quarter  2007				Second Quarter  2006				% Change
Common Stock Data
Book Value per share – end of period (1)		$	22.09			$	20.40				8.28	%
Weighted average common shares outstanding, basic			350				346				1.16	%
Employee stock-based compensation			2				3				(33.33	)%
Weighted average common shares outstanding, diluted			352				349				0.86	%
9.5% Convertible Subordinated Notes (participating securities)			19				19				-
Weighted average common shares outstanding and participating securities, diluted			371				368				0.82	%

1.    Common shareholders’ equity per common share outstanding at period end.

Source:    PG&E Corporation’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.

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Table 6: Operational Performance Metrics

Second Quarter Actual 2007 vs. Targets 2007

								2007
				Percentage Weight (1)				Q2 YTD Actual				Q2 YTD Target				EOY Target
	1. Earnings from operations (in millions) (Earnings from ongoing core operations)				50%			$	525			See note (2)				See note (2)
	2. J.D. Power Customer Satisfaction Index (Composite of J.D. Power residential and business customer surveys)				20%				693				678				676
	3. Business Transformation Performance (Composite of five Transformation metrics)				20%				0.98				1.00				1.00
	4. Employee Engagement Premier Survey (Measurement of employee engagement at PG&E)				5%			See note (3)				N/A					66%
	5. Safety Performance (Measurement of occupational injury or illness based on OSHA Recordables)				5%				4.36				4.48				4.50

1.	Represents weighting used in calculating PG&E Corporation Short-Term Incentive Plan performance for management employees.
2.	Internal target not publicly disclosed but is consistent with publicly disclosed guidance for 2007 EPS from operations of $2.70 - $2.80.
3.	Annual survey results will be available in early February 2008.

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 DEFINITIONS OF 2007 OPERATIONAL PERFORMANCE METRICS FROM TABLE 6:

1.	Earnings from Operations:
	Earnings from operations measures PG&E Corporation’s earnings power from ongoing core operations.  It allows investors to compare the underlying financial performance of the business from one period to another, exclusive of items that management believes do not reflect the normal course of operations (items impacting comparability).  The measurement is not in accordance with GAAP.  For a reconciliation of earnings from operations to consolidated net income in accordance with GAAP, see Tables 2 and 3 above. The 2007 target for earnings from operations is based on the Utility’s 2007 authorized return on equity.  This target is not publicly reported but is consistent with PG&E Corporation’s publicly disclosed guidance range provided for 2007 EPS from operations of $2.70-$2.80.
2.	J.D. Power Customer Satisfaction Index:
	Pacific Gas and Electric Company measures residential and business customer satisfaction with annual industry-wide surveys conducted by J.D. Power and Associates, as well as with proprietary studies using the same survey methodology in interim periods.  The overall customer satisfaction metric represents the year-to-date average of the residential and business overall customer satisfaction scores from both the J.D. Power-administered and proprietary surveys. The metric is calculated by first combining the available residential and business satisfaction scores (weighted 60% and 40%, respectively) in each period surveyed and then averaging all available composite scores for the year-to-date metric value.
3.	Business Transformation Performance:
	The Business Transformation (BT) index is comprised of five measurement points that define success in achieving key BT operational, financial, and post-BT implementation objectives.  These five measurement points are: a.             Overall BT cost performance in comparison to budgeted amounts; b.             Overall BT benefit performance in comparison to planned/budgeted amounts; c.             New business customer connection performance improvement for cycle time and number of customer commitments met;  d.             SmartMeterTM project performance for number of meters installed and activated; and e.             BT Foundational release schedule and scope success. The measurement points are individually scored on an index scaled from 0 to 2.  These scores then are averaged with equal weighting to calculate the overall BT performance index score.
4.	Employee Engagement Premier Survey:
	The employee engagement premier survey is designed around 15 key drivers of employee engagement.  The average overall employee engagement score provides a comprehensive metric that is derived by averaging the percent favorable responses from all 40 core survey items (all fall into one of the 15 key drivers).
5.	Safety Performance:
	An OSHA Recordable is an occupational (job-related) injury or illness that requires medical treatment beyond first aid, or results in work restrictions, death, or loss of consciousness.  The OSHA Recordable Rate is the number of OSHA Recordables per 200,000 hours worked (a rule of thumb is that the OSHA Recordable Rate represents the number of OSHA Recordables per year for every 100 employees).

