EXHIBIT A

Unaudited consolidating statements of operations and surplus of the Claimant and its subsidiary companies (i.e., PG&E Corporation and its subsidiaries) for 2003, together with unaudited consolidating balance sheets of the Claimant and its subsidiary companies as of December 31, 2003.

On July 8, 2003, the National Energy & Gas Transmission, Inc., or NEGT, formerly known as PG&E National Energy Group, Inc., a subsidiary of PG&E Corporation and PG&E National Energy Group, LLC, filed a voluntary petition for relief under the provisions of Chapter 11 in the U.S. Bankruptcy Court for the District of Maryland, Greenbelt Division. In anticipation of NEGT's Chapter 11 filing, PG&E Corporation's representatives, who previously served as directors of NEGT, resigned on July 7, 2003 and were replaced with directors who are not affiliated with PG&E Corporation. As a result, PG&E Corporation no longer retains significant influence over NEGT. Accordingly, effective July 8, 2003, NEGT's results are no longer consolidated with those of PG&E Corporation. NEGT's proposed plan of reorganization provides for the elimination of PG&E Corporation's equity ownership and PG&E Corporation believes that the bankruptcy court will approve NEGT's proposed plan of reorganization or one with similar elimination provisions. As a result, PG&E Corporation considers its investment in NEGT to be abandoned and has accounted for NEGT as discontinued operations in accordance with Statement of Financial Accounting Standard No. 144, "Accounting for the impairment or Disposal of Long-Lived Assets," or SFAS No. 144. Under the provisions of SFAS No. 144, NEGT's results of operations through July 7, 2003 and for prior years have been reclassified as discontinued operations and PG&E Corporation now accounts for its investment in NEGT using the cost method of accounting.

Accordingly, this exhibit contains the unaudited consolidated statements of operations of PG&E National Energy Group, LLC through July 7, 2003. However, the consolidating statement of operations, statement of surplus and balance sheet of PG&E National Energy Group, LLC and its subsidiaries are not included in this exhibit.

PG&E CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Corporation (Consolidated)		Eliminations and Re- classifications		Total Unconsolidated		PG&E Corporation		Total Subsidiaries
Operating Revenues
Electric	$	7,582	$	-	$	7,582	$	-	$	7,582
Natural gas	2,853		(8)		2,861		-		2,861
Total operating revenues	10,435		(8)		10,443		-		10,443
Operating Expenses
Cost of electricity	2,309		(10)		2,319		-		2,319
Cost of natural gas	1,438		(29)		1,467		-		1,467
Operating and maintenance	2,963		(5)		2,968		28		2,940
Depreciation, amortization and decommissioning	1,222		-		1,222		4		1,218
Reorganization professional fees and expenses	160		-		160		-		160
Total operating expenses	8,092		(44)		8,136		32		8,104
Operating Income (Loss)	2,343		36		2,307		(32)		2,339
Reorganization interest income	46		-		46		-		46
Interest income	16		(11)		27		20		7
Interest expense	(1,147)		6		(1,153)		(200)		(953)
Equity in earnings of subsidiaries	-		(366)		366		366		-
Other income (expense), net	(9)		1		(10)		2		(12)
Income (Loss) Before Income Taxes	1,249		(334)		1,583		156		1,427
Income tax provision (benefit)	458		11		447		(84)		531
Income (Loss) From Continuing Operations	791		(345)		1,136		240		896
Discontinued Operations
Loss from operations of NEGT (net of income tax    benefit of $230 million)	(365)		(21)		(344)		177		(521)
Net Income (Loss) Before Cumulative Effect    of Changes in Accounting Principles	426		(366)		792		417		375
Cumulative effect of changes in accounting    principles (net of income tax benefit of    $4 million)	(6)		-		(6)		3		(9)
Net Income (Loss)	$	420	$	(366)	$	786	$	420	$	366

PG&E CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Gas and Electric Company (Consolidated)		PG&E Corporation Support Services, Inc.		PG&E Strategic Capital, Inc.		Elm Power Corporation		PTTP Services LLC
Operating Revenues
Electric	$	7,582	$	-	$	-	$	-	$	-
Natural gas	2,856		5		-		-		-
Total operating revenues	10,438		5		-		-		-
Operating Expenses
Cost of electricity	2,319		-		-		-		-
Cost of natural gas	1,467		-		-		-		-
Operating and maintenance	2,935		5		-		-		-
Depreciation, amortization and decommissioning	1,218		-		-		-		-
Reorganization professional fees and expenses	160		-		-		-		-
Total operating expenses	8,099		5		-		-		-
Operating Income (Loss)	2,339		-		-		-		-
Reorganization interest income	46		-		-		-		-
Interest income	7		-		-		-		-
Interest expense	(953)		-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-		-
Other income (expense), net	(9)		-		-		-		-
Income (Loss) Before Income Taxes	1,430		-		-		-		-
Income tax provision (benefit)	528		-		-		-		-
Income (Loss) From Continuing Operations	902		-		-		-		-
Discontinued Operations
Loss from operations of NEGT (net of income tax    benefit of $230 million)	-		-		-		-		-
Net Income (Loss) Before Cumulative Effect    of Changes in Accounting Principles	902		-		-		-		-
Cumulative effect of changes in accounting    principles (net of income tax benefit of    $4 million)	(1)		-		-		-		-
Net Income (Loss)	$	901	$	-	$	-	$	-	$	-

PG&E CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E National Energy Group, LLC (Consolidated)		PG&E Ventures, LLC (Consolidated)
Operating Revenues
Electric	$	-	$	-
Natural gas	-		-
Total operating revenues	-		-
Operating Expenses
Cost of electricity	-		-
Cost of natural gas	-		-
Operating and maintenance	-		-
Depreciation, amortization and decommissioning	-		-
Reorganization professional fees and expenses	-		-
Total operating expenses	-		-
Operating Income (Loss)	-		-
Reorganization interest income	-		-
Interest income	-		-
Interest expense	-		-
Equity in earnings of subsidiaries	-		-
Other income (expense), net	-		(3)
Income (Loss) Before Income Taxes	-		(3)
Income tax provision (benefit)	-		3
Income (Loss) From Continuing Operations	-		(6)
Discontinued Operations
Loss from operations of NEGT (net of income tax    benefit of $230 million)	(521)		-
Net Income (Loss) Before Cumulative Effect    of Changes in Accounting Principles	(521)		(6)
Cumulative effect of changes in accounting    principles (net of income tax benefit of    $4 million)	(8)		-
Net Income (Loss)	$	(529)	$	(6)

PG&E CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Ventures, LLC (Consolidated)		Intercompany Eliminations		Total Unconsolidated		PG&E Ventures, LLC		PG&E Telecom LLC (Consolidated)
Operating Revenues
Electric	$	-	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-		-
Total operating revenues	-		-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-		-
Cost of natural gas	-		-		-		-		-
Operating and maintenance	-		-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-		-
Reorganization professional fees and expenses	-		-		-		-		-
Total operating expenses	-		-		-		-		-
Operating Income (Loss)	-		-		-		-		-
Reorganization interest income	-		-		-		-		-
Interest income	-		-		-		-		-
Interest expense	-		-		-		-		-
Equity in earnings of subsidiaries	-		6		(6)		(6)		-
Other income (expense), net	(3)		-		(3)		-		-
Income (Loss) Before Income Taxes	(3)		6		(9)		(6)		-
Income tax provision (benefit)	3		-		3		-		1
Income (Loss) From Continuing Operations	(6)		6		(12)		(6)		(1)
Discontinued Operations
Loss from operations of NEGT (net of income tax    benefit of $230 million)	-		-		-		-		-
Net Income (Loss) Before Cumulative Effect    of Changes in Accounting Principles	(6)		6		(12)		(6)		(1)
Cumulative effect of changes in accounting    principles (net of income tax benefit of    $4 million)	-		-		-		-		-
Net Income (Loss)	$	(6)	$	6	$	(12)	$	(6)	$	(1)

PG&E CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Venture Capital, LLC (Consolidated)
Operating Revenues
Electric	$	-
Natural gas	-
Total operating revenues	-
Operating Expenses
Cost of electricity	-
Cost of natural gas	-
Operating and maintenance	-
Depreciation, amortization and decommissioning	-
Reorganization professional fees and expenses	-
Total operating expenses	-
Operating Income (Loss)	-
Reorganization interest income	-
Interest income	-
Interest expense	-
Equity in earnings of subsidiaries	-
Other income (expense), net	(3)
Income (Loss) Before Income Taxes	(3)
Income tax provision (benefit)	2
Income (Loss) From Continuing Operations	(5)
Discontinued Operations
Loss from operations of NEGT (net of income tax    benefit of $230 million)	-
Net Income (Loss) Before Cumulative Effect    of Changes in Accounting Principles	(5)
Cumulative effect of changes in accounting    principles (net of income tax benefit of    $4 million)	-
Net Income (Loss)	$	(5)

PG&E CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Telecom LLC (Consolidated)		Intercompany Eliminations		Total Subsidiaries		PG&E Telecom, LLC		PG&E Capital, LLC
Operating Revenues
Electric	$	-	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-		-
Total operating revenues	-		-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-		-
Cost of natural gas	-		-		-		-		-
Operating and maintenance	-		-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-		-
Reorganization professional fees and expenses	-		-		-		-		-
Total operating expenses	-		-		-		-		-
Operating Income (Loss)	-		-		-		-		-
Reorganization interest income	-		-		-		-		-
Interest income	-		-		-		-		-
Interest expense	-		-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-		-
Other income (expense), net	-		-		-		-		-
Income (Loss) Before Income Taxes	-		-		-		-		-
Income tax provision (benefit)	1		-		1		1		-
Income (Loss) From Continuing Operations	(1)		-		(1)		(1)		-
Discontinued Operations
Loss from operations of NEGT (net of income tax    benefit of $230 million)	-		-		-		-		-
Net Income (Loss) Before Cumulative Effect    of Changes in Accounting Principles	(1)		-		(1)		(1)		-
Cumulative effect of changes in accounting    principles (net of income tax benefit of    $4 million)	-		-		-		-		-
Net Income (Loss)	$	(1)	$	-	$	(1)	$	(1)	$	-

