Exhibit 99.2

Table 1:    PG&E Corporation Business Priorities 2009

•Improve reliability

•Improve safety and human performance

•Deliver on budget, on plan, and on purpose

•Drive customer satisfaction

•Champion effective regulatory and legislative policies

Table 2: Reconciliation of PG&E Corporation’s Earnings from Operations to Consolidated Income Available for Common Shareholders in Accordance with Generally Accepted Accounting Principles (GAAP)

Second Quarter and Year-to-Date, 2009 vs. 2008

(in millions, except per share amounts)

	Three months ended June 30,										Six months ended June 30,
	Earnings					Earnings per Common Share (Diluted)					Earnings					Earnings per Common Share (Diluted)
	2009			2008		2009			2008		2009			2008		2009			2008
PG&E Corporation Earnings from Operations (1)	$	315		$	293	$	0.83		$	0.80	$	561		$	517	$	1.49		$	1.42
Items Impacting Comparability: (2)
Tax refund (3)		56			-		0.15			-		56			-		0.15			-
Recovery of hydro divestiture    costs (4)		28			-		0.07			-		28			-		0.07			-
Accelerated work on gas system (5)		(11	)		-		(0.03	)		-		(16	)		-		(0.04	)		-
PG&E Corporation Earnings on a GAAP basis	$	388		$	293	$	1.02		$	0.80	$	629		$	517	$	1.67		$	1.42

1.	“Earnings from operations” is not calculated in accordance with GAAP and excludes items impacting comparability as described in Note (2) below.
2.	Items impacting comparability reconcile earnings from operations with Consolidated Income Available for Common Shareholders as reported in accordance with GAAP.
3.	For the three and six months ended June 30, 2009, PG&E Corporation recognized $56 million, after-tax, for the interest benefit related to the federal tax refund, as a result of the approval by the Joint Committee of Taxation of deferred gain treatment for power plant sales in 1998 and 1999.
4.	For the three and six months ended June 30, 2009, PG&E Corporation recognized $28 million, after-tax, related to the California Public Utilities Commission’s ("CPUC") authorized recovery of costs incurred in connection with efforts to determine the market value of hydroelectric generation facilities in 2000-2001.
5.	For the three and six months ended June 30, 2009, PG&E Corporation incurred $11 million and $16 million, respectively, after-tax, for costs to perform accelerated system-wide natural gas integrity surveys and associated remedial work.

Table 3: Reconciliation of Pacific Gas and Electric Company’s Earnings from Operations to Consolidated Income Available for Common Stock in Accordance with GAAP

Second Quarter and Year-to-Date, 2009 vs. 2008

(in millions)

	Three months ended June 30,					Six months ended June 30,
	Earnings					Earnings
	2009			2008		2009			2008
Pacific Gas and Electric Company   Earnings from Operations (1)	$	314		$	309	$	555		$	542
Items Impacting Comparability: (2)
Tax Refund (3)		56			-		56			-
Recovery of hydro divestiture costs (4)		28			-		28			-
Accelerated work on gas system (5)		(11	)		-		(16	)		-
Pacific Gas and Electric Company Earnings   on a GAAP basis	$	387		$	309	$	623		$	542

1.	“Earnings from operations” is not calculated in accordance with GAAP and excludes items impacting comparability as described in Note (2) below.
2.	Items impacting comparability reconcile earnings from operations with Consolidated Income Available for Common Shareholders as reported in accordance with GAAP.
3.	For the three and six months ended June 30, 2009, Pacific Gas and Electric Company recognized $56 million, after-tax, for the interest benefit related to the federal tax refund, as a result of the approval by the Joint Committee of Taxation of deferred gain treatment for power plant sales in 1998 and 1999.
4.	For the three and six months ended June 30, 2009, Pacific Gas and Electric Company recognized $28 million, after-tax, related to the CPUC’s authorized recovery of costs incurred in connection with efforts to determine the market value of hydroelectric generation facilities in 2000-2001.
5.	For the three and six months ended June 30, 2009, Pacific Gas and Electric Company incurred $11 million and $16 million, respectively, after-tax, for costs to perform accelerated system-wide natural gas integrity surveys and associated remedial work.