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Table 7: Pacific Gas and Electric Company Operating Statistics

Second Quarter and Year-to-Date, 2007 vs. 2006

		Three Months Ending June 30,								Six Months Ending June 30,
		2007				2006				2007				2006
Electric Sales (in millions kWh)
Residential			6,973				7,100				14,939				14,841
Commercial			8,399				8,129				16,293				15,935
Industrial			3,764				3,748				7,140				7,382
Agricultural			1,602				791				2,227				1,316
BART, public street and highway lighting			202				200				408				405
Other electric utilities			1				3				2				6
Sales from Energy Deliveries			20,941				19,971				41,009				39,885
Total Electric Customers at June 30											5,097,571				5,039,918
Bundled Gas Sales (in millions MCF)
Residential			38				44				125				123
Commercial			15				18				40				43
Total Bundled Gas Sales			53				62				165				166
Transportation Only			112				105				255				220
Total Gas Sales			165				167				420				386
Total Gas Customers at June 30											4,253,217				4,206,708
Sources of Electric Energy (in millions kWh)
Utility Generation
Nuclear			4,034				3,799				8,943				8,604
Hydro (net)			1,548				4,222				3,691				7,960
Fossil			109				141				234				407
Total Utility Generation			5,691				8,162				12,868				16,971
Purchased Power
Qualifying Facilities			4,137				4,121				8,006				7,711
Irrigation Districts			670				1,797				1,282				3,452
Other Purchased Power			370				650				539				856
Spot Market Purchases/Sales, net			4,610				1,125				7,281				1,162
Total Purchased Power (1)			9,787				7,693				17,108				13,181
Delivery from DWR			4,764				4,261				10,054				9,057
Delivery to Direct Access Customers			1,724				1,900				3,400				3,881
Others (includes energy loss)			(1,025	)			(2,045	)			(2,421	)			(3,205	)
Total Electric Energy Delivered			20,941				19,971				41,009				39,885
Diablo Canyon Performance
Overall capacity factor (including refuelings)			83	%			79	%			93	%			91	%
Refueling outage period		4/30/07-5/29/07				4/17/06-5/25/06				4/30/07-5/29/07				4/17/06-5/25/06
Refueling outage duration during the period (days)			29.8				38.8				29.8				38.8

1. For the three months ended June 30, 2007 and 2006, Total Purchased Power is net of Spot Market Sales of 842 million kWh and 2,609 million kWh, respectively.  For the six months ended June 30, 2007 and 2006, Total Purchased Power is net of Spot Market Sales of 1,575 million kWh and 5,077 million kWh, respectively.

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Table 8: PG&E Corporation EPS Guidance

2007 EPS Guidance

		Low				High
EPS Guidance on an Earnings from Operations Basis		$	2.70			$	2.80
Estimated Items Impacting Comparability		$	0.00			$	0.00
EPS Guidance on a GAAP Basis		$	2.70			$	2.80

2008 EPS Guidance

		Low				High
EPS Guidance on an Earnings from Operations Basis		$	2.90			$	3.00
Estimated Items Impacting Comparability		$	0.00			$	0.00
EPS Guidance on a GAAP Basis		$	2.90			$	3.00

The EPS guidance for 2007 and 2008 are forward-looking statements that are based on various assumptions that may prove to be inaccurate.  Actual results may differ materially.  For a discussion of the factors that may affect future results, see the factors listed in Table 10, the discussion of risk factors in PG&E Corporation’s and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, and the discussion of risk factors in PG&E Corporation's and Pacific Gas and Electric Company's combined Annual Report on Form 10-K for the year ended December 31, 2006.

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Table 9: Rate Base - Pacific Gas and Electric Company

		2006				2007				2008
		Recorded				Estimated				Estimated
Total Weighted Average Rate Base (in billions)		$	15.9			$	17.0			$	18.7

The estimates of rate base for 2007 and 2008 and the forecast of capital expenditures on which the estimates are based, are forward-looking statements that are subject to various risks and uncertainties, including whether the forecasted expenditures will be made within the time periods assumed.  Actual results may differ materially.  For a discussion of the factors that may affect future results, see the factors listed in Table 10, the discussion of risk factors in PG&E Corporation’s and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, and the discussion of risk factors in PG&E Corporation's and Pacific Gas and Electric Company's combined Annual Report on Form 10-K for the year ended December 31, 2006.

