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| UNITED      STATES SECURITIES AND EXCHANGE COMMISSIONWashington,      D.C. 20549FORM      10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (Mark      One)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| [X]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES      EXCHANGE ACT OF 1934 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| For      the quarterly period ended March 31, 2009 OR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| [  ]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES      EXCHANGE ACT OF 1934 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| For      the transition period from ___________ to __________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|  CommissionFileNumber_______________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Exact      Name ofRegistrantas      specifiedin      its charter_______________ |  State      or otherJurisdiction      ofIncorporation______________ |  IRS      EmployerIdentificationNumber___________ |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |
| 1-12609                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | PG&E      Corporation | California | 94-3234914 |
| 1-2348                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Pacific      Gas and Electric Company | California | 94-0742640 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Pacific      Gas and Electric Company77      Beale StreetP.O.      Box 770000San      Francisco, California 94177________________________________________                                                                                                                                                                                                                                                                                                                                                                                                    | PG&E      CorporationOne      Market, Spear TowerSuite      2400San      Francisco, California 94105______________________________________ |
| Address      of principal executive offices, including zip code                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Pacific      Gas and Electric Company(415)      973-7000________________________________________                                                                                                                                                                                                                                                                                                                                                                                                                                                             | PG&E      Corporation(415)      267-7000______________________________________ |
| Registrant’s      telephone number, including area code                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Indicate      by check mark whether each registrant (1) has filed all reports required      to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934      during the preceding 12 months (or for such shorter period that the      registrant was required to file such reports), and (2) has been subject to      such filing requirements for the past 90 days.  [X] Yes     [  ]      No                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Indicate by check mark whether the      registrant has submitted electronically and posted on its corporate Web      site, if any, every Interactive Date File required to be submitted and      posted pursuant to Rule 405 of Regulation S-T during the preceding 12      months (or for such shorter period that the registrant was required to      submit and post such files). * [   ]      Yes     [  ] No*      The registrant has not yet been phased into the interactive data      requirements |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, a non-accelerated filer, or a smaller reporting      company. See definitions of “large accelerated filer,” “accelerated      filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange      Act.                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| PG&E      Corporation:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | [X] Large accelerated      filer | [  ] Accelerated      Filer |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | [  ]      Non-accelerated filer |                                       [  ] Smaller reporting company |
| Pacific      Gas and Electric Company:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | [  ] Large      accelerated filer | [  ] Accelerated      Filer |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | [X] Non-accelerated      filer |                                       [  ] Smaller reporting company |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Indicate      by check mark whether the registrant is a shell company (as defined in      Rule 12b-2 of the Exchange Act).                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| PG&E      Corporation:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | [  ] Yes [X] No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Pacific      Gas and Electric Company:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | [  ] Yes [X] No |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Indicate      the number of shares outstanding of each of the issuer’s classes of common      stock, as of the latest practicable date.                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Common      Stock Outstanding as of May 1, 2009:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| PG&E      Corporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 368,363,541 |
| Pacific      Gas and Electric Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 264,374,809 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |

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| PART      I.  | FINANCIAL      INFORMATION                                                                           | PAGE                                                        |
|---------------|------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|
| ITEM    1.    | CONDENSED      CONSOLIDATED FINANCIAL STATEMENTS                                                     |                                                        |
|          | PG&E      Corporation                                                                            |                                                        |
|          |                                                                                                 | Condensed Consolidated      Statements of Income            | 3 |
|          |                                                                                                 | Condensed Consolidated Balance      Sheets                  | 4 |
|          |                                                                                                 | Condensed Consolidated      Statements of Cash Flows        | 6 |
|          | Pacific      Gas and Electric Company                                                                |                                                        |
|          |                                                                                                 | Condensed Consolidated      Statements of Income            | 7 |
|          |                                                                                                 | Condensed Consolidated      Balance Sheets                  | 8 |
|          |                                                                                                 | Condensed Consolidated      Statements of Cash Flows        | 10 |
|          | NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS                                        |                                                        |
|          | NOTE1:                                                                                               | Organization      and Basis of Presentation                 | 11 |
|          | NOTE2:                                                                                               | New      and Significant Accounting Policies                | 11 |
|          | NOTE3:                                                                                               | Regulatory      Assets, Liabilities, and Balancing Accounts | 15 |
|          | NOTE4:                                                                                               | Debt                                                        | 18 |
|          | NOTE5:                                                                                               | Equity                                                      | 18 |
|          | NOTE6:                                                                                               | Earnings      Per Common Share                              | 19 |
|          | NOTE7:                                                                                               | Derivatives      and Hedging Activities                     | 20 |
|          | NOTE8:                                                                                               | Fair      Value Measurements                                | 24 |
|          | NOTE9:                                                                                               | Related      Party Agreements and Transactions              | 26 |
|          | NOTE    10:                                                                                          | Resolution      of Remaining Chapter 11 Disputed Claims     | 26 |
|          | NOTE    11:                                                                                          | Commitments      and Contingencies                          | 27 |
|          |
| ITEM    2.    | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIALCONDITION      AND RESULTS OF OPERATIONS |                                                        |
|          | Overview                                                                                             | 33                                                          |
|          | Forward-Looking      Statements                                                                      | 35                                                          |
|          | Results of      Operations                                                                           | 36                                                          |
|          | Liquidity and Financial      Resources                                                               | 42                                                          |
|          | Contractual      Commitments                                                                         | 46                                                          |
|          | Capital      Expenditures                                                                            | 46                                                          |
|          | Off-Balance Sheet      Arrangements                                                                  | 47                                                          |
|          | Contingencies                                                                                        | 47                                                          |
|          | Regulatory      Matters                                                                              | 47                                                          |
|          | Risk      Management Activities                                                                      | 47                                                          |
|          | Critical      Accounting Policies                                                                    | 49                                                          |
|          | New Accounting      Policies                                                                         | 50                                                          |
|          | Accounting Pronouncements Issued But      Not Yet Adopted                                            | 51                                                          |
|          |
| ITEM3.        | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                      | 52                                                          |
| ITEM4.        | CONTROLS      AND PROCEDURES                                                                         | 52                                                          |
|          |
| PART      II. | OTHER      INFORMATION                                                                               |                                                        |
|          |
| ITEM      1.  | LEGAL      PROCEEDINGS                                                                               | 53                                                          |
| ITEM      1A. | RISK      FACTORS                                                                                    | 53                                                          |
| ITEM      2.  | UNREGISTERED      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                     | 53                                                          |
| ITEM      5.  | OTHER      INFORMATION                                                                               | 54                                                          |
| ITEM      6.  | EXHIBITS                                                                                             | 55                                                          |

----

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

| PG&E      CORPORATION                                                            |   |
|--------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF    INCOME                                       |   |
|                                                                                 |   | (Unaudited) |   |
|                                                                                 |   | Three      Months Ended |   |
|                                                                                 |   | March      31, |   |
| (in      millions, except per share amounts)                                         |   | 2009 |   |   | 2008 |   |
| Operating      Revenues                                                              |   |   |   |   |   |   |
| Electric                                                                             |   | $ | 2,426 |   |   | $ | 2,514 |   |
| Natural      gas                                                                     |   |   | 1,005 |   |   |   | 1,219 |   |
| Total      operating revenues                                                        |   |   | 3,431 |   |   |   | 3,733 |   |
| Operating      Expenses                                                              |   |   |   |   |   |   |   |   |
| Cost      of electricity                                                             |   |   | 883 |   |   |   | 1,027 |   |
| Cost      of natural gas                                                             |   |   | 557 |   |   |   | 775 |   |
| Operating      and maintenance                                                       |   |   | 1,059 |   |   |   | 1,036 |   |
| Depreciation,      amortization, and decommissioning                                 |   |   | 419 |   |   |   | 402 |   |
| Total      operating expenses                                                        |   |   | 2,918 |   |   |   | 3,240 |   |
| Operating      Income                                                                |   |   | 513 |   |   |   | 493 |   |
| Interest      income                                                                 |   |   | 9 |   |   |   | 26 |   |
| Interest      expense                                                                |   |   | (181 | ) |   |   | (187 | ) |
| Other      income, net                                                               |   |   | 18 |   |   |   | 5 |   |
| Income      Before Income Taxes                                                      |   |   | 359 |   |   |   | 337 |   |
| Income      tax provision                                                            |   |   | 115 |   |   |   | 110 |   |
| Net      Income                                                                      |   |   | 244 |   |   |   | 227 |   |
| Preferred      dividend requirement of subsidiary                                    |   |   | 3 |   |   |   | 3 |   |
| Income      Available for Common Shareholders                                        |   | $ | 241 |   |   | $ | 224 |   |
| Weighted      Average Common Shares Outstanding, Basic                               |   |   | 364 |   |   |   | 355 |   |
| Weighted      Average Common Shares Outstanding, Diluted                             |   |   | 366 |   |   |   | 356 |   |
| Net      Earnings Per Common Share, Basic                                            |   | $ | 0.65 |   |   | $ | 0.62 |   |
| Net      Earnings Per Common Share, Diluted                                          |   | $ | 0.65 |   |   | $ | 0.62 |   |
| Dividends      Declared Per Common Share                                             |   | $ | 0.42 |   |   | $ | 0.39 |   |
|                                                                                 |   |
| See      accompanying Notes to the Condensed Consolidated Financial      Statements. |   |

----

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                        |   | (Unaudited)        |    |
|-------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                                                        |   | Balance      At    |    |
| (in      millions)                                                                                          |   | March      31,2009 |    |   | December      31, 2008 |   |
| ASSETS                                                                                                      |   |               |    |   |   |   |
| Current      Assets                                                                                         |   |               |    |   |   |   |
| Cash      and cash equivalents                                                                              |   | $                  | 271     |   |   | $ | 219 |   |
| Restricted      cash                                                                                        |   |               | 1,284   |   |   |   | 1,290 |   |
| Accounts      receivable:                                                                                   |   |               |    |   |   |   |   |   |
| Customers      (net of allowance for doubtful accounts of $87 million in 2009 and $76      million in 2008) |   |               | 1,490   |   |   |   | 1,751 |   |
| Accrued      unbilled revenue                                                                               |   |               | 645     |   |   |   | 685 |   |
| Regulatory      balancing accounts                                                                          |   |               | 1,372   |   |   |   | 1,197 |   |
| Inventories:                                                                                                |   |               |    |   |   |   |   |   |
| Gas      stored underground and fuel oil                                                                    |   |               | 62      |   |   |   | 232 |   |
| Materials      and supplies                                                                                 |   |               | 195     |   |   |   | 191 |   |
| Income      taxes receivable                                                                                |   |               | 45      |   |   |   | 120 |   |
| Prepaid      expenses and other                                                                             |   |               | 833     |   |   |   | 718 |   |
| Total      current assets                                                                                   |   |               | 6,197   |   |   |   | 6,403 |   |
| Property,      Plant, and Equipment                                                                         |   |               |    |   |   |   |   |   |
| Electric                                                                                                    |   |               | 28,730  |   |   |   | 27,638 |   |
| Gas                                                                                                         |   |               | 10,241  |   |   |   | 10,155 |   |
| Construction      work in progress                                                                          |   |               | 1,644   |   |   |   | 2,023 |   |
| Other                                                                                                       |   |               | 17      |   |   |   | 17 |   |
| Total      property, plant, and equipment                                                                   |   |               | 40,632  |   |   |   | 39,833 |   |
| Accumulated      depreciation                                                                               |   |               | (13,709 | ) |   |   | (13,572 | ) |
| Net      property, plant, and equipment                                                                     |   |               | 26,923  |   |   |   | 26,261 |   |
| Other      Noncurrent Assets                                                                                |   |               |    |   |   |   |   |   |
| Regulatory      assets                                                                                      |   |               | 6,087   |   |   |   | 5,996 |   |
| Nuclear      decommissioning funds                                                                          |   |               | 1,634   |   |   |   | 1,718 |   |
| Other                                                                                                       |   |               | 494     |   |   |   | 482 |   |
| Total      other noncurrent assets                                                                          |   |               | 8,215   |   |   |   | 8,196 |   |
| TOTAL      ASSETS                                                                                           |   | $                  | 41,335  |   |   | $ | 40,860 |   |