Table 4: PG&E Corporation Earnings per Common Share ("EPS") from Operations

Second Quarter and Year-to-Date, 2009 vs. 2008

($/Share, Diluted)

Q2 2008 EPS from Operations (1)	$	0.80
Increase in rate base revenues		0.06
Miscellaneous items		0.02
Environmental remediation		(0.02	)
Increase in shares outstanding		(0.03	)
Q2 2009 EPS from Operations (1)	$	0.83

Q2 2008 YTD EPS from Operations (1)	$	1.42
Increase in rate base revenues		0.13
Storm and outage expenses (2)		0.07
Severance		(0.01	)
Environmental remediation		(0.02	)
Uncollectibles expense, net		(0.02	)
Increase in shares outstanding		(0.04	)
Miscellaneous items		(0.04	)
Q2 2009 YTD EPS from Operations (1)	$	1.49

1.	See Table 2 for a reconciliation of EPS from operations to EPS on a GAAP basis.
2.	Costs incurred due to storms and outages in 2008 with no similar costs in 2009.

Table 5: PG&E Corporation Share Statistics

Second Quarter, 2009 vs. 2008

(shares in millions, except per share amounts)

	Second Quarter  2009		Second Quarter  2008		% Change
Common Stock Data
Book Value per share – end of period (1)	$	25.77	$	23.66		8.92	%
Weighted average common shares outstanding, basic		368		356		3.37	%
Employee share-based compensation		1		1		0	%
Weighted average common shares outstanding, diluted		369		357		3.36	%
9.5% Convertible Subordinated Notes (participating securities)		17		19		(10.53	%)
Weighted average common shares outstanding and participating securities, diluted		386		376		2.66	%

1.    Common shareholders’ equity per common share outstanding at period end (includes the effect of participating securities).

Source:  PG&E Corporation’s Condensed Consolidated Financial Statements and the Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

Table 6: Operational Performance Metrics

Second Quarter Year-to-Date Actual 2009 vs. Targets 2009

			2009
		Percentage Weight (1)	Q2 YTD Actual	Q2 YTD Target	EOY Target
1.	Earnings From Operations (in millions)	50%	$561	See note (2)	See note (2)
2.	Customer Satisfaction & Brand Health Index (RI)	17.5%	76.8	76.1	76.1
3.	Reliable Energy Delivery	17.5%	1.171	1.000	1.000
4.	Employee Engagement Premier Survey	5%	See note (3)	See note (3)	69.5%
5.	Safety Performance	10%	2.661	2.755	2.755

1.    Represents weighting used in calculating PG&E Corporation Short-Term Incentive Plan performance for management employees.

2.    Internal target not publicly disclosed but is consistent with publicly disclosed guidance for 2009 EPS from operations of $3.15-$3.25.

3.    The Employee Engagement Premier Survey will be administered in December 2009 with results available in February 2010.

DEFINITIONS OF 2009 OPERATIONAL PERFORMANCE METRICS FROM TABLE 6:

1.	Earnings from Operations:
	Earnings from operations measures PG&E Corporation’s earnings power from ongoing core operations.  It allows investors to compare the underlying financial performance of the business from one period to another, exclusive of items that management believes do not reflect the normal course of operations (items impacting comparability).  The measurement is not in accordance with GAAP.  For a reconciliation of earnings from operations to earnings in accordance with GAAP, see Tables 2 and 3 above. The 2009 target for earnings from operations is not publicly reported but is consistent with PG&E Corporation’s publicly disclosed guidance range provided for 2009 EPS from operations of $3.15-$3.25.  For a reconciliation of 2009 EPS guidance on an earnings from operations basis to a GAAP basis, see Table 8.
2.	Customer Satisfaction & Brand Health Index:
	The Customer Satisfaction & Brand Health Index is a combination of a Customer Satisfaction Score, which has a 75 percent weighting and a Brand Favorability Score, which has a 25 percent weighting in the composite.  The Customer Satisfaction Score is a measure of overall satisfaction with PG&E’s operational performance in delivering services such as reliability, pricing of services, and customer service experience.  The Brand Favorability Score is a measure of the overall favorability towards the PG&E brand, and measures the emotional connection that customers have with the brand and is based on assessing perceptions regarding PG&E’s images, such as trust, heritage, and social responsibility.  The Customer Satisfaction & Brand Health Index measures residential, small business, and medium business customer perceptions with weightings of 60 percent for residential customers and 40 percent for business customers.
3.	Reliable Energy Delivery:
	Reliable Energy Delivery Index is a composite of three categories outlined below.  Overall, these metrics provide a balanced view on the number and duration of electric system unplanned interruptions and performance improvement in the resurvey of the gas system. 1.System Average Interruption Frequency Index (SAIFI) 2.Customer Average Interruption Duration Index (CAIDI) 3.Gas Leak Re-Survey
4.	Employee Engagement Premier Survey:
	The average overall employee engagement score provides a comprehensive metric that is derived by averaging the percent favorable responses from 40 core survey items.
5.	Safety Performance:
	The Occupational Safety & Health Administration (OSHA) Recordable Rate measures the number of OSHA Recordable injuries, illnesses, or exposures that (1) satisfy OSHA requirements for recordability, and (2) occur in the current year.  In general, an injury must result in medical treatment beyond first aid or result in work restrictions, death, or loss of consciousness to be OSHA Recordable.  The rate measures how frequently OSHA Recordable cases occur for every 200,000 hours worked, or for approximately every 100 employees.