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Table 10: General Earnings Sensitivities for 2007 and 2008

PG&E Corporation and Pacific Gas and Electric Company

Variable	Description of Change	Estimated Earnings Impact for 2007	Estimated Earnings Impact for 2008
Rate base	+/- $100 million change in rate base (1)	+/- $6 million	+/- $6 million
Return on equity (ROE)	+/- 0.1% change in earned ROE	+/- $9 million	+/- $10 million
Share count	+/- 1% change in average shares outstanding	-/+ $0.03 per share	-/+ $0.03 per share
Revenues	+/- $7 million change in revenues (pre-tax), including Electric Transmission and California Gas Transmission	+/- $0.01 per share	+/- $0.01 per share

1.    Assumes earning 11.35% on equity portion (52%).

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DISCUSSION RELATED TO TABLES 8, 9, and 10:

Management's statements regarding 2007 and 2008 guidance for earnings from operations per common share for PG&E Corporation, estimated rate base for 2007 and 2008, and general sensitivities for 2007 and 2008 earnings, constitute forward-looking statements that are based on current expectations and assumptions which management believes are reasonable, including that the Utility earns at least its authorized rate of return on equity while growing its asset base and controlling its costs in line with regulatory approvals, and that the ratemaking capital structure is maintained at 52 percent equity. These statements and assumptions are necessarily subject to various risks and uncertainties. Actual results may differ materially. Factors that could cause actual results to differ materially include:

·	the Utility’s ability to timely recover costs through rates;
·	the outcome of regulatory proceedings, including ratemaking proceedings pending at the California Public Utilities Commission ("CPUC") and the Federal Energy Regulatory Commission, ("FERC");
·	the adequacy and price of electricity and natural gas supplies, and the ability of the Utility to manage and respond to the volatility of the electricity and natural gas markets;
·	the effect of weather, storms, earthquakes, fires, floods, disease, other natural disasters, explosions, accidents, mechanical breakdowns, acts of terrorism, and other events or hazards on the Utility’s facilities and operations, its customers and third parties on which the Utility relies;
·	the potential impacts of climate change on the Utility’s electricity and natural gas businesses;
·	changes in customer demand for electricity and natural gas resulting from unanticipated population growth or decline, general economic and financial market conditions, changes in technology, including the development of alternative energy sources, or other reasons;
·	operating performance of the Utility’s Diablo Canyon nuclear generating facilities (“Diablo Canyon”), the occurrence of unplanned outages at Diablo Canyon, or the temporary or permanent cessation of operations at Diablo Canyon;
·	the ability of the Utility to recognize benefits from its initiatives to improve its business processes and customer service;
·	the ability of the Utility to timely complete its planned capital investment projects;
·	the impact of changes in federal or state laws, or their interpretation, on energy policy and the regulation of utilities and their holding companies;
·	the impact of changing wholesale electric or gas market rules, including new rules of the California Independent System Operator to restructure the California wholesale electricity market;
·	how the CPUC administers the conditions imposed on PG&E Corporation when it became the Utility’s holding company;
·	the extent to which PG&E Corporation or the Utility incur costs and liabilities in connection with litigation that are not recoverable through rates, from third parties, or through insurance recoveries;
·	the ability of PG&E Corporation and/or the Utility to access capital markets and other sources of credit;
·	the impact of environmental laws and regulations and the costs of compliance and remediation;
·	the effect of municipalization, direct access, community choice aggregation, or other forms of bypass; and
·	other risks and factors disclosed in PG&E Corporation’s and Pacific Gas and Electric Company’s SEC reports.

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Table 11: Cash Flow Sources and Uses

Year-to-Date 2007

PG&E Corporation

(in millions)

Cash and Cash Equivalents, December 31, 2006		$	456
Sources of Cash
Cash from operations		$	1,236
Net proceeds from sale of assets			8
Net proceeds from issuance of commercial paper			109
Net proceeds from issuance of long-term debt			690
Common stock issued			89
Other			14
		$	2,146
Uses of Cash
Capital expenditures		$	1,320
Increase in restricted cash			13
Investments in and proceeds from nuclear decommissioning trust, net			58
Repayments under credit facilities			300
Rate reduction bonds matured			143
Energy recovery bonds matured			160
Common stock dividends paid			242
		$	2,236
Cash and Cash Equivalents, June 30, 2007		$	366

Source:  PG&E Corporation’s Condensed Consolidated Statements of Cash Flows included in PG&E Corporation’s and Pacific Gas and Electric Company’s combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.