PG&E CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Telecom Holdings, LLC
Operating Revenues
Electric	$	-
Natural gas	-
Total operating revenues	-
Operating Expenses
Cost of electricity	-
Cost of natural gas	-
Operating and maintenance	-
Depreciation, amortization and decommissioning	-
Reorganization professional fees and expenses	-
Total operating expenses	-
Operating Income (Loss)	-
Reorganization interest income	-
Interest income	-
Interest expense	-
Equity in earnings of subsidiaries	-
Other income (expense), net	-
Income (Loss) Before Income Taxes	-
Income tax provision (benefit)	-
Income (Loss) From Continuing Operations	-
Discontinued Operations
Loss from operations of NEGT (net of income tax    benefit of $230 million)	-
Net Income (Loss) Before Cumulative Effect    of Changes in Accounting Principles	-
Cumulative effect of changes in accounting    principles (net of income tax benefit of    $4 million)	-
Net Income (Loss)	$	-

PG&E CORPORATION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Venture Capital, LLC (Consolidated)		Intercompany Eliminations		Total Subsidiaries		Pacific Venture Capital, LLC		PG&E Ventures ePro, LLC
Operating Revenues
Electric	$	-	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-		-
Total operating revenues	-		-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-		-
Cost of natural gas	-		-		-		-		-
Operating and maintenance	-		-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-		-
Reorganization professional fees and expenses	-		-		-		-		-
Total operating expenses	-		-		-		-		-
Operating Income (Loss)	-		-		-		-		-
Reorganization interest income	-		-		-		-		-
Interest income	-		-		-		-		-
Interest expense	-		-		-		-		-
Equity in earnings of subsidiaries	-		1		(1)		(1)		-
Other income (expense), net	(3)		-		(3)		(3)		-
Income (Loss) Before Income Taxes	(3)		1		(4)		(4)		-
Income tax provision (benefit)	2		-		2		1		1
Income (Loss) From Continuing Operations	(5)		1		(6)		(5)		(1)
Discontinued Operations
Loss from operations of NEGT (net of income tax    benefit of $230 million)	-		-		-		-		-
Net Income (Loss) Before Cumulative Effect    of Changes in Accounting Principles	(5)		1		(6)		(5)		(1)
Cumulative effect of changes in accounting    principles (net of income tax benefit of    $4 million)	-		-		-		-		-
Net Income (Loss)	$	(5)	$	1	$	(6)	$	(5)	$	(1)

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Corporation (Consolidated)		Eliminations and Re- classifications		Total Unconsolidated		PG&E Corporation		Total Subsidiaries
ASSETS
Current Assets
Cash and cash equivalents	$	3,658	$	-	$	3,658	$	673	$	2,985
Restricted cash	403		-		403		-		403
Accounts receivable:
Customers	2,424		-		2,424		-		2,424
Related parties	15		(401)		416		398		18
Regulatory balancing accounts	248		-		248		-		248
Inventories:
Gas stored underground	166		-		166		-		166
Materials and supplies	126		-		126		-		126
Prepaid expenses and other	108		(1)		109		9		100
Total current assets	7,148		(402)		7,550		1,080		6,470
Property, Plant and Equipment
Electric	20,468		-		20,468		-		20,468
Gas	8,355		-		8,355		-		8,355
Construction work in progress	379		-		379		-		379
Other	20		-		20		20		-
Total property, plant and equipment	29,222		-		29,222		20		29,202
Accumulated depreciation	(11,115)		-		(11,115)		(15)		(11,100)
Net property, plant and equipment	18,107		-		18,107		5		18,102
Other Noncurrent Assets
Investment in subsidiaries	-		(4,816)		4,816		4,816		-
Regulatory assets	2,001		-		2,001		-		2,001
Nuclear decommissioning funds	1,478		-		1,478		-		1,478
Other	1,441		(691)		2,132		417		1,715
Total other noncurrent assets	4,920		(5,507)		10,427		5,233		5,194
TOTAL ASSETS	$	30,175	$	(5,909)	$	36,084	$	6,318	$	29,766

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Corporation (Consolidated)		Eliminations and Re- classifications		Total Unconsolidated		PG&E Corporation		Total Subsidiaries
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	310	$	-	$	310	$	-	$	310
Current portion of rate reduction bonds	290		-		290		-		290
Accounts payable:
Related parties	10		(217)		227		2		225
Trade creditors	657		-		657		-		657
Regulatory balancing accounts	186		-		186		-		186
Other	392		(1)		393		28		365
Interest payable	174		-		174		21		153
Income taxes payable	256		(2)		258		258		-
Other	863		-		863		137		726
Total current liabilities	3,138		(220)		3,358		446		2,912
Noncurrent Liabilities
Long-term debt	3,314		-		3,314		883		2,431
Rate reduction bonds	870		-		870		-		870
Regulatory liabilities	3,979		-		3,979		-		3,979
Asset retirement obligations	1,218		-		1,218		-		1,218
Deferred income taxes	856		-		856		(478)		1,334
Deferred tax credits	127		-		127		-		127
Net investment in NEGT	1,216		-		1,216		1,216		-
Preferred stock of subsidiary with    mandatory redemption provisions	137		-		137		-		137
Other	1,501		-		1,501		30		1,471
Total noncurrent liabilities	13,218		-		13,218		1,651		11,567
Liabilities Subject to Compromise
Financing debt	5,603		-		5,603		-		5,603
Trade creditors	3,715		(184)		3,899		-		3,899
Total liabilities subject to compromise	9,318		(184)		9,502		-		9,502
Commitments and Contingencies	-		-		-		-		-
Preferred Stock of Subsidiaries	286		(8)		294		-		294
Preferred Stock	-		-		-		-		-
Common Shareholders' Equity
Common stock	6,468		(4,288)		10,756		6,468		4,288
Common stock held by subsidiary	(690)		475		(1,165)		(690)		(475)
Unearned compensation	(20)		-		(20)		(20)		-
Reinvested earnings (accumulated deficit)	(1,458)		(1,684)		226		(1,458)		1,684
Accumulated other comprehensive    income (loss)	(85)		-		(85)		(79)		(6)
Total common shareholders' equity	4,215		(5,497)		9,712		4,221		5,491
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	30,175	$	(5,909)	$	36,084	$	6,318	$	29,766

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Gas and Electric Company (Consolidated)		PG&E Corporation Support Services, Inc.		PG&E Strategic Capital, Inc.		Elm Power Corporation		PTTP Services LLC
ASSETS
Current Assets
Cash and cash equivalents	$	2,979	$	-	$	-	$	-	$	-
Restricted cash	403		-		-		-		-
Accounts receivable:
Customers	2,424		-		-		-		-
Related parties	17		1		-		-		-
Regulatory balancing accounts	248		-		-		-		-
Inventories:
Gas stored underground	166		-		-		-		-
Materials and supplies	126		-		-		-		-
Prepaid expenses and other	100		-		-		-		-
Total current assets	6,463		1		-		-		-
Property, Plant and Equipment
Electric	20,468		-		-		-		-
Gas	8,355		-		-		-		-
Construction work in progress	379		-		-		-		-
Other	-		-		-		-		-
Total property, plant and equipment	29,202		-		-		-		-
Accumulated depreciation	(11,100)		-		-		-		-
Net property, plant and equipment	18,102		-		-		-		-
Other Noncurrent Assets
Investment in subsidiaries	-		-		-		-		-
Regulatory assets	2,001		-		-		-		-
Nuclear decommissioning funds	1,478		-		-		-		-
Other	1,022		-		-		690		-
Total other noncurrent assets	4,501		-		-		690		-
TOTAL ASSETS	$	29,066	$	1	$	-	$	690	$	-

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Gas and Electric Company (Consolidated)		PG&E Corporation Support Services, Inc.		PG&E Strategic Capital, Inc.		Elm Power Corporation		PTTP Services LLC
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	310	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	290		-		-		-		-
Accounts payable:
Related parties	224		1		-		-		-
Trade creditors	657		-		-		-		-
Regulatory balancing accounts	186		-		-		-		-
Other	365		-		-		-		-
Interest payable	153		-		-		-		-
Income taxes payable	-		-		-		-		-
Other	723		-		-		-		-
Total current liabilities	2,908		1		-		-		-
Noncurrent Liabilities
Long-term debt	2,431		-		-		-		-
Rate reduction bonds	870		-		-		-		-
Regulatory liabilities	3,979		-		-		-		-
Asset retirement obligations	1,218		-		-		-		-
Deferred income taxes	1,334		-		-		-		-
Deferred tax credits	127		-		-		-		-
Net investment in NEGT	-		-		-		-		-
Preferred stock of subsidiary with    mandatory redemption provisions	137		-		-		-		-
Other	1,471		-		-		-		-
Total noncurrent liabilities	11,567		-		-		-
Liabilities Subject to Compromise
Financing debt	5,603		-		-		-		-
Trade creditors	3,899		-		-		-		-
Total liabilities subject to compromise	9,502		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock of Subsidiaries	294		-		-		-		-
Preferred Stock	-		-		-		-		-
Common Shareholders' Equity
Common stock	3,570		-		-		690		-
Common stock held by subsidiary	(475)		-		-		-		-
Unearned compensation	-		-		-		-		-
Reinvested earnings (accumulated deficit)	1,706		-		-		-		-
Accumulated other comprehensive    income (loss)	(6)		-		-		-		-
Total common shareholders' equity	4,795		-		-		690		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	29,066	$	1	$	-	$	690	$	-

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Ventures, LLC (Consolidated)
ASSETS
Current Assets
Cash and cash equivalents	$	6
Restricted cash	-
Accounts receivable:
Customers	-
Related parties	-
Regulatory balancing accounts	-
Inventories:
Gas stored underground	-
Materials and supplies	-
Prepaid expenses and other	-
Total current assets	6
Property, Plant and Equipment
Electric	-
Gas	-
Construction work in progress	-
Other	-
Total property, plant and equipment	-
Accumulated depreciation	-
Net property, plant and equipment	-
Other Noncurrent Assets
Investment in subsidiaries	-
Regulatory assets	-
Nuclear decommissioning funds	-
Other	3
Total other noncurrent assets	3
TOTAL ASSETS	$	9