----

|                                                                                                                                                                                                            |   | (Unaudited)        |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                                                                                                                                            |   | Balance      At    |   |
|  (in      millions, except share amounts)                                                                                                                                                                  |   | March      31,2009 |   |   | December      31, 2008 |   |
| LIABILITIES      AND EQUITY                                                                                                                                                                                     |   |               |   |   |   |   |
| Current      Liabilities                                                                                                                                                                                        |   |               |   |   |   |   |
| Short-term      borrowings                                                                                                                                                                                      |   | $                  | 385    |   |   | $ | 287 |   |
| Long-term      debt, classified as current                                                                                                                                                                      |   |               | -      |   |   |   | 600 |   |
| Energy      recovery bonds, classified as current                                                                                                                                                               |   |               | 374    |   |   |   | 370 |   |
| Accounts      payable:                                                                                                                                                                                          |   |               |   |   |   |   |   |   |
| Trade      creditors                                                                                                                                                                                            |   |               | 839    |   |   |   | 1,096 |   |
| Disputed      claims and customer refunds                                                                                                                                                                       |   |               | 1,552  |   |   |   | 1,580 |   |
| Regulatory      balancing accounts                                                                                                                                                                              |   |               | 727    |   |   |   | 730 |   |
| Other                                                                                                                                                                                                           |   |               | 408    |   |   |   | 343 |   |
| Interest      payable                                                                                                                                                                                           |   |               | 778    |   |   |   | 802 |   |
| Income      taxes payable                                                                                                                                                                                       |   |               | 134    |   |   |   | - |   |
| Deferred      income taxes                                                                                                                                                                                      |   |               | 389    |   |   |   | 251 |   |
| Other                                                                                                                                                                                                           |   |               | 1,364  |   |   |   | 1,567 |   |
| Total      current liabilities                                                                                                                                                                                  |   |               | 6,950  |   |   |   | 7,626 |   |
| Noncurrent      Liabilities                                                                                                                                                                                     |   |               |   |   |   |   |   |   |
| Long-term      debt                                                                                                                                                                                             |   |               | 10,185 |   |   |   | 9,321 |   |
| Energy      recovery bonds                                                                                                                                                                                      |   |               | 1,120  |   |   |   | 1,213 |   |
| Regulatory      liabilities                                                                                                                                                                                     |   |               | 3,770  |   |   |   | 3,657 |   |
| Pension      and other postretirement benefits                                                                                                                                                                  |   |               | 2,133  |   |   |   | 2,088 |   |
| Asset      retirement obligations                                                                                                                                                                               |   |               | 1,530  |   |   |   | 1,684 |   |
| Income      taxes payable                                                                                                                                                                                       |   |               | 36     |   |   |   | 35 |   |
| Deferred      income taxes                                                                                                                                                                                      |   |               | 3,496  |   |   |   | 3,397 |   |
| Deferred      tax credits                                                                                                                                                                                       |   |               | 92     |   |   |   | 94 |   |
| Other                                                                                                                                                                                                           |   |               | 2,161  |   |   |   | 2,116 |   |
| Total      noncurrent liabilities                                                                                                                                                                               |   |               | 24,523 |   |   |   | 23,605 |   |
| Commitments      and Contingencies                                                                                                                                                                              |   |               |   |   |   |   |   |   |
| Shareholders’      Equity                                                                                                                                                                                 |   |               |   |   |   |   |   |   |
| Preferred      stock, no par value, authorized 80,000,000 shares, $100 par value,      authorized 5,000,000 shares, none issued                                                                                 |   |               | -      |   |   |   | - |   |
| Common      stock, no par value, authorized 800,000,000 shares, issued 366,336,769      common and 683,656 restricted shares in 2009 and issued 361,059,116 common      and 1,287,569 restricted shares in 2008 |   |               | 6,123  |   |   |   | 5,984 |   |
| Reinvested      earnings                                                                                                                                                                                        |   |               | 3,701  |   |   |   | 3,614 |   |
| Accumulated      other comprehensive loss                                                                                                                                                                       |   |               | (214   | ) |   |   | (221 | ) |
| Total      shareholders’ equity                                                                                                                                                                           |   |               | 9,610  |   |   |   | 9,377 |   |
| Noncontrolling      Interest – Preferred Stock of Subsidiary                                                                                                                                              |   |               | 252    |   |   |   | 252 |   |
| Total      equity                                                                                                                                                                                               |   |               | 9,862  |   |   |   | 9,629 |   |
| TOTAL      LIABILITIES AND EQUITY                                                                                                                                                                               |   | $                  | 41,335 |   |   | $ | 40,860 |   |

----

| PG&E      CORPORATION                                                                                                                      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH      FLOWS                                                                                           |   |
|                                                                                                                                           |   | (Unaudited) |   |
|                                                                                                                                           |   | Three      Months Ended |   |
|                                                                                                                                           |   | March      31, |   |
| (in      millions)                                                                                                                             |   | 2009 |   |   | 2008 |   |
| Cash      Flows from Operating Activities                                                                                                      |   |   |   |   |   |   |
| Net      income                                                                                                                                |   | $ | 244 |   |   | $ | 227 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:                                                    |   |   |   |   |   |   |   |   |
| Depreciation,      amortization, and decommissioning                                                                                           |   |   | 463 |   |   |   | 437 |   |
| Allowance      for equity funds used during construction                                                                                       |   |   | (25 | ) |   |   | (20 | ) |
| Deferred      income taxes and tax credits, net                                                                                                |   |   | 235 |   |   |   | 167 |   |
| Other      changes in noncurrent assets and liabilities                                                                                        |   |   | (51 | ) |   |   | 111 |   |
| Effect      of changes in operating assets and liabilities:                                                                                    |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                                                                       |   |   | 301 |   |   |   | 89 |   |
| Inventories                                                                                                                                    |   |   | 166 |   |   |   | 107 |   |
| Accounts      payable                                                                                                                          |   |   | (116 | ) |   |   | 144 |   |
| Income      taxes receivable/payable                                                                                                           |   |   | 209 |   |   |   | (37 | ) |
| Regulatory      balancing accounts, net                                                                                                        |   |   | (180 | ) |   |   | (356 | ) |
| Other      current assets                                                                                                                      |   |   | 32 |   |   |   | 103 |   |
| Other      current liabilities                                                                                                                 |   |   | (390 | ) |   |   | 68 |   |
| Other                                                                                                                                          |   |   | 2 |   |   |   | (2 | ) |
| Net      cash provided by operating activities                                                                                                 |   |   | 890 |   |   |   | 1,038 |   |
| Cash      Flows from Investing Activities                                                                                                      |   |   |   |   |   |   |   |   |
| Capital      expenditures                                                                                                                      |   |   | (1,079 | ) |   |   | (853 | ) |
| Proceeds      from sale of assets                                                                                                              |   |   | 2 |   |   |   | 6 |   |
| Decrease      in restricted cash                                                                                                               |   |   | 11 |   |   |   | 2 |   |
| Proceeds      from nuclear decommissioning trust sales                                                                                         |   |   | 387 |   |   |   | 164 |   |
| Purchases      of nuclear decommissioning trust investments                                                                                    |   |   | (412 | ) |   |   | (117 | ) |
| Other                                                                                                                                          |   |   | 5 |   |   |   | - |   |
| Net      cash used in investing activities                                                                                                     |   |   | (1,086 | ) |   |   | (798 | ) |
| Cash      Flows from Financing Activities                                                                                                      |   |   |   |   |   |   |   |   |
| Net      repayments under revolving credit facility                                                                                            |   |   | - |   |   |   | (250 | ) |
| Net      issuance (repayments) of commercial paper, net of discount of $2 million      in 2009 and $1 million in 2008                          |   |   | 96 |   |   |   | (198 | ) |
| Proceeds      from issuance of long-term debt, net of premium, discount, and issuance      costs of $16 million in 2009 and $2 million in 2008 |   |   | 884 |   |   |   | 598 |   |
| Long-term      debt matured or repurchased                                                                                                     |   |   | (600 | ) |   |   | (300 | ) |
| Energy      recovery bonds matured                                                                                                             |   |   | (89 | ) |   |   | (83 | ) |
| Common      stock issued                                                                                                                       |   |   | 96 |   |   |   | 39 |   |
| Common      stock dividends paid                                                                                                               |   |   | (138 | ) |   |   | (129 | ) |
| Other                                                                                                                                          |   |   | (1 | ) |   |   | (9 | ) |
| Net      cash provided by (used in) financing activities                                                                                       |   |   | 248 |   |   |   | (332 | ) |
| Net      change in cash and cash equivalents                                                                                                   |   |   | 52 |   |   |   | (92 | ) |
| Cash      and cash equivalents at January 1                                                                                                    |   |   | 219 |   |   |   | 345 |   |
| Cash      and cash equivalents at March 31                                                                                                     |   | $ | 271 |   |   | $ | 253 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Supplemental      disclosures of cash flow information                                                                                         |   |   |   |   |   |   |   |   |
| Cash      (paid) received for:                                                                                                                 |   |   |   |   |   |   |   |   |
| Interest,      net of amounts capitalized                                                                                                      |   | $ | (190 | ) |   | $ | (189 | )  |
| Income      taxes, net                                                                                                                         |   |   | 294 |   |   |   | - |   |
| Supplemental      disclosures of noncash investing and financing activities                                                                    |   |   |   |   |   |   |   |   |
| Common      stock dividends declared but not yet paid                                                                                          |   | $ | 154 |   |   | $ | 139 |   |
| Capital      expenditures financed through accounts payable                                                                                    |   |   | 235 |   |   |   | 242 |   |
| Noncash      common stock issuances                                                                                                            |   |   | 33 |   |   |   | 6 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| See      accompanying Notes to the Condensed Consolidated Financial      Statements.                                                           |   |

----

| PACIFIC      GAS AND ELECTRIC COMPANY                                                |   |
|--------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF      INCOME                                     |   |
|                                                                                 |   | (Unaudited) |   |
|                                                                                 |   | Three      Months Ended |   |
|                                                                                 |   | March      31, |   |
| (in      millions)                                                                   |   | 2009 |   |   | 2008 |   |
| Operating      Revenues                                                              |   |   |   |   |   |   |
| Electric                                                                             |   | $ | 2,426 |   |   | $ | 2,514 |   |
| Natural      gas                                                                     |   |   | 1,005 |   |   |   | 1,219 |   |
| Total      operating revenues                                                        |   |   | 3,431 |   |   |   | 3,733 |   |
| Operating      Expenses                                                              |   |   |   |   |   |   |   |   |
| Cost      of electricity                                                             |   |   | 883 |   |   |   | 1,027 |   |
| Cost      of natural gas                                                             |   |   | 557 |   |   |   | 775 |   |
| Operating      and maintenance                                                       |   |   | 1,059 |   |   |   | 1,036 |   |
| Depreciation,      amortization, and decommissioning                                 |   |   | 419 |   |   |   | 402 |   |
| Total      operating expenses                                                        |   |   | 2,918 |   |   |   | 3,240 |   |
| Operating      Income                                                                |   |   | 513 |   |   |   | 493 |   |
| Interest      income                                                                 |   |   | 9 |   |   |   | 24 |   |
| Interest      expense                                                                |   |   | (173 | ) |   |   | (180 | ) |
| Other      income, net                                                               |   |   | 21 |   |   |   | 19 |   |
| Income      Before Income Taxes                                                      |   |   | 370 |   |   |   | 356 |   |
| Income      tax provision                                                            |   |   | 131 |   |   |   | 120 |   |
| Net      Income                                                                      |   |   | 239 |   |   |   | 236 |   |
| Preferred      dividend requirement                                                  |   |   | 3 |   |   |   | 3 |   |
| Income      Available for Common Shareholders                                        |   | $ | 236 |   |   | $ | 233 |   |
|                                                                                 |   |
| See      accompanying Notes to the Condensed Consolidated Financial      Statements. |   |

----

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                        |   | (Unaudited)        |    |
|-------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                                                        |   | Balance      At    |    |
|  (in      millions)                                                                                    |   | March      31,2009 |    |   | December      31,2008 |   |
| ASSETS                                                                                                      |   |               |    |   |   |   |
| Current      Assets                                                                                         |   |               |    |   |   |   |
| Cash      and cash equivalents                                                                              |   | $                  | 54      |   |   | $ | 52 |   |
| Restricted      cash                                                                                        |   |               | 1,284   |   |   |   | 1,290 |   |
| Accounts      receivable:                                                                                   |   |               |    |   |   |   |   |   |
| Customers      (net of allowance for doubtful accounts of $87 million in 2009 and $76      million in 2008) |   |               | 1,490   |   |   |   | 1,751 |   |
| Accrued      unbilled revenue                                                                               |   |               | 645     |   |   |   | 685 |   |
| Related      parties                                                                                        |   |               | 5       |   |   |   | 2 |   |
| Regulatory      balancing accounts                                                                          |   |               | 1,372   |   |   |   | 1,197 |   |
| Inventories:                                                                                                |   |               |    |   |   |   |   |   |
| Gas      stored underground and fuel oil                                                                    |   |               | 62      |   |   |   | 232 |   |
| Materials      and supplies                                                                                 |   |               | 195     |   |   |   | 191 |   |
| Income      taxes receivable                                                                                |   |               | 21      |   |   |   | 25 |   |
| Prepaid      expenses and other                                                                             |   |               | 823     |   |   |   | 705 |   |
| Total      current assets                                                                                   |   |               | 5,951   |   |   |   | 6,130 |   |
| Property,      Plant, and Equipment                                                                         |   |               |    |   |   |   |   |   |
| Electric                                                                                                    |   |               | 28,730  |   |   |   | 27,638 |   |
| Gas                                                                                                         |   |               | 10,241  |   |   |   | 10,155 |   |
| Construction      work in progress                                                                          |   |               | 1,644   |   |   |   | 2,023 |   |
| Total      property, plant, and equipment                                                                   |   |               | 40,615  |   |   |   | 39,816 |   |
| Accumulated      depreciation                                                                               |   |               | (13,693 | ) |   |   | (13,557 | ) |
| Net      property, plant, and equipment                                                                     |   |               | 26,922  |   |   |   | 26,259 |   |
| Other      Noncurrent Assets                                                                                |   |               |    |   |   |   |   |   |
| Regulatory      assets                                                                                      |   |               | 6,087   |   |   |   | 5,996 |   |
| Nuclear      decommissioning funds                                                                          |   |               | 1,634   |   |   |   | 1,718 |   |
| Related      parties receivable                                                                             |   |               | 26      |   |   |   | 27 |   |
| Other                                                                                                       |   |               | 423     |   |   |   | 407 |   |
| Total      other noncurrent assets                                                                          |   |               | 8,170   |   |   |   | 8,148 |   |
| TOTAL      ASSETS                                                                                           |   | $                  | 41,043  |   |   | $ | 40,537 |   |