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Table 12: PG&E Corporation’s and Pacific Gas and Electric Company’s Consolidated Cash Position

Second Quarter 2007 vs. Second Quarter 2006

(in millions)

		2007				2006				Change
Cash Flow from Operating Activities (YTD June 30)
PG&E Corporation		$	1			$	30			$	(29	)
Pacific Gas and Electric Company			1,235				1,510				(275	)
		$	1,236			$	1,540			$	(304	)
Consolidated Cash Balance (at June 30)
PG&E Corporation		$	288			$	256			$	32
Pacific Gas and Electric Company			78				165				(87	)
		$	366			$	421			$	(55	)
Consolidated Restricted Cash Balance (at June 30)
PG&E Corporation		$	-			$	-			$	-
Pacific Gas and Electric Company 1			1,445				1,498				(53	)
		$	1,445			$	1,498			$	(53	)

1.    Includes $17 million of restricted cash classified as Other Noncurrent Assets – Other at June 30, 2007.

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements included in PG&E Corporation’s and Pacific Gas and Electric Company’s combined Quarterly Reports on Form 10-Q for the quarters ended June 30, 2007 and June 30, 2006.

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Table 13: PG&E Corporation’s and Pacific Gas and Electric Company’s Long-Term Debt

Second Quarter 2007 vs. Year-End 2006

(in millions)

		Balance at
		June 30, 2007				December 31, 2006
PG&E Corporation
Convertible subordinated notes, 9.50%, due 2010		$	280			$	280
Less: current portion(1)			-				(280	)
			280				-
Utility
Senior notes:
3.60% to 6.05% bonds, due 2009-2037			5,800				5,100
Unamortized discount, net of premium			(20	)			(16	)
Total senior notes			5,780				5,084
Pollution control bond loan agreements, variable rates(2), due 2026(3)			614				614
Pollution control bond loan agreement, 5.35%, due 2016			200				200
Pollution control bond loan agreements, 4.75%, due 2023			345				345
Pollution control bond loan agreements, variable rates(4), due 2016-2026			454				454
Other			-				1
Less: current portion			-				(1	)
Long-term debt, net of current portion			7,393				6,697
Total consolidated long-term debt, net of current portion		$	7,673			$	6,697

1.	Since no holders of the Convertible Subordinated Notes exercised the one-time right to require PG&E Corporation to repurchase the Convertible Subordinated Notes on June 30, 2007, PG&E Corporation has classified the Convertible Subordinated Notes as a noncurrent liability (in Noncurrent Liabilities - Long-Term Debt) in PG&E Corporation’s Condensed Consolidated Balance Sheets as of June 30, 2007.
2.	At June 30, 2007, interest rates on these loans ranged from 3.84% to 3.91%.
3.	These bonds are supported by $620 million of letters of credit which expire on February 24, 2012.  Although the stated maturity date is 2026, the bonds will remain outstanding only if the Utility extends or replaces the letters of credit.
4.	At June 30, 2007, interest rates on these loans ranged from 3.65 % to 3.85%.

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Table 14: PG&E Corporation and Pacific Gas and Electric Company Repayment Schedule and Interest Rates - Long-Term Debt, Rate Reduction Bonds and Energy Recovery Bonds as of June 30, 2007

(in millions, except interest rates)

		2007				2008				2009				2010				2011				Thereafter				Total
Long-term debt:
PG&E Corporation
Average fixed interest rate			-				-				-				9.50	%			-				-				9.50	%
Fixed rate obligations		$	-			$	-			$	-			$	280			$	-			$	-			$	280
Utility
Average fixed interest rate			-				-				3.60	%			-				4.20	%			5.67	%			5.36	%
Fixed rate obligations		$	-			$	-			$	600			$	-			$	500			$	5,245			$	6,345
Variable interest rate as of June 30, 2007																							3.82	%			3.82	%
Variable rate obligations		$	-			$	-			$	-			$	-			$	-			$	1,068			$	1,068
Less: current portion		$	-			$	-			$	-			$	-			$	-			$	-			$	-
Total consolidated long-term debt		$	-			$	-			$	600			$	280			$	500			$	6,313			$	7,693