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Ventures, LLC (Consolidated)
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-
Current portion of rate reduction bonds	-
Accounts payable:
Related parties	-
Trade creditors	-
Regulatory balancing accounts	-
Other	-
Interest payable	-
Income taxes payable	-
Other	3
Total current liabilities	3
Noncurrent Liabilities
Long-term debt	-
Rate reduction bonds	-
Regulatory liabilities	-
Asset retirement obligations	-
Deferred income taxes	-
Deferred tax credits	-
Net investment in NEGT	-
Preferred stock of subsidiary with    mandatory redemption provisions	-
Other	-
Total noncurrent liabilities	-
Liabilities Subject to Compromise
Financing debt	-
Trade creditors	-
Total liabilities subject to compromise	-
Commitments and Contingencies	-
Preferred Stock of Subsidiaries	-
Preferred Stock	-
Common Shareholders' Equity
Common stock	28
Common stock held by subsidiary	-
Unearned compensation	-
Reinvested earnings (accumulated deficit)	(22)
Accumulated other comprehensive    income (loss)	-
Total common shareholders' equity	6
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	9

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Ventures, LLC (Consolidated)		Intercompany Eliminations		Total Unconsolidated		PG&E Ventures, LLC		PG&E Telecom LLC (Consolidated)
ASSETS
Current Assets
Cash and cash equivalents	$	6	$	-	$	6	$	-	$	6
Restricted cash	-		-		-		-		-
Accounts receivable:
Customers	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Inventories:
Gas stored underground	-		-		-		-		-
Materials and supplies	-		-		-		-		-
Prepaid expenses and other	-		-		-		-		-
Total current assets	6		-		6		-		6
Property, Plant and Equipment
Electric	-		-		-		-		-
Gas	-		-		-		-		-
Construction work in progress	-		-		-		-		-
Other	-		-		-		-		-
Total property, plant and equipment	-		-		-		-		-
Accumulated depreciation	-		-		-		-		-
Net property, plant and equipment	-		-		-		-		-
Other Noncurrent Assets
Investment in subsidiaries	-		(6)		6		6		-
Regulatory assets	-		-		-		-		-
Nuclear decommissioning funds	-		-		-		-		-
Other	3		-		3		-		-
Total other noncurrent assets	3		(6)		9		6		-
TOTAL ASSETS	$	9	$	(6)	$	15	$	6	$	6

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Ventures, LLC (Consolidated)		Intercompany Eliminations		Total Unconsolidated		PG&E Ventures, LLC		PG&E Telecom LLC (Consolidated)
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-		-
Accounts payable:
Related parties	-		-		-		-		-
Trade creditors	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		-		-		-		-
Income taxes payable	-		-		-		-		-
Other	3		-		3		1		2
Total current liabilities	3		-		3		1		2
Noncurrent Liabilities
Long-term debt	-		-		-		-		-
Rate reduction bonds	-		-		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Net investment in NEGT	-		-		-		-		-
Preferred stock of subsidiary with    mandatory redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock of Subsidiaries	-		-		-		-		-
Preferred Stock	-		-		-		-		-
Common Shareholders' Equity
Common stock	28		(27)		55		27		15
Common stock held by subsidiary	-		-		-		-		-
Unearned compensation	-		-		-		-		-
Reinvested earnings (accumulated deficit)	(22)		21		(43)		(22)		(11)
Accumulated other comprehensive    income (loss)	-		-		-		-		-
Total common shareholders' equity	6		(6)		12		5		4
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	9	$	(6)	$	15	$	6	$	6

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Venture Capital, LLC (Consolidated)
ASSETS
Current Assets
Cash and cash equivalents	$	-
Restricted cash	-
Accounts receivable:
Customers	-
Related parties	-
Regulatory balancing accounts	-
Inventories:
Gas stored underground	-
Materials and supplies	-
Prepaid expenses and other	-
Total current assets	-
Property, Plant and Equipment
Electric	-
Gas	-
Construction work in progress	-
Other	-
Total property, plant and equipment	-
Accumulated depreciation	-
Net property, plant and equipment	-
Other Noncurrent Assets
Investment in subsidiaries	-
Regulatory assets	-
Nuclear decommissioning funds	-
Other	3
Total other noncurrent assets	3
TOTAL ASSETS	$	3

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Venture Capital, LLC (Consolidated)
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-
Current portion of rate reduction bonds	-
Accounts payable:
Related parties	-
Trade creditors	-
Regulatory balancing accounts	-
Other	-
Interest payable	-
Income taxes payable	-
Other	-
Total current liabilities	-
Noncurrent Liabilities
Long-term debt	-
Rate reduction bonds	-
Regulatory liabilities	-
Asset retirement obligations	-
Deferred income taxes	-
Deferred tax credits	-
Net investment in NEGT	-
Preferred stock of subsidiary with    mandatory redemption provisions	-
Other	-
Total noncurrent liabilities	-
Liabilities Subject to Compromise
Financing debt	-
Trade creditors	-
Total liabilities subject to compromise	-
Commitments and Contingencies	-
Preferred Stock of Subsidiaries	-
Preferred Stock	-
Common Shareholders' Equity
Common stock	13
Common stock held by subsidiary	-
Unearned compensation	-
Reinvested earnings (accumulated deficit)	(10)
Accumulated other comprehensive    income (loss)	-
Total common shareholders' equity	3
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	3

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Telecom, LLC (Consolidated)		Intercompany Eliminations		Total Subsidiaries		PG&E Telecom, LLC		PG&E Capital, LLC
ASSETS
Current Assets
Cash and cash equivalents	$	6	$	-	$	6	$	6	$	-
Restricted cash	-		-		-		-		-
Accounts receivable:
Customers	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Inventories:
Gas stored underground	-		-		-		-		-
Materials and supplies	-		-		-		-		-
Prepaid expenses and other	-		-		-		-		-
Total current assets	6		-		6		6		-
Property, Plant and Equipment
Electric	-		-		-		-		-
Gas	-		-		-		-		-
Construction work in progress	-		-		-		-		-
Other	-		-		-		-		-
Total property, plant and equipment	-		-		-		-		-
Accumulated depreciation	-		-		-		-		-
Net property, plant and equipment	-		-		-		-		-
Other Noncurrent Assets
Investment in subsidiaries	-		-		-		-		-
Regulatory assets	-		-		-		-		-
Nuclear decommissioning funds	-		-		-		-		-
Other	-		-		-		-		-
Total other noncurrent assets	-		-		-		-		-
TOTAL ASSETS	$	6	$	-	$	6	$	6	$	-

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Telecom, LLC (Consolidated)		Intercompany Eliminations		Total Subsidiaries		PG&E Telecom, LLC		PG&E Capital, LLC
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-		-
Accounts payable:
Related parties	-		-		-		-		-
Trade creditors	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		-		-		-		-
Income taxes payable	-		-		-		-		-
Other	2		-		2		2		-
Total current liabilities	2		-		2		2		-
Noncurrent Liabilities
Long-term debt	-		-		-		-		-
Rate reduction bonds	-		-		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Net investment in NEGT	-		-		-		-		-
Preferred stock of subsidiary with    mandatory redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock of Subsidiaries	-		-		-		-		-
Preferred Stock	-		-		-		-		-
Common Shareholders' Equity
Common stock	15		-		15		15		-
Common stock held by subsidiary	-		-		-		-		-
Unearned compensation	-		-		-		-		-
Reinvested earnings (accumulated deficit)	(11)		-		(11)		(11)		-
Accumulated other comprehensive    income (loss)	-		-		-		-		-
Total common shareholders' equity	4		-		4		4		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	6	$	-	$	6	$	6	$	-

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Telecom Holdings, LLC
ASSETS
Current Assets
Cash and cash equivalents	$	-
Restricted cash	-
Accounts receivable:
Customers	-
Related parties	-
Regulatory balancing accounts	-
Inventories:
Gas stored underground	-
Materials and supplies	-
Prepaid expenses and other	-
Total current assets	-
Property, Plant and Equipment
Electric	-
Gas	-
Construction work in progress	-
Other	-
Total property, plant and equipment	-
Accumulated depreciation	-
Net property, plant and equipment	-
Other Noncurrent Assets
Investment in subsidiaries	-
Regulatory assets	-
Nuclear decommissioning funds	-
Other	-
Total other noncurrent assets	-
TOTAL ASSETS	$	-

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Telecom Holdings, LLC
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-
Current portion of rate reduction bonds	-
Accounts payable:
Related parties	-
Trade creditors	-
Regulatory balancing accounts	-
Other	-
Interest payable	-
Income taxes payable	-
Other	-
Total current liabilities	-
Noncurrent Liabilities
Long-term debt	-
Rate reduction bonds	-
Regulatory liabilities	-
Asset retirement obligations	-
Deferred income taxes	-
Deferred tax credits	-
Net investment in NEGT	-
Preferred stock of subsidiary with    mandatory redemption provisions	-
Other	-
Total noncurrent liabilities	-
Liabilities Subject to Compromise
Financing debt	-
Trade creditors	-
Total liabilities subject to compromise	-
Commitments and Contingencies	-
Preferred Stock of Subsidiaries	-
Preferred Stock	-
Common Shareholders' Equity
Common stock	-
Common stock held by subsidiary	-
Unearned compensation	-
Reinvested earnings (accumulated deficit)	-
Accumulated other comprehensive    income (loss)	-
Total common shareholders' equity	-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	-

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Venture Capital, LLC (Consolidated)		Intercompany Eliminations			Total Subsidiaries		Pacific Venture Capital, LLC		PG&E Ventures ePro, LLC
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-		$	-	$	-	$	-
Restricted cash	-		-			-		-		-
Accounts receivable:
Customers	-		-			-		-		-
Related parties	-		-			-		-		-
Regulatory balancing accounts	-		-			-		-		-
Inventories:
Gas stored underground	-		-			-		-		-
Materials and supplies	-		-			-		-		-
Prepaid expenses and other	-		-			-		-		-
Total current assets	-		-			-		-		-
Property, Plant and Equipment
Electric	-		-			-		-		-
Gas	-		-			-		-		-
Construction work in progress	-		-			-		-		-
Other	-		-			-		-		-
Total property, plant and equipment	-		-			-		-		-
Accumulated depreciation	-		-			-		-		-
Net property, plant and equipment	-		-			-		-		-
Other Noncurrent Assets
Investment in subsidiaries	-		(2)			2		2		-
Regulatory assets	-		-			-		-		-
Nuclear decommissioning funds	-		-			-		-		-
Other	3		-			3		1		2
Total other noncurrent assets	3		(2)			5		3		2
TOTAL ASSETS	$	3	$		(2)	$	5	$	3	$	2