----

|                                                                                                            |   | (Unaudited)        |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                                            |   | Balance      At    |   |
| (in      millions, except share amounts)                                                                        |   | March      31,2009 |   |   | December      31,2008 |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                 |   |               |   |   |   |   |
| Current      Liabilities                                                                                        |   |               |   |   |   |   |
| Short-term      borrowings                                                                                      |   | $                  | 385    |   |   | $ | 287 |   |
| Long-term      debt, classified as current                                                                      |   |               | -      |   |   |   | 600 |   |
| Energy      recovery bonds, classified as current                                                               |   |               | 374    |   |   |   | 370 |   |
| Accounts      payable:                                                                                          |   |               |   |   |   |   |   |   |
| Trade      creditors                                                                                            |   |               | 839    |   |   |   | 1,096 |   |
| Disputed      claims and customer refunds                                                                       |   |               | 1,552  |   |   |   | 1,580 |   |
| Related      parties                                                                                            |   |               | 19     |   |   |   | 25 |   |
| Regulatory      balancing accounts                                                                              |   |               | 727    |   |   |   | 730 |   |
| Other                                                                                                           |   |               | 405    |   |   |   | 325 |   |
| Interest      payable                                                                                           |   |               | 771    |   |   |   | 802 |   |
| Income      tax payable                                                                                         |   |               | 144    |   |   |   | 53 |   |
| Deferred      income taxes                                                                                      |   |               | 396    |   |   |   | 257 |   |
| Other                                                                                                           |   |               | 1,169  |   |   |   | 1,371 |   |
| Total      current liabilities                                                                                  |   |               | 6,781  |   |   |   | 7,496 |   |
| Noncurrent      Liabilities                                                                                     |   |               |   |   |   |   |   |   |
| Long-term      debt                                                                                             |   |               | 9,585  |   |   |   | 9,041 |   |
| Energy      recovery bonds                                                                                      |   |               | 1,120  |   |   |   | 1,213 |   |
| Regulatory      liabilities                                                                                     |   |               | 3,770  |   |   |   | 3,657 |   |
| Pension      and other postretirement benefits                                                                  |   |               | 2,084  |   |   |   | 2,040 |   |
| Asset      retirement obligations                                                                               |   |               | 1,530  |   |   |   | 1,684 |   |
| Income      taxes payable                                                                                       |   |               | 12     |   |   |   | 12 |   |
| Deferred      income taxes                                                                                      |   |               | 3,546  |   |   |   | 3,449 |   |
| Deferred      tax credits                                                                                       |   |               | 92     |   |   |   | 94 |   |
| Other                                                                                                           |   |               | 2,119  |   |   |   | 2,064 |   |
| Total      noncurrent liabilities                                                                               |   |               | 23,858 |   |   |   | 23,254 |   |
| Commitments      and Contingencies                                                                              |   |               |   |   |   |   |   |   |
| Shareholders’      Equity                                                                                 |   |               |   |   |   |   |   |   |
| Preferred      stock without mandatory redemption provisions:                                                   |   |               |   |   |   |   |   |   |
| Nonredeemable,      5.00% to 6.00%, outstanding 5,784,825 shares                                                |   |               | 145    |   |   |   | 145 |   |
| Redeemable,      4.36% to 5.00%, outstanding 4,534,958 shares                                                   |   |               | 113    |   |   |   | 113 |   |
| Common      stock, $5 par value, authorized 800,000,000 shares, issued 264,374,809      shares in 2009 and 2008 |   |               | 1,322  |   |   |   | 1,322 |   |
| Additional      paid-in capital                                                                                 |   |               | 2,861  |   |   |   | 2,331 |   |
| Reinvested      earnings                                                                                        |   |               | 6,172  |   |   |   | 6,092 |   |
| Accumulated      other comprehensive loss                                                                       |   |               | (209   | ) |   |   | (216 | ) |
| Total      shareholders’ equity                                                                           |   |               | 10,404 |   |   |   | 9,787 |   |
| TOTAL      LIABILITIES AND SHAREHOLDERS’ EQUITY                                                           |   | $                  | 41,043 |   |   | $ | 40,537 |   |

----

| PACIFIC      GAS AND ELECTRIC COMPANY                                                                                                          |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH      FLOWS                                                                                           |   |
|                                                                                                                                           |   | (Unaudited) |   |
|                                                                                                                                           |   | Three      Months Ended |   |
|                                                                                                                                           |   | March      31, |   |
| (in      millions)                                                                                                                             |   | 2009 |   |   | 2008 |   |
| Cash      Flows from Operating Activities                                                                                                      |   |   |   |   |   |   |
| Net      income                                                                                                                                |   | $ | 239 |   |   | $ | 236 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:                                                    |   |   |   |   |   |   |   |   |
| Depreciation,      amortization, and decommissioning                                                                                           |   |   | 456 |   |   |   | 437 |   |
| Allowance      for equity funds used during construction                                                                                       |   |   | (25 | ) |   |   | (20 | ) |
| Deferred      income taxes and tax credits, net                                                                                                |   |   | 234 |   |   |   | 160 |   |
| Other      changes in noncurrent assets and liabilities                                                                                        |   |   | (48 | ) |   |   | 106 |   |
| Effect      of changes in operating assets and liabilities:                                                                                    |   |   |   |   |   |   |   |   |
| Accounts      receivable                                                                                                                       |   |   | 298 |   |   |   | 88 |   |
| Inventories                                                                                                                                    |   |   | 166 |   |   |   | 107 |   |
| Accounts      payable                                                                                                                          |   |   | (107 | ) |   |   | 149 |   |
| Income      taxes receivable/payable                                                                                                           |   |   | 95 |   |   |   | (20 | ) |
| Regulatory      balancing accounts, net                                                                                                        |   |   | (180 | ) |   |   | (356 | ) |
| Other      current assets                                                                                                                      |   |   | 34 |   |   |   | 104 |   |
| Other      current liabilities                                                                                                                 |   |   | (386 | ) |   |   | 65 |   |
| Other                                                                                                                                          |   |   | 1 |   |   |   | (2 | ) |
| Net      cash provided by operating activities                                                                                                 |   |   | 777 |   |   |   | 1,054 |   |
| Cash      Flows from Investing Activities                                                                                                      |   |   |   |   |   |   |   |   |
| Capital      expenditures                                                                                                                      |   |   | (1,079 | ) |   |   | (853 | ) |
| Proceeds      from sale of assets                                                                                                              |   |   | 2 |   |   |   | 6 |   |
| Decrease      in restricted cash                                                                                                               |   |   | 11 |   |   |   | 2 |   |
| Proceeds      from nuclear decommissioning trust sales                                                                                         |   |   | 387 |   |   |   | 164 |   |
| Purchases      of nuclear decommissioning trust investments                                                                                    |   |   | (412 | ) |   |   | (117 | ) |
| Net      cash used in investing activities                                                                                                     |   |   | (1,091 | ) |   |   | (798 | ) |
| Cash      Flows from Financing Activities                                                                                                      |   |   |   |   |   |   |   |   |
| Net      repayments under revolving credit facility                                                                                            |   |   | - |   |   |   | (250 | ) |
| Net      issuance (repayments) of commercial paper, net of discount of $2 million      in 2009 and $1 million in 2008                          |   |   | 96 |   |   |   | (198 | ) |
| Proceeds      from issuance of long-term debt, net of premium, discount, and issuance      costs of $12 million in 2009 and $2 million in 2008 |   |   | 538 |   |   |   | 598 |   |
| Long-term      debt matured or repurchased                                                                                                     |   |   | (600 | ) |   |   | (300 | ) |
| Energy      recovery bonds matured                                                                                                             |   |   | (89 | ) |   |   | (83 | ) |
| Preferred      stock dividends paid                                                                                                            |   |   | (3 | ) |   |   | (3 | ) |
| Common      stock dividends paid                                                                                                               |   |   | (156 | ) |   |   | (142 | ) |
| Equity      contribution                                                                                                                       |   |   | 528 |   |   |   | 50 |   |
| Other                                                                                                                                          |   |   | 2 |   |   |   | (7 | ) |
| Net      cash provided by (used in) financing activities                                                                                       |   |   | 316 |   |   |   | (335 | ) |
| Net      change in cash and cash equivalents                                                                                                   |   |   | 2 |   |   |   | (79 | ) |
| Cash      and cash equivalents at January 1                                                                                                    |   |   | 52 |   |   |   | 141 |   |
| Cash      and cash equivalents at March 31                                                                                                     |   | $ | 54 |   |   | $ | 62 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Supplemental      disclosures of cash flow information                                                                                         |   |   |   |   |   |   |   |   |
| Cash      (paid) received for:                                                                                                                 |   |   |   |   |   |   |   |   |
| Interest,      net of amounts capitalized                                                                                                      |   | $ | (190 | ) |   | $ | (189 | ) |
| Income      taxes, net                                                                                                                         |   |   | 163 |   |   |   | - |   |
| Supplemental      disclosures of noncash investing and financing activities                                                                    |   |   |   |   |   |   |   |   |
| Capital      expenditures financed through accounts payable                                                                                    |   | $ | 235 |   |   | $ | 242 |   |

----

NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION

NOTE 2: NEW AND SIGNIFICANT ACCOUNTING POLICIES

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | PG&E      Corporation             |   |   | Utility                               |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Three      Months EndedMarch      31, |   |   | Three      Months EndedMarch      31, |   |
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2009                                  |   |   | 2008                                  |   |   | 2009 |   |   | 2008 |   |
| Stock      options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                     | -      |   |                                  | $      | 1 |   |   | $ | - |   |   | $ | 1 |   |
| Restricted      stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                  | 2      |   |                                  |   | 9 |   |   |   | 2 |   |   |   | 5 |   |
| Restricted      stock units (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                  | 6      |   |                                  |   | - |   |   |   | 3 |   |   |   | - |   |
| Performance      shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                  | 16     |   |                                  |   | (4 | ) |   |   | 10 |   |   |   | (3 | ) |
| Total      compensation expense (pre-tax)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                                     | 24     |   |                                  | $      | 6 |   |   | $ | 15 |   |   | $ | 3 |   |
| Total      compensation expense (after-tax)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                     | 14     |   |                                  | $      | 4 |   |   | $ | 9 |   |   | $ | 2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| (1)      Beginning January 1, 2009, PG&E Corporation awarded restricted stock      units (“RSUs”) instead of restricted stock as permitted by the PG&E      Corporation 2006 Long-Term Incentive Plan. RSUs are hypothetical      shares of stock that will generally vest in 20% increments on the first      business day of March in 2010, 2011, and 2012, and the remaining 40% will      vest on the first business day of March 2013. Each vested RSU is      settled for one share of PG&E Corporation common      stock. Additionally, upon settlement, RSUs recipients receive payment      for the amount of dividend equivalents associated with the vested RSUs      that have accrued since the date of grant. |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Pension      Benefits                 |   |   | Other      Benefits                   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | Three      Months EndedMarch      31, |   |   | Three      Months EndedMarch      31, |   |
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2009                                  |   |   | 2008                                  |   |   | 2009 |   |   | 2008 |   |
| Service      cost for benefits earned                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                                     | 66     |   |                                  | $      | 59 |   |   | $ | 8 |   |   | $ | 7 |   |
| Interest      cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                  | 155    |   |                                  |   | 144 |   |   |   | 21 |   |   |   | 20 |   |
| Expected      return on plan assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                  | (145   | )      |                                  |   | (175 | ) |   |   | (17 | ) |   |   | (24 | ) |
| Amortization      of transition obligation (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                  | -      |   |                                  |   | - |   |   |   | 6 |   |   |   | 7 |   |
| Amortization      of prior service cost (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                  | 11     |   |                                  |   | 12 |   |   |   | 4 |   |   |   | 4 |   |
| Amortization      of unrecognized (gain) loss (1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  | 25     |   |                                  |   | - |   |   |   | 1 |   |   |   | (4 | ) |
|      Net periodic benefit      cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                     | 112    |   |                                  | $      | 40 |   |   | $ | 23 |   |   | $ | 10 |   |
|      Less:      transfer to regulatory account (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                  | (71    | )      |                                  |   | 1 |   |   |   | - |   |   |   | - |   |
|      Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                                     | 41     |   |                                  | $      | 41 |   |   | $ | 23 |   |   | $ | 10 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                  |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| (1)      In 2009 and 2008, under SFAS No. 158, “Employers’ Accounting for Defined      Benefit Pension and Other Postretirement Plans, an amendment of FASB      Statements No. 87, 88, 106, and 132(R),” PG&E Corporation and the      Utility recorded amounts related to pension and other benefits in other      comprehensive income, net of related deferred taxes, except for a portion      recorded as a regulatory asset in 2009 and regulatory liability in 2008 in      accordance with SFAS No. 71, “Accounting for the Effects of Certain Types      of Regulation,” as amended (“SFAS No. 71”).(2)      Under SFAS No. 71, the Utility recorded approximately $71 million in 2009      as an addition to the existing pension regulatory asset and approximately      $1 million in 2008 as an addition to the existing pension regulatory      liability to reflect the difference between pension expense or income for      accounting purposes and pension expense or income for ratemaking, which is      based on a funding approach. |   |

