Pacific Gas & Electric 8K Pg&e Corp. Reports Solid First Quarter Financial Performance | PCG+A 4 May 05

Exhibit 99.2

PG&E Corporation

Table 1: Earnings Summary

First Quarter 2005 vs. First Quarter 2004

(in millions except per share amounts)

			Earnings (Loss) Three months ended March 31,		Earnings (Loss) per Common Share (Diluted) Three months ended March 31,
			2005	2004	2005	2004
Pacific Gas and Electric Company and Holding Company
	Pacific Gas and Electric Company ¹		$ 227	$ 180	$ 0.56	$ 0.42
	Holding Company		(1)	(5)	-	(0.01)
		Earnings from Operations	226	175	0.56	0.41
	Items Impacting Comparability ²
		Implementation of Electric Industry Restructuring		2,950	-	6.96
		Energy Crisis/Chapter 11 Interest Costs	(8)	(56)	(0.02)	(0.13)
		Dividend Participation Rights	-	(19)	-	(0.05)
		Other	-	(17)	-	(0.04)
		Total	(8)	2,858	(0.02)	6.74
PG&E Corporation Earnings on a GAAP basis			$ 218	$ 3,033	$ 0.54	$ 7.15

¹ Earnings from operations exclude items impacting comparability as discussed below.

² Items impacting comparability reconcile earnings from operations with consolidated net income as reported in accordance with generally accepted accounting principles, or GAAP.

DISCUSSION:

1.		Earnings from operations contributed by the Utility excludes items impacting comparability, as discussed below, totaling $8 million ($0.02 per common share) for the quarter ended March 31, 2005 and $2,886 million ($6.81 per common share) for the quarter ended March 31, 2004. On a GAAP basis, the Utility earned $219 million for the three months ended March 31, 2005 and $3,066 million for the three months ended March 31, 2004.

2.		Items impacting comparability for the quarter ending March 31, 2005 include the net effect of incremental interest costs of $8 million ($0.02 per common share), after-tax, related to remaining generator disputed claims in the Utility’s Chapter 11 proceeding, which are subject to resolution by bankruptcy court.

3.		Items impacting comparability for the quarter ended March 31, 2004 include:

	a.		The Utility’s recognition of a gain of approximately $2,950 million ($6.96 per common share) related to the establishment of regulatory assets contemplated in the December 19, 2003 settlement agreement, or Settlement Agreement, entered into between the Utility, PG&E Corporation and the California Public Utilities Commission, or CPUC, to resolve the Utility’s Chapter 11 proceeding;

	b.		The net effect of incremental interest costs of $52 million ($0.12 per common share) from the increased amount and cost of debt resulting from the California energy crisis and the Utility’s Chapter 11 filing;

	c.		Increased costs of $4 million ($0.01 per common share) related to the Chapter 11 filings of the Utility and National Energy & Gas Transmission, Inc., or NEGT. These costs generally consist of external legal consulting fees, financial advisory fees and other related costs and payments;

	d.		A change in the market value of non-cumulative dividend participation rights of $19 million ($0.05 per common share) related to the Holding Company’s $280 million of 9.5% Convertible Subordinated Notes; and

	e.		The Utility’s recognition of $17 million ($0.04 per common share) in charges related to obligations to invest in clean energy technology and donate land, included in the Settlement Agreement.

PG&E Corporation
Table 2: Earning Per Share from Operations,
First Quarter 2005 vs. First Quarter 2004
($/Share)
Q1 2004 EPS from Operations ¹	$0.41
Timing of 2003 GRC and attrition decision ²	0.15
Higher equity earnings on rate base ³	0.03
Fewer shares outstanding	0.02
Miscellaneous items	0.02
	0.22

Lower earnings on the settlement regulatory asset ⁴	(0.04)
Increased estimate of environmental remediation	(0.03)
	(0.07)

Q1 2005 EPS from Operations ¹	$0.56

¹See Table 1 for a reconciliation of earnings per share, or EPS, from operations to EPS on a GAAP basis.

²The CPUC issued a final decision in May 2004 that was retroactive to 2003. As a result, first quarter earnings in 2004 did not include 2003 GRC and 2004 attrition revenues.