PG&E CORPORATION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Venture Capital, LLC (Consolidated)		Intercompany Eliminations		Total Subsidiaries		Pacific Venture Capital, LLC		PG&E Ventures ePro, LLC
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-		-
Accounts payable:
Related parties	-		-		-		-		-
Trade creditors	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		-		-		-		-
Income taxes payable	-		-		-		-		-
Other	-		-		-		-		-
Total current liabilities	-		-		-		-		-
Noncurrent Liabilities
Long-term debt	-		-		-		-		-
Rate reduction bonds	-		-		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Net investment in NEGT	-		-		-		-		-
Preferred stock of subsidiary with    mandatory redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock of Subsidiaries	-		-		-		-		-
Preferred Stock	-		-		-		-		-
Common Shareholders' Equity
Common stock	13		(5)		18		13		5
Common stock held by subsidiary	-		-		-		-		-
Unearned compensation	-		-		-		-		-
Reinvested earnings (accumulated deficit)	(10)		3		(13)		(10)		(3)
Accumulated other comprehensive    income (loss)	-		-		-		-		-
Total common shareholders' equity	3		(2)		5		3		2
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	3	$	(2)	$	5	$	3	$	2

PG&E CORPORATION
CONSOLIDATING STATEMENTS OF REINVESTED EARNINGS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Corporation (Consolidated)		Eliminations and Reclassifications		Total Unconsolidated		PG&E Corporation		Total Subsidiaries
Balance at December 31, 2002	$	(1,878)	$	(789)	$	(1,089)	$	(1,878)	$	789
Net income (loss)	420		(895)		1,315		420		895
Balance at December 31, 2003	$	(1,458)	$	(1,684)	$	226	$	(1,458)	$	1,684

	Pacific Gas and Electric Company (Consolidated)		PG&E Corporation Support Services, Inc.		PG&E Strategic Capital, Inc.		Elm Power Corporation		PTTP Services LLC
Balance at December 31, 2002	$	805	$	-	$	-	$	-	$	-
Net income (loss)	901		-		-		-		-
Balance at December 31, 2003	$	1,706	$	-	$	-	$	-	$	-

	PG&E Ventures, LLC (Consolidated)
Balance at December 31, 2002	$	(16)
Net income (loss)	(6)
Balance at December 31, 2003	$	(22)

PG&E CORPORATION
CONSOLIDATING STATEMENTS OF REINVESTED EARNINGS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Ventures, LLC (Consolidated)		Intercompany Eliminations		Total Unconsolidated		PG&E Ventures, LLC		PG&E Telecom, LLC (Consolidated)
Balance at December 31, 2002	$	(16)	$	15	$	(31)	$	(16)	$	(10)
Net income (loss)	(6)		6		(12)		(6)		(1)
Balance at December 31, 2003	$	(22)	$	21	$	(43)	$	(22)	$	(11)

	Pacific Venture Capital, LLC (Consolidated)
Balance at December 31, 2002	$	(5)
Net income (loss)	(5)
Balance at December 31, 2003	$	(10)

PG&E CORPORATION
CONSOLIDATING STATEMENTS OF REINVESTED EARNINGS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Telecom, LLC (Consolidated)		Intercompany Eliminations		Total Subsidiaries		PG&E Telecom, LLC		PG&E Capital, LLC
Balance at December 31, 2002	$	(10)	$	-	$	(10)	$	(10)	$	-
Net income (loss)	(1)		-		(1)		(1)		-
Balance at December 31, 2003	$	(11)	$	-	$	(11)	$	(11)	$	-

	PG&E Telecom Holdings, LLC
Balance at December 31, 2002	$	-
Net income (loss)	-
Balance at December 31, 2003	$	-

PG&E CORPORATION
CONSOLIDATING STATEMENTS OF REINVESTED EARNINGS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Venture Capital, LLC (Consolidated)		Intercompany Eliminations		Total Subsidiaries		Pacific Venture Capital, LLC		PG&E Ventures ePro, LLC
Balance at December 31, 2002	$	(5)	$	2	$	(7)	$	(5)	$	(2)
Net income (loss)	(5)		1		(6)		(5)		(1)
Balance at December 31, 2003	$	(10)	$	3	$	(13)	$	(10)	$	(3)

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Gas and Electric Company (Consolidated)		Eliminations and Re- classifications		Total Unconsolidated		Pacific Gas and Electric Company
Operating Revenues
Electric	$	7,582	$	(3)	$	7,585	$	7,585
Natural gas	2,856		-		2,856		2,855
Total operating revenues	10,438		(3)		10,441		10,440
Operating Expenses
Cost of electricity	2,319		-		2,319		2,319
Cost of natural gas	1,467		(1)		1,468		1,468
Operating and maintenance	2,935		(3)		2,938		2,934
Depreciation, amortization and decommissioning	1,218		-		1,218		1,217
Reorganization professional fees and expenses	160		-		160		160
Total operating expenses	8,099		(4)		8,103		8,098
Operating Income (Loss)	2,339		1		2,338		2,342
Reorganization interest income	46		-		46		46
Interest income	7		(93)		100		7
Interest expense	(953)		93		(1,046)		(958)
Equity in earnings of subsidiaries	-		(3)		3		3
Other income (expense), net	13		-		13		13
Income (Loss) Before Income Taxes	1,452		(2)		1,454		1,453
Income tax provision	528		-		528		528
Net Income Before Cumulative Effect of    a Change in Accounting Principle	924		(2)		926		925
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	(1)		-		(1)		(1)
Net Income (Loss)	923		(2)		925		924
Preferred stock dividend requirement	22		-		22		22
Income Available for (Loss Allocated to)    Common Stock	$	901	$	(2)	$	903	$	902

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Total Subsidiaries		Natural Gas Corporation of California		NGC Production Company		Alaska Gas Exploration Associates
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	1		-		-		-
Total operating revenues	1		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	4		-		-		-
Depreciation, amortization and decommissioning	1		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	5		-		-		-
Operating Income (Loss)	(4)		-		-		-
Reorganization interest income	-		-		-		-
Interest income	93		-		-		-
Interest expense	(88)		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	1		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	1		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	1		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	1	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Standard Pacific Gas Line Incorporated		Pacific Energy Fuels Company		Fuelco LLC		Pacific Gas Properties Company
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	1		-		-		-
Total operating revenues	1		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	1		-		-		-
Depreciation, amortization and decommissioning	1		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	2		-		-		-
Operating Income (Loss)	(1)		-		-		-
Reorganization interest income	-		-		-		-
Interest income	-		-		-		-
Interest expense	-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	(1)		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	(1)		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	(1)		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	(1)	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Properties		Calaska Energy Company		Pacific Conservation Services Company		Eureka Energy Company
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-
Total operating revenues	-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	-		-		-		-
Operating Income (Loss)	-		-		-		-
Reorganization interest income	-		-		-		-
Interest income	-		-		-		-
Interest expense	-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	-		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	-		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	-		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Funding, LLC		PG&E Holdings, LLC		PG&E CalHydro, LLC		PG&E Capital II
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-
Total operating revenues	-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	3		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	3		-		-		-
Operating Income (Loss)	(3)		-		-		-
Reorganization interest income	-		-		-		-
Interest income	93		-		-		-
Interest expense	(88)		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	2		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	2		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	2		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	2	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Capital III		PG&E Capital IV		Pacific California Gas System, Inc.		Newco Energy Corporation (Consolidated)
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-
Total operating revenues	-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	-		-		-		-
Operating Income (Loss)	-		-		-		-
Reorganization interest income	-		-		-		-
Interest income	-		-		-		-
Interest expense	-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	-		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	-		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	-		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Newco Energy Corporation (Consolidated)		Eliminations		Total Unconsolidated		Newco Energy Corporation
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-
Total operating revenues	-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	-		-		-		-
Operating Income (Loss)	-		-		-		-
Reorganization interest income	-		-		-		-
Interest income	-		-		-		-
Interest expense	-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	-		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	-		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	-		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION

CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2003

(in millions)

(unaudited)

Total Subsidiaries

ETrans LLC

GTrans LLC

TES LLC

Electric Generation LLC (Consolidated)

Operating Revenues

Electric

$

-

$

-

$

-

$

-

$

-

Natural gas

-

-

-

-

-

Total operating revenues

-

-

-

-

-

Operating Expenses

Cost of electricity

-

-

-

-

-

Cost of natural gas

-

-

-

-

-

Operating and maintenance

-

-

-

-

-

Depreciation, amortization and decommissioning

-

-

-

-

-

Reorganization professional fees and expenses

-

-

-

-

-

Total operating expenses

-

-

-

-

-

Operating Income (Loss)

-

-

-

-

-

Reorganization interest income

-

-

-

-

-

Interest income

-

-

-

-

-

Interest expense

-

-

-

-

-

Equity in earnings of subsidiaries

-

-

-

-

-

Other income (expense), net

-

-

-

-

-

Income (Loss) Before Income Taxes

-

-

-

-

-

Income tax provision

-

-

-

-

-

Net Income Before Cumulative Effect of    a Change in Accounting Principle

-

-

-

-

-

Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)

-

-

-

-

-

Net Income (Loss)

-

-

-

-

-

Preferred stock dividend requirement

-

-

-

-

-

Income Available for (Loss Allocated to)    Common Stock

$

-

$

-

$

-

$

-

$

-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION

CONSOLIDATING STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2003

(in millions)

(unaudited)

Electric Generation LLC (Consolidated)

Eliminations

Total Unconsolidated

Electric Generation LLC

Total Subsidiaries

Operating Revenues

Electric

$

-

$

-

$

-

$

-

$

-

Natural gas

-

-

-

-

-

Total operating revenues

-

-

-

-

-

Operating Expenses

Cost of electricity

-

-

-

-

-

Cost of natural gas

-

-

-

-

-

Operating and maintenance

-

-

-

-

-

Depreciation, amortization and decommissioning

-

-

-

-

-

Reorganization professional fees and expenses

-

-

-

-

-

Total operating expenses

-

-

-

-

-

Operating Income (Loss)

-

-

-

-

-

Reorganization interest income

-

-

-

-

-

Interest income

-

-

-

-

-

Interest expense

-

-

-

-

-

Equity in earnings of subsidiaries

-

-

-

-

-

Other income (expense), net

-

-

-

-

-

Income (Loss) Before Income Taxes

-

-

-

-

-

Income tax provision

-

-

-

-

-

Net Income Before Cumulative Effect of    a Change in Accounting Principle

-

-

-

-

-

Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)

-

-

-

-

-

Net Income (Loss)

