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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, 2010 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) have 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 Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   |
| PG&E Corporation                                                                                                                                                                                                                                                                                                                                                                                                         | [X] Yes [  ] No |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Pacific Gas and Electric Company:                                                                                                                                                                                                                                                                                                                                                                                            | [  ] Yes  [  ] No |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 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 April 30, 2010:                                                                                                                                                                                                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| PG&E Corporation                                                                                                                                                                                                                                                                                                                                                                                                         | 372,345,954 |
| 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            | 8 |
|     |                                                                                 | Condensed Consolidated Balance Sheets                  | 9 |
|     |                                                                                 | Condensed Consolidated Statements of Cash Flows        | 11 |
|     | NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS                             |                                                   |
|     | NOTE 1:                                                                              | Organization and Basis of Presentation                 | 13 |
|     | NOTE 2:                                                                              | New and Significant Accounting Policies                | 13 |
|     | NOTE 3:                                                                              | Regulatory Assets, Liabilities, and Balancing Accounts | 15 |
|     | NOTE 4:                                                                              | Debt                                                   | 18 |
|     | NOTE 5:                                                                              | Equity                                                 | 19 |
|     | NOTE 6:                                                                              | Earnings Per Share                                     | 20 |
|     | NOTE 7:                                                                              | Derivatives and Hedging Activities                     | 22 |
|     | NOTE 8:                                                                              | Fair Value Measurements                                | 26 |
|     | NOTE 9:                                                                              | Related Party Agreements and Transactions              | 32 |
|     | NOTE 10:                                                                             | Resolution of Remaining Chapter 11 Disputed Claims     | 32 |
|     | NOTE 11:                                                                             | Commitments and Contingencies                          | 33 |
|     |
| ITEM 2.  | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS |                                                   |
|     | Overview                                                                             | 39                                                     |
|     | Cautionary Language Regarding Forward-Looking Statements                             | 41                                                     |
|     | Results of Operations                                                                | 42                                                     |
|     | Liquidity and Financial Resources                                                    | 47                                                     |
|     | Contractual Commitments                                                              | 51                                                     |
|     | Capital Expenditures                                                                 | 51                                                     |
|     | Off-Balance Sheet Arrangements                                                       | 52                                                     |
|     | Contingencies                                                                        | 52                                                     |
|     | Regulatory Matters                                                                   | 52                                                     |
|     | Environmental Matters                                                                | 53                                                     |
|     | Other Matters                                                                        | 55                                                     |
|     | Risk Management Activities                                                           | 56                                                     |
|     | Critical Accounting Policies                                                         | 58                                                     |
|     |
| ITEM 3.  | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                           | 58                                                     |
| ITEM 4.  | CONTROLS AND PROCEDURES                                                              | 58                                                     |
|     |
| PART II. | OTHER INFORMATION                                                                    |                                                   |
|     |
| ITEM 2.  | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                          | 59                                                     |
| ITEM 5.  | OTHER INFORMATION                                                                    | 59                                                     |
| ITEM 6.  | EXHIBITS                                                                             | 60                                                     |

----

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)                                    |   | 2010 |   |   | 2009 |   |
| Operating Revenues                                                         |   |   |   |   |   |   |
| Electric                                                                   |   | $ | 2,510 |   |   | $ | 2,426 |   |
| Natural gas                                                                |   |   | 965 |   |   |   | 1,005 |   |
| Total operating revenues                                                   |   |   | 3,475 |   |   |   | 3,431 |   |
| Operating Expenses                                                         |   |   |   |   |   |   |   |   |
| Cost of electricity                                                        |   |   | 920 |   |   |   | 883 |   |
| Cost of natural gas                                                        |   |   | 495 |   |   |   | 557 |   |
| Operating and maintenance                                                  |   |   | 991 |   |   |   | 1,059 |   |
| Depreciation, amortization, and decommissioning                            |   |   | 451 |   |   |   | 419 |   |
| Total operating expenses                                                   |   |   | 2,857 |   |   |   | 2,918 |   |
| Operating Income                                                           |   |   | 618 |   |   |   | 513 |   |
| Interest income                                                            |   |   | 2 |   |   |   | 9 |   |
| Interest expense                                                           |   |   | (168 | ) |   |   | (181 | ) |
| Other (expense) income, net                                                |   |   | (6 | ) |   |   | 18 |   |
| Income Before Income Taxes                                                 |   |   | 446 |   |   |   | 359 |   |
| Income tax provision                                                       |   |   | 185 |   |   |   | 115 |   |
| Net Income                                                                 |   |   | 261 |   |   |   | 244 |   |
| Preferred dividend requirement of subsidiary                               |   |   | 3 |   |   |   | 3 |   |
| Income Available for Common Shareholders                                   |   | $ | 258 |   |   | $ | 241 |   |
| Weighted Average Common Shares Outstanding, Basic                          |   |   | 371 |   |   |   | 364 |   |
| Weighted Average Common Shares Outstanding, Diluted                        |   |   | 389 |   |   |   | 366 |   |
| Net Earnings Per Common Share, Basic                                       |   | $ | 0.69 |   |   | $ | 0.65 |   |
| Net Earnings Per Common Share, Diluted                                     |   | $ | 0.67 |   |   | $ | 0.65 |   |
| Dividends Declared Per Common Share                                        |   | $ | 0.46 |   |   | $ | 0.42 |   |
|                                                                       |   |
| See accompanying Notes to the Condensed Consolidated Financial Statements. |   |

----

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                              |   | (Unaudited) |    |
|---------------------------------------------------------------------------------------------------|--------|-------------|---------|
|                                                                                              |   | Balance At  |    |
|                                                                                              |   | March 31,   |    |   | December 31, |   |
| (in millions)                                                                                     |   | 2010        |    |   | 2009 |   |
| ASSETS                                                                                            |   |        |    |   |   |   |
| Current Assets                                                                                    |   |        |    |   |   |   |
| Cash and cash equivalents                                                                         |   | $           | 258     |   |   | $ | 527 |   |
| Restricted cash                                                                                   |   |        | 629     |   |   |   | 633 |   |
| Accounts receivable:                                                                              |   |        |    |   |   |   |   |   |
| Customers (net of allowance for doubtful accounts of $69 million in 2010 and $68 million in 2009) |   |        | 1,528   |   |   |   | 1,609 |   |
| Accrued unbilled revenue                                                                          |   |        | 638     |   |   |   | 671 |   |
| Regulatory balancing accounts                                                                     |   |        | 1,468   |   |   |   | 1,109 |   |
| Inventories:                                                                                      |   |        |    |   |   |   |   |   |
| Gas stored underground and fuel oil                                                               |   |        | 59      |   |   |   | 114 |   |
| Materials and supplies                                                                            |   |        | 196     |   |   |   | 200 |   |
| Income taxes receivable                                                                           |   |        | 112     |   |   |   | 127 |   |
| Prepaid expenses and other                                                                        |   |        | 733     |   |   |   | 667 |   |
| Total current assets                                                                              |   |        | 5,621   |   |   |   | 5,657 |   |
| Property, Plant, and Equipment                                                                    |   |        |    |   |   |   |   |   |
| Electric                                                                                          |   |        | 30,918  |   |   |   | 30,481 |   |
| Gas                                                                                               |   |        | 10,823  |   |   |   | 10,697 |   |
| Construction work in progress                                                                     |   |        | 1,993   |   |   |   | 1,888 |   |
| Other                                                                                             |   |        | 14      |   |   |   | 14 |   |
| Total property, plant, and equipment                                                              |   |        | 43,748  |   |   |   | 43,080 |   |
| Accumulated depreciation                                                                          |   |        | (14,371 | ) |   |   | (14,188 | ) |
| Net property, plant, and equipment                                                                |   |        | 29,377  |   |   |   | 28,892 |   |
| Other Noncurrent Assets                                                                           |   |        |    |   |   |   |   |   |
| Regulatory assets                                                                                 |   |        | 5,602   |   |   |   | 5,522 |   |
| Nuclear decommissioning funds                                                                     |   |        | 1,929   |   |   |   | 1,899 |   |
| Income taxes receivable                                                                           |   |        | 596     |   |   |   | 596 |   |
| Other                                                                                             |   |        | 415     |   |   |   | 379 |   |
| Total other noncurrent assets                                                                     |   |        | 8,542   |   |   |   | 8,396 |   |
| TOTAL ASSETS                                                                                      |   | $           | 43,540  |   |   | $ | 42,945 |   |

----

|                                                                                                                                                                                           |   | (Unaudited) |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|--------|
|                                                                                                                                                                                           |   | Balance At  |   |
|                                                                                                                                                                                           |   | March 31,   |   |   | December 31, |   |
| (in millions, except share amounts)                                                                                                                                                            |   | 2010        |   |   | 2009 |   |
| LIABILITIES AND EQUITY                                                                                                                                                                         |   |        |   |   |   |   |
| Current Liabilities                                                                                                                                                                            |   |        |   |   |   |   |
| Short-term borrowings                                                                                                                                                                          |   | $           | 1,251  |   |   | $ | 833 |   |
| Long-term debt, classified as current                                                                                                                                                          |   |        | 842    |   |   |   | 342 |   |
| Energy recovery bonds, classified as current                                                                                                                                                   |   |        | 390    |   |   |   | 386 |   |
| Accounts payable:                                                                                                                                                                              |   |        |   |   |   |   |   |   |
| Trade creditors                                                                                                                                                                                |   |        | 882    |   |   |   | 984 |   |
| Disputed claims and customer refunds                                                                                                                                                           |   |        | 772    |   |   |   | 773 |   |
| Regulatory balancing accounts                                                                                                                                                                  |   |        | 312    |   |   |   | 281 |   |
| Other                                                                                                                                                                                          |   |        | 481    |   |   |   | 349 |   |
| Interest payable                                                                                                                                                                               |   |        | 795    |   |   |   | 818 |   |
| Income taxes payable                                                                                                                                                                           |   |        | 268    |   |   |   | 214 |   |
| Deferred income taxes                                                                                                                                                                          |   |        | 506    |   |   |   | 332 |   |
| Other                                                                                                                                                                                          |   |        | 1,281  |   |   |   | 1,501 |   |
| Total current liabilities                                                                                                                                                                      |   |        | 7,780  |   |   |   | 6,813 |   |
| Noncurrent Liabilities                                                                                                                                                                         |   |        |   |   |   |   |   |   |
| Long-term debt                                                                                                                                                                                 |   |        | 9,882  |   |   |   | 10,381 |   |
| Energy recovery bonds                                                                                                                                                                          |   |        | 730    |   |   |   | 827 |   |
| Regulatory liabilities                                                                                                                                                                         |   |        | 4,190  |   |   |   | 4,125 |   |
| Pension and other postretirement benefits                                                                                                                                                      |   |        | 1,968  |   |   |   | 1,773 |   |
| Asset retirement obligations                                                                                                                                                                   |   |        | 1,603  |   |   |   | 1,593 |   |
| Deferred income taxes                                                                                                                                                                          |   |        | 4,656  |   |   |   | 4,732 |   |
| Other                                                                                                                                                                                          |   |        | 2,110  |   |   |   | 2,116 |   |
| Total noncurrent liabilities                                                                                                                                                                   |   |        | 25,139 |   |   |   | 25,547 |   |
| Commitments and Contingencies                                                                                                                                                                  |   |        |   |   |   |   |   |   |
| Equity                                                                                                                                                                                         |   |        |   |   |   |   |   |   |
| 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 371,222,918 common and 480,848 restricted shares in 2010 and issued 370,601,905 common and 670,552 restricted shares in 2009 |   |        | 6,307  |   |   |   | 6,280 |   |
| Reinvested earnings                                                                                                                                                                            |   |        | 4,302  |   |   |   | 4,213 |   |
| Accumulated other comprehensive loss                                                                                                                                                           |   |        | (240   | ) |   |   | (160 | ) |
| Total shareholders’ equity                                                                                                                                                               |   |        | 10,369 |   |   |   | 10,333 |   |
| Noncontrolling Interest – Preferred Stock of Subsidiary                                                                                                                                  |   |        | 252    |   |   |   | 252 |   |
| Total equity                                                                                                                                                                                   |   |        | 10,621 |   |   |   | 10,585 |   |
| TOTAL LIABILITIES AND EQUITY                                                                                                                                                                   |   | $           | 43,540 |   |   | $ | 42,945 |   |
|                                                                                                                                                                                           |   |
| See accompanying Notes to the Condensed Consolidated Financial Statements.                                                                                                                     |   |