³ The Utility's equity ratio reached its authorized level of 52% in January 2005, compared to approximately 48% during the first quarter 2004.

⁴ The Utility earned a return on the settlement regulatory asset only through February 10, 2005 (when the energy recovery bonds were issued to refinance the settlement regulatory asset) as compared to a full quarter in 2004.

PG&E Corporation

Table 3: Share Statistics
First Quarter 2005 vs. First Quarter 2004
(shares in millions except per share amounts)
Common Stock Data	First Quarter 2005	First Quarter 2004	% Change
Book value per share - end of period¹	$21.16	$18.36	15.25%
Weighted average common shares outstanding, basic	388	393	-1.27%
Employee stock options, restricted stock, and
PG&E Corporation shares held by grantor trusts	4	12
Weighted average common shares outstanding, diluted	392	405	-3.21%
9.5% Convertible Subordinated Notes (participating securities)	19	19
Weighted average common shares outstanding and participating securities, diluted	411	424	-3.07%


¹Common Shareholders' Equity per common share outstanding (excluding shares held by Elm Power Corporation, a wholly owned subsidiary of PG&E Corporation) at period end. Source: PG&E Corporation’s Condensed Consolidated Financial Statements and the Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.

PG&E CORPORATION

Table 4: Pacific Gas and Electric company Operating Statistics
First Quarter 2005 vs. First Quarter 2004
	First Quarter
	2005	2004
Electric Sales (in millions kWh)
Residential	7,442	7,422
Commercial	7,466	7,477
Industrial	3,455	3,355
Agricultural	471	497
BART, public street and highway lighting	193	115
Other electric utilities	7	4
Sales from Energy Deliveries	19,034	18,870

Total Electric Customers at March 31	4,958,963	4,880,134

Bundled Gas Sales (in millions MCF) ¹

Residential	82	85
Commercial	26	27
Industrial	- -	-
Total Bundled Gas Sales	108	112

Total Transportation Only ¹	133	144

Total Gas Sales	241	256

Total Gas Customers at March 31	4,132,323	4,057,499


Sources of Electric Energy (in millions kWh)
Utility Generation
Nuclear	4,653	4,322
Hydro (net)	2,947	3,095
Fossil	242	224
Total Utility Generation	7,842	7,641

Purchased Power
Qualifying Facilities	4,354	4,673
Irrigation Districts	498	1,056
Other Purchased Power	154	172
Spot Market Purchases/Sales, net	(19)	1,193
Total Purchased Power	4,987	7,094

Delivery from DWR	5,044	4,561

Delivery to Direct Access Customers	2,102	2,101

Other (includes energy loss)	(941)	(2,527)

Total Electric Energy Delivered	19,034	18,870

Diablo Canyon Performance
Overall capacity factor (including refuelings)	99%	91%
Refueling outage period	None	3/22/04-6/7/04
Refueling outage duration during the quarter (days)	-	9.0

¹2004 amounts have been converted from decatherms, or DTh, to millions cubic feet, or MCF to conform to the 2005 presentation.

PG&E Corporation

Table 5: 2005 Earnings per Common Share Guidance

		Low	High

	EPS Guidance on an Earnings from Operations Basis	$2.15	$2.25

	Items Impacting Comparability:¹
	Incremental interest expense ²	(0.08)	(0.05)

	EPS Guidance on a GAAP Basis	$2.07	$2.20

^{1 The range of potential outcomes is developed using a range of dollar estimates and a range of estimated shares outstanding for the items presented.}

²The net expense, after tax, related to remaining generator disputed claims in the Utility's Chapter 11 proceeding, which are subject to resolution in the bankruptcy court.






Table 6: 2006 Earnings per Common Share Guidance

		Low	High

	EPS Guidance on an Earnings from Operations Basis	$2.30	$2.40

	Items Impacting Comparability	0.00	0.00

	EPS Guidance on a GAAP basis	$2.30	$2.40

Management's statements regarding 2005 and 2006 guidance for earnings from operations per share for PG&E Corporation constitute forward looking statements that are based on current expectations and assumptions which management believes are reasonable. These statements are necessarily subject to various risks and uncertainties. In addition to the risk that the assumptions on which the statements are based (including that the Utility earns an authorized return on equity of 11.22%, that the second series of energy recovery bonds is issued in late 2005, and that the Utility makes certain capital expenditures) prove to be inaccurate, many factors could cause actual results to differ materially from those contemplated by the forward-looking statements. These factors are noted in PG&E Corporation's and Pacific Gas and Electric Company's Current Report on Form 8-K dated May 4, 2005 and are discussed in their combined Annual Report on Form 10-K for the year ended December 31, 2004 and their Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.