----

NOTE 3: REGULATORY ASSETS, LIABILITIES, AND BALANCINGACCOUNTS

|                                                          |   | Balance      At    |   |
|---------------------------------------------------------------|--------|--------------------|--------|
|  (in      millions)                                      |   | March      31,2009 |   |   | December      31,2008 |   |
| Pension      benefits                                         |   | $                  | 1,660  |   |   | $ | 1,624 |   |
| Energy      recovery bonds                                    |   |               | 1,406  |   |   |   | 1,487 |   |
| Deferred      income tax                                      |   |               | 880    |   |   |   | 847 |   |
| Utility      retained generation                              |   |               | 780    |   |   |   | 799 |   |
| Price      risk management                                    |   |               | 511    |   |   |   | 362 |   |
| Environmental      compliance costs                           |   |               | 375    |   |   |   | 385 |   |
| Unamortized      loss, net of gain, on reacquired debt        |   |               | 219    |   |   |   | 225 |   |
| Regulatory      assets associated with plan of reorganization |   |               | 90     |   |   |   | 99 |   |
| Contract      termination costs                               |   |               | 78     |   |   |   | 82 |   |
| Other                                                         |   |               | 88     |   |   |   | 86 |   |
| Total      regulatory assets                                  |   | $                  | 6,087  |   |   | $ | 5,996 |   |

----

|                                                     |   | Balance      At    |   |
|----------------------------------------------------------|--------|--------------------|--------|
|  (in      millions)                                 |   | March      31,2009 |   |   | December      31,2008 |   |
| Cost      of removal obligation                          |   | $                  | 2,805  |   |   | $ | 2,735 |   |
| Public      purpose programs                             |   |               | 307    |   |   |   | 259 |   |
| Recoveries      in excess of asset retirement obligation |   |               | 271    |   |   |   | 226 |   |
| California      Solar Initiative                         |   |               | 180    |   |   |   | 183 |   |
| Price      risk management                               |   |               | 82     |   |   |   | 81 |   |
| Gateway      Generating Station                          |   |               | 66     |   |   |   | 67 |   |
| Environmental      remediation insurance recoveries      |   |               | 41     |   |   |   | 52 |   |
| Other                                                    |   |               | 18     |   |   |   | 54 |   |
| Total      regulatory liabilities                        |   | $                  | 3,770  |   |   | $ | 3,657 |   |

|                                           |   | Receivable      (Payable) |   |
|------------------------------------------------|--------|---------------------------|--------|
|                                           |   | Balance      At           |   |
| (in      millions)                             |   | March      31, 2009       |   |   | December      31, 2008 |   |
| Utility      generation                        |   | $                         | 444    |   |   | $ | 164 |   |
| Modified      transition cost                  |   |                      | 227    |   |   |   | 214 |   |
| Energy      resource recovery                  |   |                      | 200    |   |   |   | 384 |   |
| Distribution      revenue adjustment mechanism |   |                      | 185    |   |   |   | 40 |   |
| Transmission      revenue                      |   |                      | 170    |   |   |   | 173 |   |
| Gas      purchase and distribution             |   |                      | (126   | ) |   |   | (8 | ) |
| Public      purpose programs                   |   |                      | (231   | ) |   |   | (263 | ) |
| Energy      recovery bonds                     |   |                      | (219   | ) |   |   | (231 | ) |
| Other                                          |   |                      | (5     | ) |   |   | (6 | ) |
| Total regulatory balancing      accounts, net  |   | $                         | 645    |   |   | $ | 467 |   |

----

----

NOTE 4: DEBT

NOTE 5: EQUITY

|                                                  |   | PG&E      Corporation |   |   | Utility                              |   |
|-------------------------------------------------------|--------|---------------------------|--------|--------|--------------------------------------|--------|
| (in      millions)                                    |   | TotalEquity               |   |   | TotalShareholders’      Equity |   |
| Balance      at December 31, 2008                     |   | $                         | 9,629  |   |                                 | $      | 9,787 |   |
| Net      income                                       |   |                      | 244    |   |                                 |   | 239 |   |
| Common      stock issued                              |   |                      | 129    |   |                                 |   | - |   |
| Share-based      compensation amortization            |   |                      | 8      |   |                                 |   | - |   |
| Common      stock dividends declared and paid         |   |                      | -      |   |                                 |   | (156 | ) |
| Common      stock dividends declared but not yet paid |   |                      | (154   | )      |                                 |   | - |   |
| Preferred      dividend requirement                   |   |                      | -      |   |                                 |   | (3 | ) |
| Preferred      dividend requirement of subsidiary     |   |                      | (3     | )      |                                 |   | - |   |
| Tax      benefit from employee stock plans            |   |                      | 2      |   |                                 |   | 2 |   |
| Other      comprehensive income                       |   |                      | 7      |   |                                 |   | 7 |   |
| Equity      contribution                              |   |                      | -      |   |                                 |   | 528 |   |
| Balance      at March 31, 2009                        |   | $                         | 9,862  |   |                                 | $      | 10,404 |   |

----

NOTE 6: EARNINGS PER COMMON SHARE

|                                                                                                                                                                                                                                              |   | Three      Months Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                              |   | March      31,          |   |
| (in      millions, except per share amounts)                                                                                                                                                                                                      |   | 2009                    |   |   | 2008 |   |
| Income      Available for Common Shareholders                                                                                                                                                                                                     |   | $                       | 241    |   |   | $ | 224 |   |
| Less:      distributed earnings to common shareholders                                                                                                                                                                                            |   |                    | 154    |   |   |   | 139 |   |
| Undistributed      earnings                                                                                                                                                                                                                       |   | $                       | 87     |   |   | $ | 85 |   |
| Common      shareholders earnings                                                                                                                                                                                                                 |   |                    |   |   |   |   |   |   |
| Basic                                                                                                                                                                                                                                             |   |                    |   |   |   |   |   |   |
| Distributed      earnings to common shareholders                                                                                                                                                                                                  |   | $                       | 154    |   |   | $ | 139 |   |
| Undistributed      earnings allocated to common shareholders                                                                                                                                                                                      |   |                    | 83     |   |   |   | 81 |   |
| Total      common shareholders earnings, basic                                                                                                                                                                                                    |   | $                       | 237    |   |   | $ | 220 |   |
| Diluted                                                                                                                                                                                                                                           |   |                    |   |   |   |   |   |   |
| Distributed      earnings to common shareholders                                                                                                                                                                                                  |   | $                       | 154    |   |   | $ | 139 |   |
| Undistributed      earnings allocated to common shareholders                                                                                                                                                                                      |   |                    | 83     |   |   |   | 81 |   |
| Total      common shareholders earnings, diluted                                                                                                                                                                                                  |   | $                       | 237    |   |   | $ | 220 |   |
| Weighted      average common shares outstanding, basic                                                                                                                                                                                            |   |                    | 364    |   |   |   | 355 |   |
| 9.50%      Convertible Subordinated Notes                                                                                                                                                                                                         |   |                    | 17     |   |   |   | 19 |   |
| Weighted      average common shares outstanding and participating securities,      basic                                                                                                                                                          |   |                    | 381    |   |   |   | 374 |   |
| Weighted      average common shares outstanding, basic                                                                                                                                                                                            |   |                    | 364    |   |   |   | 355 |   |
| Employee      share-based compensation                                                                                                                                                                                                            |   |                    | 2      |   |   |   | 1 |   |
| Weighted      average common shares outstanding, diluted                                                                                                                                                                                          |   |                    | 366    |   |   |   | 356 |   |
| 9.50%      Convertible Subordinated Notes                                                                                                                                                                                                         |   |                    | 17     |   |   |   | 19 |   |
| Weighted      average common shares outstanding and participating securities,      diluted                                                                                                                                                        |   |                    | 383    |   |   |   | 375 |   |
| Net      earnings per common share, basic                                                                                                                                                                                                         |   |                    |   |   |   |   |   |   |
| Distributed      earnings, basic (1)                                                                                                                                                                                                              |   | $                       | 0.42   |   |   | $ | 0.39 |   |
| Undistributed      earnings, basic                                                                                                                                                                                                                |   |                    | 0.23   |   |   |   | 0.23 |   |
| Total                                                                                                                                                                                                                                             |   | $                       | 0.65   |   |   | $ | 0.62 |   |
| Net      earnings per common share, diluted                                                                                                                                                                                                       |   |                    |   |   |   |   |   |   |
| Distributed      earnings, diluted                                                                                                                                                                                                                |   | $                       | 0.42   |   |   | $ | 0.39 |   |
| Undistributed      earnings, diluted                                                                                                                                                                                                              |   |                    | 0.23   |   |   |   | 0.23 |   |
| Total                                                                                                                                                                                                                                             |   | $                       | 0.65   |   |   | $ | 0.62 |   |
|                                                                                                                                                                                                                                              |   |                    |   |   |   |   |   |   |
| (1)      Distributed earnings, basic may differ from actual per share amounts paid      as dividends, as the EPS computation under GAAP requires the use of the      weighted average, rather than the actual number of, shares      outstanding. |   |

----

NOTE 7: DERIVATIVES AND HEDGING ACTIVITIES

| ·   | forward      contracts that commit the Utility to purchase a commodity in the      future; |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | swap      agreements that require payments to or from counterparties based upon the      difference between two prices for a predetermined contractual      quantity; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | option      contracts that provide the Utility with the right to buy a commodity at a      predetermined price; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------|

| ·   | futures      contracts that are exchange-traded contracts that commit the Utility to      purchase a commodity or make a cash settlement at a specified price and      future date. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                                                      |                               |   | Contract      Volumes (1) |        |
|-------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|--------|---------------------------|-------------|
| Underlying      Product                                                                                                                   | Instruments                        |   | Less      Than 1 Year     |        |   | 1      Year But Less Than 3 Years |   |   | 3      Years But Less Than 5 Years |   |   | Over      5 Years (2) |   |
| Natural      Gas (3)      (MMBtus (4))                                                                                                    | Forwards,      Futures, and Swaps  |   |                      | 336,621,564 |   |   |   | 161,031,167 |   |   |   | 20,600,000 |   |   |   | - |   |
|                                                                                                                                      | Options                            |   |                      | 156,232,065 |   |   |   | 138,070,000 |   |   |   | 20,600,000 |   |   |   | - |   |
|                                                                                                                                      |                               |   |                      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity      (Megawatt-hours)                                                                                                         | Forwards,      Futures, and Swaps  |   |                      | 6,882,548   |   |   |   | 7,358,609 |   |   |   | 5,996,652 |   |   |   | 6,666,744 |   |
|                                                                                                                                      | Options                            |   |                      | 19,392      |   |   |   | 10,408 |   |   |   | 10,464 |   |   |   | 11,200 |   |
|                                                                                                                                      | Congestion      Revenue Rights     |   |                      | 65,020,816  |   |   |   | 59,670,412 |   |   |   | 59,604,520 |   |   |   | 124,349,006 |   |
|                                                                                                                                      |                               |   |                      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PG&E      Corporation Equity Shares                                                                                                   | Dividend      Participation Rights |   |                      | 16,702,194  |   |   |   | 16,702,904 |   |   |   | - |   |   |   | - |   |
|                                                                                                                                      |                               |   |                      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)      Amounts shown reflect the total gross derivative volumes by commodity type      that are expected to settle in each time period. |                               |
| (2) Derivatives      in this category expire between 2014 and 2022.                                                                  |                               |
| (3)      Amounts shown are for the combined positions of the electric and      core gas portfolios.                                       |                               |
| (4)      Million British Thermal Units.                                                                                                   |                               |