----

| PG&E CORPORATION                                                                               |   |
|----------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                    |   |
|                                                                                               |   | (Unaudited) |   |
|                                                                                               |   | Three Months Ended |   |
|                                                                                               |   | March 31, |   |
| (in millions)                                                                                      |   | 2010 |   |   | 2009 |   |
| Cash Flows from Operating Activities                                                               |   |   |   |   |   |   |
| Net income                                                                                         |   | $ | 261 |   |   | $ | 244 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                  |   |   |   |   |   |   |   |   |
| Depreciation, amortization, and decommissioning                                                    |   |   | 506 |   |   |   | 463 |   |
| Allowance for equity funds used during construction                                                |   |   | (28 | ) |   |   | (25 | ) |
| Deferred income taxes and tax credits, net                                                         |   |   | 137 |   |   |   | 235 |   |
| Other changes in noncurrent assets and liabilities                                                 |   |   | (113 | ) |   |   | (51 | ) |
| Effect of changes in operating assets and liabilities:                                             |   |   |   |   |   |   |   |   |
| Accounts receivable                                                                                |   |   | 114 |   |   |   | 301 |   |
| Inventories                                                                                        |   |   | 59 |   |   |   | 166 |   |
| Accounts payable                                                                                   |   |   | 87 |   |   |   | (116 | ) |
| Income taxes receivable/payable                                                                    |   |   | 69 |   |   |   | 209 |   |
| Regulatory balancing accounts, net                                                                 |   |   | (377 | ) |   |   | (180 | ) |
| Other current assets                                                                               |   |   | 35 |   |   |   | 32 |   |
| Other current liabilities                                                                          |   |   | (381 | ) |   |   | (390 | ) |
| Other                                                                                              |   |   | 26 |   |   |   | 2 |   |
| Net cash provided by operating activities                                                          |   |   | 395 |   |   |   | 890 |   |
| Cash Flows from Investing Activities                                                               |   |   |   |   |   |   |   |   |
| Capital expenditures                                                                               |   |   | (855 | ) |   |   | (1,079 | ) |
| Decrease in restricted cash                                                                        |   |   | 4 |   |   |   | 11 |   |
| Proceeds from sales of nuclear decommissioning trust investments                                   |   |   | 337 |   |   |   | 387 |   |
| Purchases of nuclear decommissioning trust investments                                             |   |   | (343 | ) |   |   | (412 | ) |
| Other                                                                                              |   |   | 9 |   |   |   | 7 |   |
| Net cash used in investing activities                                                              |   |   | (848 | ) |   |   | (1,086 | ) |
| Cash Flows from Financing Activities                                                               |   |   |   |   |   |   |   |   |
| Borrowings under revolving credit facility                                                         |   |   | - |   |   |   | 300 |   |
| Repayments under revolving credit facility                                                         |   |   | - |   |   |   | (300 | ) |
| Net issuance of commercial paper, net of discount of $2 million in 2009                            |   |   | 418 |   |   |   | 96 |   |
| Proceeds from issuance of long-term debt, net of discount and issuance costsof $16 million in 2009 |   |   | - |   |   |   | 884 |   |
| Long-term debt matured or repurchased                                                              |   |   | - |   |   |   | (600 | ) |
| Energy recovery bonds matured                                                                      |   |   | (93 | ) |   |   | (89 | ) |
| Common stock issued                                                                                |   |   | 10 |   |   |   | 96 |   |
| Common stock dividends paid                                                                        |   |   | (157 | ) |   |   | (138 | ) |
| Other                                                                                              |   |   | 6 |   |   |   | (1 | ) |
| Net cash provided by financing activities                                                          |   |   | 184 |   |   |   | 248 |   |
| Net change in cash and cash equivalents                                                            |   |   | (269 | ) |   |   | 52 |   |
| Cash and cash equivalents at January 1                                                             |   |   | 527 |   |   |   | 219 |   |
| Cash and cash equivalents at March 31                                                              |   | $ | 258 |   |   | $ | 271 |   |

----

| Supplemental disclosures of cash flow information                          |   |   |   |   |   |   |
|----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Cash received (paid) for:                                                  |   |   |   |   |   |   |
| Interest, net of amounts capitalized                                       |   | $      | (193   | )      |   | $      | (190 | ) |
| Income taxes, net                                                          |   |   | -      |   |   |   | 294 |   |
| Supplemental disclosures of noncash investing and financing activities     |   |   |   |   |   |   |   |   |
| Common stock dividends declared but not yet paid                           |   | $      | 169    |   |   | $      | 154 |   |
| Capital expenditures financed through accounts payable                     |   |   | 215    |   |   |   | 235 |   |
| Noncash common stock issuances                                             |   |   | -      |   |   |   | 33 |   |
|                                                                       |   |   |   |   |   |   |   |   |
| 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)                                                              |   | 2010 |   |   | 2009 |   |
| Operating Revenues                                                         |   |   |   |   |   |   |
| Electric                                                                   |   | $ | 2,510 |   |   | $ | 2,426 |   |
| Natural gas                                                                |   |   | 965 |   |   |   | 1,005 |   |
| Total operating revenues                                                   |   |   | 3,475 |   |   |   | 3,431 |   |
| Operating Expenses                                                         |   |   |   |   |   |   |   |   |
| Cost of electricity                                                        |   |   | 920 |   |   |   | 883 |   |
| Cost of natural gas                                                        |   |   | 495 |   |   |   | 557 |   |
| Operating and maintenance                                                  |   |   | 990 |   |   |   | 1,059 |   |
| Depreciation, amortization, and decommissioning                            |   |   | 451 |   |   |   | 419 |   |
| Total operating expenses                                                   |   |   | 2,856 |   |   |   | 2,918 |   |
| Operating Income                                                           |   |   | 619 |   |   |   | 513 |   |
| Interest income                                                            |   |   | 2 |   |   |   | 9 |   |
| Interest expense                                                           |   |   | (156 | ) |   |   | (173 | ) |
| Other (expense) income, net                                                |   |   | (6 | ) |   |   | 21 |   |
| Income Before Income Taxes                                                 |   |   | 459 |   |   |   | 370 |   |
| Income tax provision                                                       |   |   | 195 |   |   |   | 131 |   |
| Net Income                                                                 |   |   | 264 |   |   |   | 239 |   |
| Preferred dividend requirement                                             |   |   | 3 |   |   |   | 3 |   |
| Income Available for Common Stock                                          |   | $ | 261 |   |   | $ | 236 |   |
|                                                                       |   |
| See accompanying Notes to the Condensed Consolidated Financial Statements. |   |

----

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                              |   | (Unaudited) |    |
|---------------------------------------------------------------------------------------------------|--------|-------------|---------|
|                                                                                              |   | Balance At  |    |
|                                                                                              |   | March 31,   |    |   | December 31, |   |
| (in millions)                                                                                     |   | 2010        |    |   | 2009 |   |
| ASSETS                                                                                            |   |        |    |   |   |   |
| Current Assets                                                                                    |   |        |    |   |   |   |
| Cash and cash equivalents                                                                         |   | $           | 60      |   |   | $ | 334 |   |
| Restricted cash                                                                                   |   |        | 629     |   |   |   | 633 |   |
| Accounts receivable:                                                                              |   |        |    |   |   |   |   |   |
| Customers (net of allowance for doubtful accounts of $69 million in 2010 and $68 million in 2009) |   |        | 1,528   |   |   |   | 1,609 |   |
| Accrued unbilled revenue                                                                          |   |        | 638     |   |   |   | 671 |   |
| Related parties                                                                                   |   |        | 1       |   |   |   | 1 |   |
| Regulatory balancing accounts                                                                     |   |        | 1,468   |   |   |   | 1,109 |   |
| Inventories:                                                                                      |   |        |    |   |   |   |   |   |
| Gas stored underground and fuel oil                                                               |   |        | 59      |   |   |   | 114 |   |
| Materials and supplies                                                                            |   |        | 196     |   |   |   | 200 |   |
| Income taxes receivable                                                                           |   |        | 121     |   |   |   | 138 |   |
| Prepaid expenses and other                                                                        |   |        | 732     |   |   |   | 662 |   |
| Total current assets                                                                              |   |        | 5,432   |   |   |   | 5,471 |   |
| Property, Plant, and Equipment                                                                    |   |        |    |   |   |   |   |   |
| Electric                                                                                          |   |        | 30,918  |   |   |   | 30,481 |   |
| Gas                                                                                               |   |        | 10,823  |   |   |   | 10,697 |   |
| Construction work in progress                                                                     |   |        | 1,993   |   |   |   | 1,888 |   |
| Total property, plant, and equipment                                                              |   |        | 43,734  |   |   |   | 43,066 |   |
| Accumulated depreciation                                                                          |   |        | (14,358 | ) |   |   | (14,175 | ) |
| Net property, plant, and equipment                                                                |   |        | 29,376  |   |   |   | 28,891 |   |
| Other Noncurrent Assets                                                                           |   |        |    |   |   |   |   |   |
| Regulatory assets                                                                                 |   |        | 5,602   |   |   |   | 5,522 |   |
| Nuclear decommissioning funds                                                                     |   |        | 1,929   |   |   |   | 1,899 |   |
| Related parties receivable                                                                        |   |        | 24      |   |   |   | 25 |   |
| Income taxes receivable                                                                           |   |        | 610     |   |   |   | 610 |   |
| Other                                                                                             |   |        | 326     |   |   |   | 291 |   |
| Total other noncurrent assets                                                                     |   |        | 8,491   |   |   |   | 8,347 |   |
| TOTAL ASSETS                                                                                      |   | $           | 43,299  |   |   | $ | 42,709 |   |

----

|                                                                                                  |   | (Unaudited) |   |
|-------------------------------------------------------------------------------------------------------|--------|-------------|--------|
|                                                                                                  |   | Balance At  |   |
|                                                                                                  |   | March 31,   |   |   | December 31, |   |
| (in millions, except share amounts)                                                                   |   | 2010        |   |   | 2009 |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                            |   |        |   |   |   |   |
| Current Liabilities                                                                                   |   |        |   |   |   |   |
| Short-term borrowings                                                                                 |   | $           | 1,251  |   |   | $ | 833 |   |
| Long-term debt, classified as current                                                                 |   |        | 595    |   |   |   | 95 |   |
| Energy recovery bonds, classified as current                                                          |   |        | 390    |   |   |   | 386 |   |
| Accounts payable:                                                                                     |   |        |   |   |   |   |   |   |
| Trade creditors                                                                                       |   |        | 882    |   |   |   | 984 |   |
| Disputed claims and customer refunds                                                                  |   |        | 772    |   |   |   | 773 |   |
| Related parties                                                                                       |   |        | 24     |   |   |   | 16 |   |
| Regulatory balancing accounts                                                                         |   |        | 312    |   |   |   | 281 |   |
| Other                                                                                                 |   |        | 478    |   |   |   | 347 |   |
| Interest payable                                                                                      |   |        | 779    |   |   |   | 813 |   |
| Income tax payable                                                                                    |   |        | 283    |   |   |   | 223 |   |
| Deferred income taxes                                                                                 |   |        | 511    |   |   |   | 334 |   |
| Other                                                                                                 |   |        | 1,079  |   |   |   | 1,307 |   |
| Total current liabilities                                                                             |   |        | 7,356  |   |   |   | 6,392 |   |
| Noncurrent Liabilities                                                                                |   |        |   |   |   |   |   |   |
| Long-term debt                                                                                        |   |        | 9,534  |   |   |   | 10,033 |   |
| Energy recovery bonds                                                                                 |   |        | 730    |   |   |   | 827 |   |
| Regulatory liabilities                                                                                |   |        | 4,190  |   |   |   | 4,125 |   |
| Pension and other postretirement benefits                                                             |   |        | 1,912  |   |   |   | 1,717 |   |
| Asset retirement obligations                                                                          |   |        | 1,603  |   |   |   | 1,593 |   |
| Deferred income taxes                                                                                 |   |        | 4,686  |   |   |   | 4,764 |   |
| Other                                                                                                 |   |        | 2,080  |   |   |   | 2,073 |   |
| Total noncurrent liabilities                                                                          |   |        | 24,735 |   |   |   | 25,132 |   |
| 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 2010 and 2009 |   |        | 1,322  |   |   |   | 1,322 |   |
| Additional paid-in capital                                                                            |   |        | 3,076  |   |   |   | 3,055 |   |
| Reinvested earnings                                                                                   |   |        | 6,786  |   |   |   | 6,704 |   |
| Accumulated other comprehensive loss                                                                  |   |        | (234   | ) |   |   | (154 | ) |
| Total shareholders’ equity                                                                      |   |        | 11,208 |   |   |   | 11,185 |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                                      |   | $           | 43,299 |   |   | $ | 42,709 |   |