-

-

-

-

-

Preferred stock dividend requirement

-

-

-

-

-

Income Available for (Loss Allocated to)    Common Stock

$

-

$

-

$

-

$

-

$

-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Balch 1 and 2 Project LLC		Battle Creek Project LLC		Bucks Creek Project LLC		Chili Bar Project LLC
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-
Total operating revenues	-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	-		-		-		-
Operating Income (Loss)	-		-		-		-
Reorganization interest income	-		-		-		-
Interest income	-		-		-		-
Interest expense	-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	-		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	-		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	-		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Crane Valley Project LLC		Desabla- Centerville Project LLC		Diablo Canyon LLC		Drum-Spaulding Project LLC
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-
Total operating revenues	-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	-		-		-		-
Operating Income (Loss)	-		-		-		-
Reorganization interest income	-		-		-		-
Interest income	-		-		-		-
Interest expense	-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	-		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	-		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	-		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Haas-Kings River Project LLC		Hamilton Branch Project LLC		Hat Creek 1 and 2 Project LLC		Helms Project LLC
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-
Total operating revenues	-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	-		-		-		-
Operating Income (Loss)	-		-		-		-
Reorganization interest income	-		-		-		-
Interest income	-		-		-		-
Interest expense	-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	-		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	-		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	-		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Kerckhoff 1 and 2 Project LLC		Kern Canyon Project LLC		Kilarc-Cow Creek Project LLC		McCloud-Pit Project LLC
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-
Total operating revenues	-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	-		-		-		-
Operating Income (Loss)	-		-		-		-
Reorganization interest income	-		-		-		-
Interest income	-		-		-		-
Interest expense	-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	-		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	-		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	-		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Merced Falls Project LLC		Miocene Project LLC		Mokelumne River Project LLC		Narrows Project LLC
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-
Total operating revenues	-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	-		-		-		-
Operating Income (Loss)	-		-		-		-
Reorganization interest income	-		-		-		-
Interest income	-		-		-		-
Interest expense	-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	-		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	-		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	-		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Phoenix Project LLC		Pit 1 Project LLC		Pit 3, 4 and 5 Project LLC		Poe Project LLC
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-
Total operating revenues	-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	-		-		-		-
Operating Income (Loss)	-		-		-		-
Reorganization interest income	-		-		-		-
Interest income	-		-		-		-
Interest expense	-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	-		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	-		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	-		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Potter Valley Project LLC		Rock Creek- Cresta Project LLC		Spring-Gap Stanislaus Project LLC		Tule River Project LLC
Operating Revenues
Electric	$	-	$	-	$	-	$	-
Natural gas	-		-		-		-
Total operating revenues	-		-		-		-
Operating Expenses
Cost of electricity	-		-		-		-
Cost of natural gas	-		-		-		-
Operating and maintenance	-		-		-		-
Depreciation, amortization and decommissioning	-		-		-		-
Reorganization professional fees and expenses	-		-		-		-
Total operating expenses	-		-		-		-
Operating Income (Loss)	-		-		-		-
Reorganization interest income	-		-		-		-
Interest income	-		-		-		-
Interest expense	-		-		-		-
Equity in earnings of subsidiaries	-		-		-		-
Other income (expense), net	-		-		-		-
Income (Loss) Before Income Taxes	-		-		-		-
Income tax provision	-		-		-		-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	-		-		-		-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-		-		-		-
Net Income (Loss)	-		-		-		-
Preferred stock dividend requirement	-		-		-		-
Income Available for (Loss Allocated to)    Common Stock	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	Upper NF Feather River Project LLC
Operating Revenues
Electric	$	-
Natural gas	-
Total operating revenues	-
Operating Expenses
Cost of electricity	-
Cost of natural gas	-
Operating and maintenance	-
Depreciation, amortization and decommissioning	-
Reorganization professional fees and expenses	-
Total operating expenses	-
Operating Income (Loss)	-
Reorganization interest income	-
Interest income	-
Interest expense	-
Equity in earnings of subsidiaries	-
Other income (expense), net	-
Income (Loss) Before Income Taxes	-
Income tax provision	-
Net Income Before Cumulative Effect of    a Change in Accounting Principle	-
Cumulative effect of a change in accounting    principle (net of income tax benefit    of $1 million)	-
Net Income (Loss)	-
Preferred stock dividend requirement	-
Income Available for (Loss Allocated to)    Common Stock	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Gas and Electric Company (Consolidated)		Eliminations and Re- classifications		Total Unconsolidated		Pacific Gas and Electric Company		Total Subsidiaries
ASSETS
Current Assets
Cash and cash equivalents	$	2,979	$	18	$	2,961	$	2,945	$	16
Restricted cash	403		-		403		326		77
Accounts receivable:
Customers	2,424		-		2,424		2,424		-
Related parties	17		(890)		907		33		874
Regulatory balancing accounts	248		-		248		248		-
Inventories:
Gas stored underground	166		-		166		166		-
Materials and supplies	126		-		126		126		-
Income taxes receivable	3		3		-		-		-
Prepaid expenses and other	97		1		96		96		-
Total current assets	6,463		(868)		7,331		6,364		967
Property, Plant and Equipment
Electric	20,468		(72)		20,540		20,540		-
Gas	8,355		-		8,355		8,325		30
Construction work in progress	379		-		379		379		-
Total property, plant and equipment	29,202		(72)		29,274		29,244		30
Accumulated depreciation	(11,100)		19		(11,119)		(11,109)		(10)
Net property, plant and equipment	18,102		(53)		18,155		18,135		20
Other Noncurrent Assets
Investments in subsidiaries	-		(524)		524		524		-
Regulatory assets	2,001		(78)		2,079		2,079		-
Nuclear decommissioning funds	1,478		-		1,478		1,478		-
Other	1,022		(648)		1,670		957		713
Total other noncurrent assets	4,501		(1,250)		5,751		5,038		713
TOTAL ASSETS	$	29,066	$	(2,171)	$	31,237	$	29,537	$	1,700

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Gas and Electric Company (Consolidated)		Eliminations and Re- classifications		Total Unconsolidated		Pacific Gas and Electric Company		Total Subsidiaries
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	310	$	-	$	310	$	310	$	-
Current portion of rate reduction bonds	290		-		290		-		290
Accounts payable:
Trade creditors	657		(4)		661		661		-
Related parties	224		(873)		1,097		1,085		12
Regulatory balancing accounts	186		-		186		186		-
Other	365		36		329		329		-
Interest payable	153		38		115		114		1
Income taxes payable	-		3		(3)		(2)		(1)
Deferred income taxes	86		-		86		86		-
Other	637		(37)		674		674		-
Total current liabilities	2,908		(837)		3,745		3,443		302
Noncurrent Liabilities
Long-term debt	2,431		(28)		2,459		2,431		28
Rate reduction bonds	870		(263)		1,133		263		870
Regulatory liabilities	3,979		-		3,979		3,979		-
Asset retirement obligations	1,218		-		1,218		1,218		-
Deferred income taxes	1,334		-		1,334		1,334		-
Deferred tax credits	127		-		127		127		-
Preferred stock with mandatory    redemption provisions	137		-		137		137		-
Other	1,471		(46)		1,517		1,517		-
Total noncurrent liabilities	11,567		(337)		11,904		11,006		898
Liabilities Subject to Compromise
Financing debt	5,603		-		5,603		5,603		-
Trade creditors	3,899		(55)		3,954		3,954		-
Total liabilities subject to compromise	9,502		(55)		9,557		9,557		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	145		-		145		145		-
Redeemable preferred stock	149		-		149		149		-
Common stock	1,606		-		1,606		1,606		-
Common stock held by subsidiary, at cost	(475)		(475)		-		-		-
Additional paid-in capital	1,964		(545)		2,509		1,963		546
Reinvested earnings (accumulated deficit)	1,706		78		1,628		1,674		(46)
Accumulated other comprehensive loss	(6)		-		(6)		(6)		-
Total shareholders' equity	5,089		(942)		6,031		5,531		500
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	29,066	$	(2,171)	$	31,237	$	29,537	$	1,700