		2007				2008				2009				2010				2011				Thereafter				Total
Utility
Average fixed interest rate			6.48	%			-				-				-				-				-				6.48	%
Rate reduction bonds		$	147			$	-			$	-			$	-			$	-			$	-			$	147
Average fixed interest rate			4.18	%			4.19	%			4.36	%			4.49	%			4.61	%			4.64	%			4.44	%
Energy recovery bonds		$	179			$	354			$	370			$	386			$	424			$	403			$	2,116

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Table 15: Pacific Gas and Electric Company

Docket Numbers of Selected Regulatory Cases

Name	Brief Description	Docket Number
Gas Accord IV	CPUC proceeding to set rates, terms and conditions for gas transmission and storage services effective January 1, 2008 through 2010.  Settlement filed on March 15, 2007.  Final decision expected by year-end 2007.	A.07-03-012
Cost of Capital 2008	CPUC proceeding to establish capital structure and increase the currently authorized rate of return on equity and rate base for 2008.  Final decision expected by year-end 2007.	A.07-05-008
2006 Long Term Procurement Plan (2006 LTPP)	CPUC proceeding to determine need for new generation in the 10-year period 2007 through 2016.  Also determines how costs associated with new generation will be recovered from customers.  In 2006 plan, PG&E seeks approval to procure up to 2300 MW of new generation.  Final decision expected by year-end 2007.	R.06-02-013
Billing and Collection Investigation	CPUC investigation into past billing and collection practices.  Final decision expected by third quarter 2007.	I.03-01-012
QF Pricing and Policy	CPUC rulemaking proceeding considering various policy and pricing issues related to power purchased from Qualifying Facilities.  Final decision expected by third quarter 2007.	R.04-04-003
Transmission Owner 9 Rate Case (TO9)	Primary FERC rate-making proceeding to determine electric transmission revenues and wholesale and retail transmission rates effective March 1, 2007.  FERC Order approving settlement issued on June 7, 2007.	ER06-1325-000
Transmission Owner 10 Rate Case (TO10)	Primary FERC rate-making proceeding to determine electric transmission revenues and wholesale and retail transmission rates effective October 1, 2007.  Application filed on July 30, 2007.  Final decision expected May 2008.	ER07-1213-000
2007 Renewable Resources  Solicitation and Implementation	2007 Renewable Portfolio Standards solicitation approved in February 2007.  Contracts are expected to be executed by year-end 2007.  A decision on the use of short-term contracts is expected by third quarter 2007.  A decision on the use of tradable Renewable Energy Credits is expected by year-end 2007.	R.06-05-027 D.07-02-011 R.06-02-012 D.07-07-027
Energy Efficiency Order Instituting Rulemaking (OIR) Post-2005	Rulemaking to determine Energy Efficiency policies and programs including shareholder risk/return mechanism.  A final decision on shareholder incentives is expected by year-end 2007.	R.06-04-010
Catastrophic Event Memorandum Account (CEMA)	CPUC proceeding to recover costs of responding to the 2005-2006 winter storms and the July 2006 “heat storm.” A decision denying heat storm costs was issued in July 2007. PG&E Corporation and the Utility are unable to predict when a final decision regarding winter storm costs will be issued.	A.06-11-005 D.07-07-041

For a discussion of these regulatory cases, see PG&E Corporation's and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, and PG&E Corporation’s and Pacific Gas and Electric Company's Annual Report on Form 10-K for the year ended December 31, 2006.

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Table 16: PG&E Corporation

Condensed Consolidated Statements of Income

(in millions, except per share amounts)