----

| PACIFIC GAS AND ELECTRIC COMPANY                                                                    |   |
|-----------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                     |   |
|                                                                                                |   | (Unaudited) |   |
|                                                                                                |   | Three Months Ended |   |
|                                                                                                |   | March 31, |   |
| (in millions)                                                                                       |   | 2010 |   |   | 2009 |   |
| Cash Flows from Operating Activities                                                                |   |   |   |   |   |   |
| Net income                                                                                          |   | $ | 264 |   |   | $ | 239 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                   |   |   |   |   |   |   |   |   |
| Depreciation, amortization, and decommissioning                                                     |   |   | 491 |   |   |   | 456 |   |
| Allowance for equity funds used during construction                                                 |   |   | (28 | ) |   |   | (25 | ) |
| Deferred income taxes and tax credits, net                                                          |   |   | 138 |   |   |   | 234 |   |
| Other changes in noncurrent assets and liabilities                                                  |   |   | (98 | ) |   |   | (48 | ) |
| Effect of changes in operating assets and liabilities:                                              |   |   |   |   |   |   |   |   |
| Accounts receivable                                                                                 |   |   | 114 |   |   |   | 298 |   |
| Inventories                                                                                         |   |   | 59 |   |   |   | 166 |   |
| Accounts payable                                                                                    |   |   | 94 |   |   |   | (107 | ) |
| Income taxes receivable/payable                                                                     |   |   | 77 |   |   |   | 95 |   |
| Regulatory balancing accounts, net                                                                  |   |   | (377 | ) |   |   | (180 | ) |
| Other current assets                                                                                |   |   | 35 |   |   |   | 34 |   |
| Other current liabilities                                                                           |   |   | (387 | ) |   |   | (386 | ) |
| Other                                                                                               |   |   | 26 |   |   |   | 1 |   |
| Net cash provided by operating activities                                                           |   |   | 408 |   |   |   | 777 |   |
| Cash Flows from Investing Activities                                                                |   |   |   |   |   |   |   |   |
| Capital expenditures                                                                                |   |   | (855 | ) |   |   | (1,079 | ) |
| Decrease in restricted cash                                                                         |   |   | 4 |   |   |   | 11 |   |
| Proceeds from sales of nuclear decommissioning trust investments                                    |   |   | 337 |   |   |   | 387 |   |
| Purchases of nuclear decommissioning trust investments                                              |   |   | (343 | ) |   |   | (412 | ) |
| Other                                                                                               |   |   | 5 |   |   |   | 2 |   |
| Net cash used in investing activities                                                               |   |   | (852 | ) |   |   | (1,091 | ) |
| Cash Flows from Financing Activities                                                                |   |   |   |   |   |   |   |   |
| Borrowings under revolving credit facility                                                          |   |   | - |   |   |   | 300 |   |
| Repayments under revolving credit facility                                                          |   |   | - |   |   |   | (300 | ) |
| Net issuance of commercial paper, net of discount of $2 million in 2009                             |   |   | 418 |   |   |   | 96 |   |
| Proceeds from issuance of long-term debt, net of discount and issuance costs of $12 million in 2009 |   |   | - |   |   |   | 538 |   |
| Long-term debt matured or repurchased                                                               |   |   | - |   |   |   | (600 | ) |
| Energy recovery bonds matured                                                                       |   |   | (93 | ) |   |   | (89 | ) |
| Preferred stock dividends paid                                                                      |   |   | (4 | ) |   |   | (3 | ) |
| Common stock dividends paid                                                                         |   |   | (179 | ) |   |   | (156 | ) |
| Equity contribution                                                                                 |   |   | 20 |   |   |   | 528 |   |
| Other                                                                                               |   |   | 8 |   |   |   | 2 |   |
| Net cash provided by financing activities                                                           |   |   | 170 |   |   |   | 316 |   |
| Net change in cash and cash equivalents                                                             |   |   | (274 | ) |   |   | 2 |   |
| Cash and cash equivalents at January 1                                                              |   |   | 334 |   |   |   | 52 |   |
| Cash and cash equivalents at March 31                                                               |   | $ | 60 |   |   | $ | 54 |   |

----

| Supplemental disclosures of cash flow information                          |   |   |   |   |   |   |
|----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Cash received (paid) for:                                                  |   |   |   |   |   |   |
| Interest, net of amounts capitalized                                       |   | $      | (193   | )      |   | $      | (190 | ) |
| Income taxes, net                                                          |   |   | -      |   |   |   | 163 |   |
| Supplemental disclosures of noncash investing and financing activities     |   |   |   |   |   |   |   |   |
| Capital expenditures financed through accounts payable                     |   | $      | 215    |   |   | $      | 235 |   |
|                                                                       |   |   |   |   |   |   |   |   |
| See accompanying Notes to the Condensed Consolidated Financial Statements. |   |

----

NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION

NOTE 2: NEW AND SIGNIFICANT ACCOUNTING POLICIES

----

|                                                                                                                                                                                                                          |   | Pension Benefits            |   |   | Other Benefits              |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                          |   | Three Months EndedMarch 31, |   |   | Three Months EndedMarch 31, |   |
| (in millions)                                                                                                                                                                                                                 |   | 2010                        |   |   | 2009                        |   |   | 2010 |   |   | 2009 |   |
| Service cost for benefits earned                                                                                                                                                                                              |   | $                           | 69     |   |                        | $      | 66 |   |   | $ | 10 |   |   | $ | 8 |   |
| Interest cost                                                                                                                                                                                                                 |   |                        | 161    |   |                        |   | 155 |   |   |   | 23 |   |   |   | 21 |   |
| Expected return on plan assets                                                                                                                                                                                                |   |                        | (156   | )      |                        |   | (145 | ) |   |   | (18 | ) |   |   | (17 | ) |
| Amortization of transition obligation                                                                                                                                                                                         |   |                        | -      |   |                        |   | - |   |   |   | 6 |   |   |   | 6 |   |
| Amortization of prior service cost                                                                                                                                                                                            |   |                        | 13     |   |                        |   | 11 |   |   |   | 6 |   |   |   | 4 |   |
| Amortization of unrecognized (gain) loss                                                                                                                                                                                      |   |                        | 11     |   |                        |   | 25 |   |   |   | 1 |   |   |   | 1 |   |
|      Net periodic benefit cost                                                                                                                                                                       |   |                        | 98     |   |                        |   | 112 |   |   |   | 28 |   |   |   | 23 |   |
|      Less: transfer to regulatory account (1)                                                                                                                                                        |   |                        | (58    | )      |                        |   | (71 | ) |   |   | - |   |   |   | - |   |
|      Total                                                                                                                                                                                           |   | $                           | 40     |   |                        | $      | 41 |   |   | $ | 28 |   |   | $ | 23 |   |
|                                                                                                                                                                                                                          |   |                        |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| (1) The Utility recorded $58 million and $71 million for the three month periods ended March 31, 2010 and 2009, respectively, to a regulatory account as the amounts are probable of recovery from customers in future rates. |   |

----

NOTE 3: REGULATORY ASSETS, LIABILITIES, AND BALANCING ACCOUNTS

----

|                                              |   | Balance at     |   |
|---------------------------------------------------|--------|----------------|--------|
| (in millions)                                     |   | March 31, 2010 |   |   | December 31, 2009 |   |
| Pension benefits                                  |   | $              | 1,421  |   |   | $ | 1,386 |   |
| Deferred income taxes                             |   |           | 1,067  |   |   |   | 1,027 |   |
| Energy recovery bonds                             |   |           | 1,039  |   |   |   | 1,124 |   |
| Utility retained generation                       |   |           | 719    |   |   |   | 737 |   |
| Price risk management                             |   |           | 484    |   |   |   | 346 |   |
| Environmental compliance costs                    |   |           | 397    |   |   |   | 408 |   |
| Unamortized loss, net of gain, on reacquired debt |   |           | 197    |   |   |   | 203 |   |
| Other                                             |   |           | 278    |   |   |   | 291 |   |
| Total long-term regulatory assets                 |   | $              | 5,602  |   |   | $ | 5,522 |   |

----

|                                   |   | Balance at     |   |
|----------------------------------------|--------|----------------|--------|
| (in millions)                          |   | March 31, 2010 |   |   | December 31, 2009 |   |
| Cost of removal obligation             |   | $              | 2,991  |   |   | $ | 2,933 |   |
| Public purpose programs                |   |           | 566    |   |   |   | 508 |   |
| Recoveries in excess of ARO            |   |           | 508    |   |   |   | 488 |   |
| Other                                  |   |           | 125    |   |   |   | 196 |   |
| Total long-term regulatory liabilities |   | $              | 4,190  |   |   | $ | 4,125 |   |

----

|                                      |   | Receivable (Payable) |   |
|-------------------------------------------|--------|----------------------|--------|
|                                      |   | Balance at           |   |
| (in millions)                             |   | March 31, 2010       |   |   | December 31, 2009 |   |
| Utility generation                        |   | $                    | 572    |   |   | $ | 355 |   |
| Distribution revenue adjustment mechanism |   |                 | 287    |   |   |   | 152 |   |
| Public purpose programs                   |   |                 | 128    |   |   |   | 83 |   |
| Energy procurement costs                  |   |                 | 115    |   |   |   | 128 |   |
| Gas fixed cost                            |   |                 | (15    | ) |   |   | 93 |   |
| Energy recovery bonds                     |   |                 | (163   | ) |   |   | (185 | ) |
| Other                                     |   |                 | 232    |   |   |   | 202 |   |
| Total regulatory balancing accounts, net  |   | $                    | 1,156  |   |   | $ | 828 |   |

NOTE 4: DEBT

----

NOTE 5: EQUITY

|                                               |   | PG&E Corporation |   |   | Utility                         |   |
|----------------------------------------------------|--------|----------------------|--------|--------|---------------------------------|--------|
| (in millions)                                      |   | TotalEquity          |   |   | TotalShareholders’ Equity |   |
| Balance at December 31, 2009                       |   | $                    | 10,585 |   |                            | $      | 11,185 |   |
| Net income                                         |   |                 | 261    |   |                            |   | 264 |   |
| Common stock issued                                |   |                 | 10     |   |                            |   | - |   |
| Share-based compensation amortization              |   |                 | 15     |   |                            |   | - |   |
| Common stock dividends declared and paid           |   |                 | -      |   |                            |   | (179 | ) |
| Common stock dividends declared but not yet paid   |   |                 | (169   | )      |                            |   | - |   |
| Preferred stock dividend requirement               |   |                 | -      |   |                            |   | (3 | ) |
| Preferred stock dividend requirement of subsidiary |   |                 | (3     | )      |                            |   | - |   |
| Tax benefit from employee stock plans              |   |                 | 2      |   |                            |   | 1 |   |
| Other comprehensive income                         |   |                 | (80    | )      |                            |   | (80 | ) |
| Equity contribution                                |   |                 | -      |   |                            |   | 20 |   |
| Balance at March 31, 2010                          |   | $                    | 10,621 |   |                            | $      | 11,208 |   |

|                                         |   | PG&E Corporation        |   |   | Utility                     |   |
|----------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                                         |   | Three Months EndedMarch 31, |   |   | Three Months EndedMarch 31, |   |
| (in millions)                                |   | 2010                        |   |   | 2009                        |   |   | 2010 |   |   | 2009 |   |
| Net income                                   |   | $                           | 261    |   |                        | $      | 244 |   |   | $ | 264 |   |   | $ | 239 |   |
| Employee benefit plan adjustment, net of tax |   |                        | (80    | )      |                        |   | 7 |   |   |   | (80 | ) |   |   | 7 |   |
| Comprehensive Income                         |   | $                           | 181    |   |                        | $      | 251 |   |   | $ | 184 |   |   | $ | 246 |   |