|                                                                                                                                                                                               |   | Gross Balances (1)                                  |   |   |                                      |   |   |   |   |   |        |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|--------|--------|--------|-------------|--------|
| (in      millions)                                                                                                                                                                                 |   | Derivatives Designated as Cash      Flow Hedges (2) |   |   | Derivatives      Not Designated as Hedges |   |   | Total  |   |   | Netting (3) |   |   | Cash Collateral (3) |   |   | Total      Derivative Balances on the Condensed Consolidated Balance      Sheets |   |
| Commodity Risk      (Corporation and Utility)                                                                                                                                                      |   |
| Current      Assets – Prepaid expenses and other                                                                                                                                             |   | $                                                   | -      |   |                                      | $      | 62     |   |   | $      | 62          |   |   | $ | (10 | ) |   | $ | 83 |   |   | $ | 135 |   |
| Other      Noncurrent Assets – Other                                                                                                                                                         |   |                                                | -      |   |                                      |   | 107    |   |   |   | 107         |   |   |   | (25 | ) |   |   | 81 |   |   |   | 163 |   |
| Current      Liabilities – Other                                                                                                                                                             |   |                                                | (138   | )      |                                      |   | (299   | )      |   |   | (437        | )      |   |   | 10 |   |   |   | 278 |   |   |   | (149 | ) |
| Noncurrent      Liabilities – Other                                                                                                                                                          |   |                                                | (229   | )      |                                      |   | (306   | )      |   |   | (535        | )      |   |   | 25 |   |   |   | 150 |   |   |   | (360 | ) |
| Total      Commodity Risk                                                                                                                                                                          |   | $                                                   | (367   | )      |                                      | $      | (436   | )      |   | $      | (803        | )      |   | $ | - |   |   | $ | 592 |   |   | $ | (211 | ) |
|                                                                                                                                                                                               |   |                                                |   |   |                                      |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Risk Instruments      (4) (PG&E      Corporation Only)                                                                                                                              |   |
| Current      Liabilities –Other                                                                                                                                                              |   | $                                                   | -      |   |                                      | $      | (26    | )      |   | $      | (26         | )      |   | $ | - |   |   | $ | - |   |   | $ | (26 | ) |
| Noncurrent      Liabilities – Other                                                                                                                                                          |   |                                                | -      |   |                                      |   | (7     | )      |   |   | (7          | )      |   |   | - |   |   |   | - |   |   |   | (7 | ) |
| Total      Other Risk Instruments                                                                                                                                                                  |   | $                                                   | -      |   |                                      | $      | (33    | )      |   | $      | (33         | )      |   | $ | - |   |   | $ | - |   |   | $ | (33 | ) |
| Total      Derivatives                                                                                                                                                                             |   | $                                                   | (367   | )      |                                      | $      | (469   | )      |   | $      | (836        | )      |   | $ | - |   |   | $ | 592 |   |   | $ | (244 | ) |
|                                                                                                                                                                                               |   |                                                |   |   |                                      |   |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)      See Note 8 of the Notes to the Condensed Consolidated Financial      Statements for discussion of the valuation techniques used to calculate      the fair value of these instruments.    |   |
| (2)      As of March 31, 2009, PG&E Corporation and the Utility had cash      flow hedges with expiration dates through December 2012 for energy      contract-related derivative instruments. |   |
| (3)      Netting in accordance with FIN 39 and FSP FIN 39-1.                                                                                                                                       |   |
| (4)      This category relates to the dividend participation rights of PG&E      Corporation’s Convertible Subordinated Notes.                                                           |   |

----

| (in      millions)                                                                                                                                                                                                                                                                                                                                                            |   | Derivatives Designated as Cash      Flow Hedges (1) |   |   | Derivatives      Not Designated as Hedges |   |   | Total  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|--------|--------|
| Commodity      Risk(PG&E      Corporation and Utility)                                                                                                                                                                                                                                                                                                                    |   |
| Regulatory      assets andliabilities (2)                                                                                                                                                                                                                                                                                                                                     |   | $                                                        | 16     |   |                                      | $      | (323   | )      |   | $ | (307 | ) |
| Cost      of electricity(3)                                                                                                                                                                                                                                                                                                                                                   |   |                                                     | 23     |   |                                      |   | 179    |   |   |   | 202 |   |
| Cost      of natural gas (3)                                                                                                                                                                                                                                                                                                                                                  |   |                                                     | 23     |   |                                      |   | -      |   |   |   | 23 |   |
| Total      Commodity Risk                                                                                                                                                                                                                                                                                                                                                     |   | $                                                        | 62     |   |                                      | $      | (144   | )      |   | $ | (82 | ) |
| Other      Risk Instruments(PG&E      Corporation Only)                                                                                                                                                                                                                                                                                                                   |   |
| Other      income, net                                                                                                                                                                                                                                                                                                                                                        |   | $                                                        | -      |   |                                      | $      | 2      |   |   | $ | 2 |   |
| Total      Other Risk                                                                                                                                                                                                                                                                                                                                                         |   | $                                                        | -      |   |                                      | $      | 2      |   |   | $ | 2 |   |
|                                                                                                                                                                                                                                                                                                                                                                          |   |                                                     |   |   |                                      |   |   |   |   |   |   |   |
| (1)      As a result of applying the provisions of SFAS No. 71, unrealized      gains and losses on cash flow hedges are recorded to regulatory assets or      liabilities, rather than being deferred in accumulated other comprehensive      income.                                                                                                                        |   |
| (2)      As a result of applying the provisions of SFAS No. 71, unrealized gains      and losses on the commodity risk-related derivative instrument are      recorded to regulatory assets or liabilities, rather than being recorded      to Condensed Consolidated Income Statement. Additionally, these      amounts exclude the impact of cash collateral postings. |   |
| (3) These      amounts are fully passed through to customers in rates. Accordingly,      net income was not impacted by realized amounts on these      instruments.                                                                                                                                                                                                 |   |

| (in      millions)                                                                                                                                                                           |   | As      of March 31, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
| Derivatives      in a Liability Position with Credit-Risk-RelatedContingencies That Are Not      Fully Collateralized                                                                        |   | $                         | (652   | ) |
| Related      Derivatives in an Asset Position                                                                                                                                                |   |                      | 5      |   |
| Collateral      Posting in the Normal Course of Business Relatedto These      Derivatives                                                                                                    |   |                      | 161    |   |
| Net Position of Derivative      Contracts/Additional Collateral Posting Requirements (1)                                                                                                     |   | $                         | (486   | ) |
|                                                                                                                                                                                         |   |                      |   |   |
| (1)      This calculation excludes the impact of closed but unpaid positions, as      their settlement is not impacted by any of the Utility’s      credit-risk-related contingencies. |   |

----

NOTE 8: FAIR VALUE MEASUREMENTS

| PG&E      Corporation                                                                                                                                                                               |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Fair      Value Measurements as of March 31, 2009                                                                                                                                                       |   |
| (in      millions)                                                                                                                                                                                      |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Assets:                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Money      market investments (held by PG&E Corporation)                                                                                                                                            |   | $ | 211 |   |   | $ | - |   |   | $ | 8 |   |   | $ | 219 |   |
| Nuclear      decommissioning trusts (1)                                                                                                                                                                 |   |   | 1,455 |   |   |   | 249 |   |   |   | 4 |   |   |   | 1,708 |   |
| Rabbi      trusts                                                                                                                                                                                       |   |   | 59 |   |   |   | - |   |   |   | - |   |   |   | 59 |   |
| Long-term      disability trust                                                                                                                                                                         |   |   | 86 |   |   |   | - |   |   |   | 71 |   |   |   | 157 |   |
| Assets      Total                                                                                                                                                                                       |   | $ | 1,811 |   |   | $ | 249 |   |   | $ | 83 |   |   | $ | 2,143 |   |
| Liabilities:                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend      participation rights                                                                                                                                                                      |   | $ | - |   |   | $ | - |   |   | $ | 33 |   |   | $ | 33 |   |
| Price      risk management instruments(2)                                                                                                                                                               |   |   | (51 | )  |   |   | 86 |   |   |   | 176 |   |   |   | 211 |   |
| Other                                                                                                                                                                                                   |   |   | - |   |   |   | - |   |   |   | 1 |   |   |   | 1 |   |
| Liabilities      Total                                                                                                                                                                                  |   | $ | (51 | )  |   | $ | 86 |   |   | $ | 210 |   |   | $ | 245 |   |
|                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)      Excludes taxes on appreciation of investment value.                                                                                                                                            |   |
| (2)      Balances include the impact of netting adjustments in accordance with the      requirements of FIN 39-1 of $229 million to Level 1, $123 million to Level      2, and $240 million to Level 3. |   |

| Utility                                                                                                                                                                                                 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Fair      Value Measurements as of March 31, 2009                                                                                                                                                       |   |
| (in      millions)                                                                                                                                                                                      |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Assets:                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Nuclear      decommissioning trusts (1)                                                                                                                                                                 |   | $ | 1,455 |   |   | $ | 249 |   |   | $ | 4 |   |   | $ | 1,708 |   |
| Long-term      disability trust                                                                                                                                                                         |   |   | 86 |   |   |   | - |   |   |   | 71 |   |   |   | 157 |   |
| Assets      Total                                                                                                                                                                                       |   | $ | 1,541 |   |   | $ | 249 |   |   | $ | 75 |   |   | $ | 1,865 |   |
| Liabilities:                                                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Price      risk management instruments (2)                                                                                                                                                              |   | $ | (51 | )  |   | $ | 86 |   |   | $ | 176 |   |   | $ | 211 |   |
| Other                                                                                                                                                                                                   |   |   | - |   |   |   | - |   |   |   | 1 |   |   |   | 1 |   |
|  Liabilities      Total                                                                                                                                                                            |   | $ | (51 | )  |   | $ | 86 |   |   | $ | 177 |   |   | $ | 212 |   |
|                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)      Excludes taxes on appreciation of investment value.                                                                                                                                            |   |
| (2)      Balances include the impact of netting adjustments in accordance with the      requirements of FIN 39-1 of $229 million to Level 1, $123 million to Level      2, and $240 million to Level 3. |   |

----

| · | The      fair values of cash and cash equivalents, restricted cash and deposits,      net accounts receivable, price risk management assets and liabilities,      short-term borrowings, accounts payable, customer deposits, and the      Utility’s variable rate pollution control bond loan agreements approximate      their carrying values as of March 31, 2009 and December 31,      2008. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                    |
| · | The      fair values of the Utility’s fixed rate senior notes, fixed rate pollution      control bond loan agreements, and the ERBs issued by PERF were based on      quoted market prices obtained from the Bloomberg financial information      system at March 31, 2009.                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                    |
| · | The      fair value of PG&E Corporation’s 9.50% Convertible Subordinated Notes      was determined by considering the prices of securities displayed as of the      close of business on March 31, 2009 by a proprietary bond trading system      that tracks and marks a broad universe of convertible securities,      including the securities being assessed.                        |

|                                |   | At      March 31,    |   |   | At      December 31, |   |
|-------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
|                                |   | 2009                 |   |   | 2008                 |   |
| (in      millions)                  |   | Carrying      Amount |   |   | Fair      Value      |   |   | Carrying      Amount |   |   | Fair      Value |   |
| Debt      (Note 4):            |   |                 |   |   |                 |   |   |   |   |   |   |   |
| PG&E      Corporation           |   | $                    | 602    |   |                 | $      | 1,002 |   |   | $ | 280 |   |   | $ | 739 |   |
| Utility                             |   |                 | 8,690  |   |                 |   | 8,820 |   |   |   | 8,740 |   |   |   | 9,134 |   |
| Energy      recovery bonds (Note 4) |   |                 | 1,494  |   |                 |   | 1,526 |   |   |   | 1,583 |   |   |   | 1,564 |   |

|                                                                     |   | PG&E      Corporation Only |   |   | PG&E      Corporation and the Utility |   |   |                                   |   |
|--------------------------------------------------------------------------|--------|--------------------------------|--------|--------|-------------------------------------------|--------|--------|----------------------------------------|--------|
| (in      millions)                                                       |   | Money      Market Instruments  |   |   | Dividend      Participation Rights        |   |   | Price      Risk Management Instruments |   |   | Nuclear Decommissioning Trusts      (1) |   |   | Long-term      Disability |   |   | Other |   |   | Total |   |
| Asset      (liability) Balance as of January 1, 2009                     |   | $                              | 12     |   |                                      | $      | (42    | )                                      |   | $ | (156 | ) |   | $ | 5 |   |   | $ | 78 |   |   | $ | (2 | ) |   | $ | (105 | ) |
| Realized      and unrealized gains (losses):                             |   |                           |   |   |                                      |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Included      in earnings                                                |   |                           | -      |   |                                      |   | 2      |                                   |   |   | - |   |   |   | - |   |   |   | (7 | ) |   |   | - |   |   |   | (5 | ) |
| Included      in regulatory assets and liabilities or balancing accounts |   |                           | -      |   |                                      |   | -      |                                   |   |   | (20 | ) |   |   | (1 | ) |   |   | - |   |   |   | 1 |   |   |   | (20 | ) |
| Purchases,      issuances, and settlements                               |   |                           | (4     | )      |                                      |   | 7      |                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3 |   |
| Transfers      in to Level 3                                             |   |                           | -      |   |                                      |   | -      |                                   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Asset      (liability) Balance as of March 31, 2009                      |   | $                              | 8      |   |                                      | $      | (33    | )                                      |   | $ | (176 | ) |   | $ | 4 |   |   | $ | 71 |   |   | $ | (1 | ) |   | $ | (127 | ) |
|                                                                     |   |                           |   |   |                                      |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)      Excludes taxes on appreciation of investment value.             |   |

