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|   | (Mark      One)      |
|--------|----------------------|
|   | [X]                  |   | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES |
|   |                 | EXCHANGE      ACT OF 1934 |
|   |                 | For      the fiscal year ended  December 31,      2007                                                    |
|   |                 | Or |
|   | [   ] |   | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|   |                 | SECURITIES      EXCHANGE ACT OF 1934 |
|   |                 | For      the transition period from __________________________  to  __________________________ |
|   |                 |   |
|   |                 |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|
| Delaware                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 20-1707696                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                          |
| (State      or other jurisdiction ofincorporation      or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (I.R.S.      EmployerIdentification      No.) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                          |
| 245      Market Street, Suite 424San      Francisco, California                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   94105                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                          |
| (Address      of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (Zip      Code)                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                          |
| Registrant's      telephone number, including area code  (415)      973-6252                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Securities      registered pursuant to Section 12(b) of the      Act:   None                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Securities      registered pursuant to Section 12(g) of the      Act:   None Indicate      by check mark if the registrant is a well-known seasoned issuer as defined      in Rule 405 of the Regulations Act.              [      ] Yes                [X] No Indicate      by check mark if the registrant is not required to file reports pursuant      to Section 13 or Section 15(d) of the Act.              [      ] Yes                [X] No  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

| • | an      employee, director, stockholder, partner, or officer of PG&E Energy      Recovery Funding LLC or any of PG&E Energy Recovery Funding LLC’s      affiliates (other than his or her service as an independent director of      PG&E Energy Recovery Funding LLC or of an affiliate that is a      special-purpose bankruptcy-remote entity);  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | a      supplier of PG&E Energy Recovery Funding LLC or any of its affiliates;      or                                                                                                                                                                                                                                                                             |
| • | any      member of the immediate family of a person described in the first or      second bullet points above.                                                                                                                                                                                                                                                             |

| Name                      |   | Age    |           | Title  |
|---------------------------|--------|--------|----------------|--------|
| Christopher      P. Johns |   |   | 47   |   |  President      and Director |
| Nicholas      M. Bijur    |   |   | 35   |   |  Treasurer      and Director |
| Bernard      J. Angelo    |   |   | 37   |   |  Director |
|                      |   |   |           |   |   |

Code of Conduct

|   |   | 1.     |   | Financial      Statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |   |   | Omitted      pursuant to General Instruction J of Form 10-K as listed under Item 8 of      this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   | 2.     |   | Financial      Statement Schedules.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |   |   | Omitted      pursuant to General Instruction J of Form 10-K as listed under Item 8 of      this report.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   | 3.     |   | Exhibits      required by Item 601 of Regulation S-K:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   |   |   | 31           Rule      13a-14(d)/15d-14(d) certification 33           Report      on assessment of compliance with servicing criteria for asset-backed      securities 34           Attestation      report on assessment of compliance with servicing criteria for      asset-backed securities 35           Servicer      compliance statement  |

|   |   | PG&E      Energy Recovery Funding LLC                               |
|--------|--------|-------------------------------------------------------------------------|
|   |   | (Issuing      Entity)                                                   |
|   |   |                                                                    |
|   |   | By:  Pacific      Gas and Electric Company, as Servicer  |
|   |   | By:      /S/ Nicholas M. Bijur                                          |
|   |   | Nicholas      M. Bijur                                                  |
|   |   | Assistant      Treasurer                                                |

|  31           Rule      13a-14(d)/15d-14(d) certification 33           Report      on assessment of compliance with servicing criteria for asset-backed      securities 34           Attestation      report on assessment of compliance with servicing criteria for      asset-backed securities 35           Servicer      compliance statement    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Date:  March      26, 2008                                                                                                         |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| /S/      Nicholas M. Bijur                                                                                                                   |   |
| Name:  Nicholas      M. BijurTitle:    Assistant      Treasurer, Pacific Gas and Electric Company, as Servicer |   |
|                                                                                                                                         |   |
|                                                                                                                                         |   |

| Date:  March      26, 2008                                                                                                          |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
| /S/      Nicholas M. Bijur                                                                                                                    |
| Name:  Nicholas      M. BijurTitle:    Assistant      Treasurer, Pacific Gas and Electric Company, as  Servicer |