----

NOTE 6: EARNINGS PER SHARE

|                                                                    |   | Three Months Ended |   |
|-------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                    |   | March 31,          |   |
| (in millions, except per share amounts)                                 |   | 2010               |   |   | 2009 |   |
| Basic                                                                   |   |               |   |   |   |   |
| Income Available for Common Shareholders                                |   | $                  | 258    |   |   | $ | 241 |   |
| Less: distributed earnings to common shareholders                       |   |               | 169    |   |   |   | 154 |   |
| Undistributed earnings                                                  |   | $                  | 89     |   |   | $ | 87 |   |
| Allocation of undistributed earnings to common shareholders             |   |               |   |   |   |   |   |   |
| Distributed earnings to common shareholders                             |   | $                  | 169    |   |   | $ | 154 |   |
| Undistributed earnings allocated to common shareholders                 |   |               | 85     |   |   |   | 83 |   |
| Total common shareholders earnings                                      |   | $                  | 254    |   |   | $ | 237 |   |
| Weighted average common shares outstanding, basic                       |   |               | 371    |   |   |   | 364 |   |
| Convertible Subordinated Notes                                          |   |               | 16     |   |   |   | 17 |   |
| Weighted average common shares outstanding and participating securities |   |               | 387    |   |   |   | 381 |   |
| Net earnings per common share, basic                                    |   |               |   |   |   |   |   |   |
| Distributed earnings, basic (1)                                         |   | $                  | 0.46   |   |   | $ | 0.42 |   |
| Undistributed earnings, basic                                           |   |               | 0.23   |   |   |   | 0.23 |   |
| Total                                                                   |   | $                  | 0.69   |   |   | $ | 0.65 |   |

|                                                                                                                                                                                                                          |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (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. |

----

|                                                                   |   | Three Months Ended |   |
|------------------------------------------------------------------------|--------|--------------------|--------|
| (in millions, except per share amounts)                                |   | March 31, 2010     |   |
| Diluted                                                                |   |               |   |
| Income Available for Common Shareholders                               |   | $                  | 258    |   |
| Add earnings impact of assumed conversion of participating securities: |   |               |   |   |
| Interest expense on convertible subordinated notes, net of tax         |   |               | 4      |   |
| Income Available for Common Shareholders and Assumed Conversion        |   | $                  | 262    |   |
|                                                                   |   |               |   |   |
| Weighted average common shares outstanding, basic                      |   |               | 371    |   |
| Add incremental shares from assumed conversions:                       |   |               |   |   |
| Convertible subordinated notes                                         |   |               | 16     |   |
| Employee share-based compensation                                      |   |               | 2      |   |
| Weighted average common shares outstanding, diluted                    |   |               | 389    |   |
| Total earnings per common share, diluted                               |   | $                  | 0.67   |   |

|                                                                             |   | Three Months Ended |   |
|----------------------------------------------------------------------------------|--------|--------------------|--------|
| (in millions, except per share amounts)                                          |   | March 31, 2009     |   |
| Diluted                                                                          |   |               |   |
| Income Available for Common Shareholders                                         |   | $                  | 241    |   |
| Less: distributed earnings to common shareholders                                |   |               | 154    |   |
| Undistributed earnings                                                           |   | $                  | 87     |   |
|                                                                             |   |               |   |   |
| Allocation of undistributed earnings to common shareholders                      |   |               |   |   |
| Distributed earnings to common shareholders                                      |   | $                  | 154    |   |
| Undistributed earnings allocated to common shareholders                          |   |               | 83     |   |
| Total common shareholders earnings                                               |   | $                  | 237    |   |
|                                                                             |   |               |   |   |
| Weighted average common shares outstanding, basic                                |   |               | 364    |   |
| Convertible subordinated notes                                                   |   |               | 17     |   |
| Weighted average common shares outstanding and participating securities, basic   |   |               | 381    |   |
| Weighted average common shares outstanding, basic                                |   |               | 364    |   |
| Employee share-based compensation                                                |   |               | 2      |   |
| Weighted average common shares outstanding, diluted                              |   |               | 366    |   |
| Convertible subordinated notes                                                   |   |               | 17     |   |
| Weighted average common shares outstanding and participating securities, diluted |   |               | 383    |   |
| Net earnings per common share, diluted                                           |   |               |   |   |
| Distributed earnings, diluted                                                    |   | $                  | 0.42   |   |
| Undistributed earnings, diluted                                                  |   |               | 0.23   |   |
| Total earnings per common share, diluted                                         |   | $                  | 0.65   |   |

----

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. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     ·       | periodic expirations or terminations of existing electricity purchase contracts, including the DWR’s contracts; |
|--------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
|                                 |                                                                                                                  |
|     ·       | the execution of new electricity purchase contracts;                                                                  |
|                                 |                                                                                                                  |
|     ·  | fluctuation in the output of hydroelectric and other renewable power facilities owned or under contract;              |

----

|                                 |                                                                                                                                                                                                                                                |
|--------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     ·  | changes in the Utility’s customers’ electricity demands due to customer and economic growth or decline, weather, implementation of new energy efficiency and demand response programs, direct access, and community choice aggregation; |
|                                 |                                                                                                                                                                                                                                                |
|     ·  | the acquisition, retirement, or closure of generation facilities; and                                                                                                                                                                               |
|                                 |                                                                                                                                                                                                                                                |
|     ·  | changes in market prices that make it more economical to purchase power in the market rather than use the Utility’s existing resources.                                                                                                       |

----

|                                                                                                                            |                          |   | Contract Volume (1) |        |
|---------------------------------------------------------------------------------------------------------------------------------|-------------------------------|--------|---------------------|-------------|
| Underlying Product                                                                                                              | Instruments                   |   | Less Than 1 Year    |        |   | Greater Than 1 Year But Less Than 3 Years |   |   | Greater Than 3 Years But Less Than 5 Years |   |   | Greater Than 5 Years (2) |   |
| Natural Gas (3) (MMBtus (4))                                                                                                    | Forwards, Futures, and Swaps  |   |                | 354,147,125 |   |   |   | 211,026,845 |   |   |   | 17,875,000 |   |   |   | - |   |
|                                                                                                                            | Options                       |   |                | 198,987,080 |   |   |   | 104,650,000 |   |   |   | 11,100,000 |   |   |   | - |   |
|                                                                                                                            |                          |   |                |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Electricity (Megawatt-hours)                                                                                                    | Forwards, Futures, and Swaps  |   |                | 4,050,541   |   |   |   | 8,296,859 |   |   |   | 4,274,287 |   |   |   | 4,082,736 |   |
|                                                                                                                            | Options                       |   |                | 389,000     |   |   |   | 7,450 |   |   |   | 156,588 |   |   |   | 503,904 |   |
|                                                                                                                            | Congestion Revenue Rights     |   |                | 75,220,639  |   |   |   | 66,937,314 |   |   |   | 66,870,770 |   |   |   | 111,554,263 |   |
|                                                                                                                            |                          |   |                |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PG&E Corporation Equity(Shares)                                                                                             | Dividend Participation Rights |   |                | 16,370,789  |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                                            |                          |   |                |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (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 2015 and 2022.                                                             |                          |
| (3) Amounts shown are for the combined positions of the electric and core gas portfolios.                                       |                          |
| (4) Million British Thermal Units.                                                                                              |                          |

| (in millions)                                                                                                                             |   | Gross Derivative Balance (1) |   |   | Netting(2) |   |   | Cash Collateral (2) |   |   | Total Derivative Balances |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|------------|--------|--------|---------------------|--------|--------|---------------------------|--------|
| Commodity Risk (PG&E Corporation and Utility)                                                                                         |   |
| Current Assets – Prepaid expenses and other                                                                                         |   | $                            | 27     |   |       | $      | (10    | )                   |   | $      | 46                        |   |   | $ | 63 |   |
| Other Noncurrent Assets – Other                                                                                                     |   |                         | 53     |   |       |   | (34    | )                   |   |   | 55                        |   |   |   | 74 |   |
| Current Liabilities – Other                                                                                                         |   |                         | (332   | )      |       |   | 10     |                |   |   | 168                       |   |   |   | (154 | ) |
| Noncurrent Liabilities – Other                                                                                                      |   |                         | (518   | )      |       |   | 34     |                |   |   | 161                       |   |   |   | (323 | ) |
| Total commodity risk                                                                                                                      |   | $                            | (770   | )      |       | $      | -      |                |   | $      | 430                       |   |   | $ | (340 | ) |
|                                                                                                                                      |   |                         |   |   |       |   |   |                |   |   |                      |   |   |   |   |   |
| Other Risk Instruments (3) (PG&E Corporation Only)                                                                               |   |
| Current Liabilities – Other                                                                                                         |   | $                            | (7     | )      |       | $      | -      |                |   | $      | -                         |   |   | $ | (7 | ) |
| Total derivatives                                                                                                                         |   | $                            | (777   | )      |       | $      | -      |                |   | $      | 430                       |   |   | $ | (347 | ) |
|                                                                                                                                      |   |                         |   |   |       |   |   |                |   |   |                      |   |   |   |   |   |
| (1) See Note 8 below for a discussion of the valuation techniques used to calculate the fair value of these instruments.                  |   |
| (2) Positions, by counterparty, are netted where the intent and legal right to offset exist in accordance with master netting agreements. |   |
| (3) This category relates to the dividend participation rights of PG&E Corporation’s Convertible Subordinated Notes.            |   |

----

| (in millions)                                                                                                                             |   | Gross Derivative Balance |   |   | Netting(1) |   |   | Cash Collateral (1) |   |   | Total Derivative Balances |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|--------|------------|--------|--------|---------------------|--------|--------|---------------------------|--------|
| Commodity Risk (PG&E Corporation and Utility)                                                                                         |   |
| Current Assets – Prepaid expenses and other                                                                                         |   | $                        | 76     |   |       | $      | (12    | )                   |   | $      | 77                        |   |   | $ | 141 |   |
| Other Noncurrent Assets – Other                                                                                                     |   |                     | 64     |   |       |   | (44    | )                   |   |   | 13                        |   |   |   | 33 |   |
| Current Liabilities – Other                                                                                                         |   |                     | (231   | )      |       |   | 12     |                |   |   | 54                        |   |   |   | (165 | ) |
| Noncurrent Liabilities – Other                                                                                                      |   |                     | (390   | )      |       |   | 44     |                |   |   | 44                        |   |   |   | (302 | ) |
| Total commodity risk                                                                                                                      |   | $                        | (481   | )      |       | $      | -      |                |   | $      | 188                       |   |   | $ | (293 | ) |
|                                                                                                                                      |   |                     |   |   |       |   |   |                |   |   |                      |   |   |   |   |   |
| Other Risk Instruments (2) (PG&E Corporation Only)                                                                               |   |
| Current Liabilities – Other                                                                                                         |   | $                        | (13    | )      |       | $      | -      |                |   | $      | -                         |   |   | $ | (13 | ) |
| Total derivatives                                                                                                                         |   | $                        | (494   | )      |       | $      | -      |                |   | $      | 188                       |   |   | $ | (306 | ) |
|                                                                                                                                      |   |                     |   |   |       |   |   |                |   |   |                      |   |   |   |   |   |
| (1) Positions, by counterparty, are netted where the intent and legal right to offset exist in accordance with master netting agreements. |   |
| (2) This category relates to the dividend participation rights of PG&E Corporation’s Convertible Subordinated Notes.            |   |

|                                                           |   | Commodity Risk (PG&E Corporation and Utility) |   |
|----------------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                                           |   | Three months ended March 31,                           |   |
| (in millions)                                                  |   | 2010                                                   |   |   | 2009 |   |
| Unrealized gain/(loss) - Regulatory assets and liabilities (1) |   | $                                                      | (289   | ) |   | $ | (307 | ) |
| Realized gain/(loss) - Cost of electricity (2)                 |   |                                                   | (106   | ) |   |   | (202 | ) |
| Realized gain/(loss) - Cost of natural gas (2)                 |   |                                                   | (39    | ) |   |   | (23 | ) |
| Total commodity risk instruments                               |   | $                                                      | (434   | ) |   | $ | (532 | ) |
|                                                           |   | Other Risk Instruments (3)(PG&E Corporation Only)  |   |
| Other expense (income), net                                    |   | $                                                      | 1      |   |   | $ | (2 | ) |
| Total other risk instruments                                   |   | $                                                      | 1      |   |   | $ | (2 | ) |

|                                                                                                                                                                                                                                                                                       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (1) Unrealized gains and losses on commodity risk-related derivative instruments are recorded to regulatory assets or liabilities, rather than being recorded to the Condensed Consolidated Statements of Income.  These amounts exclude the impact of cash collateral postings. |
| (2) These amounts are fully passed through to customers in rates.  Accordingly, net income was not impacted by realized amounts on these instruments.                                                                                                                            |
| (3) This category relates to dividend participation rights of PG&E Corporation’s Convertible Subordinated Notes.                                                                                                                                                                 |