----

NOTE 9: RELATED PARTY AGREEMENTS AND TRANSACTIONS

|                                                               |   | Three      Months Ended |   |
|--------------------------------------------------------------------|--------|-------------------------|--------|
|                                                               |   | March      31,          |   |
| (in      millions)                                                 |   | 2009                    |   |   | 2008 |   |
| Utility      revenues from:                                        |   |                    |   |   |   |   |
| Administrative      services provided to PG&E      Corporation |   | $                       | 1      |   |   | $ | 1 |   |
| Utility      employee benefit due from PG&E Corporation        |   |                    | -      |   |   |   | - |   |
| Utility      expenses from:                                        |   |                    |   |   |   |   |   |   |
| Administrative      services received from PG&E Corporation    |   | $                       | 19     |   |   | $ | 24 |   |
| Utility      employee benefit due to PG&E Corporation          |   |                    | 6      |   |   |   | 7 |   |

NOTE 10: RESOLUTION OF REMAINING CHAPTER 11 DISPUTEDCLAIMS

| (in      millions)                |   |   |   |
|-----------------------------------|--------|--------|--------|
| Balance      at December 31, 2008 |   | $      | 1,750  |   |
| Interest      accrued             |   |   | 20     |   |
| Less:      Settlements            |   |   | (33    | )  |
| Balance      at March 31, 2009    |   | $      | 1,737  |   |

----

NOTE 11: COMMITMENTS AND CONTINGENCIES

| (in      millions) |   |   |   |
|--------------------|--------|--------|--------|
| 2009               |   | $      | 1,576  |   |
| 2010               |   |   | 2,137  |   |
| 2011               |   |   | 2,249  |   |
| 2012               |   |   | 2,205  |   |
| 2013               |   |   | 2,098  |   |
| Thereafter         |   |   | 21,784 |   |
| Total              |   | $      | 32,049 |   |

| (in      millions)                            |   |   |   |
|-----------------------------------------------|--------|--------|--------|
| 2009                                          |   | $      | 43     |   |
| 2010                                          |   |   | 50     |   |
| 2011                                          |   |   | 50     |   |
| 2012                                          |   |   | 50     |   |
| 2013                                          |   |   | 50     |   |
| Thereafter                                    |   |   | 206    |   |
| Total      fixed capacity payments            |   | $      | 449    |   |
| Less:      Amount representing interest       |   |   | 105    |   |
| Present      value of fixed capacity payments |   | $      | 344    |   |

----

| (in      millions) |   |   |   |
|--------------------|--------|--------|--------|
| 2009               |   | $      | 486    |   |
| 2010               |   |   | 300    |   |
| 2011               |   |   | 118    |   |
| 2012               |   |   | 49     |   |
| 2013               |   |   | 42     |   |
| Thereafter         |   |   | 157    |   |
| Total              |   | $      | 1,152  |   |

----

----

| · | approximately      $48 million for remediation at the Utility’s natural gas compressor site      located near Hinkley, California;                                                                                                                                                                                                                                                                                       |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | approximately      $162 million for remediation at the Utility’s natural gas compressor site      located in Topock, Arizona, near the California border;                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| · |  approximately      $82 million related to remediation at divested generation      facilities;                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| · | approximately      $240 million related to remediation costs for the Utility’s generation and      other facilities, third-party disposal sites, and manufactured gas plant      sites owned by the Utility or third parties (including those sites that      are the subject of remediation orders by environmental agencies or claims      by the current owners of the former manufactured gas plant sites);      and |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| · |  approximately      $55 million related to remediation costs for fossil decommissioning      sites.                                                                                                                                                                                                                                                                                                                       |

----

----

----

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND

OVERVIEW

----

| · | The Outcome of Regulatory      Proceedings and the Impact of Ratemaking      Mechanisms.  Most of the Utility’s revenue requirements      are set based on its costs of service in proceedings such as the General      Rate Case (“GRC”) filed with the CPUC and transmission owner (“TO”) rate      cases filed with the FERC.  Unlike the current GRC, which set      revenue requirements for a four-year period (2007 through 2010), it is      expected that the next GRC will set revenue requirements for the Utility’s      electric and natural gas distribution operations and electric generation      operations for a three-year period (2011 through 2013).  From      time to time, the Utility also files separate applications requesting the      CPUC or the FERC to authorize additional revenue requirements for specific      capital expenditure projects such as new power plants, gas or electric      transmission facilities, installation of an advanced metering      infrastructure, and reliability or system infrastructure      improvements.  The Utility’s revenues will also be affected by      incentive ratemaking, including the CPUC’s customer energy efficiency      shareholder incentive mechanism.  (See Note 11 of the Notes to      the Condensed Consolidated Financial Statements.)  In addition,      the CPUC has authorized the Utility to recover 100% of its reasonable      electric fuel and energy procurement costs and has established a timely      rate adjustment mechanism to recover such costs.  As a result,      the Utility’s revenues and costs can be affected by volatility in the      prices of natural gas and electricity.  (See “Risk Management      Activities” below.)                                                                                                                                                                                                              |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| · | Capital Structure and Return      on Common Equity.  The Utility’s current CPUC-authorized      capital structure includes a 52% common equity component.  The      CPUC has authorized the Utility to earn a ROE of 11.35% on the equity      component of its electric and natural gas distribution and electric      generation rate base.  The Utility’s capital structure is set      until 2011, and its cost of capital components, including an 11.35% ROE,      will only be changed before 2011 if the annual automatic adjustment      mechanism established by the CPUC is triggered.  If the 12-month      October-through-September average yield for the Moody’s Investors Service      utility bond index increases or decreases by more than 1% as compared to      the applicable benchmark, the Utility can adjust its authorized cost of      capital effective on January 1 of the following year.  The      Utility can also apply for an adjustment to either its capital structure      or its cost of capital at any time in the event of extraordinary      circumstances.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| · | The Ability of the Utility to      Control Costs While Improving Operational Efficiency and      Reliability.  The Utility’s revenue requirements are      generally set at a level to allow the Utility the opportunity to recover      its basic forecasted operating expenses as well as to earn an ROE and      recover depreciation, tax, and interest expense associated with authorized      capital expenditures.  Differences in the amount or timing of      forecasted and actual operating expenses and capital expenditures can      affect the Utility’s ability to earn its authorized rate of return and the      amount of PG&E Corporation’s net income available for      shareholders.  When capital expenditures are higher than      authorized levels, the Utility incurs associated depreciation, property      tax, and interest expense but does not recover revenues to offset these      expenses or earn an ROE until the capital expenditures are added to rate      base in future rate cases.  Items that could cause higher      expenses than provided for in the last GRC primarily relate to the      Utility’s efforts to maintain its aging  electric and natural      gas systems infrastructure; to improve the reliability and safety of its      electric and natural gas system; and to improve its information technology      infrastructure, support, and security.  In addition, the Utility      expects that it will continue to incur higher costs to accelerate      system-wide natural gas leak surveys and associated remedial      work.  (See “Results of Operations” below.)  The      Utility continually seeks to achieve operational efficiencies and improve      reliability while creating future sustainable cost savings to offset these      higher anticipated expenses.  The Utility also seeks to make the      amount and timing of its capital expenditures consistent with budgeted      amounts and timing. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| · | The Availability and Terms of      Debt and Equity Financing.  The amount and timing of the      Utility’s future financing needs will depend on various factors, some of      which include the conditions in the capital markets, the amount and timing      of scheduled principal and interest payments on long-term debt, the amount      and timing of planned capital expenditures, and the amount and timing of      interest payments related to the remaining disputed claims that were made      by electricity suppliers in the Utility’s proceeding under Chapter 11 of      the U.S. Bankruptcy Code (“Chapter 11”).  (See Note 10 of the      Notes to the Condensed Consolidated Financial Statements.)  The      amount of the Utility’s short-term financing will vary depending on the      level of operating cash flows, seasonal demand for electricity and natural      gas, volatility in electricity and natural gas prices, and collateral      requirements related to price risk management activity, among other      factors.  In order to maintain the Utility’s CPUC-authorized      capital structure, PG&E Corporation will be required to contribute      equity to the Utility. The timing and amount of these future equity      contributions will affect the timing and amount of any future equity or      debt issuances by PG&E Corporation.  In March 2009, PG&E      Corporation and the Utility issued $350 million and $550 million,      respectively, of senior unsecured notes.  (See “Liquidity and      Financial Resources” below.)                                                                                                                                                                                                                                                                                                                                                                                                        |

----

FORWARD-LOOKING STATEMENTS

| · | the      Utility’s ability to manage capital expenditures and its operating and      maintenance expenses within authorized levels;                                                                                                                                                                                                                                                          |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | the      outcome of pending and future regulatory proceedings and whether the      Utility is able to timely recover its costs through  rates;                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | the      adequacy and price of electricity and natural gas supplies, and the      ability of the Utility to manage and respond to the volatility of the      electricity and natural gas markets, including the ability of the Utility      and its counterparties to post or return collateral;                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | the      effect of weather, storms, earthquakes, fires, floods, disease, other      natural disasters, explosions, accidents, mechanical breakdowns,      disruption of information technology and computer systems, acts of      terrorism, and other events or hazards on the Utility’s facilities and      operations, its customers, and third parties on which the Utility      relies; |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | the      potential impacts of climate change on the Utility’s electricity and      natural gas businesses;                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | changes      in customer demand for electricity and natural gas resulting from      unanticipated population growth or decline, general economic and financial      market conditions, changes in technology including the development of      alternative energy sources, or other reasons;                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | operating      performance of the Diablo Canyon Power Plant (“Diablo Canyon”), the      availability of nuclear fuel, the occurrence of unplanned outages at      Diablo Canyon, or the temporary or permanent cessation of operations at      Diablo Canyon;                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | whether      the Utility can maintain the cost savings that it has recognized from      operating efficiencies that it has achieved and identify and successfully      implement additional sustainable cost-saving measures;                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | whether      the Utility incurs substantial expense to improve the safety and      reliability of its electric and natural gas systems;                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | whether      the Utility achieves the CPUC’s energy efficiency targets and recognizes      any incentives that the Utility may earn in a timely    manner;                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | the      impact of changes in federal or state laws, or their interpretation, on      energy policy and the regulation of utilities and their holding      companies;                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | the      impact of changing wholesale electric or gas market rules, including new      rules of the California Independent System Operator (“CAISO”) to      restructure the California wholesale electricitymarket;                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | how      the CPUC administers the conditions imposed on PG&E Corporation when      it became the Utility’s holding company;                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | the      extent to which PG&E Corporation or the Utility incurs costs and      liabilities in connection with litigation that are not recoverable through      rates, from insurance, or from other third parties;                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | the      ability of PG&E Corporation, the Utility, and counterparties to access      capital markets and other sources of credit in a timely manner on      acceptable terms, especially given the recent deteriorating conditions in      the economy and financial markets;                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | the      impact of environmental laws and regulations and the costs of compliance      and remediation;                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | the      effect of municipalization, direct access, community choice aggregation,      or other forms of bypass; and                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                               |
| · | the outcome      of federal or state tax audits and the impact of changes in federal or      state tax laws, policies, orregulations.                                                                                                                                                                                                                                                         |

