EXHIBIT 99.1

                        QUARTERLY SERVICER'S CERTIFICATE

                         Exhibit E to Servicing Agreement

                        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.

                Collection Periods: September'98, October'98, November'98

                       Distribution Date: December 25, 1998

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1. Collections Allocable and Aggregate Amounts Available for the Current Distribution Date:
<S>                                                                                            <C>
     i.   Remittances for the September'98 Collection Period                                   $   53,779,707.00
     ii.  Remittances for the October'98 Collection Period                                         50,016,770.00
     iii. Remittances for the November'98 Collection Period                                        44,471,980.00
     iv.  Net Earnings on Collection Account                                                          809,687.04
                                                                                               -----------------
     v.   General Sub-Account Balance                                                          $  149,078,144.04
vi.  Reserve Sub-Account Balance                                                                       0.00
     vii. Overcollateralization Sub-Account Balance                                                   488,858.97
     viii.Capital Sub-Account Balance (less $100K)                                                 14,405,000.00
                                                                                               -----------------
     ix.  Collection Account Balance                                                           $  163,972,003.01

2. Outstanding Principal Balance and Collection Account Balance as of Prior Distribution Date:
     i.   Class A-1 Principal Balance                                                          $            0.00
     ii.  Class A-2 Principal Balance                                                             197,119,806.00
     iii. Class A-3 Principal Balance                                                             280,000,000.00
     iv.  Class A-4 Principal Balance                                                             300,000,000.00
     v.   Class A-5 Principal Balance                                                             290,000,000.00
     vi.  Class A-6 Principal Balance                                                             375,000,000.00
     vii. Class A-7 Principal Balance                                                             866,000,000.00
     viii.Class A-8 Principal Balance                                                             400,000,000.00
                                                                                               -----------------
     ix.  Rate Reduction Certificate Principal Balance                                         $2,708,119,806.00
     x.   Reserve Sub-Account Balance                                                                       0.00
     xi.  Overcollateralization Sub-Account Balance                                                   488,858.97
     xii. Capital Sub-Account Balance                                                              14,405,000.00

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3. Required Funding/Payments as of Current Distribution Date:
     i.   Projected Class A-1 Certificate Balance                                              $            0.00
     ii.  Projected Class A-2 Certificate Balance                                                  99,900,000.00
     iii. Projected Class A-3 Certificate Balance                                                 280,000,000.00
     iv.  Projected Class A-4 Certificate Balance                                                 300,000,000.00
     v.   Projected Class A-5 Certificate Balance                                                 290,000,000.00
     vi.  Projected Class A-6 Certificate Balance                                                 375,000,000.00
     vii. Projected Class A-7 Certificate Balance                                                 866,000,000.00
     viii.Projected Class A-8 Certificate Balance                                                 400,000,000.00
                                                                                               -----------------
     ix.  Projected Class A Certificate Balance                                                $2,610,900,000.00
     x.   Required Class A-1 Coupon                                                                         0.00
     xi.  Required Class A-2 Coupon                                                                 2,961,725.09
     xii. Required Class A-3 Coupon                                                                 4,305,000.00
     xiii.Required Class A-4 Coupon                                                                 4,620,000.00
     xiv. Required Class A-5 Coupon                                                                 4,531,250.00
     xv.  Required Class A-6 Coupon                                                                 5,925,000.00
     xvi. Required Class A-7 Coupon                                                                13,899,300.00
     xvii.Required Class A-8 Coupon                                                                 6,480,000.00
     xviii.Required Overcollateralization Funding                                                     961,641.03
     xix.  Required Capital Sub-Account Funding                                                             0.00

4. Allocation of Remittances as of Current Distribution Date Pursuant to 8.02(d) of Indenture:
     i.   Note, Delaware and Certificate Trustee Fees                                          $      191,827.85
     ii.  Quarterly Servicing Fee                                                                   1,692,574.88
     iii. Quarterly Administration Fee                                                                 25,000.00
     iv.  Operating Expenses (subject to $100,000 cap)                                                100,000.00
     v.   Quarterly Interest                                                                       42,722,275.09
          1.      Class A-1 Certificate Coupon Payment                                                      0.00
          2.      Class A-2 Certificate Coupon Payment                                              2,961,725.09
          3.      Class A-3 Certificate Coupon Payment                                              4,305,000.00
          4.      Class A-4 Certificate Coupon Payment                                              4,620,000.00
          5.      Class A-5 Certificate Coupon Payment                                              4,531,250.00
          6.      Class A-6 Certificate Coupon Payment                                              5,925,000.00
          7.      Class A-7 Certificate Coupon Payment                                             13,899,300.00
          8.      Class A-8 Certificate Coupon Payment                                              6,480,000.00
     vi.  Principal Due and Payable                                                                         0.00
     vii. Quarterly Principal                                                                      97,219,806.00
          1.      Class A-1 Certificate Principal Payment                                                   0.00
          2.      Class A-2 Certificate Principal Payment                                          97,219,806.00
          3.      Class A-3 Certificate Principal Payment                                                   0.00
          4.      Class A-4 Certificate Principal Payment                                                   0.00
          5.      Class A-5 Certificate Principal Payment                                                   0.00
          6.      Class A-6 Certificate Principal Payment                                                   0.00
          7.      Class A-7 Certificate Principal Payment                                                   0.00
          8.      Class A-8 Certificate Principal Payment                                                   0.00
     viii.Operating Expenses (in excess of $100,000)                                                  267,187.00
     ix.  Funding of Overcollateralization Sub-Account (to required level)                            961,641.03
     x.   Funding of Capital Sub-Account (to required level)                                                0.00
     xi.  Net Earnings Released to Note Issuer                                                        809,687.04
     xii. Released to Note Issuer upon Series Retirement:  Overcollateralization Sub-Account                0.00
     xiii.Released to Note Issuer upon Series Retirement:  Capital Sub-Account                              0.00
     xiv. Deposits to Reserve Sub-Account                                                           5,088,145.16
     xv.  Released to Note Issuer upon Series Retirement:  Collection Account                               0.00