----

| (in millions)                                                                                                                                                                 |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| Derivatives in a liability position with credit-risk-related contingencies that are not fully collateralized                                                                  |   | $      | (551   | ) |
| Related derivatives in an asset position                                                                                                                                      |   |   | -      |   |
| Collateral posting in the normal course of business related to these derivatives                                                                                         |   |   | 81     |   |
| Net position of derivative contracts/additional collateral posting requirements (1)                                                                                           |   | $      | (470   | ) |
|                                                                                                                                                                          |   |   |   |   |
| (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

----

| Fair Value Measurements at March 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (in millions)                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market investments                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $ | 195 |   |   | $ | - |   |   | $ | - |   |   | $ | 195 |   |
| Nuclear decommissioning trusts                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      U.S. equity securities (1)                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 813 |   |   |   | 30 |   |   |   | - |   |   |   | 843 |   |
|      Non-U.S. equity securities                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 328 |   |   |   | - |   |   |   | - |   |   |   | 328 |   |
|      U.S. government and agency securities                                                                                                                                                                                                                                                                                                                                                                      |   |   | 664 |   |   |   | 73 |   |   |   | - |   |   |   | 737 |   |
|      Municipal securities                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 4 |   |   |   | 86 |   |   |   | - |   |   |   | 90 |   |
|      Other fixed income securities                                                                                                                                                                                                                                                                                                                                                                              |   |   | - |   |   |   | 76 |   |   |   | - |   |   |   | 76 |   |
| Total nuclear decommissioning trusts (2)                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 1,809 |   |   |   | 265 |   |   |   | - |   |   |   | 2,074 |   |
| Price risk management instruments                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Electric (3)                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 47 |   |   |   | - |   |   |   | - |   |   |   | 47 |   |
| Total price risk management instruments                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 47 |   |   |   | - |   |   |   | - |   |   |   | 47 |   |
| Rabbi trusts                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Equity securities                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 22 |   |   |   | - |   |   |   | - |   |   |   | 22 |   |
|      Life insurance contracts                                                                                                                                                                                                                                                                                                                                                                                   |   |   | - |   |   |   | 62 |   |   |   | - |   |   |   | 62 |   |
|                Total rabbi trusts                                                                                                                                                                                                                                                                                                                             |   |   | 22 |   |   |   | 62 |   |   |   | - |   |   |   | 84 |   |
| Long-term disability trust                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      U.S. equity securities (1)                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 3 |   |   |   | 28 |   |   |   | - |   |   |   | 31 |   |
|      Corporate debt securities (1)                                                                                                                                                                                                                                                                                                                                                                              |   |   | - |   |   |   | 148 |   |   |   | - |   |   |   | 148 |   |
| Total long-term disability trust                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 3 |   |   |   | 176 |   |   |   | - |   |   |   | 179 |   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $ | 2,076 |   |   | $ | 503 |   |   | $ | - |   |   | $ | 2,579 |   |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend participation rights                                                                                                                                                                                                                                                                                                                                                                                                            |   | $ | - |   |   | $ | - |   |   | $ | 7 |   |   | $ | 7 |   |
| Price risk management instruments                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Electric (4)                                                                                                                                                                                                                                                                                                                                                                                               |   |   | - |   |   |   | 50 |   |   |   | 295 |   |   |   | 345 |   |
|      Gas (5)                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | - |   |   |   | 1 |   |   |   | 41 |   |   |   | 42 |   |
|              Total price risk management instruments                                                                                                                                                                                                                                                                                                               |   |   | - |   |   |   | 51 |   |   |   | 336 |   |   |   | 387 |   |
| Other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | - |   |   |   | - |   |   |   | 1 |   |   |   | 1 |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $ | - |   |   | $ | 51 |   |   | $ | 344 |   |   | $ | 395 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)Level 2 balances include commingled funds, which are comprised primarily of securities traded publicly on exchanges. Price quotes for the assets held by the funds are readily observable and available.                                                                                                                                                                                                                              |   |
| (2)Excludes deferred taxes on appreciation of investment value.                                                                                                                                                                                                                                                                                                                                                                          |   |
| (3) Balances include the impact of netting adjustments of $214 million to Level 1. Includes natural gas for electric portfolio.(4) Balances include the impact of netting adjustments of $129 million to Level 2, and $53 million to Level 3. Includes natural gas for electric portfolio.(5) Balances include the impact of netting adjustments of $34 million to Level 3. Includes natural gas for core customers. |   |

----

| Fair Value Measurements at December 31, 2009                                                                                                                                                                     |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (in millions)                                                                                                                                                                                                    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Assets:                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market investments                                                                                                                                                                                         |   | $ | 189 |   |   | $ | - |   |   | $ | 4 |   |   | $ | 193 |   |
| Nuclear decommissioning trusts                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        U.S. equity securities (1)                                                                                                                                                  |   |   | 762 |   |   |   | 6 |   |   |   | - |   |   |   | 768 |   |
|        Non-U.S. equity securities                                                                                                                                                  |   |   | 344 |   |   |   | - |   |   |   | - |   |   |   | 344 |   |
|        U.S. government and agency securities                                                                                                                                       |   |   | 653 |   |   |   | 51 |   |   |   | - |   |   |   | 704 |   |
|        Municipal securities                                                                                                                                                        |   |   | 1 |   |   |   | 89 |   |   |   | - |   |   |   | 90 |   |
|        Other fixed income securities                                                                                                                                               |   |   | - |   |   |   | 108 |   |   |   | - |   |   |   | 108 |   |
| Total nuclear decommissioning trusts (2)                                                                                                                                                                         |   |   | 1,760 |   |   |   | 254 |   |   |   | - |   |   |   | 2,014 |   |
| Rabbi trusts                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Equity securities                                                                                                                                                           |   |   | 21 |   |   |   | - |   |   |   | - |   |   |   | 21 |   |
|        Life insurance contracts                                                                                                                                                    |   |   | 60 |   |   |   | - |   |   |   | - |   |   |   | 60 |   |
|                Total rabbi trusts                                                                                                     |   |   | 81 |   |   |   | - |   |   |   | - |   |   |   | 81 |   |
| Long-term disability trust                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. equity securities (1)                                                                                                                                                                                       |   |   | 52 |   |   |   | 23 |   |   |   | - |   |   |   | 75 |   |
| Corporate debt securities (1)                                                                                                                                                                                    |   |   | - |   |   |   | 113 |   |   |   | - |   |   |   | 113 |   |
|          Total long-term disability trust                                                                                                                           |   |   | 52 |   |   |   | 136 |   |   |   | - |   |   |   | 188 |   |
| Total assets                                                                                                                                                                                                     |   | $ | 2,082 |   |   | $ | 390 |   |   | $ | 4 |   |   | $ | 2,476 |   |
| Liabilities:                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend participation rights                                                                                                                                                                                    |   | $ | - |   |   | $ | - |   |   | $ | 12 |   |   | $ | 12 |   |
| Price risk management instruments                                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Electric (3)                                                                                                                                                                |   |   | 2 |   |   |   | 73 |   |   |   | 157 |   |   |   | 232 |   |
|        Gas (4)                                                                                                                                                                     |   |   | 1 |   |   |   | - |   |   |   | 60 |   |   |   | 61 |   |
|              Total price risk management instruments                                                                                            |   |   | 3 |   |   |   | 73 |   |   |   | 217 |   |   |   | 293 |   |
| Other liabilities                                                                                                                                                                                                |   |   | - |   |   |   | - |   |   |   | 3 |   |   |   | 3 |   |
| Total liabilities                                                                                                                                                                                                |   | $ | 3 |   |   | $ | 73 |   |   | $ | 232 |   |   | $ | 308 |   |
|                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                             |   |
| (1)Level 2 balances include commingled funds, which are comprised primarily of securities traded publicly on exchanges. Price quotes for the assets held by the funds are readily observable and available. |   |
| (2)Excludes taxes on appreciation of investment value.                                                                                                                                                           |   |
| (3)Balances include the impact of netting adjustments of $108 million to Level 1, $48 million to Level 2, and $19 million to Level 3. Includes natural gas for electric portfolio.                          |   |
| (4) Balances include the impact of netting adjustments of $13 million to Level 3. Includes natural gas for core customers.                                                                                  |   |

----

|                                                                |   | PG&E Corporation Only |   |   | PG&E Corporation and the Utility |   |   |                              |   |
|---------------------------------------------------------------------|--------|---------------------------|--------|--------|--------------------------------------|--------|--------|-----------------------------------|--------|
| (in millions)                                                       |   | Money Market              |   |   | Dividend Participation Rights        |   |   | Price Risk Management Instruments |   |   | Nuclear Decommission-ing Trusts Equity Securities (1) |   |   | Long-Term Disability Equity Securities |   |   | Long-Term Disability Corp. Debt Securities |   |   | Other Liabilities |   |   | Total |   |
| Asset (Liability) Balance as of December 31, 2009                   |   | $                         | 4      |   |                                 | $      | (12    | )                                 |   | $ | (217 | ) |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | (3 | ) |   | $ | (228 | ) |
| Realized and unrealized gains (losses):                             |   |                      |   |   |                                 |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Included in earnings                                                |   |                      | -      |   |                                 |   | -      |                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Included in regulatory assets and liabilities or balancing accounts |   |                      | -      |   |                                 |   | -      |                              |   |   | (119 | )  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2 |   |   |   | (117 | )  |
| Purchases, issuances, and settlements                               |   |                      | (4     | )      |                                 |   | 5      |                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1 |   |
| Transfers into Level 3                                              |   |                      | -      |   |                                 |   | -      |                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Transfers out of Level 3                                            |   |                      | -      |   |                                 |   | -      |                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Asset (Liability) Balance as of March 31, 2010                      |   | $                         | -      |   |                                 | $      | (7     | )                            |   | $ | (336 | ) |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | (1 | ) |   | $ | (344 | ) |
|                                                                |   |                      |   |   |                                 |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Excludes deferred taxes on appreciation of investment value.    |   |                      |   |   |                                 |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                |   | PG&E Corporation Only |   |   | PG&E Corporation and the Utility |   |   |                              |   |
|---------------------------------------------------------------------|--------|---------------------------|--------|--------|--------------------------------------|--------|--------|-----------------------------------|--------|
| (in millions)                                                       |   | Money Market              |   |   | Dividend Participation Rights        |   |   | Price Risk Management Instruments |   |   | Nuclear Decommission-ing Trusts Equity Securities (1) |   |   | Long-Term Disability Equity Securities |   |   | Long-Term Disability Corp. Debt Securities |   |   | Other Liabilities |   |   | Total |   |
| Asset (Liability) Balance as of December 31, 2008                   |   | $                         | 12     |   |                                 | $      | (42    | )                                 |   | $ | (156 | ) |   | $ | 5 |   |   | $ | 54 |   |   | $ | 24 |   |   | $ | (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 into Level 3                                              |   |                      | -      |   |                                 |   | -      |                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Transfers out of Level 3                                            |   |                      | -      |   |                                 |   | -      |                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Asset (Liability) Balance as of March 31, 2009                      |   | $                         | 8      |   |                                 | $      | (33    | )                                 |   | $ | (176 | ) |   | $ | 4 |   |   | $ | 47 |   |   | $ | 24 |   |   | $ | (1 | ) |   | $ | (127 | ) |
|                                                                |   |                      |   |   |                                 |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Excludes deferred taxes on appreciation of investment value.    |   |                      |   |   |                                 |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                           |   | At March 31,    |   |   | At December 31, |   |
|--------------------------------|--------|-----------------|--------|--------|-----------------|--------|
|                           |   | 2010            |   |   | 2009            |   |
| (in millions)                  |   | Carrying Amount |   |   | Fair Value      |   |   | Carrying Amount |   |   | Fair Value |   |
| Debt (Note 4):            |   |            |   |   |            |   |   |   |   |   |   |   |
| PG&E Corporation           |   | $               | 597    |   |            | $      | 1,070 |   |   | $ | 597 |   |   | $ | 1,096 |   |
| Utility                        |   |            | 9,240  |   |            |   | 9,727 |   |   |   | 9,240 |   |   |   | 9,824 |   |
| Energy recovery bonds (Note 4) |   |            | 1,120  |   |            |   | 1,176 |   |   |   | 1,213 |   |   |   | 1,269 |   |