PG&E Corporation

Table 7: Rate Base - Pacific Gas and Electric Company
(in billions)
	2004 Actual	2005 Estimated	2006 Estimated
Total Weighted Average Rate Base	$14.8	$15.3	$16.0

PG&E Corporation
Table 8: General Earnings Sensitivities for 2005
PG&E Corporation and Pacific Gas and Electric Company
Variable		Description of Change	Estimated Earnings Impact
Rate base	+/-	$100 million change in rate base¹	+/-	$6 million

Return on equity (ROE)	+/-	0.1% change in allowed ROE	+/-	$8 million

Share count	+/-	1% change in average shares	+/-	$0.02 per share

Revenues	+/-	$7 million change in revenues (pre-tax), including Electric Transmission and California Gas Transmission	+/-	$0.01 per share

¹ Assuming 11.22% return on equity and equity ratio of 52%.

PG&E Corporation

Table 9: First Quarter 2005 Cash Flow Sources and Uses
PG&E Corporation Consolidated
(in millions)
Cash and cash equivalents, January 1, 2005	$ 972

Sources of Cash
Cash from operations	1,048
Debt issued	1,874
Common stock issued	120
Decrease in restricted cash	26
Net proceeds from sale of assets	11
Other, net	26
	$ 3,105

Uses of Cash
Capital expenditures	$ 349
Net repayments under credit facilities and short-term borrowings	300
Long-term debt matured, redeemed, or repurchased	902
Rate reduction bonds matured	74
Preferred stock redeemed	2
Common stock repurchased	1,065
Preferred dividends paid	4
	$ 2,696

Cash and cash equivalents, March 31, 2005	$ 1,381

Source: PG&E Corporation’s Condensed Consolidated Statements of Cash Flows included in PG&E Corporation’s and Pacific Gas and Electric Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2005

PG&E Corporation

Table 10: Consolidated Cash Position
First Quarter 2005 vs. First Quarter 2004
(in millions)

	Cash as of March 31,
	2005	2004	Change

Net Cash Flow from Operating Activities
Holding Company ¹	$13	($122)	$135
Pacific Gas and Electric Company	1,035	1,009	26
	$1,048	$887	$161

Consolidated Cash Balance
Holding Company ²	325	615	(290)
Pacific Gas and Electric Company ³	1,056	2,845	(1,789)
	$1,381	$3,460	($2,079)

Consolidated Restricted Cash Balance
Holding Company	1	363	(362)
Pacific Gas and Electric Company	1,857	7,446	(5,589)
	$1,858	$7,809	(5,951)

¹Reflects elimination of all inter-company transactions in consolidation.
²Includes Pacific Venture Capital cash balance.

³These amounts do not include restricted cash. The Utility's restricted cash includes amounts deposited in escrow related to the remaining disputed Chapter 11 claims, collateral required by the ISO and deposits under certain third party agreements.

Source: PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation’s and Pacific Gas and Electric Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.

PG&E Corporation
Table 11: Long-Term Debt
First Quarter 2005 vs. Year End 2004
(in millions)
			Balance at
			March 31,	December 31,
			2005	2004
PG&E Corporation
	Convertible subordinated notes, 9.50%, due 2010		$ 280	$ 280
	Other long-term debt		- -	1
	Less: current portion		- -	(1)
			$ 280	$ 280

Utility
	First Mortgage Bonds ¹
		3.26% to 6.05% bonds, due 2006-2034	$ 5,300	$ 6,200
		Unamortized discount, net of premium	(17)	(17)
		Total First Mortgage Bonds	5,283	6,183
	Pollution control bond loan agreements, variable rates, due 2007		614	614
	Pollution control bond loan agreement, 5.35%, due 2016		200	200
	Pollution control bond loan agreements, 3.50%, due 2007		345	345
	Pollution control bond reimbursement obligations, variable rates, due 2005		454	454
	Other		3	4
	Less: current portion		(457)	(757)
			6,442	7,043

Total consolidated long-term debt, net of current portion			$ 6,722	$ 7,323

¹On April 22, 2005, the lien of the mortgage securing the First Mortgage Bonds was released and the First Mortgage Bonds were re-designated as senior unsecured notes.