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Natural Gas Corporation of California		NGC Production Company		Alaska Gas Exploration Associates		Standard Pacific Gas Line Incorporated		Pacific Energy Fuels Company
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-	$	-	$	-	$	-
Restricted cash	-		-		-		-		-
Accounts receivable:
Customers	-		-		-		-		-
Related parties	7		-		-		1		-
Regulatory balancing accounts	-		-		-		-		-
Inventories:
Gas stored underground	-		-		-		-		-
Materials and supplies	-		-		-		-		-
Income taxes receivable	-		-		-		-		-
Prepaid expenses and other	-		-		-		-		-
Total current assets	7		-		-		1		-
Property, Plant and Equipment
Electric	-		-		-		-		-
Gas	-		-		-		30		-
Construction work in progress	-		-		-		-		-
Total property, plant and equipment	-		-		-		30		-
Accumulated depreciation	-		-		-		(10)		-
Net property, plant and equipment	-		-		-		20		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-		-
Regulatory assets	-		-		-		-		-
Nuclear decommissioning funds	-		-		-		-		-
Other	-		-		-		-		-
Total other noncurrent assets	-		-		-		-		-
TOTAL ASSETS	$	7	$	-	$	-	$	21	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Natural Gas Corporation of California		NGC Production Company		Alaska Gas Exploration Associates		Standard Pacific Gas Line Incorporated		Pacific Energy Fuels Company
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-		-
Accounts payable:
Trade creditors	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		-		-		-		-
Income taxes payable	-		-		-		(1)		-
Deferred income taxes	-		-		-		-		-
Other	-		-		-		-		-
Total current liabilities	-		-		-		(1)		-
Noncurrent Liabilities
Long-term debt	-		-		-		28		-
Rate reduction bonds	-		-		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		-		-		28		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-		-
Redeemable preferred stock	-		-		-		-		-
Common stock	-		-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-		-
Additional paid-in capital	11		-		-		12		-
Reinvested earnings (accumulated deficit)	(4)		-		-		(18)		-
Accumulated other comprehensive loss	-		-		-		-		-
Total shareholders' equity	7		-		-		(6)		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	7	$	-	$	-	$	21	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Fuelco LLC		Pacific Gas Properties Company		Pacific Properties		Calaska Energy Company		Pacific Conservation Services Company
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-	$	-	$	-	$	-
Restricted cash	-		-		-		-		-
Accounts receivable:
Customers	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Inventories:
Gas stored underground	-		-		-		-		-
Materials and supplies	-		-		-		-		-
Income taxes receivable	-		-		-		-		-
Prepaid expenses and other	-		-		-		-		-
Total current assets	-		-		-		-		-
Property, Plant and Equipment
Electric	-		-		-		-		-
Gas	-		-		-		-		-
Construction work in progress	-		-		-		-		-
Total property, plant and equipment	-		-		-		-		-
Accumulated depreciation	-		-		-		-		-
Net property, plant and equipment	-		-		-		-		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-		-
Regulatory assets	-		-		-		-		-
Nuclear decommissioning funds	-		-		-		-		-
Other	-		-		-		-		-
Total other noncurrent assets	-		-		-		-		-
TOTAL ASSETS	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Fuelco LLC		Pacific Gas Properties Company		Pacific Properties		Calaska Energy Company		Pacific Conservation Services Company
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-		-
Accounts payable:
Trade creditors	-		-		-		-		-
Related parties	-		10		-		1		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		-		-		-		-
Income taxes payable	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Other	-		-		-		-		-
Total current liabilities	-		10		-		1		-
Noncurrent Liabilities
Long-term debt	-		-		-		-		-
Rate reduction bonds	-		-		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-		-
Redeemable preferred stock	-		-		-		-		-
Common stock	-		-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-		-
Additional paid-in capital	-		-		-		17		-
Reinvested earnings (accumulated deficit)	-		(10)		-		(18)		-
Accumulated other comprehensive loss	-		-		-		-		-
Total shareholders' equity	-		(10)		-		(1)		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Eureka Energy Company		PG&E Funding, LLC		PG&E Holdings, LLC		PG&E CalHydro, LLC		PG&E Capital II
ASSETS
Current Assets
Cash and cash equivalents	$	1	$	15	$	-	$	-	$	-
Restricted cash	-		77		-		-		-
Accounts receivable:
Customers	-		-		-		-		-
Related parties	1		858		7		-		-
Regulatory balancing accounts	-		-		-		-		-
Inventories:
Gas stored underground	-		-		-		-		-
Materials and supplies	-		-		-		-		-
Income taxes receivable	-		-		-		-		-
Prepaid expenses and other	-		-		-		-		-
Total current assets	2		950		7		-		-
Property, Plant and Equipment
Electric	-		-		-		-		-
Gas	-		-		-		-		-
Construction work in progress	-		-		-		-		-
Total property, plant and equipment	-		-		-		-		-
Accumulated depreciation	-		-		-		-		-
Net property, plant and equipment	-		-		-		-		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-		-
Regulatory assets	-		-		-		-		-
Nuclear decommissioning funds	-		-		-		-		-
Other	4		266		443		-		-
Total other noncurrent assets	4		266		443		-		-
TOTAL ASSETS	$	6	$	1,216	$	450	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Eureka Energy Company		PG&E Funding, LLC		PG&E Holdings, LLC		PG&E CalHydro, LLC		PG&E Capital II
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		290		-		-		-
Accounts payable:
Trade creditors	-		-		-		-		-
Related parties	1		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		1		-		-		-
Income taxes payable	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Other	-		-		-		-		-
Total current liabilities	1		291		-		-		-
Noncurrent Liabilities
Long-term debt	-		-		-		-		-
Rate reduction bonds	-		870		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		870		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-		-
Redeemable preferred stock	-		-		-		-		-
Common stock	-		-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-		-
Additional paid-in capital	5		26		475		-		-
Reinvested earnings (accumulated deficit)	-		29		(25)		-		-
Accumulated other comprehensive loss	-		-		-		-		-
Total shareholders' equity	5		55		450		-		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	6	$	1,216	$	450	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Capital III		PG&E Capital IV		Pacific California Gas System, Inc.		Newco Energy Corporation (Consolidated)
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-	$	-	$	-
Restricted cash	-		-		-		-
Accounts receivable:
Customers	-		-		-		-
Related parties	-		-		-		-
Regulatory balancing accounts	-		-		-		-
Inventories:
Gas stored underground	-		-		-		-
Materials and supplies	-		-		-		-
Income taxes receivable	-		-		-		-
Prepaid expenses and other	-		-		-		-
Total current assets	-		-		-		-
Property, Plant and Equipment
Electric	-		-		-		-
Gas	-		-		-		-
Construction work in progress	-		-		-		-
Total property, plant and equipment	-		-		-		-
Accumulated depreciation	-		-		-		-
Net property, plant and equipment	-		-		-		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-
Regulatory assets	-		-		-		-
Nuclear decommissioning funds	-		-		-		-
Other	-		-		-		-
Total other noncurrent assets	-		-		-		-
TOTAL ASSETS	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Capital III		PG&E Capital IV		Pacific California Gas System, Inc.		Newco Energy Corporation (Consolidated)
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-
Accounts payable:
Trade creditors	-		-		-		-
Related parties	-		-		-		-
Regulatory balancing accounts	-		-		-		-
Other	-		-		-		-
Interest payable	-		-		-		-
Income taxes payable	-		-		-		-
Deferred income taxes	-		-		-		-
Other	-		-		-		-
Total current liabilities	-		-		-		-
Noncurrent Liabilities
Long-term debt	-		-		-		-
Rate reduction bonds	-		-		-		-
Regulatory liabilities	-		-		-		-
Asset retirement obligations	-		-		-		-
Deferred income taxes	-		-		-		-
Deferred tax credits	-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-
Other	-		-		-		-
Total noncurrent liabilities	-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-
Trade creditors	-		-		-		-
Total liabilities subject to compromise	-		-		-		-
Commitments and Contingencies	-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-
Redeemable preferred stock	-		-		-		-
Common stock	-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-
Additional paid-in capital	-		-		-		-
Reinvested earnings (accumulated deficit)	-		-		-		-
Accumulated other comprehensive loss	-		-		-		-
Total shareholders' equity	-		-		-		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Newco Energy Corporation (Consolidated)		Eliminations		Total Unconsolidated		Newco Energy Corporation		Total Subsidiaries
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-	$	-	$	-	$	-
Restricted cash	-		-		-		-		-
Accounts receivable:
Customers	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Inventories:
Gas stored underground	-		-		-		-		-
Materials and supplies	-		-		-		-		-
Income taxes receivable	-		-		-		-		-
Prepaid expenses and other	-		-		-		-		-
Total current assets	-		-		-		-		-
Property, Plant and Equipment
Electric	-		-		-		-		-
Gas	-		-		-		-		-
Construction work in progress	-		-		-		-		-
Total property, plant and equipment	-		-		-		-		-
Accumulated depreciation	-		-		-		-		-
Net property, plant and equipment	-		-		-		-		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-		-
Regulatory assets	-		-		-		-		-
Nuclear decommissioning funds	-		-		-		-		-
Other	-		-		-		-		-
Total other noncurrent assets	-		-		-		-		-
TOTAL ASSETS	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Newco Energy Corporation (Consolidated)		Eliminations		Total Unconsolidated		Newco Energy Corporation		Total Subsidiaries
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-		-
Accounts payable:
Trade creditors	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		-		-		-		-
Income taxes payable	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Other	-		-		-		-		-
Total current liabilities	-		-		-		-		-
Noncurrent Liabilities
Long-term debt	-		-		-		-		-
Rate reduction bonds	-		-		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-		-
Redeemable preferred stock	-		-		-		-		-
Common stock	-		-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-		-
Additional paid-in capital	-		-		-		-		-
Reinvested earnings (accumulated deficit)	-		-		-		-		-
Accumulated other comprehensive loss	-		-		-		-		-
Total shareholders' equity	-		-		-		-		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	ETrans LLC		GTrans LLC		TES LLC		Electric Generation LLC (Consolidated)
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-	$	-	$	-
Restricted cash	-		-		-		-
Accounts receivable:
Customers	-		-		-		-
Related parties	-		-		-		-
Regulatory balancing accounts	-		-		-		-
Inventories:
Gas stored underground	-		-		-		-
Materials and supplies	-		-		-		-
Income taxes receivable	-		-		-		-
Prepaid expenses and other	-		-		-		-
Total current assets	-		-		-		-
Property, Plant and Equipment
Electric	-		-		-		-
Gas	-		-		-		-
Construction work in progress	-		-		-		-
Total property, plant and equipment	-		-		-		-
Accumulated depreciation	-		-		-		-
Net property, plant and equipment	-		-		-		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-
Regulatory assets	-		-		-		-
Nuclear decommissioning funds	-		-		-		-
Other	-		-		-		-
Total other noncurrent assets	-		-		-		-
TOTAL ASSETS	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	ETrans LLC		GTrans LLC		TES LLC		Electric Generation LLC (Consolidated)
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-
Accounts payable:
Trade creditors	-		-		-		-
Related parties	-		-		-		-
Regulatory balancing accounts	-		-		-		-
Other	-		-		-		-
Interest payable	-		-		-		-
Income taxes payable	-		-		-		-
Deferred income taxes	-		-		-		-
Other	-		-		-		-
Total current liabilities	-		-		-		-
Noncurrent Liabilities
Long-term debt	-		-		-		-
Rate reduction bonds	-		-		-		-
Regulatory liabilities	-		-		-		-
Asset retirement obligations	-		-		-		-
Deferred income taxes	-		-		-		-
Deferred tax credits	-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-
Other	-		-		-		-
Total noncurrent liabilities	-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-
Trade creditors	-		-		-		-
Total liabilities subject to compromise	-		-		-		-
Commitments and Contingencies	-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-
Redeemable preferred stock	-		-		-		-
Common stock	-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-
Additional paid-in capital	-		-		-		-
Reinvested earnings (accumulated deficit)	-		-		-		-
Accumulated other comprehensive loss	-		-		-		-
Total shareholders' equity	-		-		-		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Electric Generation LLC (Consolidated)		Eliminations		Total Unconsolidated		Electric Generation LLC
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-	$	-	$	-
Restricted cash	-		-		-		-
Accounts receivable:
Customers	-		-		-		-
Related parties	-		-		-		-
Regulatory balancing accounts	-		-		-		-
Inventories:
Gas stored underground	-		-		-		-
Materials and supplies	-		-		-		-
Income taxes receivable	-		-		-		-
Prepaid expenses and other	-		-		-		-
Total current assets	-		-		-		-
Property, Plant and Equipment
Electric	-		-		-		-
Gas	-		-		-		-
Construction work in progress	-		-		-		-
Total property, plant and equipment	-		-		-		-
Accumulated depreciation	-		-		-		-
Net property, plant and equipment	-		-		-		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-
Regulatory assets	-		-		-		-
Nuclear decommissioning funds	-		-		-		-
Other	-		-		-		-
Total other noncurrent assets	-		-		-		-
TOTAL ASSETS	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Electric Generation LLC (Consolidated)		Eliminations		Total Unconsolidated		Electric Generation LLC
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-
Accounts payable:
Trade creditors	-		-		-		-
Related parties	-		-		-		-