----

|                                                    |   | Amortized Cost |   |   | Total Unrealized Gains |   |   | Total Unrealized Losses |   |   | Estimated (1) Fair Value |   |
|---------------------------------------------------------|--------|----------------|--------|--------|------------------------|--------|--------|-------------------------|--------|--------|--------------------------|--------|
| (in millions)                                           |   |           |   |   |                   |   |   |                    |   |   |                     |   |
| As of March 31, 2010                                    |   |           |   |   |                   |   |   |                    |   |   |                     |   |
| U.S. equity securities                                  |   | $              | 382    |   |                   | $      | 462    |                    |   | $      | (1                       | )      |   | $ | 843 |   |
| Non-U.S. equity securities                              |   |           | 174    |   |                   |   | 154    |                    |   |   | -                        |   |   |   | 328 |   |
| U.S. government and agency securities                   |   |           | 686    |   |                   |   | 53     |                    |   |   | (2                       | )      |   |   | 737 |   |
| Municipal securities                                    |   |           | 89     |   |                   |   | 2      |                    |   |   | (1                       | )      |   |   | 90 |   |
| Other fixed income securities                           |   |           | 75     |   |                   |   | 1      |                    |   |   | -                        |   |   |   | 76 |   |
| Total                                                   |   | $              | 1,406  |   |                   | $      | 672    |                    |   | $      | (4                       | )      |   | $ | 2,074 |   |
| As of December 31, 2009                                 |   |           |   |   |                   |   |   |                    |   |   |                     |   |   |   |   |   |
| U.S. equity securities                                  |   | $              | 344    |   |                   | $      | 425    |                    |   | $      | (1                       | )      |   | $ | 768 |   |
| Non-U.S. equity securities                              |   |           | 182    |   |                   |   | 163    |                    |   |   | (1                       | )      |   |   | 344 |   |
| U.S. government and agency securities                   |   |           | 656    |   |                   |   | 52     |                    |   |   | (4                       | )      |   |   | 704 |   |
| Municipal securities                                    |   |           | 89     |   |                   |   | 1      |                    |   |   | -                        |   |   |   | 90 |   |
| Other fixed income securities                           |   |           | 108    |   |                   |   | 2      |                    |   |   | (2                       | )      |   |   | 108 |   |
| Total                                                   |   | $              | 1,379  |   |                   | $      | 643    |                    |   | $      | (8                       | )      |   | $ | 2,014 |   |
|                                                    |   |           |   |   |                   |   |   |                    |   |   |                     |   |   |   |   |   |
| (1) Excludes taxes on appreciation of investment value. |   |

| As of March 31, 2010                |   | (in millions) |   |
|-------------------------------------|--------|---------------|--------|
| Less than 1 year                    |   | $             | 65     |   |
| 1–5 years                     |   |          | 394    |   |
| 5–10 years                    |   |          | 234    |   |
| More than 10 years                  |   |          | 210    |   |
| Total maturities of debt securities |   | $             | 903    |   |

|                                                                    |   | Three Months Ended March 31, |   |   | Three Months Ended March 31, |   |
|-------------------------------------------------------------------------|--------|------------------------------|--------|--------|------------------------------|--------|
|                                                                    |   | 2010                         |   |   | 2009                         |   |
| (in millions)                                                           |   |                         |   |   |                         |   |
| Proceeds received from sales of securities                              |   | $                            | 337    |   |                         | $      | 387 |   |
| Gross realized gains on sales of securities held as available-for-sale  |   |                         | 15     |   |                         |   | 8 |   |
| Gross realized losses on sales of securities held as available-for-sale |   |                         | (5     | )      |                         |   | (34 | )   |

----

NOTE 9: RELATED PARTY AGREEMENTS AND TRANSACTIONS

|                                                       |   | Three Months Ended |   |
|------------------------------------------------------------|--------|--------------------|--------|
|                                                       |   | March 31,          |   |
| (in millions)                                              |   | 2010               |   |   | 2009 |   |
| Utility revenues from:                                     |   |               |   |   |   |   |
| Administrative services provided to PG&E Corporation   |   | $                  | 1      |   |   | $ | 1 |   |
| Utility expenses from:                                     |   |               |   |   |   |   |   |   |
| Administrative services received from PG&E Corporation |   | $                  | 16     |   |   | $ | 19 |   |
| Utility employee benefit due to PG&E Corporation       |   |               | 10     |   |   |   | 6 |   |

NOTE 10: RESOLUTION OF REMAINING CHAPTER 11 DISPUTED CLAIMS

| (in millions)                |   |   |   |
|------------------------------|--------|--------|--------|
| Balance at December 31, 2009 |   | $      | 946    |   |
| Interest accrued             |   |   | 8      |   |
| Less: Supplier Settlements   |   |   | -      |   |
| Balance at March 31, 2010    |   | $      | 954    |   |

----

NOTE 11: COMMITMENTS AND CONTINGENCIES

| (in millions)                 |   |   |   |
|-------------------------------|--------|--------|--------|
| 2010                          |   | $      | 1,674  |   |
| 2011                          |   |   | 2,260  |   |
| 2012                          |   |   | 2,309  |   |
| 2013                          |   |   | 2,307  |   |
| 2014                          |   |   | 2,268  |   |
| Thereafter                    |   |   | 38,464 |   |
|     Total |   | $      | 49,282 |   |

----

| (in millions)                                                    |   |   |   |
|------------------------------------------------------------------|--------|--------|--------|
| 2010                                                             |   | $      | 43     |   |
| 2011                                                             |   |   | 50     |   |
| 2012                                                             |   |   | 50     |   |
| 2013                                                             |   |   | 50     |   |
| 2014                                                             |   |   | 42     |   |
| Thereafter                                                       |   |   | 162    |   |
| Total fixed capacity payments                                    |   |   | 397    |   |
| Amount representing interest                                     |   |   | 85     |   |
|     Present value of fixed capacity payments |   | $      | 312    |   |

| (in millions)                                                                         |   |   |   |
|---------------------------------------------------------------------------------------|--------|--------|--------|
| 2010                                                                                  |   | $      | 549    |   |
| 2011                                                                                  |   |   | 309    |   |
| 2012                                                                                  |   |   | 83     |   |
| 2013                                                                                  |   |   | 61     |   |
| 2014                                                                                  |   |   | 44     |   |
| Thereafter                                                                            |   |   | 115    |   |
| Total (1)                                                                             |   | $      | 1,161  |   |
|                                                                                  |   |   |   |   |
| (1) Total does not include Ruby Pipeline reservation cost commitment described below. |   |   |   |   |

----

| (in millions) |   |   |   |
|---------------|--------|--------|--------|
| 2010          |   | $      | 152    |   |
| 2011          |   |   | 82     |   |
| 2012          |   |   | 69     |   |
| 2013          |   |   | 107    |   |
| 2014          |   |   | 135    |   |
| Thereafter    |   |   | 1,215  |   |
| Total         |   | $      | 1,760  |   |

----

----

| (in millions)                                          |   |   |   |
|--------------------------------------------------------|--------|--------|--------|
| Balance at December 31, 2009                           |   | $      | 586    |   |
| Additional remediation costs accrued:                  |   |   |   |   |
| Transfer to regulatory account for  recovery |   |   | 52     |   |
| Amounts not recoverable from customers                 |   |   | 5      |   |
| Less: Payments                                         |   |   | (30    | ) |
| Balance at March 31, 2010                              |   | $      | 613    |   |

| · | $43 million for remediation at the Utility’s natural gas compressor site located near Hinkley, California;                                                                                                                                                                   |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                               |
| · | $180 million for remediation at the Utility’s natural gas compressor site located on the California border, near Topock, Arizona;                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                               |
| · | $84 million related to remediation at divested generation facilities;                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                               |
| · | $124 million related to remediation costs for the Utility’s generation and other facilities and for third-party disposal sites;                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                               |
| · | $132 million related to investigation and/or remediation costs at former MGP 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 MGP sites); and |
|   |                                                                                                                                                                                                                                                                               |
| · | $50 million related to remediation decommissioning fossil-fueled sites.                                                                                                                                                                                                            |

----

----

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

OVERVIEW

Summary of Changes in Earnings per Common Share and Income Available for Common Shareholders for the Three Months Ended March 31, 2010

----

|   · | The Outcome of Regulatory Proceedings and the Impact of Ratemaking Mechanisms.  During 2010, the CPUC will determine the amount of revenue requirements the Utility is authorized to recover from 2011 through 2013 for its electric and natural gas distribution operations and its electric generation operations in the 2011 General Rate Case (“2011 GRC”) and from 2011 through 2014 for its natural gas transportation and storage services in the Gas Transmission and Storage Rate Case.  In addition, in the Utility’s most recent annual transmission owner (“TO”) rate case, the FERC will determine the amount of electric transmission revenues the Utility can recover beginning in March 2011.  The decisions issued in the three associated rate cases will determine the majority of the Utility’s base revenue requirements for 2011 and future years. In addition, the Utility has requested the CPUC or the FERC to authorize additional base revenue requirements for specific capital expenditure projects such as new power plants, new or upgraded natural gas or electric transmission facilities, the installation of an advanced metering infrastructure, and other infrastructure improvements.  (See “Capital Expenditures” below.)  The outcome of these regulatory proceedings can be affected by many factors, including general economic conditions, the level of rates, and political and regulatory policies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ·        | The Ability of the Utility to Control Costs While Improving Operational Efficiency and Reliability.  The Utility’s revenue requirements in general rate cases and TO rate cases are generally set at a level to allow the Utility the opportunity to recover its basic forecasted operating expenses as well as to earn a return on equity (“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 CPUC-authorized rate of return and the amount of PG&E Corporation’s income available for common shareholders.  In addition, the Utility may incur higher than anticipated operating expenses than provided for in the last general rate case.  The Utility continuously re-prioritizes spending and seeks to achieve sustainable operational efficiencies to maximize its ability to earn its authorized return while maintaining and improving operational safety and reliability.  (See “Results of Operations” below.)  The Utility also seeks to make the amount and timing of its capital expenditures consistent with forecasted amounts and timing.  When capital expenditures are higher than authorized levels, the Utility incurs associated depreciation, property tax, and interest expense but does not recover revenues to fully offset these expenses or earn an ROE until the increased capital expenditures are added to rate base in future rate cases.  (See “Capital Expenditures” below.)                                                                                                                                                                                                                                                                                                                                                             |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ·        | Capital Structure and Financing. The CPUC has authorized a capital structure for the Utility’s electric and natural gas distribution and electric generation rate base that consists of 52% common equity and 48% debt and preferred stock.  This authorized capital structure will remain in effect through 2012.  The CPUC also has authorized the Utility to earn a rate of return on each component of its capital structure, including an ROE of 11.35%.  These rates will remain in effect through 2010.  The rates for 2011 and 2012 are subject to an annual adjustment mechanism that will be triggered if the 12-month October-through-September average yield for the applicable Moody’s Investors Service utility bond index increases or decreases by more than 1% as compared to the applicable benchmark.  The amount of the Utility’s authorized equity earnings is determined by the 52% equity component, the 11.35% ROE, and the aggregate amount of rate base authorized by the CPUC.  The rate of return that the Utility earns on its FERC-jurisdictional rate base is not specifically authorized, but rates are designed to allow the Utility to earn a reasonable rate of return.  The Utility’s actual equity earnings could be more or less based on a number of factors, including the timing and amount of operating costs and capital expenditures.  The CPUC periodically authorizes the aggregate amount of long-term debt and short-term debt that the Utility may issue and authorizes the Utility to recover its related debt financing costs.  The timing and amount of the Utility’s future financing will depend on various factors, as discussed in “Liquidity and Financial Resources” below.  PG&E Corporation regularly contributes equity to the Utility to maintain the Utility’s CPUC-authorized capital structure.  PG&E Corporation may issue debt or equity in the future to fund these equity contributions. |