Source: PG&E Corporation’s and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.

PG&E Corporation
Table 12: Repayment Schedule and Interest Rates -- Long-Term Debt, Energy Recovery Bonds and Rate Reduction Bonds
(in millions)

	2005	2006	2007	2008	2009	Thereafter	Total
Long-Term Debt
PG&E Corporation
Average fixed interest rates	-	-	-	-	-	9.50%	9.50%
Fixed rate obligations	$ 0	$ 0	$ 0	$ 0	$ 0	$ 280	$ 280
Utility
Average fixed interest rate	-	-	3.50%	-	3.60%	5.78%	5.43%
Fixed rate obligations	$ 0	$ 0	$ 345	$ 0	$ 600	$ 4,683	$ 5,628
Variable interest rate as of March 31, 2005	4.00%	3.26%	2.30%	-	-	-	-
Variable rate obligations	$ 454	$ 200	$ 614	$ 0	$ 0	$ 0	$ 1,268
Other	$ 2	$ 1	$ 0	$ 0	$ 0	$ 0	$3
Total consolidated long-term	$ 456	$ 201	$ 959	$ 0	$ 600	$ 4,963	$ 7,179

Energy Recovery Bonds & Rate Reduction Bonds
Utility
Average fixed interest rate	6.42%	6.44%	6.48%	-	-	-	6.45%
Rate reduction bonds	$ 216	$ 290	$ 290	$ 0	$ 0	$0	$ 796
Average fixed interest rate	3.32%	3.55%	3.87%	3.87%	4.05%	4.35%	4.02%
Energy recovery bonds	$ 140	$ 221	$ 230	$ 239	$ 248	$ 810	$ 1,888

& nbsp;

PG&E Corporation
Table 13: PG&E Corporation
Condensed Consolidated Statements of Income
(Unaudited)

				Three Months Ended March 31,
(in millions, except per share amounts)				2005		2004

Operating Revenues
	Electric		$	1,660	$	1,791
	Natural gas			1,009		931
		Total operating revenues		2,669		2,722
Operating Expenses
	Cost of electricity			396		561
	Cost of natural gas			620		578
	Operating and maintenance			767		816
	Recognition of regulatory assets			- -		(4,900)
	Depreciation, amortization and decommissioning			385		312
	Reorganization professional fees and expenses			- -		2
		Total operating (gain) expenses		2,168		(2,631)
Operating Income				501		5,353
	Reorganization interest income			- -		8
	Interest income			21		6
	Interest expense			(161)		(231)
	Other expense, net			(1)		(27)
Income Before Income Taxes				360		5,109
	Income tax provision			142		2,076
Net Income			$	218	$	3,033
Weighted Average Common Shares Outstanding, Basic				388		393
Net Earnings Per Common Share, Basic			$	0.55	$	7.36
Net Earnings Per Common Share, Diluted			$	0.54	$	7.15
Dividends Declared Per Common Share			$	0.30	$	-

PG&E Corporation
Table 14: PG&E Corporation
Condensed Consolidated Balance Sheets

	Balance At

(in millions)	March 31, 2005 (Unaudited)		December 31, 2004

ASSETS
Current Assets
Cash and cash equivalents		$ 1,381		$ 972
Restricted cash	1,858		1,980
Accounts receivable:
Customers (net of allowance for doubtful accounts of $88 million in 2005 and $93 million in 2004)	1,916		2,085
Regulatory balancing accounts	968		1,021
Inventories:
Gas stored underground	83		175
Materials and supplies	131		129
Prepaid expenses and other	55		46

Total current assets	6,392		6,408

Property, Plant and Equipment
Electric	21,689		21,519
Gas	8,574		8,526
Construction work in progress	518		449
Other	15		15

Total property, plant and equipment	30,796		30,509
Accumulated depreciation	(11,728)		(11,520)