----

RESULTS OF OPERATIONS

|                                                                                          |   | Three      Months ended March 31, |   |
|-----------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|
| (in      millions)                                                                            |   | 2009                              |   |   | 2008 |   |
| Utility                                                                                  |   |                              |   |   |   |   |
| Electric      operating revenues                                                              |   | $                                 | 2,426  |   |   | $ | 2,514 |   |
| Natural      gas operating revenues                                                           |   |                              | 1,005  |   |   |   | 1,219 |   |
| Total      operating revenues                                                                 |   |                              | 3,431  |   |   |   | 3,733 |   |
| Cost      of electricity                                                                      |   |                              | 883    |   |   |   | 1,027 |   |
| Cost      of natural gas                                                                      |   |                              | 557    |   |   |   | 775 |   |
| Operating      and maintenance                                                                |   |                              | 1,059  |   |   |   | 1,036 |   |
| Depreciation,      amortization, and decommissioning                                          |   |                              | 419    |   |   |   | 402 |   |
| Total      operating expenses                                                                 |   |                              | 2,918  |   |   |   | 3,240 |   |
| Operating      income                                                                         |   |                              | 513    |   |   |   | 493 |   |
| Interest      income                                                                          |   |                              | 9      |   |   |   | 24 |   |
| Interest      expense                                                                         |   |                              | (173   | ) |   |   | (180 | ) |
| Other      income, net                                                                        |   |                              | 21     |   |   |   | 19 |   |
| Income      before income taxes                                                               |   |                              | 370    |   |   |   | 356 |   |
| Income      tax provision                                                                     |   |                              | 131    |   |   |   | 120 |   |
| Net      Income                                                                               |   |                              | 239    |   |   |   | 236 |   |
| Preferred      dividend requirement                                                           |   |                              | 3      |   |   |   | 3 |   |
| Income      available for common shareholders                                                 |   | $                                 | 236    |   |   | $ | 233 |   |
| PG&E Corporation,      Eliminations, and Other(1)                                    |   |                              |   |   |   |   |   |   |
| Operating      revenues                                                                       |   | $                                 | -      |   |   | $ | - |   |
| Operating      expenses                                                                       |   |                              | -      |   |   |   | - |   |
| Operating      loss                                                                           |   |                              | -      |   |   |   | - |   |
| Interest      income                                                                          |   |                              | -      |   |   |   | 2 |   |
| Interest      expense                                                                         |   |                              | (8     | ) |   |   | (7 | ) |
| Other      expense, net                                                                       |   |                              | (3     | ) |   |   | (14 | ) |
| Loss      before income taxes                                                                 |   |                              | (11    | ) |   |   | (19 | ) |
| Income      tax benefit                                                                       |   |                              | (16    | ) |   |   | (10 | ) |
| Net      gain (loss)                                                                          |   | $                                 | 5      |   |   | $ | (9 | ) |
| Consolidated      Total                                                                       |   |                              |   |   |   |   |   |   |
| Operating      revenues                                                                       |   | $                                 | 3,431  |   |   | $ | 3,733 |   |
| Operating      expenses                                                                       |   |                              | 2,918  |   |   |   | 3,240 |   |
| Operating      income                                                                         |   |                              | 513    |   |   |   | 493 |   |
| Interest      income                                                                          |   |                              | 9      |   |   |   | 26 |   |
| Interest      expense                                                                         |   |                              | (181   | ) |   |   | (187 | ) |
| Other      income, net                                                                        |   |                              | 18     |   |   |   | 5 |   |
| Income      before income taxes                                                               |   |                              | 359    |   |   |   | 337 |   |
| Income      tax provision                                                                     |   |                              | 115    |   |   |   | 110 |   |
| Net      Income                                                                               |   |                              | 244    |   |   |   | 227 |   |
| Preferred      dividend requirement of subsidiary                                             |   |                              | 3      |   |   |   | 3 |   |
| Income      available for common shareholders                                                 |   | $                                 | 241    |   |   | $ | 224 |   |
|                                                                                          |   |                              |   |   |   |   |   |   |
| (1)      PG&E Corporation eliminates all intercompany transactions in      consolidation. |   |

----

|                                                                                                                                                                                                                                                                                   |   | Three      Months Ended |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                   |   | March      31,          |   |
| (in      millions)                                                                                                                                                                                                                                                                     |   | 2009                    |   |   | 2008 |   |
| Electric      operating revenues                                                                                                                                                                                                                                                       |   | $                       | 2,821  |   |   | $ | 2,841 |   |
| DWR      pass-through revenues      (1)                                                                                                                                                                                                                                                |   |                    | (395   | ) |   |   | (327 | ) |
| Utility      electric operating revenues                                                                                                                                                                                                                                               |   | $                       | 2,426  |   |   | $ | 2,514 |   |
|                                                                                                                                                                                                                                                                                   |   |                    |   |   |   |   |   |   |
| (1) These      are revenues collected on behalf of the DWR for electricity allocated to      the Utility’s customers under contracts between the DWR and power      suppliers and are not included in the Utility’s Condensed Consolidated      Statements of Income. |   |

| · | Electricity      procurement costs passed through to customers decreased by approximately      $147 million.  (See “Cost of Electricity”  below.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| · | Public      purpose program costs passed through to customers decreased by      approximately $29 million, as 2009 marks the beginning of a new program      cycle that will run through 2011.  Revenues and expenses      increase as  programs become more established and enrollment      increases. The public purpose programs primarily consist of the      electric energy efficiency programs; low-income energy efficiency      programs; research, development, and demonstration programs; and renewable      energy programs.  (See “Operating and Maintenance”      below.) |

| · | Base      revenues increased by approximately $26 million as a result of attrition      adjustments as authorized in the 2007 GRC.                                                                                      |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                    |
| · | Revenues      associated with separately funded projects placed in service, including      Gateway Generating Station and the new steam generators at      Diablo Canyon, increased by approximately $46  million. |
|   |                                                                                                                                                                                                                    |
| · | Other      miscellaneous increases in electric operating revenues of approximately      $16 million.                                                                                                                    |

----

|                                                      |   | Three      Months Ended |   |
|-----------------------------------------------------------|--------|-------------------------|--------|
|                                                      |   | March      31,          |   |
| (in      millions)                                        |   | 2009                    |   |   | 2008 |   |
| Cost      of purchased power                              |   | $                       | 870    |   |   | $ | 1,038 |   |
| Proceeds      from surplus sales allocated to the Utility |   |                    | (31    | ) |   |   | (46 | ) |
| Fuel      used in owned generation                        |   |                    | 44     |   |   |   | 35 |   |
| Total      cost of electricity                            |   | $                       | 883    |   |   | $ | 1,027 |   |
| Average      cost of purchased power per kWh (1)          |   | $                       | 0.079  |   |   | $ | 0.088 |   |
| Total      purchased power (in millions of kWh)           |   |                    | 10,987 |   |   |   | 11,757 |   |
|                                                      |   |                    |   |   |   |   |   |   |
| (1)      Kilowatt-hour                                    |   |                    |   |   |   |   |   |   |

----

|                                                             |   | Three      Months Ended |   |
|------------------------------------------------------------------|--------|-------------------------|--------|
|                                                             |   | March      31,          |   |
| (in      millions)                                               |   | 2009                    |   |   | 2008 |   |
| Bundled      natural gas revenues                                |   | $                       | 923    |   |   | $ | 1,142 |   |
| Transportation      service-only revenues                        |   |                    | 82     |   |   |   | 77 |   |
| Total      natural gas operating revenues                        |   | $                       | 1,005  |   |   | $ | 1,219 |   |
| Average      bundled revenue per Mcf(1)      of natural gas sold |   | $                       | 9.14   |   |   | $ | 10.11 |   |
| Total      bundled natural gas sales (in millions of Mcf)        |   |                    | 101    |   |   |   | 113 |   |
|                                                             |   |                    |   |   |   |   |   |   |
| (1)      One thousand cubic feet                                 |   |                    |   |   |   |   |   |   |

|                                             |   | Three      Months Ended |   |
|--------------------------------------------------|--------|-------------------------|--------|
|                                             |   | March      31,          |   |
| (in      millions)                               |   | 2009                    |   |   | 2008 |   |
| Cost      of natural gas sold                    |   | $                       | 515    |   |   | $ | 754 |   |
| Transportation      cost of natural gas sold     |   |                    | 42     |   |   |   | 21 |   |
| Total      cost of natural gas                   |   | $                       | 557    |   |   | $ | 775 |   |
| Average      cost per Mcf of natural gas sold    |   | $                       | 5.10   |   |   | $ | 6.67 |   |
| Total      natural gas sold (in millions of Mcf) |   |                    | 101    |   |   |   | 113 |   |

----

----

| · | Interest      expense decreased by approximately $14 million primarily due to lower FERC      interest rates accrued on the liability for disputed    claims.                                                                                                                                                                                                                                                                     |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| · | Interest      expense on pollution control bonds decreased by approximately $7 million      due to the repurchase of auction rate pollution control bonds in March and      April 2008.  The Utility partially refunded these bonds in      September and October 2008.  Additionally, interest expense      decreased due to lower interest rates on outstanding variable rate      pollution control bonds. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| · | Interest      expense decreased by approximately $4 million primarily due to lower      interest rates affecting various balancing accounts.                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                              |
| · | Interest      expense decreased by approximately $4 million due to the reduction of the      outstanding balance of ERBs.                                                                                                                                                                                                                                                                                                         |

----

LIQUIDITY AND FINANCIALRESOURCES

| (in      millions)                                                                                                                                                                                                                              |                           |                  |   | At      March 31, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|-----------------------|--------|------------------------|--------|
| Authorized      Borrower                                                                                                                                                                                                                        | Facility                       | Termination      Date |   | Facility      Limit    |   |   | Letters      of Credit Outstanding |   |   | Cash      Borrowings |   |   | Commercial      Paper Backup |   |   | Availability |   |
| PG&E      Corporation                                                                                                                                                                                                                       | Revolving      credit facility | February      2012    |   | $                      | 200    | (1)  |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 200 |   |
| Utility                                                                                                                                                                                                                                         | Revolving      credit facility | February      2012    |   |                   | 2,000  | (2)  |   |   | 295 |   |   |   | - |   |   |   | 385 |   |   |   | 1,320 |   |
| Total      credit facilities                                                                                                                                                                                                                    |                           | $                     | 2,200  |                   |   | $ | 295 |   |   | $ | - |   |   | $ | 385 |   |   | $ | 1,520 |   |
|                                                                                                                                                                                                                                       |                           |                  |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)      Includes a $50 million sublimit for letters of credit and $100 million      sublimit for “swingline” loans, defined as loans that are made available      on a same-day basis and are repayable in full within 30    days. |                           |
| (2)      Includes a $950 million sublimit for letters of credit and $200 million      sublimit for swingline loans.                                                                                                                             |                           |

----

----

|                                                                                        |   | Three      Months Ended |   |
|---------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                        |   | March      31,          |   |
| (in      millions)                                                                          |   | 2009                    |   |   | 2008 |   |
| Net      income                                                                             |   | $                       | 239    |   |   | $ | 236 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |                    |   |   |   |   |   |   |
| Depreciation,      amortization, and decommissioning                                        |   |                    | 456    |   |   |   | 437 |   |
| Allowance      for equity funds used during construction                                    |   |                    | (25    | ) |   |   | (20 | ) |
| Deferred      income taxes and tax credits, net                                             |   |                    | 234    |   |   |   | 160 |   |
| Other      changes in noncurrent assets and liabilities                                     |   |                    | (48    | ) |   |   | 106 |   |
| Effect      of changes in operating assets and liabilities:                                 |   |                    |   |   |   |   |   |   |
| Accounts      receivable                                                                    |   |                    | 298    |   |   |   | 88 |   |
| Inventories                                                                                 |   |                    | 166    |   |   |   | 107 |   |
| Accounts      payable                                                                       |   |                    | (107   | ) |   |   | 149 |   |
| Income      taxes receivable/payable                                                        |   |                    | 95     |   |   |   | (20 | ) |
| Regulatory      balancing accounts, net                                                     |   |                    | (180   | ) |   |   | (356 | ) |
| Other      current assets                                                                   |   |                    | 34     |   |   |   | 104 |   |
| Other      current liabilities                                                              |   |                    | (386   | ) |   |   | 65 |   |
| Other                                                                                       |   |                    | 1      |   |   |   | (2 | ) |
| Net      cash provided by operating activities                                              |   | $                       | 777    |   |   | $ | 1,054 |   |

----

|                                                        |   | Three      Months Ended |   |
|-------------------------------------------------------------|--------|-------------------------|--------|
|                                                        |   | March      31,          |   |
| (in      millions)                                          |   | 2009                    |   |   | 2008 |   |
| Capital      expenditures                                   |   | $                       | (1,079 | ) |   | $ | (853 | ) |
| Proceeds      from sale of assets                           |   |                    | 2      |   |   |   | 6 |   |
| Decrease      in restricted cash                            |   |                    | 11     |   |   |   | 2 |   |
| Proceeds      from nuclear decommissioning trust sales      |   |                    | 387    |   |   |   | 164 |   |
| Purchases      of nuclear decommissioning trust investments |   |                    | (412   | ) |   |   | (117 | ) |
| Net      cash used in investing activities                  |   | $                       | (1,091 | ) |   | $ | (798 | ) |

|                                                                                                                                           |   | Three      Months Ended |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                                                           |   | March      31,          |   |
| (in      millions)                                                                                                                             |   | 2009                    |   |   | 2008 |   |
| Net      repayments under revolving credit facility                                                                                            |   | $                       | -      |   |   | $ | (250 | ) |
| Net      issuance (repayments) of commercial paper, net of discount of $2 million      in 2009 and $1 million in 2008                          |   |                    | 96     |   |   |   | (198 | ) |
| Proceeds      from issuance of long-term debt, net of premium, discount, and issuance      costs of $12 million in 2009 and $2 million in 2008 |   |                    | 538    |   |   |   | 598 |   |
| Long-term      debt matured or repurchased                                                                                                     |   |                    | (600   | ) |   |   | (300 | ) |
| Energy      recovery bonds matured                                                                                                             |   |                    | (89    | ) |   |   | (83 | ) |
| Preferred      stock dividends paid                                                                                                            |   |                    | (3     | ) |   |   | (3 | ) |
| Common      stock dividends paid                                                                                                               |   |                    | (156   | ) |   |   | (142 | ) |
| Equity      contribution                                                                                                                       |   |                    | 528    |   |   |   | 50 |   |
| Other                                                                                                                                          |   |                    | 2      |   |   |   | (7 | ) |
| Net      cash provided by (used in) financing activities                                                                                       |   | $                       | 316    |   |   | $ | (335 | ) |