		(Unaudited)
		Three Months Ended								Six Months Ended
(in millions, except per share amounts)		June 30,								June 30,
		2007				2006				2007				2006
Operating Revenues
Electric		$	2,359			$	2,214			$	4,534			$	4,077
Natural gas			828				803				2,009				2,088
Total operating revenues			3,187				3,017				6,543				6,165
Operating Expenses
Cost of electricity			884				781				1,607				1,311
Cost of natural gas			396				368				1,150				1,241
Operating and maintenance			922				982				1,842				1,844
Depreciation, amortization, and decommissioning			430				421				860				835
Total operating expenses			2,632				2,552				5,459				5,231
Operating Income			555				465				1,084				934
Interest income			37				41				89				64
Interest expense			(185	)			(164	)			(375	)			(318	)
Other income, net			10				28				14				28
Income Before Income Taxes			417				370				812				708
Income tax provision			148				138				287				262
Net Income		$	269			$	232			$	525			$	446
Weighted Average Common Shares Outstanding, Basic			350				346				350				345
Net Earnings Per Common Share, Basic		$	0.75			$	0.65			$	1.46			$	1.26
Net Earnings Per Common Share, Diluted		$	0.74			$	0.65			$	1.45			$	1.25
Dividends Declared Per Common Share		$	0.36			$	0.33			$	0.72			$	0.66

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.

18

Table 17: PG&E Corporation

Condensed Consolidated Balance Sheets

(in millions)

		Balance At
(in millions)		June 30, 2007 (Unaudited)				December 31, 2006
ASSETS
Current Assets
Cash and cash equivalents		$	366			$	456
Restricted cash			1,428				1,415
Accounts receivable:
Customers (net of allowance for doubtful accounts of $47 million in 2007 and  $50 million in 2006)			2,201				2,343
Regulatory balancing accounts			886				607
Inventories:
Gas stored underground and fuel oil			191				181
Materials and supplies			161				149
Income taxes receivable			175				-
Prepaid expenses and other			435				716
Total current assets			5,843				5,867
Property, Plant, and Equipment
Electric			24,687				24,036
Gas			9,277				9,115
Construction work in progress			1,288				1,047
Other			16				16
Total property, plant, and equipment			35,268				34,214
Accumulated depreciation			(12,726	)			(12,429	)
Net property, plant, and equipment			22,542				21,785
Other Noncurrent Assets
Regulatory assets			4,626				4,902
Nuclear decommissioning funds			1,934				1,876
Other			488				373
Total other noncurrent assets			7,048				7,151
TOTAL ASSETS		$	35,433			$	34,803

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.

19

Table 17 (continued): PG&E Corporation

Condensed Consolidated Balance Sheets

(in millions)

		Balance At
(in millions, except share amounts)		June 30, 2007 (Unaudited)				December 31, 2006
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings		$	575			$	759
Long-term debt, classified as current			-				281
Rate reduction bonds, classified as current			147				290
Energy recovery bonds, classified as current			345				340
Accounts payable:
Trade creditors			822				1,075
Disputed claims and customer refunds			1,648				1,709
Regulatory balancing accounts			747				1,030
Other			429				420
Interest payable			638				583
Income taxes payable			-				102
Deferred income taxes			208				148
Other			1,391				1,513
Total current liabilities			6,950				8,250
Noncurrent Liabilities
Long-term debt			7,673				6,697
Energy recovery bonds			1,771				1,936
Regulatory liabilities			3,862				3,392
Asset retirement obligations			1,502				1,466
Income taxes payable			231				-
Deferred income taxes			2,889				2,840
Deferred tax credits			103				106
Other			2,004				2,053
Total noncurrent liabilities			20,035				18,490
Commitments and Contingencies (Notes 2, 4, 5, 9, and 10)
Preferred Stock of Subsidiaries			252				252
Preferred Stock
Preferred stock, no par value, authorized 80,000,000 shares, $100 par value, authorized 5,000,000 shares, none issued			-				-
Common Shareholders' Equity
Common stock, no par value, authorized 800,000,000 shares, issued 374,136,073 common and 1,283,877 restricted shares in 2007 and issued 372,803,521 common and 1,377,538 restricted shares in 2006			5,999				5,877
Common stock held by subsidiary, at cost, 24,665,500 shares			(718	)			(718	)
Reinvested earnings			2,925				2,671
Accumulated other comprehensive loss			(10	)			(19	)
Total common shareholders' equity			8,196				7,811
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	35,433			$	34,803

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.