Net property, plant and equipment	19,068		18,989

Other Noncurrent Assets
Regulatory assets	6,412		6,526
Nuclear decommissioning funds	1,627		1,629
Other	938		988

Total other noncurrent assets	8,977		9,143

TOTAL ASSETS	$ 34,437		$ 34,540

PG&E Corporation

Table 14 (continued): PG&E Corporation
Condensed Consolidated Balance Sheets

	Balance At

(in millions)	March 31, 2005 (Unaudited)	December 31, 2004
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short-term borrowings	$ - -	$ 300
Long-term debt, classified as current	457	758
Rate reduction bonds, classified as current	290	290
Energy recovery bonds, classified as current	197	-
Accounts payable:
Trade creditors	500	762
Disputed claims and customer refunds	2,142	2,142
Regulatory balancing accounts	574	369
Other	499	352
Interest payable	432	461
Income taxes payable	388	185
Deferred income taxes	374	394
Other	879	905

Total current liabilities	6,732	6,918

Noncurrent Liabilities
Long-term debt	6,722	7,323
Rate reduction bonds	506	580
Energy recovery bonds	1,691	-
Regulatory liabilities	3,869	4,035
Asset retirement obligations	1,325	1,301
Deferred income taxes	3,490	3,531
Deferred tax credits	119	121
Preferred stock of subsidiary with mandatory redemption provisions (redeemable, 6.30% and 6.57%, outstanding 4,800,000 shares, due 2005-2009)	120	122
Other	1,756	1,690

Total noncurrent liabilities	19,598	18,703

Commitments and Contingencies (Notes 1, 2, and 7)
Preferred Stock of Subsidiaries	286	286

Preferred Stock
Preferred stock, no par value, 80,000,000 shares, $100 par value, 5,000,000 shares, none issued	-	-
Common Shareholders' Equity
Common stock, no par value, authorized 800,000,000 shares, issued 393,170,435 common and 1,400,062 restricted shares in 2005 and 417,014,431 common and 1,601,710 restricted shares in 2004	6,196	6,518
Common stock held by subsidiary, at cost, 24,665,500 shares	(718)	(718)
Unearned compensation	(31)	(26)
Accumulated earnings	2,379	2,863
Accumulated other comprehensive loss	(5)	(4)

Total common shareholders' equity	7,821	8,633

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 34,437	$ 34,540

PG&E Corporation
Table 15: PG&E Corporation
Condensed Consolidated Statements of Cash Flows
(Unaudited)
	Three Months Ended March 31,
(in millions)	2005	2004

Cash Flows From Operating Activities
Net income	$218	$3,033
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and decommissioning	385	312
Recognition of regulatory assets	-	(4,900)
Deferred income taxes and tax credits, net	(63)	1,926
Other deferred charges and noncurrent liabilities	(45)	237
Tax benefit on employee stock options exercises	25	-
Gain on sale of assets	-	(16)
Net effect of changes in operating assets and liabilities:
Restricted cash	96	(128)
Accounts receivable	169	352
Inventories	90	82
Accounts payable	(115)	(257)
Accrued taxes	202	65
Regulatory balancing accounts, net	254	(53)
Other working capital	(182)	287
Payments authorized by the bankruptcy court on amounts classified as liabilities subject to compromise	-	(20)
Other, net	14	(33)

Net cash provided by operating activities	$ 1,048	$ 887

Cash Flows From Investing Activities
Capital expenditures	(349)	(342)
Net proceeds from sale of assets	11	18
Decrease (Increase) in restricted cash	26	(6,917)
Other, net	26	(65)

Net cash used in investing activities	(286)	(7,306)

Cash Flows From Financing Activities
Net repayments under credit facilities and short-term borrowings	(300)	-
Proceeds from issuance of long-term debt, net of issuance costs of $153 million in 2004	-	6,547
Proceeds from issuance of energy recovery bonds, net of issuance costs of $14 million in 2005	1,874	-
Long-term debt matured, redeemed or repurchased	(902)	(310)
Rate reduction bonds matured	(74)	(74)
Preferred stock with mandatory redemption provisions redeemed	(2)	-
Common stock issued	120	58
Common stock repurchased	(1,065)	-
Preferred dividends paid	(4)	-
Net cash (used in) provided by financing activities	(353)	6,221
Net change in cash and cash equivalents	409	(198)
Cash and cash equivalents at January 1	972	3,658
Cash and cash equivalents at March 31	$1,381	$3,460