----

CAUTIONARY LANGUAGE REGARDING 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 whether the new day-ahead, hour-ahead, and real-time wholesale electricity markets established by the California Independent System Operator (“CAISO”) will continue to function effectively, the extent to which the Utility can manage and respond to the volatility of electricity and natural gas prices, and the ability of the Utility and its counterparties to post or return collateral;                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | explosions, fires, accidents, mechanical breakdowns, the disruption of information technology and systems, and similar events that may occur while operating and maintaining an electric and natural gas system in a large service territory with varying geographic conditions that can cause unplanned outages, reduce generating output, damage the Utility’s assets or operations, subject the Utility to third-party claims for property damage or personal injury, or result in the imposition of civil, criminal, or regulatory fines or penalties on the Utility;                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | the impact of storms, earthquakes, floods, drought, wildfires, disease, and similar natural disasters, or acts of terrorism or vandalism, that affect customer demand or that damage or disrupt the facilities, operations, or information technology and systems owned by the Utility, its customers, or 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 that include the development of alternative technologies that enable customers to increase their reliance on self-generation, or other reasons;                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | the occurrence of unplanned outages at the Utility’s two nuclear generating units at the Diablo Canyon Power Plant (“Diablo Canyon”), the availability of nuclear fuel, the outcome of the Utility’s application to renew the operating licenses for Diablo Canyon, and potential changes in laws or regulations promulgated by the NRC or environmental agencies with respect to the storage of spent nuclear fuel, security, safety, or other matters associated with the operations at Diablo Canyon;                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | whether the Utility can operate efficiently to achieve cost savings and identify and successfully implement additional sustainable cost-saving measures;                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | whether the Utility earns incentive revenues or incurs obligations under incentive ratemaking mechanisms, such as the CPUC’s incentive ratemaking mechanism relating to energy savings achieved through implementation of the utilities’ customer energy efficiency programs;                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | the impact of federal or state laws, or their interpretation, on energy policy and the regulation of utilities and their holding companies;                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | whether the Utility can successfully implement its program to install advanced meters for its electric and natural gas customers and integrate the new meters with its customer billing and other systems, the outcome of the independent investigation ordered by the CPUC and the California Legislature into customer concerns about the new meters, and the ability of the Utility to implement various rate changes including “dynamic pricing” by offering electric rates that can vary with the customer’s time of use and are more closely aligned with wholesale electricity prices; |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | how the CPUC administers the conditions imposed on PG&E Corporation when it became the Utility’s holding company;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | the outcome of litigation, including litigation involving the application of various California wage and hour laws, and 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;                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | the impact of environmental laws and regulations and the costs of compliance and remediation;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | the loss of customers due to various forms of bypass and competition, including municipalization of the Utility’s electric distribution facilities, increasing levels of  “direct access” by which consumers procure electricity from alternative energy providers, and implementation of “community choice aggregation,” which permits cities and counties to purchase and sell electricity for their local residents and businesses; and                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| · | the outcome of federal or state tax audits and the impact of changes in federal or state tax laws, policies, or regulations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

RESULTS OF OPERATIONS

|                                                                                |   | Three Months ended March 31, |   |
|-------------------------------------------------------------------------------------|--------|------------------------------|--------|
| (in millions)                                                                       |   | 2010                         |   |   | 2009 |   |
| Utility                                                                             |   |                         |   |   |   |   |
| Electric operating revenues                                                         |   | $                            | 2,510  |   |   | $ | 2,426 |   |
| Natural gas operating revenues                                                      |   |                         | 965    |   |   |   | 1,005 |   |
| Total operating revenues                                                            |   |                         | 3,475  |   |   |   | 3,431 |   |
| Cost of electricity                                                                 |   |                         | 920    |   |   |   | 883 |   |
| Cost of natural gas                                                                 |   |                         | 495    |   |   |   | 557 |   |
| Operating and maintenance                                                           |   |                         | 990    |   |   |   | 1,059 |   |
| Depreciation, amortization, and decommissioning                                     |   |                         | 451    |   |   |   | 419 |   |
| Total operating expenses                                                            |   |                         | 2,856  |   |   |   | 2,918 |   |
| Operating income                                                                    |   |                         | 619    |   |   |   | 513 |   |
| Interest income                                                                     |   |                         | 2      |   |   |   | 9 |   |
| Interest expense                                                                    |   |                         | (156   | ) |   |   | (173 | ) |
| Other (expense) income, net                                                         |   |                         | (6     | ) |   |   | 21 |   |
| Income before income taxes                                                          |   |                         | 459    |   |   |   | 370 |   |
| Income tax provision                                                                |   |                         | 195    |   |   |   | 131 |   |
| Net Income                                                                          |   |                         | 264    |   |   |   | 239 |   |
| Preferred dividend requirement                                                      |   |                         | 3      |   |   |   | 3 |   |
| Income available for common stock                                                   |   | $                            | 261    |   |   | $ | 236 |   |
| PG&E Corporation, Eliminations, and Other (1)                              |   |                         |   |   |   |   |   |   |
| Operating revenues                                                                  |   | $                            | -      |   |   | $ | - |   |
| Operating expenses                                                                  |   |                         | 1      |   |   |   | - |   |
| Operating loss                                                                      |   |                         | (1     | ) |   |   | - |   |
| Interest income                                                                     |   |                         | -      |   |   |   | - |   |
| Interest expense                                                                    |   |                         | (12    | ) |   |   | (8 | ) |
| Other expense, net                                                                  |   |                         | -      |   |   |   | (3 | ) |
| Loss before income taxes                                                            |   |                         | (13    | ) |   |   | (11 | ) |
| Income tax benefit                                                                  |   |                         | (10    | ) |   |   | (16 | ) |
| Net (loss) gain                                                                     |   | $                            | (3     | ) |   | $ | 5 |   |
| Consolidated Total                                                                  |   |                         |   |   |   |   |   |   |
| Operating revenues                                                                  |   | $                            | 3,475  |   |   | $ | 3,431 |   |
| Operating expenses                                                                  |   |                         | 2,857  |   |   |   | 2,918 |   |
| Operating income                                                                    |   |                         | 618    |   |   |   | 513 |   |
| Interest income                                                                     |   |                         | 2      |   |   |   | 9 |   |
| Interest expense                                                                    |   |                         | (168   | ) |   |   | (181 | ) |
| Other (expense) income, net                                                         |   |                         | (6     | ) |   |   | 18 |   |
| Income before income taxes                                                          |   |                         | 446    |   |   |   | 359 |   |
| Income tax provision                                                                |   |                         | 185    |   |   |   | 115 |   |
| Net Income                                                                          |   |                         | 261    |   |   |   | 244 |   |
| Preferred dividend requirement of subsidiary                                        |   |                         | 3      |   |   |   | 3 |   |
| Income available for common shareholders                                            |   | $                            | 258    |   |   | $ | 241 |   |
|                                                                                |   |                         |   |   |   |   |   |   |
| (1) PG&E Corporation eliminates all intercompany transactions in consolidation. |   |

----

|                                                                                                                                                                                                                                                    |   | Three Months Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                    |   | March 31,          |   |
| (in millions)                                                                                                                                                                                                                                           |   | 2010               |   |   | 2009 |   |
| Electric operating revenues                                                                                                                                                                                                                             |   | $                  | 2,866  |   |   | $ | 2,821 |   |
| DWR pass-through revenues (1)                                                                                                                                                                                                                           |   |               | (356   | ) |   |   | (395 | ) |
| Total electric operating revenues                                                                                                                                                                                                                       |   | $                  | 2,510  |   |   | $ | 2,426 |   |
|                                                                                                                                                                                                                                                    |   |               |   |   |   |   |   |   |
| (1) The Utility acts as a billing and collection agent on behalf of the DWR and remits the amounts collected from customers to the DWR. The Utility’s electric operating revenues are reflected net of the amounts remitted to the DWR. |   |

----

|                                        |   | Three Months Ended |   |
|---------------------------------------------|--------|--------------------|--------|
|                                        |   | March 31,          |   |
| (in millions)                               |   | 2010               |   |   | 2009 |   |
| Cost of purchased power                     |   | $                  | 842    |   |   | $ | 839 |   |
| Fuel used in own generation facilities      |   |               | 78     |   |   |   | 44 |   |
| Total cost of electricity                   |   | $                  | 920    |   |   | $ | 883 |   |
| Average cost of purchased power per kWh (1) |   | $                  | 0.083  |   |   | $ | 0.082 |   |
| Total purchased power (in millions of kWh)  |   |               | 10,117 |   |   |   | 10,226 |   |
|                                        |   |               |   |   |   |   |   |   |
| (1) Kilowatt-hour.                          |   |               |   |   |   |   |   |   |

|                                                    |   | Three Months Ended |   |
|---------------------------------------------------------|--------|--------------------|--------|
|                                                    |   | March 31,          |   |
| (in millions)                                           |   | 2010               |   |   | 2009 |   |
| Bundled natural gas revenues                            |   | $                  | 875    |   |   | $ | 923 |   |
| Transportation service-only revenues                    |   |               | 90     |   |   |   | 82 |   |
| Total natural gas operating revenues                    |   | $                  | 965    |   |   | $ | 1,005 |   |
| Average bundled revenue per Mcf (1) of natural gas sold |   | $                  | 9.21   |   |   | $ | 9.14 |   |
| Total bundled natural gas sales (in millions of Mcf)    |   |               | 95     |   |   |   | 101 |   |
|                                                    |   |               |   |   |   |   |   |   |
| (1) One thousand cubic feet.                            |   |               |   |   |   |   |   |   |

----

|                                        |   | Three Months Ended |   |
|---------------------------------------------|--------|--------------------|--------|
|                                        |   | March 31,          |   |
| (in millions)                               |   | 2010               |   |   | 2009 |   |
| Cost of natural gas sold                    |   | $                  | 444    |   |   | $ | 515 |   |
| Transportation cost of natural gas sold     |   |               | 51     |   |   |   | 42 |   |
| Total cost of natural gas                   |   | $                  | 495    |   |   | $ | 557 |   |
| Average cost per Mcf of natural gas sold    |   | $                  | 4.67   |   |   | $ | 5.10 |   |
| Total natural gas sold (in millions of Mcf) |   |               | 95     |   |   |   | 101 |   |