20

Table 18: PG&E Corporation

Condensed Consolidated Statements of Cash Flows

(in millions)

		(Unaudited)
		Six Months Ended
(in millions)		June 30,
		2007				2006
Cash Flows From Operating Activities
Net income		$	525			$	446
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, decommissioning, and allowance for equity funds used during construction			914				868
Deferred income taxes and tax credits, net			102				69
Other deferred charges and noncurrent liabilities			130				155
Gain on sale of assets			(1	)			(15	)
Net effect of changes in operating assets and liabilities:
Accounts receivable			142				373
Inventories			(22	)			60
Accounts payable			(214	)			(232	)
Accrued taxes and income taxes receivable			(61	)			(79	)
Regulatory balancing accounts, net			(483	)			18
Other current assets			273				(56	)
Other current liabilities			(46	)			(103	)
Other			(23	)			36
Net cash provided by operating activities			1,236				1,540
Cash Flows From Investing Activities
Capital expenditures			(1,320	)			(1,178	)
Net proceeds from sale of assets			8				7
Decrease (increase) in restricted cash			(13	)			48
Proceeds from nuclear decommissioning trust sales			548				757
Purchases of nuclear decommissioning trust investments			(606	)			(799	)
Net cash used in investing activities			(1,383	)			(1,165	)
Cash Flows From Financing Activities
Borrowings under accounts receivable facility and working capital facility			-				50
Repayments under accounts receivable facility and working capital facility			(300	)			(310	)
Net issuance of commercial paper, net of $2 million discount in 2007			109				213
Proceeds from issuance of long-term debt, net of discount and issuance costs of $10 million in 2007			690				-
Rate reduction bonds matured			(143	)			(141	)
Energy recovery bonds matured			(160	)			(130	)
Common stock issued			89				77
Common stock repurchased			-				(114	)
Common stock dividends paid			(242	)			(228	)
Other			14				(84	)
Net cash (used in) provided by financing activities			57				(667	)
Net change in cash and cash equivalents			(90	)			(292	)
Cash and cash equivalents at January 1			456				713
Cash and cash equivalents at June 30		$	366			$	421
Supplemental disclosures of cash flow information
Cash paid for:
Interest (net of amounts capitalized)		$	239			$	270
Income taxes paid, net			282				247
Supplemental disclosures of noncash investing and financing activities
Common stock dividends declared but not yet paid		$	128			$	115

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.

21

Table 19: Pacific Gas and Electric Company

Condensed Consolidated Statements of Income

(in millions)

		(Unaudited)
		Three Months Ended								Six Months Ended
(in millions)		June 30,								June 30,
		2007				2006				2007				2006
Operating Revenues
Electric		$	2,359			$	2,214			$	4,534			$	4,077
Natural gas			828				803				2,009				2,088
Total operating revenues			3,187				3,017				6,543				6,165
Operating Expenses
Cost of electricity			884				781				1,607				1,311
Cost of natural gas			396				368				1,150				1,241
Operating and maintenance			921				982				1,840				1,844
Depreciation, amortization and decommissioning			430				421				859				834
Total operating expenses			2,631				2,552				5,456				5,230
Operating Income			556				465				1,087				935
Interest income			35				39				83				58
Interest expense			(178	)			(157	)			(360	)			(303	)
Other income, net			15				25				24				31
Income Before Income Taxes			428				372				834				721
Income tax provision			154				141				299				273
Net Income			274				231				535				448
Preferred stock dividend requirement			4				4				7				7
Income Available for Common Stock		$	270			$	227			$	528			$	441

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.

22

Table 20: Pacific Gas and Electric Company

Condensed Consolidated Balance Sheets

(in millions)

		Balance At
(in millions)		June 30, 2007 (Unaudited)				December 31, 2006
ASSETS
Current Assets
Cash and cash equivalents		$	78			$	70
Restricted cash			1,428				1,415
Accounts receivable:
Customers (net of allowance for doubtful accounts of $47 million in 2007 and $50 million in 2006)			2,201				2,343
Related parties			5				6
Regulatory balancing accounts			886				607
Inventories:
Gas stored underground and fuel oil			191				181
Materials and supplies			161				149
Income taxes receivable			127				20
Prepaid expenses and other			433				714
Total current assets			5,510				5,505
Property, Plant, and Equipment
Electric			24,687				24,036
Gas			9,277				9,115
Construction work in progress			1,288				1,047
Total property, plant, and equipment			35,252				34,198
Accumulated depreciation			(12,711	)			(12,415	)
Net property, plant, and equipment			22,541				21,783
Other Noncurrent Assets
Regulatory assets			4,626				4,902
Nuclear decommissioning funds			1,934				1,876
Related parties receivable			25				25
Other			389				280
Total other noncurrent assets			6,974				7,083
TOTAL ASSETS		$	35,025			$	34,371

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.