Supplemental disclosures of cash flow information
Cash received for:
Reorganization interest income	$6	$8
Cash paid for:
Interest (net of amounts capitalized)	267	197
Income taxes refunded, net	(14)	-
Reorganization professional fees and expenses	-	5
Supplemental disclosures of noncash investing and financing activities
Common stock dividends declared but not yet paid	111	-
Transfer of liabilities and other payables subject to compromise to operating assets and liabilities	$-	$ (257)

PG&E Corporation
Table 16: Pacific Gas and Electric Company
Condensed Consolidated Statements Of Income
(Unaudited)

			Three Months Ended
(in millions)			March 31,
			2005		2004
Operating Revenues
	Electric			$ 1,660		$ 1,791
	Natural gas		1,009		931

		Total operating revenues	2,669		2,722
Operating Expenses
	Cost of electricity		396		561
	Cost of natural gas		620		578
	Operating and maintenance		773		808
	Recognition of regulatory assets		-		(4,900)
	Depreciation, amortization and decommissioning		385		311
	Reorganization professional fees and expenses		-		2

		Total operating (gain) expenses	2,174		(2,640)
Operating Income			495		5,362
	Reorganization interest income		-		8
	Interest income		20		3
	Interest expense		(154)		(213)
	Other income, net		4		13
Income Before Income Taxes			365		5,173
	Income tax provision		142		2,099
Net Income				223	3,074
	Preferred dividend requirement		4		8
Income Available for Common Stock			$	219	$	3,066

PG&E Corporation
Table 17: Pacific Gas and Electric Company
Condensed Consolidated Balance Sheets
					Balance At
(in millions)					March 31, 2005 (Unaudited)		December 31, 2004


ASSETS
Current Assets
	Cash and cash equivalents				$	1,056	$	783
	Restricted cash				1,857		1,980
	Accounts receivable:
			Customers (net of allowance for doubtful accounts of
				$88 million in 2005 and $93 million in 2004)	1,916		2,085
			Related parties		2		2
			Regulatory balancing accounts		968		1,021
	Inventories:
			Gas stored underground and fuel oil		83		175
			Materials and supplies		131		129
	Prepaid expenses and other				54		43

		Total current assets			6,067		6,218

Property, Plant and Equipment
	Electric				21,689		21,519
	Gas				8,574		8,526
	Construction work in progress				518		449

		Total property, plant and equipment			30,781		30,494
	Accumulated depreciation				(11,715)		(11,507)

		Net property, plant and equipment			19,066		18,987

Other Noncurrent Assets
	Regulatory assets				6,412		6,526
	Nuclear decommissioning funds				1,627		1,629
	Other				892		942

		Total other noncurrent assets			8,931		9,097

TOTAL ASSETS					$	34,064	$	34,302

PG&E Corporation
Table 17 (continued): Pacific Gas and Electric Company
Condensed Consolidated Balance Sheets
			Balance At
(in millions)			March 31, 2005 (Unaudited)		\| December 31, 2004

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
	Short term borrowings		$	-	$	300
	Long-term debt, classified as current			457		757
	Rate reduction bonds, classified as current		290		290
	Energy recovery bonds, classified as current		197		-
	Accounts payable:
		Trade creditors	500		762
		Disputed claims and customer refunds	2,142		2,142
		Related parties	20		20
		Regulatory balancing accounts	574		369
		Other	484		337
	Interest payable		426		461
	Income taxes payable		322		102
	Deferred income taxes		351		377
	Other		741		869

		Total current liabilities	6,504		6,786

Noncurrent Liabilities
	Long-term debt		6,442		7,043
	Rate reduction bonds		506		580
	Energy recovery bonds		1,691		-
	Regulatory liabilities		3,869		4,035
	Asset retirement obligations		1,325		1,301
	Deferred income taxes		3,587		3,629
	Deferred tax credits		119		121
	Preferred stock with mandatory redemption provisions (redeemable, 6.30% and 6.57%, outstanding 4,800,000 shares, due 2005-2009)		120		122
	Other		1,625		1,555