----

----

LIQUIDITY AND FINANCIAL RESOURCES

| (in millions)                                                                                                                                                                                                                    |                      |             |   |           |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|------------------|--------|----------------|
| 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    |   | $              | 187 | (1)  |   | $ | - |   |   | $ | - |   |   |   | N/A |   |   | $ | 187 |   |
| Utility                                                                                                                                                                                                                          | Revolving credit facility | February 2012    |   |           | 1,940 | (2)  |   |   | 265 |   |   |   | - |   |   | $ | 751 |   |   |   | 924 |   |
| Total credit facilities                                                                                                                                                                                                          |                      | $                | 2,127  |           |   | $ | 265 |   |   | $ | - |   |   | $ | 751 |   |   | $ | 1,111 |   |
|                                                                                                                                                                                                                        |                      |             |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Includes an $87 million sublimit for letters of credit and a $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 $921 million sublimit for letters of credit and a $200 million sublimit for swingline loans.                                                                                                                      |                      |

----

----

|                                                                              |   | Three Months Ended |   |
|-----------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                              |   | March 31,          |   |
| (in millions)                                                                     |   | 2010               |   |   | 2009 |   |
| Net income                                                                        |   | $                  | 264    |   |   | $ | 239 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |               |   |   |   |   |   |   |
| Depreciation, amortization, and decommissioning                                   |   |               | 491    |   |   |   | 456 |   |
| Allowance for equity funds used during construction                               |   |               | (28    | ) |   |   | (25 | ) |
| Deferred income taxes and tax credits, net                                        |   |               | 138    |   |   |   | 234 |   |
| Other changes in noncurrent assets and liabilities                                |   |               | (98    | ) |   |   | (48 | ) |
| Effect of changes in operating assets and liabilities:                            |   |               |   |   |   |   |   |   |
| Accounts receivable                                                               |   |               | 114    |   |   |   | 298 |   |
| Inventories                                                                       |   |               | 59     |   |   |   | 166 |   |
| Accounts payable                                                                  |   |               | 94     |   |   |   | (107 | ) |
| Income taxes receivable/payable                                                   |   |               | 77     |   |   |   | 95 |   |
| Regulatory balancing accounts, net                                                |   |               | (377   | ) |   |   | (180 | ) |
| Other current assets                                                              |   |               | 35     |   |   |   | 34 |   |
| Other current liabilities                                                         |   |               | (387   | ) |   |   | (386 | ) |
| Other                                                                             |   |               | 26     |   |   |   | 1 |   |
| Net cash provided by operating activities                                         |   | $                  | 408    |   |   | $ | 777 |   |

----

|                                                             |   | Three Months Ended |   |
|------------------------------------------------------------------|--------|--------------------|--------|
|                                                             |   | March 31,          |   |
| (in millions)                                                    |   | 2010               |   |   | 2009 |   |
| Capital expenditures                                             |   | $                  | (855   | ) |   | $ | (1,079 | ) |
| Decrease in restricted cash                                      |   |               | 4      |   |   |   | 11 |   |
| Proceeds from sales of nuclear decommissioning trust investments |   |               | 337    |   |   |   | 387 |   |
| Purchases of nuclear decommissioning trust investments           |   |               | (343   | ) |   |   | (412 | ) |
| Other                                                            |   |               | 5      |   |   |   | 2 |   |
| Net cash used in investing activities                            |   | $                  | (852   | ) |   | $ | (1,091 | ) |

|                                                                                                |   | Three Months Ended |   |
|-----------------------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                                |   | March 31,          |   |
| (in millions)                                                                                       |   | 2010               |   |   | 2009 |   |
| Borrowings under revolving credit facility                                                          |   | $                  | -      |   |   | $ | 300 |   |
| Repayments under revolving credit facility                                                          |   |               | -      |   |   |   | (300 | ) |
| Net issuance of commercial paper, net of discount of $2 million in 2009                             |   |               | 418    |   |   |   | 96 |   |
| Proceeds from issuance of long-term debt, net of discount and issuance costs of $12 million in 2009 |   |               | -      |   |   |   | 538 |   |
| Long-term debt matured or repurchased                                                               |   |               | -      |   |   |   | (600 | ) |
| Energy recovery bonds matured                                                                       |   |               | (93    | ) |   |   | (89 | ) |
| Preferred stock dividends paid                                                                      |   |               | (4     | ) |   |   | (3 | ) |
| Common stock dividends paid                                                                         |   |               | (179   | ) |   |   | (156 | ) |
| Equity contribution                                                                                 |   |               | 20     |   |   |   | 528 |   |
| Other                                                                                               |   |               | 8      |   |   |   | 2 |   |
| Net cash provided by financing activities                                                           |   | $                  | 170    |   |   | $ | 316 |   |

----

CONTRACTUAL COMMITMENTS

CAPITAL EXPENDITURES

----

OFF-BALANCE SHEET ARRANGEMENTS

CONTINGENCIES

REGULATORY MATTERS

----

ENVIRONMENTAL MATTERS

----

----

OTHER 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, 2010                                                                                                                                                                                                                                                                                                    |   | $                                                 | 192    |   |              | $      | 23     |                    |   | $      | 169                                                  |   |   |                                                       | 3      |   |   | $ | 138 |   |
| December 31, 2009                                                                                                                                                                                                                                                                                                 |   | $                                                 | 202    |   |              | $      | 24     |                    |   | $      | 178                                                  |   |   |                                                       | 3      |   |   | $ | 154 |   |
|                                                                                                                                                                                                                                                                                                              |   |                                              |   |   |              |   |   |                    |   |   |                                                 |   |   |                                                       |   |   |   |   |   |   |
| (1) Gross credit exposure equals mark-to-market value on physically and 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 Before Credit Collateral 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. |

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4. CONTROLS AND PROCEDURES

----

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

| 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, 2010                                                                                            |   |                             | 7,437  | (1)    |                    | $      | 44.50  |                                                                             |   |   | -                                                                                        |   |   | $ | - |   |
| February 1 through February 28, 2010                                                                                          |   |                             | -      |   |                    |   | -      |                                                                             |   |   | -                                                                                        |   |   |   | - |   |
| March 1 through March 31, 2010                                                                                                |   |                             | -      |   |                    |   | -      |                                                                             |   |   | -                                                                                        |   |   |   | - |   |
| Total                                                                                                                         |   |                             | 7,437  |   |                    | $      | 44.50  |                                                                             |   |   | -                                                                                        |   |   | $ | - |   |
|                                                                                                                          |   |                             |   |   |                    |   |   |                                                                             |   |   |                                                                                     |   |   |   |   |   |
| (1) Shares tendered to satisfy tax withholding obligations arising upon the vesting of PG&E Corporation restricted stock. |   |

ITEM 5. OTHER INFORMATION

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ITEM 6. EXHIBITS

| 3           | Bylaws of Pacific Gas and Electric Company amended as of February 17, 2010 (incorporated by reference to Pacific Gas and Electric Company’s Annual Report on Form 10-K for the year ended December 31, 2009 (File No. 1-2348), Exhibit 3.5)                                                                                                                   |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                |
| 4      | Ninth Supplemental Indenture dated as of April 1, 2010 relating to the issuance of $250,000,000 aggregate principal amount of Pacific Gas and Electric Company’s Senior Notes due January 15, 2040 (incorporated by reference to Pacific Gas and Electric Company’s Current Report on Form 8-K dated April 1, 2010 (File No. 1-2348), Exhibit 4.1) |
|        |                                                                                                                                                                                                                                                                                                                                                                |
| *10.1       | Separation Agreement between Pacific Gas and Electric Company and Barbara Barcon effective March 4, 2010                                                                                                                                                                                                                                                            |
|        |                                                                                                                                                                                                                                                                                                                                                                |
| *10.2  | Form of Restricted Stock Unit Agreement for 2010 grants under the PG&E Corporation 2006 Long-Term Incentive Plan                                                                                                                                                                                                                                                |
|        |                                                                                                                                                                                                                                                                                                                                                                |
| *10.3       | Form of Performance Share Agreement for 2010 grants under the PG&E Corporation 2006 Long-Term Incentive Plan                                                                                                                                                                                                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                |
| 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                                                                                                                                                                                         |
|        |                                                                                                                                                                                                                                                                                                                                                                |
| ***101.INS  | XBRL Instance Document                                                                                                                                                                                                                                                                                                                                              |
|        |                                                                                                                                                                                                                                                                                                                                                                |
| ***101.SCH  | XBRL Taxonomy Extension Schema Document                                                                                                                                                                                                                                                                                                                             |
|        |                                                                                                                                                                                                                                                                                                                                                                |
| ***101.CAL  | XBRL Taxonomy Extension Calculation Linkbase Document                                                                                                                                                                                                                                                                                                               |
|        |                                                                                                                                                                                                                                                                                                                                                                |
| ***101.LAB  | XBRL Taxonomy Extension Labels Linkbase Document                                                                                                                                                                                                                                                                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                |
| ***101.PRE  | XBRL Taxonomy Extension Presentation Linkbase Document                                                                                                                                                                                                                                                                                                              |

| *** | Pursuant to Rule 406T of SEC Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections.  These files are being submitted only by PG&E Corporation and not by its subsidiary, Pacific Gas and Electric Company. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| PG&E CORPORATION                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                     |
|                                                                                                                     |
| KENT M. HARVEY                                                                                                      |
| Kent M. HarveySenior Vice President and Chief Financial Officer(duly authorized officer and principal financial officer) |

| PACIFIC GAS AND ELECTRIC COMPANY                                                                                           |
|----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                       |
|                                                                                                                       |
| SARA A. CHERRY                                                                                                        |
| Sara A. CherryVice President, Finance and Chief Financial Officer(duly authorized officer and principal financial officer) |

----

| 3                                       | Bylaws of Pacific Gas and Electric Company amended as of February 17, 2010 (incorporated by reference to Pacific Gas and Electric Company’s Annual Report on Form 10-K for the year ended December 31, 2009 (File No. 1-2348), Exhibit 3.5)                                                                                                                   |
|-----------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                    |                                                                                                                                                                                                                                                                                                                                                                |
| 4                                       | Ninth Supplemental Indenture dated as of April 1, 2010 relating to the issuance of $250,000,000 aggregate principal amount of Pacific Gas and Electric Company’s Senior Notes due January 15, 2040 (incorporated by reference to Pacific Gas and Electric Company’s Current Report on Form 8-K dated April 1, 2010 (File No. 1-2348), Exhibit 4.1) |
|                                    |                                                                                                                                                                                                                                                                                                                                                                |
| *10.1  *10.2  *10.3 | Separation Agreement between Pacific Gas and Electric Company and Barbara Barcon effective March 4, 2010 Form of Restricted Stock Unit Agreement for 2010 grants under the PG&E Corporation 2006 Long-Term Incentive Plan Form of Performance Share Agreement for 2010 grants under the PG&E Corporation 2006 Long-Term Incentive Plan            |
|                                    |                                                                                                                                                                                                                                                                                                                                                                |
| 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                                                                                                                                                                                         |
|                                    |                                                                                                                                                                                                                                                                                                                                                                |
| ***101.INS                              | XBRL Instance Document                                                                                                                                                                                                                                                                                                                                              |
|                                    |                                                                                                                                                                                                                                                                                                                                                                |
| ***101.SCH                              | XBRL Taxonomy Extension Schema Document                                                                                                                                                                                                                                                                                                                             |
|                                    |                                                                                                                                                                                                                                                                                                                                                                |
| ***101.CAL                              | XBRL Taxonomy Extension Calculation Linkbase Document                                                                                                                                                                                                                                                                                                               |
|                                    |                                                                                                                                                                                                                                                                                                                                                                |
| ***101.LAB                              | XBRL Taxonomy Extension Labels Linkbase Document                                                                                                                                                                                                                                                                                                                    |
|                                    |                                                                                                                                                                                                                                                                                                                                                                |
| ***101.PRE                              | XBRL Taxonomy Extension Presentation Linkbase Document                                                                                                                                                                                                                                                                                                              |

| *** | Pursuant to Rule 406T of SEC Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under these sections.  These files are being submitted only by PG&E Corporation and not by its subsidiary, Pacific Gas and Electric Company. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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