[Letterhead of Arthur Andersen LLP] Exhibit 16 February 22, 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 the Form 8-Ks 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 PMS Copy to: Mr. Bruce R. Worthington, PG&E Corporation Exhibit 16