		Total noncurrent liabilities	19,284		18,386
Commitments and Contingencies (Notes 1, 2 and 7)
Shareholders' Equity
	Preferred stock without mandatory redemption provisions:
	Nonredeemable, 5% to 6%, outstanding 5,784,825 shares		145		145
	Redeemable, 4.36% to 7.04%, outstanding 5,973,456 shares		149		149
	Common stock, $5 par value, authorized 800,000,000 shares,
	issued 299,291,477 shares		1,496		1,606
	Common stock held by subsidiary, at cost, 19,481,213 shares		(475)		(475)
	Additional paid-in capital		1,900		2,041
	Reinvested earnings		5,066		5,667
	Accumulated other comprehensive loss		(5)		(3)
		Total shareholders' equity	8,276		9,130
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			$	34,064	$	34,302

PG&E Corporation
Table 18: Pacific Gas and Electric Company
Condensed Consolidated Statements of Cash Flows
(Unaudited)

				Three Months Ended
				March 31,
(in millions)
				2005			2004

Cash Flows From Operating Activities
	Net income			$		223	$	3,074
	Adjustments to reconcile net income to net cash provided by operating activities:
			Depreciation, amortization and decommissioning	385			311
			Recognition of regulatory assets	-			(4,900)
			Deferred income taxes and tax credits, net	(70)			2,014
			Other deferred charges and noncurrent liabilities	(49)			279
			Gain on sale of assets	-			(16)
	Net effect of changes in operating assets and liabilities:
			Decrease (increase) in restricted cash	97			(126)
			Accounts receivable	169			353
			Inventories	90			82
			Accounts payable	(115)			(256)
			Accrued taxes	220			98
			Regulatory balancing accounts, net	254			(53)
			Other working capital	(179)			253
	Payments authorized by the bankruptcy court on amounts classified as liabilities subject to compromise			-			(20)
	Other, net			10			(84)

Net cash provided by operating activities				1,035			1,009

Cash Flows From Investing Activities
	Capital expenditures			(349)			(342)
	Net proceeds from sale of assets			11			18
	Decrease (increase) in restricted cash			26			(6,917)
	Other, net			26			(65)
Net cash used in investing activities				(286)			(7,306)

Cash Flows From Financing Activities
	Net repayments under credit facilities and short-term borrowings			(300)			-
	Proceeds from issuance of long-term debt, net of issuance costs of $153 million in 2004			-			6,547
	Proceeds from issuance of energy recovery bonds, net of issuance costs of $14 million in 2005			1,874			-
	Long-term debt matured, redeemed or repurchased			(900)			(310)
	Rate reduction bonds matured			(74)			(74)
	Common stock dividends paid			(110)			-
	Preferred dividends paid			(4)			-
	Preferred stock with mandatory redemption provisions redeemed			(2)			-
	Common stock repurchased			(960)			-
Net cash (used in) provided by financing activities				(476)			6,163
Net change in cash and cash equivalents				273			(134)
Cash and cash equivalents at January 1				783			2,979
Cash and cash equivalents at March 31				$		1,056	$	2,845
Supplemental disclosures of cash flow information
	Cash received for:
		Reorganization interest income		$	6		$	8
	Cash paid for:
		Interest (net of amounts capitalized)		169			175
		Income taxes paid, net		-			-
		Reorganization professional fees and expenses		-			5
Supplemental disclosures of noncash investing and financing activities
Equity contribution for settlement of POR payable					-		(128)
	Transfer of liabilities and other payables subject to compromise to operating assets and liabilities			$	-		$	(257)

Pacific Gas & Electric (PCG+A) 8-KPg&e Corp. Reports Solid First Quarter Financial Performance

PG&E Corporation

Table 1: Earnings Summary

Variable

Current Assets

Total property, plant and equipment

Net property, plant and equipment

Total current liabilities

Total noncurrent liabilities

Preferred Stock of Subsidiaries

Total common shareholders' equity

Condensed Consolidated Statements of Cash Flows

Cash Flows From Operating Activities

Net change in cash and cash equivalents

Cash and cash equivalents at March 31

Total operating revenues

Operating Expenses

Total operating (gain) expenses

Operating Income

Income Before Income Taxes

Income Available for Common Stock

Current Assets

Shareholders' Equity

Cash Flows From Operating Activities