Regulatory balancing accounts	-		-		-		-
Other	-		-		-		-
Interest payable	-		-		-		-
Income taxes payable	-		-		-		-
Deferred income taxes	-		-		-		-
Other	-		-		-		-
Total current liabilities	-		-		-		-
Noncurrent Liabilities
Long-term debt	-		-		-		-
Rate reduction bonds	-		-		-		-
Regulatory liabilities	-		-		-		-
Asset retirement obligations	-		-		-		-
Deferred income taxes	-		-		-		-
Deferred tax credits	-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-
Other	-		-		-		-
Total noncurrent liabilities	-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-
Trade creditors	-		-		-		-
Total liabilities subject to compromise	-		-		-		-
Commitments and Contingencies	-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-
Redeemable preferred stock	-		-		-		-
Common stock	-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-
Additional paid-in capital	-		-		-		-
Reinvested earnings (accumulated deficit)	-		-		-		-
Accumulated other comprehensive loss	-		-		-		-
Total shareholders' equity	-		-		-		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Total Subsidiaries		Balch 1 and 2 Project LLC		Battle Creek Project LLC		Bucks Creek Project LLC		Chili Bar Project LLC
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-	$	-	$	-	$	-
Restricted cash	-		-		-		-		-
Accounts receivable:
Customers	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Inventories:
Gas stored underground	-		-		-		-		-
Materials and supplies	-		-		-		-		-
Income taxes receivable	-		-		-		-		-
Prepaid expenses and other	-		-		-		-		-
Total current assets	-		-		-		-		-
Property, Plant and Equipment
Electric	-		-		-		-		-
Gas	-		-		-		-		-
Construction work in progress	-		-		-		-		-
Total property, plant and equipment	-		-		-		-		-
Accumulated depreciation	-		-		-		-		-
Net property, plant and equipment	-		-		-		-		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-		-
Regulatory assets	-		-		-		-		-
Nuclear decommissioning funds	-		-		-		-		-
Other	-		-		-		-		-
Total other noncurrent assets	-		-		-		-		-
TOTAL ASSETS	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Total Subsidiaries		Balch 1 and 2 Project LLC		Battle Creek Project LLC		Bucks Creek Project LLC		Chili Bar Project LLC
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-		-
Accounts payable:
Trade creditors	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		-		-		-		-
Income taxes payable	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Other	-		-		-		-		-
Total current liabilities	-		-		-		-		-
Noncurrent Liabilities
Long-term debt	-		-		-		-		-
Rate reduction bonds	-		-		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-		-
Redeemable preferred stock	-		-		-		-		-
Common stock	-		-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-		-
Additional paid-in capital	-		-		-		-		-
Reinvested earnings (accumulated deficit)	-		-		-		-		-
Accumulated other comprehensive loss	-		-		-		-		-
Total shareholders' equity	-		-		-		-		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Crane Valley Project LLC		Desabla- Centerville Project LLC		Diablo Canyon LLC		Drum- Spaulding Project LLC		Haas-Kings River Project LLC
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-	$	-	$	-	$	-
Restricted cash	-		-		-		-		-
Accounts receivable:
Customers	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Inventories:
Gas stored underground	-		-		-		-		-
Materials and supplies	-		-		-		-		-
Income taxes receivable	-		-		-		-		-
Prepaid expenses and other	-		-		-		-		-
Total current assets	-		-		-		-		-
Property, Plant and Equipment
Electric	-		-		-		-		-
Gas	-		-		-		-		-
Construction work in progress	-		-		-		-		-
Total property, plant and equipment	-		-		-		-		-
Accumulated depreciation	-		-		-		-		-
Net property, plant and equipment	-		-		-		-		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-		-
Regulatory assets	-		-		-		-		-
Nuclear decommissioning funds	-		-		-		-		-
Other	-		-		-		-		-
Total other noncurrent assets	-		-		-		-		-
TOTAL ASSETS	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Crane Valley Project LLC		Desabla- Centerville Project LLC		Diablo Canyon LLC		Drum- Spaulding Project LLC		Haas-Kings River Project LLC
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-		-
Accounts payable:
Trade creditors	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		-		-		-		-
Income taxes payable	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Other	-		-		-		-		-
Total current liabilities	-		-		-		-		-
Noncurrent Liabilities
Long-term debt	-		-		-		-		-
Rate reduction bonds	-		-		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-		-
Redeemable preferred stock	-		-		-		-		-
Common stock	-		-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-		-
Additional paid-in capital	-		-		-		-		-
Reinvested earnings (accumulated deficit)	-		-		-		-		-
Accumulated other comprehensive loss	-		-		-		-		-
Total shareholders' equity	-		-		-		-		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Hamilton Branch Project LLC		Hat Creek 1 and 2 Project LLC		Helms Project LLC		Kerckhoff 1 and 2 Project LLC		Kern Canyon Project LLC
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-	$	-	$	-	$	-
Restricted cash	-		-		-		-		-
Accounts receivable:
Customers	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Inventories:
Gas stored underground	-		-		-		-		-
Materials and supplies	-		-		-		-		-
Income taxes receivable	-		-		-		-		-
Prepaid expenses and other	-		-		-		-		-
Total current assets	-		-		-		-		-
Property, Plant and Equipment
Electric	-		-		-		-		-
Gas	-		-		-		-		-
Construction work in progress	-		-		-		-		-
Total property, plant and equipment	-		-		-		-		-
Accumulated depreciation	-		-		-		-		-
Net property, plant and equipment	-		-		-		-		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-		-
Regulatory assets	-		-		-		-		-
Nuclear decommissioning funds	-		-		-		-		-
Other	-		-		-		-		-
Total other noncurrent assets	-		-		-		-		-
TOTAL ASSETS	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Hamilton Branch Project LLC		Hat Creek 1 and 2 Project LLC		Helms Project LLC		Kerckhoff 1 and 2 Project LLC		Kern Canyon Project LLC
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-		-
Accounts payable:
Trade creditors	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		-		-		-		-
Income taxes payable	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Other	-		-		-		-		-
Total current liabilities	-		-		-		-		-
Noncurrent Liabilities
Long-term debt	-		-		-		-		-
Rate reduction bonds	-		-		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-		-
Redeemable preferred stock	-		-		-		-		-
Common stock	-		-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-		-
Additional paid-in capital	-		-		-		-		-
Reinvested earnings (accumulated deficit)	-		-		-		-		-
Accumulated other comprehensive loss	-		-		-		-		-
Total shareholders' equity	-		-		-		-		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Kilarc-Cow Creek Project LLC		McCloud-Pit Project LLC		Merced Falls Project LLC		Miocene Project LLC		Mokelumne River Project LLC
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-	$	-	$	-	$	-
Restricted cash	-		-		-		-		-
Accounts receivable:
Customers	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Inventories:
Gas stored underground	-		-		-		-		-
Materials and supplies	-		-		-		-		-
Income taxes receivable	-		-		-		-		-
Prepaid expenses and other	-		-		-		-		-
Total current assets	-		-		-		-		-
Property, Plant and Equipment
Electric	-		-		-		-		-
Gas	-		-		-		-		-
Construction work in progress	-		-		-		-		-
Total property, plant and equipment	-		-		-		-		-
Accumulated depreciation	-		-		-		-		-
Net property, plant and equipment	-		-		-		-		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-		-
Regulatory assets	-		-		-		-		-
Nuclear decommissioning funds	-		-		-		-		-
Other	-		-		-		-		-
Total other noncurrent assets	-		-		-		-		-
TOTAL ASSETS	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Kilarc-Cow Creek Project LLC		McCloud-Pit Project LLC		Merced Falls Project LLC		Miocene Project LLC		Mokelumne River Project LLC
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-		-
Accounts payable:
Trade creditors	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		-		-		-		-
Income taxes payable	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Other	-		-		-		-		-
Total current liabilities	-		-		-		-		-
Noncurrent Liabilities
Long-term debt	-		-		-		-		-
Rate reduction bonds	-		-		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-		-
Redeemable preferred stock	-		-		-		-		-
Common stock	-		-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-		-
Additional paid-in capital	-		-		-		-		-
Reinvested earnings (accumulated deficit)	-		-		-		-		-
Accumulated other comprehensive loss	-		-		-		-		-
Total shareholders' equity	-		-		-		-		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Narrows Project LLC		Phoenix Project LLC		Pit 1 Project LLC		Pit 3, 4 and 5 Project LLC		Poe Project LLC
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-	$	-	$	-	$	-
Restricted cash	-		-		-		-		-
Accounts receivable:
Customers	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Inventories:
Gas stored underground	-		-		-		-		-
Materials and supplies	-		-		-		-		-
Income taxes receivable	-		-		-		-		-
Prepaid expenses and other	-		-		-		-		-
Total current assets	-		-		-		-		-
Property, Plant and Equipment
Electric	-		-		-		-		-
Gas	-		-		-		-		-
Construction work in progress	-		-		-		-		-
Total property, plant and equipment	-		-		-		-		-
Accumulated depreciation	-		-		-		-		-
Net property, plant and equipment	-		-		-		-		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-		-
Regulatory assets	-		-		-		-		-
Nuclear decommissioning funds	-		-		-		-		-
Other	-		-		-		-		-
Total other noncurrent assets	-		-		-		-		-
TOTAL ASSETS	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Narrows Project LLC		Phoenix Project LLC		Pit 1 Project LLC		Pit 3, 4 and 5 Project LLC		Poe Project LLC
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-		-
Accounts payable:
Trade creditors	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		-		-		-		-
Income taxes payable	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Other	-		-		-		-		-
Total current liabilities	-		-		-		-		-
Noncurrent Liabilities
Long-term debt	-		-		-		-		-
Rate reduction bonds	-		-		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-		-
Redeemable preferred stock	-		-		-		-		-
Common stock	-		-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-		-
Additional paid-in capital	-		-		-		-		-
Reinvested earnings (accumulated deficit)	-		-		-		-		-
Accumulated other comprehensive loss	-		-		-		-		-
Total shareholders' equity	-		-		-		-		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Potter Valley Project LLC		Rock Creek- Cresta Project LLC		Spring-Gap Stanislaus Project LLC		Tule River Project LLC		Upper NF Feather River Project LLC
ASSETS
Current Assets
Cash and cash equivalents	$	-	$	-	$	-	$	-	$	-
Restricted cash	-		-		-		-		-
Accounts receivable:
Customers	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Inventories:
Gas stored underground	-		-		-		-		-
Materials and supplies	-		-		-		-		-
Income taxes receivable	-		-		-		-		-
Prepaid expenses and other	-		-		-		-		-
Total current assets	-		-		-		-		-
Property, Plant and Equipment
Electric	-		-		-		-		-
Gas	-		-		-		-		-
Construction work in progress	-		-		-		-		-
Total property, plant and equipment	-		-		-		-		-
Accumulated depreciation	-		-		-		-		-
Net property, plant and equipment	-		-		-		-		-
Other Noncurrent Assets
Investments in subsidiaries	-		-		-		-		-
Regulatory assets	-		-		-		-		-
Nuclear decommissioning funds	-		-		-		-		-
Other	-		-		-		-		-
Total other noncurrent assets	-		-		-		-		-
TOTAL ASSETS	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Potter Valley Project LLC		Rock Creek- Cresta Project LLC		Spring-Gap Stanislaus Project LLC		Tule River Project LLC		Upper NF Feather River Project LLC
LIABILITIES AND SHAREHOLDERS'    EQUITY
Liabilities Not Subject to Compromise
Current Liabilities
Long-term debt, classified as current	$	-	$	-	$	-	$	-	$	-
Current portion of rate reduction bonds	-		-		-		-		-
Accounts payable:
Trade creditors	-		-		-		-		-
Related parties	-		-		-		-		-
Regulatory balancing accounts	-		-		-		-		-
Other	-		-		-		-		-
Interest payable	-		-		-		-		-
Income taxes payable	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Other	-		-		-		-		-
Total current liabilities	-		-		-		-		-
Noncurrent Liabilities
Long-term debt	-		-		-		-		-
Rate reduction bonds	-		-		-		-		-
Regulatory liabilities	-		-		-		-		-
Asset retirement obligations	-		-		-		-		-
Deferred income taxes	-		-		-		-		-
Deferred tax credits	-		-		-		-		-
Preferred stock with mandatory    redemption provisions	-		-		-		-		-
Other	-		-		-		-		-
Total noncurrent liabilities	-		-		-		-		-
Liabilities Subject to Compromise
Financing debt	-		-		-		-		-
Trade creditors	-		-		-		-		-
Total liabilities subject to compromise	-		-		-		-		-
Commitments and Contingencies	-		-		-		-		-
Preferred Stock with Mandatory    Redemption Provisions	-		-		-		-		-
Shareholders' Equity
Nonredeemable preferred stock	-		-		-		-		-
Redeemable preferred stock	-		-		-		-		-
Common stock	-		-		-		-		-
Common stock held by subsidiary, at cost	-		-		-		-		-
Additional paid-in capital	-		-		-		-		-
Reinvested earnings (accumulated deficit)	-		-		-		-		-
Accumulated other comprehensive loss	-		-		-		-		-
Total shareholders' equity	-		-		-		-		-
TOTAL LIABILITIES AND    SHAREHOLDERS' EQUITY	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF REINVESTED EARNINGS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Pacific Gas and Electric Company (Consolidated)		Eliminations and Reclassifications		Total Unconsolidated		Pacific Gas and Electric Company		Total Subsidiaries
Balance at December 31, 2002	$	805	$	80	$	725	$	772	$	(47)
Net income (loss)	923		(2)		925		924		1
Other	(22)		-		(22)		(22)		-
Balance at December 31, 2003	$	1,706	$	78	$	1,628	$	1,674	$	(46)