5.  Outstanding Principal Balance and Collection Account Balance as of current distribution date:
   (after giving effect to payments to be made on such distribution date):
     i.   Class A-1 Principal Balance                                                          $            0.00
     ii.  Class A-2 Principal Balance                                                              99,900,000.00
     iii. Class A-3 Principal Balance                                                             280,000,000.00
     iv.  Class A-4 Principal Balance                                                             300,000,000.00
     v.   Class A-5 Principal Balance                                                             290,000,000.00
     vi.  Class A-6 Principal Balance                                                             375,000,000.00
     vii. Class A-7 Principal Balance                                                             866,000,000.00
     viii.Class A-8 Principal Balance                                                             400,000,000.00
                                                                                               -----------------
     ix.  Rate Reduction Certificate Principal Balance                                         $2,610,900,000.00
     x.   Reserve Sub-Account Balance                                                               5,088,145.16
     xi.  Overcollateralization Sub-Account Balance                                                 1,450,500.00
     xii. Capital Sub-Account Balance                                                              14,405,000.00

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6. Sub-Account Draws as of Current Distribution Date (if applicable, pursuant to Section 8.02(e) of Indenture):
     i.   Reserve Sub-Account                                                                  $            0.00
     ii.  Overcollateralization Sub-Account                                                                 0.00
     iii. Capital Sub-Account                                                                               0.00
                                                                                               -----------------
     iv.  Total Draws                                                                          $            0.00

7. Shortfalls In Interest and Principal Payments as of Current Distribution Date:
     i.   Quarterly Interest                                                                   $            0.00
          1.      Class A-1 Certificate Coupon Payment                                                      0.00
          2.      Class A-2 Certificate Coupon Payment                                                      0.00
          3.      Class A-3 Certificate Coupon Payment                                                      0.00
          4.      Class A-4 Certificate Coupon Payment                                                      0.00
          5.      Class A-5 Certificate Coupon Payment                                                      0.00
          6.      Class A-6 Certificate Coupon Payment                                                      0.00
          7.      Class A-7 Certificate Coupon Payment                                                      0.00
          8.      Class A-8 Certificate Coupon Payment                                                      0.00
     ii.  Quarterly Principal                                                                               0.00
          1.      Class A-1 Certificate Principal Payment                                                   0.00
          2.      Class A-2 Certificate Principal Payment                                                   0.00
          3.      Class A-3 Certificate Principal Payment                                                   0.00
          4.      Class A-4 Certificate Principal Payment                                                   0.00
          5.      Class A-5 Certificate Principal Payment                                                   0.00
          6.      Class A-6 Certificate Principal Payment                                                   0.00
          7.      Class A-7 Certificate Principal Payment                                                   0.00
          8.      Class A-8 Certificate Principal Payment                                                   0.00

8. Shortfalls in Required Sub-Account Levels as of Current Distribution Date:
     i.   Overcollateralization Sub-Account                                                                 0.00
     ii.  Capital Sub-Account                                                                               0.00

9.  Distributions of Principal per $1,000 of Original Principal Amount
                                                                                             Principal Payment
                                                                                              per $1,000 of 
                                  Original Principal            Principal Payment           Orig. Principal Amt.
                                        [ A ]                         [ B ]                    [ B/A x 1,000]
                                  ------------------              ---------------            -------------------
     i.   Class A-1                 $           0.00              $         0.00                     $  0.000000
     ii.  Class A-2                   197,119,806.00               97,219,806.00                      493.201612
     iii. Class A-3                   280,000,000.00                        0.00                        0.000000
     iv.  Class A-4                   300,000,000.00                        0.00                        0.000000
     v.   Class A-5                   290,000,000.00                        0.00                        0.000000
     vi.  Class A-6                   375,000,000.00                        0.00                        0.000000
     vii. Class A-7                   866,000,000.00                        0.00                        0.000000
     viii.Class A-8                   400,000,000.00                        0.00                        0.000000
                                   -----------------              ---------------            -------------------
                                   $2,708,119,806.00               $97,219,806.00

10.  Distributions of Interest per $1,000 of Original Principal Amount
                                                                                              Interest Payment
                                                                                              per $1,000 of 
                                  Original Principal            Interest Payment            Orig. Principal Amt.
                                        [ A ]                         [ B ]                    [ B/A x 1,000]
                                  ------------------            ----------------            --------------------
     i.   Class A-1                $            0.00              $         0.00                      $ 0.000000
     ii.  Class A-2                   197,119,806.00                2,961,725.09                       15.025000
     iii. Class A-3                   280,000,000.00                4,305,000.00                       15.375000
     iv.  Class A-4                   300,000,000.00                4,620,000.00                       15.400000
     v.   Class A-5                   290,000,000.00                4,531,250.00                       15.625000
     vi.  Class A-6                   375,000,000.00                5,925,000.00                       15.800000
     vii. Class A-7                   866,000,000.00               13,899,300.00                       16.050000
     viii.Class A-8                   400,000,000.00                6,480,000.00                       16.200000
                                   -----------------            ----------------            --------------------
                                   $2,708,119,806.00              $42,722,275.09
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         IN WITNESS HEREOF, the undersigned has duly executed and delivered this
         Quarterly Servicer's Certificate the 15th day of December, 1998.

         PACIFIC GAS AND ELECTRIC COMPANY, as Servicer

         by:      /s/ CHRISTOPHER JOHNS
                  ---------------------------   
                  Christopher Johns
                  Vice President & Controller


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