|Quarterly Servicer's Certificate                                                                                                                                                                                                                                                                    
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                    
|California Infrastructure and Economic Development Bank Special Purpose Trust PG&E-1                                                                                                                                                                                                                
|$2,901,000,000 Rate Reduction Certificates, Series 1997-1                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                    
|Pursuant to Section 4.01(d)(ii) of the Transition Property Servicing Agreement dated as of December 8, 1997 (the "Transition Property Servicing Agreement") between Pacific Gas and Electric Company, as Servicer and PG&E Funding LLC, as Note Issuer, the Servicer does hereby certify as follows:
|
|
|                                                                                                                                                                                                                                                                                                    
|Capitalized terms used in the Quarterly Servicer's Certificate (the "Quarterly Certificate") have their respective meanings as set forth in the Agreement.  References herein to certain sections and subsections are references to the respective sections of the Agreement.                       
|
|                                                                                                                                                                                                                                                                                                    
|4th QUARTER 2006                                                                                                                                                                                                                                                                                    
|Collection Periods: September 2006, October 2006, November 2006                                                                                                                                                                                                                                     
|Distribution Date: December 25, 2006                                                                                                                                                                                                                                                                
|1.                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|2.                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|3.                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|4.                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|5.                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|6.                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|7.                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|8.                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|9                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|10.                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                    
|IN WITNESS HEREOF, the undersigned has duly executed and delivered this Quarterly Servicer's Certificate                                                                                                                                                                                            
|this   20th       day of  December 2006  .                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                    
|PACIFIC GAS AND ELECTRIC COMPANY, as Servicer                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                    
|by:   /s/ Nicholas M. Bijur                                                                                                                                                                                                                                                                         
|Nicholas M. Bijur                                                                                                                                                                                                                                                                                   
|Assistant Treasurer