	Natural Gas Corporation of California		NGC Production Company		Alaska Gas Exploration Associates		Standard Pacific Gas Line Incorporated		Pacific Energy Fuels Company
Balance at December 31, 2002	$	(4)	$	-	$	-	$	(17)	$	-
Net income (loss)	-		-		-		(1)		-
Other	-		-		-		-		-
Balance at December 31, 2003	$	(4)	$	-	$	-	$	(18)	$	-

	Fuelco LLC		Pacific Gas Properties Company		Pacific Properties		Calaska Energy Company		Pacific Conservation Services Company
Balance at December 31, 2002	$	-	$	(10)	$	-	$	(18)	$	-
Net income (loss)	-		-		-		-		-
Other	-		-		-		-		-
Balance at December 31, 2003	$	-	$	(10)	$	-	$	(18)	$	-

	Eureka Energy Company		PG&E Funding, LLC		PG&E Holdings, LLC		PG&E CalHydro, LLC		PG&E Capital II
Balance at December 31, 2002	$	-	$	27	$	(25)	$	-	$	-
Net income (loss)	-		2		-		-		-
Other	-		-		-		-		-
Balance at December 31, 2003	$	-	$	29	$	(25)	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF REINVESTED EARNINGS
DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E Capital III		PG&E Capital IV		Pacific California Gas System, Inc.		Newco Energy Corporation (Consolidated)
Balance at December 31, 2002	$	-	$	-	$	-	$	-
Net income (loss)	-		-		-		-
Other	-		-		-		-
Balance at December 31, 2003	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF REINVESTED EARNINGS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Newco Energy Corporation (Consolidated)		Eliminations		Total Unconsolidated		Newco Energy Corporation		Total Subsidiaries
Balance at December 31, 2002	$	-	$	-	$	-	$	-	$	-
Net income (loss)	-		-		-		-		-
Other	-		-		-		-		-
Balance at December 31, 2003	$	-	$	-	$	-	$	-	$	-

	ETrans LLC		GTrans LLC		TES, LLC		Electric Generation LLC (Consolidated)
Balance at December 31, 2002	$	-	$	-	$	-	$	-
Net income (loss)	-		-		-		-
Other	-		-		-		-
Balance at December 31, 2003	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF REINVESTED EARNINGS
DECEMBER 31, 2003
(in millions)
(unaudited)
	Electric Generation LLC (Consolidated)		Eliminations		Total Unconsolidated		Electric Generation LLC		Total Subsidiaries
Balance at December 31, 2002	$	-	$	-	$	-	$	-	$	-
Net income (loss)	-		-		-		-		-
Other	-		-		-		-		-
Balance at December 31, 2003	$	-	$	-	$	-	$	-	$	-

	Balch 1 and 2 Project LLC		Battle Creek Project LLC		Bucks Creek Project LLC		Chili Bar Project LLC		Crane Valley Project LLC
Balance at December 31, 2002	$	-	$	-	$	-	$	-	$	-
Net income (loss)	-		-		-		-		-
Other	-		-		-		-		-
Balance at December 31, 2003	$	-	$	-	$	-	$	-	$	-

	Desabla- Centerville Project LLC		Diablo Canyon LLC		Drum- Spaulding Project LLC		Haas-Kings River Project LLC		Hamilton Branch Project LLC
Balance at December 31, 2002	$	-	$	-	$	-	$	-	$	-
Net income (loss)	-		-		-		-		-
Other	-		-		-		-		-
Balance at December 31, 2003	$	-	$	-	$	-	$	-	$	-

	Hat Creek 1 and 2 Project LLC		Helms Project LLC		Kerckhoff 1 and 2 Project LLC		Kern Canyon Project LLC		Kilarc-Cow Creek Project LLC
Balance at December 31, 2002	$	-	$	-	$	-	$	-	$	-
Net income (loss)	-		-		-		-		-
Other	-		-		-		-		-
Balance at December 31, 2003	$	-	$	-	$	-	$	-	$	-

PACIFIC GAS AND ELECTRIC COMPANY, A DEBTOR-IN-POSSESSION
CONSOLIDATING STATEMENTS OF REINVESTED EARNINGS
DECEMBER 31, 2003
(in millions)
(unaudited)
	McCloud-Pit Project LLC		Merced Falls Project LLC		Miocene Project LLC		Mokelumne River Project LLC		Narrows Project LLC
Balance at December 31, 2002	$	-	$	-	$	-	$	-	$	-
Net income (loss)	-		-		-		-		-
Other	-		-		-		-		-
Balance at December 31, 2003	$	-	$	-	$	-	$	-	$	-

	Phoenix Project LLC		Pit 1 Project LLC		Pit 3, 4 and 5 Project LLC		Poe Project LLC		Potter Valley Project LLC
Balance at December 31, 2002	$	-	$	-	$	-	$	-	$	-
Net income (loss)	-		-		-		-		-
Other	-		-		-		-		-
Balance at December 31, 2003	$	-	$	-	$	-	$	-	$	-

	Rock Creek- Cresta Project LLC		Spring-Gap Stanislaus Project LLC		Tule River Project LLC		Upper NF Feather River Project LLC
Balance at December 31, 2002	$	-	$	-	$	-	$	-
Net income (loss)	-		-		-		-
Other	-		-		-		-
Balance at December 31, 2003	$	-	$	-	$	-	$	-

PG&E NATIONAL ENERGY GROUP, LLC
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
(in millions)
(unaudited)
	PG&E National Energy Group, LLC (Consolidated)		Eliminations and Reclassifications		PG&E National Energy Group, LLC (Consolidated)
Operating Revenues
Energy commodities and services	$	-	$	(428)	$	428
Equity in earnings of subsidiaries	-		(41)		41
Total operating revenues	-		(469)		469
Operating Expenses
Cost of energy commodities and services	-		(153)		153
Operating and maintenance	-		(278)		278
Impairments, write-offs and other charges	-		(230)		230
Depreciation and amortization	-		(51)		51
Total operating expenses	-		(712)		712
Operating Income (Loss)	-		243		(243)
Interest income	-		(5)		5
Interest expense	-		228		(228)
Other income (expense), net	-		(8)		8
Income (Loss) Before Income Taxes	-		458		(458)
Income tax provision (benefit)	-		39		(39)
Income (Loss) From Continuing Operations	-		419		(419)
Discontinued Operations
Loss from operations of NEGT    (net of zero income tax)	(521)		(419)		(102)
Net Income (Loss) Before Cumulative Effect    of Changes in Accounting Principles	(521)		-		(521)
Cumulative effect of changes in accounting    principles (net of zero income tax)	(8)		-		(8)
Net Income (Loss)	$	(529)	$	-	$	(529)