23

Table 20 (continued): Pacific Gas and Electric Company

Condensed Consolidated Balance Sheets

(in millions)

		Balance At
(in millions, except share amounts)		June 30, 2007 (Unaudited)				December 31, 2006
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings		$	575			$	759
Long-term debt, classified as current			-				1
Rate reduction bonds, classified as current			147				290
Energy recovery bonds, classified as current			345				340
Accounts payable:
Trade creditors			822				1,075
Disputed claims and customer refunds			1,648				1,709
Related parties			30				40
Regulatory balancing accounts			747				1,030
Other			412				402
Interest payable			625				570
Deferred income taxes			212				118
Other			1,224				1,346
Total current liabilities			6,787				7,680
Noncurrent Liabilities
Long-term debt			7,393				6,697
Energy recovery bonds			1,771				1,936
Regulatory liabilities			3,862				3,392
Asset retirement obligations			1,502				1,466
Income taxes payable			100				-
Deferred income taxes			2,950				2,972
Deferred tax credits			103				106
Other			1,879				1,922
Total noncurrent liabilities			19,560				18,491
Commitments and Contingencies (Notes 2, 4, 5, 9 and 10)
Shareholders' Equity
Preferred stock without mandatory redemption provisions:
Nonredeemable, 5.00% to 6.00%, outstanding 5,784,825 shares			145				145
Redeemable, 4.36% to 5.00%, outstanding 4,534,958 shares			113				113
Common stock, $5 par value, authorized 800,000,000 shares, issued 279,624,823 shares			1,398				1,398
Common stock held by subsidiary, at cost, 19,481,213 shares			(475	)			(475	)
Additional paid-in capital			2,036				1,822
Reinvested earnings			5,467				5,213
Accumulated other comprehensive loss			(6	)			(16	)
Total shareholders' equity			8,678				8,200
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	35,025			$	34,371

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.

24

Table 21: Pacific Gas and Electric Company

Condensed Consolidated Statements of Cash Flows

(in millions)

		(Unaudited)
		Six Months Ended
(in millions)		June 30,
		2007				2006
Cash Flows From Operating Activities
Net income		$	535			$	448
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, decommissioning, and allowance for equity funds used during construction			913				867
Deferred income taxes and tax credits, net			101				73
Other deferred charges and noncurrent liabilities			129				153
Gain on sale of assets			(1	)			(15	)
Net effect of changes in operating assets and liabilities:
Accounts receivable			143				373
Inventories			(22	)			60
Accounts payable			(221	)			(233	)
Accrued taxes and income taxes receivable			(59	)			(110	)
Regulatory balancing accounts, net			(483	)			18
Other current assets			271				(52	)
Other current liabilities			(48	)			(70	)
Other			(23	)			(2	)
Net cash provided by operating activities			1,235				1,510
Cash Flows From Investing Activities
Capital expenditures			(1,320	)			(1,178	)
Net proceeds from sale of assets			8				7
Decrease (increase) in restricted cash			(13	)			48
Proceeds from nuclear decommissioning trust sales			548				757
Purchases of nuclear decommissioning trust investments			(606	)			(799	)
Net cash used in investing activities			(1,383	)			(1,165	)
Cash Flows From Financing Activities
Borrowings under accounts receivable facility and working capital facility			-				50
Repayments under accounts receivable facility and working capital facility			(300	)			(310	)
Net issuance of commercial paper, net of $2 million discount in 2007			109				213
Proceeds from issuance of long-term debt, net of discount and issuance costs of $10 million in 2007			690				-
Rate reduction bonds matured			(143	)			(141	)
Energy recovery bonds matured			(160	)			(130	)
Common stock dividends paid			(254	)			(230	)
Preferred stock dividends paid			(7	)			(7	)
Equity infusion from PG&E Corporation			200				-
Other			21				(88	)
Net cash (used in) provided by financing activities			156				(643	)
Net change in cash and cash equivalents			8				(298	)
Cash and cash equivalents at January 1			70				463
Cash and cash equivalents at June 30		$	78			$	165
Supplemental disclosures of cash flow information
Cash paid for:
Interest (net of amounts capitalized)		$	226			$	243
Income taxes paid, net			299				308

Source:  PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2007.

25