----

CONTRACTUAL COMMITMENTS

CAPITAL EXPENDITURES

----

OFF-BALANCE SHEETARRANGEMENTS

CONTINGENCIES

REGULATORY MATTERS

RISK MANAGEMENT ACTIVITIES

----

----

| (in      millions)                                                                                                                                                                                                                                                                                                                | Gross      CreditExposure      Before Credit Collateral(1) | Credit      Collateral | Net      Credit Exposure(2) | Number      ofWholesaleCustomers      or Counterparties>10% | Net      Exposure toWholesaleCustomers      or Counterparties>10% |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------------------|-----------------------------|----------------------------------------------------------------|----------------------------------------------------------------------|
| March      31, 2009                                                                                                                                                                                                                                                                                                               | $      315                                            | $      63         | $      252             | 3                                                              | $      192                                                      |
| December      31, 2008                                                                                                                                                                                                                                                                                                            | $      240                                            | $      84         | $      156             | 2                                                              | $      107                                                      |
|                                                                                                                                                                                                                                                                                                                              |                                                       |                   |                        |                                                           |                                                                 |
| (1)      Gross credit exposure equals mark-to-market value on financially settled      contracts, notes receivable, and net receivables (payables) where netting      is contractually allowed.  Gross and net credit exposure amounts      reported above do not include adjustments for time value or      liquidity. |
| (2)      Net credit exposure is the gross credit exposure minus credit collateral      (cash deposits and letters of credit).  For purposes of this      table, parental guarantees are not included as part of the      calculation.                                                                                   |

CRITICAL ACCOUNTING POLICIES

| · | regulatory      assets and liabilities;      |
|--------|----------------------------------------------|
|   |                                         |
| · | environmental      remediation liabilities;  |
|   |                                         |
| · | asset      retirement obligations;           |
|   |                                         |
| · | accounting      for income taxes; and        |
|   |                                         |
| · | pension      and other postretirement plans. |

----

NEW ACCOUNTING POLICIES

----

ACCOUNTING PRONOUNCEMENTS ISSUED BUT NOT YETADOPTED

----

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK

ITEM 4. CONTROLS AND PROCEDURES

----

ITEM 1. LEGAL PROCEEDINGS

ITEM 1A. RISK FACTORS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OFPROCEEDS

| Period                                                                                                                                  |   | Total      Number of Shares Purchased |   |   | Average      Price Per Share |   |   | Total      Number of Shares Purchased as Part of Publicly Announced Plans or      Programs |   |   | Approximate      Dollar Value of Shares that May Yet be Purchased Under the Plans or      Programs |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|------------------------------|--------|--------|--------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------|--------|
| January      1 through January 31, 2009                                                                                                 |   |                                  | 36,672 | (1)    |                         | $      | 38.81  |                                                                                       |   |   | -                                                                                                  |   |   | $ | - |   |
| February      1 through February 28, 2009                                                                                               |   |                                  | -      |   |                         |   | -      |                                                                                       |   |   | -                                                                                                  |   |   |   | - |   |
| March      1 through March 31, 2009                                                                                                     |   |                                  | -      |   |                         |   | -      |                                                                                       |   |   | -                                                                                                  |   |   |   | - |   |
| Total                                                                                                                                   |   |                                  | 36,672 |   |                         | $      | 38.81  |                                                                                       |   |   | -                                                                                                  |   |   | $ | - |   |
|                                                                                                                                    |   |                                  |   |   |                         |   |   |                                                                                       |   |   |                                                                                               |   |   |   |   |   |
|                                                                                                                                    |   |                                  |   |   |                         |   |   |                                                                                       |   |   |                                                                                               |   |   |   |   |   |
| (1)      Shares tendered to satisfy tax withholding obligations arising upon the      vesting of PG&E Corporation restricted stock. |   |

----

ITEM 5. OTHER INFORMATION

----

ITEM 6. EXHIBITS

| 3.1                                                                                                                             | Bylaws      of PG&E Corporation amended as of January 1, 2009 (incorporated by      reference to PG&E Corporation’s Form 10-K for the year ended December      31, 2008 (File No. 1-12609), Exhibit 3.3)                                                                                                                                                                                      |
|---------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 3.2.                                                                                                                            | Bylaws      of Pacific Gas and Electric Company amended as of January 1, 2009      (incorporated by reference to Pacific Gas and Electric Company’s Form 10-K      for the year ended December 31, 2008 (File No. 1-12609), Exhibit      3.5)                                                                                                                                                         |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.1                                                                                                                             | Sixth      Supplemental Indenture, dated as of March 6, 2009 relating to the      issuance of $550,000,000 aggregate principal amount of Pacific Gas and      Electric Company’s 6.25% Senior Notes due March 1, 2039 (incorporated      by reference to Pacific Gas and Electric Company’s Current Report on Form      8-K dated March 6, 2009 (File No. 1-2348), Exhibit 4.1)  |
| 4.2                                                                                                                             | First      Supplemental Indenture, dated as of March 12, 2009 relating to the      issuance of $350,000,000 aggregate principal amount of PG&E      Corporation’s 5.75% Senior Notes due April 1, 2014 (incorporated by      reference to PG&E Corporation’s Current Report on Form 8-K dated March      10, 2009 (File No. 1-12609), Exhibit 4.1)                                 |
| 10.1*                                                                                                                           | Restricted      Stock Unit Agreement between Peter A. Darbee and PG&E Corporation      dated January 2, 2009 (incorporated by reference to PG&E Corporation’s      Form 10-K for the year ended December 31, 2008 (File No. 1-12609), Exhibit      10.12)                                                                                                                                     |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.2*                                                                                                                           | Form      of Restricted Stock Unit Agreement for 2009 grants under the PG&E      Corporation 2006 Long-Term Incentive Plan                                                                                                                                                                                                                                                                              |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.3*                                                                                                                           | Form      of Performance Share Agreement for 2009 grants under the PG&E      Corporation 2006 Long-Term Incentive Plan                                                                                                                                                                                                                                                                                  |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 11                                                                                                                              | Computation      of Earnings Per Common Share                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 12.1                                                                                                                            | Computation      of Ratios of Earnings to Fixed Charges for Pacific Gas and Electric      Company                                                                                                                                                                                                                                                                                                           |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 12.2                                                                                                                            | Computation      of Ratios of Earnings to Combined Fixed Charges and Preferred Stock      Dividends for Pacific Gas and Electric Company                                                                                                                                                                                                                                                                    |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 12.3                                                                                                                            | Computation      of Ratios of Earnings to Fixed Charges for PG&E      Corporation                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.1                                                                                                                            | Certifications      of the Chief Executive Officer and the Chief Financial Officer of PG&E      Corporation required by Section 302 of the Sarbanes-Oxley Act of      2002                                                                                                                                                                                                                              |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.2                                                                                                                            | Certifications      of the Chief Executive Officer and the Chief Financial Officer of Pacific      Gas and Electric Company required by Section 302 of the Sarbanes-Oxley Act      of 2002                                                                                                                                                                                                                  |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 32.1**                                                                                                                          | Certifications      of the Chief Executive Officer and the Chief Financial Officer of PG&E      Corporation required by Section 906 of the Sarbanes-Oxley Act of      2002                                                                                                                                                                                                                              |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 32.2**                                                                                                                          | Certifications      of the Chief Executive Officer and the Chief Financial Officer of Pacific      Gas and Electric Company required by Section 906 of the Sarbanes-Oxley Act      of 2002                                                                                                                                                                                                                  |
|                                                                                                                            |
| *      Management contract or compensatory agreement                                                                            |
| **Pursuant      to Item 601(b) (32) of SEC Regulation S-K, these Exhibits are furnished      rather than filed with thisreport. |

----

| PG&E      CORPORATION                                                                                                                      |
|------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                           |
|                                                                                                                                           |
|  CHRISTOPHER P.JOHNS                                                                                                                      |
| Christopher      P. JohnsSenior      Vice President and Chief Financial Officer(duly      authorized officer and principal financial  officer) |

| PACIFIC      GAS AND ELECTRIC COMPANY                                                                                                         |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                          |
|                                                                                                                                          |
|  BARBARA      L. BARCON                                                                                                                  |
| Barbara      L. BarconVice      President, Finance and Chief Financial Officer(duly      authorized officer and principal financial  officer) |

----

| 3.1                                                                                                                             | Bylaws      of PG&E Corporation amended as of January 1, 2009 (incorporated by      reference to PG&E Corporation’s Form 10-K for the year ended December      31, 2008 (File No. 1-12609), Exhibit 3.3)                                                                                                                                                                                      |
|---------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 3.2.                                                                                                                            | Bylaws      of Pacific Gas and Electric Company amended as of January 1, 2009      (incorporated by reference to Pacific Gas and Electric Company’s Form 10-K      for the year ended December 31, 2008 (File No. 1-12609), Exhibit      3.5)                                                                                                                                                         |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.1                                                                                                                             | Sixth      Supplemental Indenture, dated as of March 6, 2009 relating to the      issuance of $550,000,000 aggregate principal amount of Pacific Gas and      Electric Company’s 6.25% Senior Notes due March 1, 2039 (incorporated      by reference to Pacific Gas and Electric Company’s Current Report on Form      8-K dated March 6, 2009 (File No. 1-2348), Exhibit 4.1)  |
| 4.2                                                                                                                             | First      Supplemental Indenture, dated as of March 12, 2009 relating to the      issuance of $350,000,000 aggregate principal amount of PG&E      Corporation’s 5.75% Senior Notes due April 1, 2014 (incorporated by      reference to PG&E Corporation’s Current Report on Form 8-K dated March      10, 2009 (File No. 1-12609), Exhibit 4.1)                                 |
| 10.1*                                                                                                                           | Restricted      Stock Unit Agreement between Peter A. Darbee and PG&E Corporation      dated January 2, 2009 (incorporated by reference to PG&E Corporation’s      Form 10-K for the year ended December 31, 2008 (File No. 1-12609), Exhibit      10.12)                                                                                                                                     |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.2*                                                                                                                           | Form      of Restricted Stock Unit Agreement for 2009 grants under the PG&E      Corporation 2006 Long-Term Incentive Plan                                                                                                                                                                                                                                                                              |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.3*                                                                                                                           | Form      of Performance Share Agreement for 2009 grants under the PG&E      Corporation 2006 Long-Term Incentive Plan                                                                                                                                                                                                                                                                                  |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 11                                                                                                                              | Computation      of Earnings Per Common Share                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 12.1                                                                                                                            | Computation      of Ratios of Earnings to Fixed Charges for Pacific Gas and Electric      Company                                                                                                                                                                                                                                                                                                           |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 12.2                                                                                                                            | Computation      of Ratios of Earnings to Combined Fixed Charges and Preferred Stock      Dividends for Pacific Gas and Electric Company                                                                                                                                                                                                                                                                    |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 12.3                                                                                                                            | Computation      of Ratios of Earnings to Fixed Charges for PG&E      Corporation                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.1                                                                                                                            | Certifications      of the Chief Executive Officer and the Chief Financial Officer of PG&E      Corporation required by Section 302 of the Sarbanes-Oxley Act of      2002                                                                                                                                                                                                                              |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.2                                                                                                                            | Certifications      of the Chief Executive Officer and the Chief Financial Officer of Pacific      Gas and Electric Company required by Section 302 of the Sarbanes-Oxley Act      of 2002                                                                                                                                                                                                                  |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 32.1**                                                                                                                          | Certifications      of the Chief Executive Officer and the Chief Financial Officer of PG&E      Corporation required by Section 906 of the Sarbanes-Oxley Act of      2002                                                                                                                                                                                                                              |
|                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                        |
| 32.2**                                                                                                                          | Certifications      of the Chief Executive Officer and the Chief Financial Officer of Pacific      Gas and Electric Company required by Section 906 of the Sarbanes-Oxley Act      of 2002                                                                                                                                                                                                                  |
|                                                                                                                            |
| *      Management contract or compensatory agreement                                                                            |
| **Pursuant      to Item 601(b) (32) of SEC Regulation S-K, these Exhibits are furnished      rather than filed with thisreport. |