Exhibit 16

[LETTERHEAD OF ARTHUR ANDERSEN LLP]

June 10, 1999


Office of the Chief Accountant
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC  20549

Dear Sir/Madame:

We have read Item 4 included in each Form 8-K/A Amendment No. 1 to the
Current Reports on Form 8-K dated February 17, 1999 of PG&E
Corporation, Pacific Gas and Electric Company, PG&E Funding LLC, and
PG&E Gas Transmission, Northwest Corporation, filed with the Securities
and Exchange Commission and are in agreement with the statements
contained therein.

Very truly yours,

ARTHUR ANDERSEN LLP

/S/ARTHUR ANDERSEN LLP

Copy to:  Mr. Bruce R. Worthington, PG&E Corporation