Table 7: Pacific Gas and Electric Company Operating Statistics

Second Quarter and Year-to-Date, 2009 vs. 2008

	Three Months Ended June 30,						Six Months Ended June 30,
	2009			2008			2009			2008
Electric Sales (in millions kWh)
Residential		7,080			6,999			14,750			15,096
Commercial		8,178			8,341			15,572			16,441
Industrial		3,645			4,029			7,160			7,678
Agricultural		1,622			1,521			2,341			2,215
BART, public street and highway lighting		205			178			410			419
Other electric utilities		-			-			-			-
Sales from Energy Deliveries		20,730			21,068			40,233			41,849
Total Electric Customers at June 30								5,135,192			5,128,344
Bundled Gas Sales (in millions MCF)
Residential		39			40			120			129
Commercial		13			14			33			38
Total Bundled Gas Sales		52			54			153			167
Transportation Only		109			123			236			272
Total Gas Sales		161			177			389			439
Total Gas Customers at June 30								4,268,352			4,267,579
Sources of Electric Energy (in millions kWh)
Utility Generation
Nuclear		4,871			4,532			8,062			7,859
Hydro (net)		2,564			1,954			4,633			4,025
Fossil		629			128			1,333			282
Total Utility Generation		8,064			6,614			14,028			12,166
Purchased Power
Qualifying Facilities		3,642			4,227			7,282			8,305
Irrigation Districts		1,054			681			1,355			967
Other Purchased Power		2,215			7,229			8,598			14,291
CAISO Purchases/Sales, net		2,577			(277	)		2,479			(571	)
Total Net Purchased Power		9,488			11,860			19,714			22,992
Delivery from DWR		2,831			2,927			5,920			6,372
Delivery to Direct Access Customers		1,341			1,550			2,669			3,059
Other (includes energy loss)		(994	)		(1,883	)		(2,098	)		(2,740	)
Total Electric Energy Delivered		20,730			21,068			40,233			41,849
Diablo Canyon Performance
Overall capacity factor (including refuelings)		100	%		92	%		83	%		81	%
Refueling outage period	None			4/1/08-4/12/08			1/25/09-3/24/09			2/3/08-4/12/08
Refueling outage duration during the period (days)	None				11.4			58.0			68.9

Table 8: PG&E Corporation EPS Guidance

2009 EPS Guidance	Low			High
EPS Guidance on an Earnings from Operations Basis	$	3.15		$	3.25
Estimated Items Impacting Comparability (1)
Tax refunds (2)		0.15			0.15
Recovery of hydro divestiture costs (3)		0.07			0.07
Accelerated work on gas system (4)		(0.16	)		(0.14	)
Estimated EPS on a GAAP Basis	$	3.21		$	3.33

2010 EPS Guidance	Low		High
EPS Guidance on an Earnings from Operations Basis	$	3.35	$	3.50
Estimated Items Impacting Comparability		-		-
Estimated EPS on a GAAP Basis	$	3.35	$	3.50

2011 EPS Guidance	Low		High
EPS Guidance on an Earnings from Operations Basis	$	3.65	$	3.85
Estimated Items Impacting Comparability		-		-
Estimated EPS on a GAAP Basis	$	3.65	$	3.85

1.   Items impacting comparability reconcile earnings from operations with Consolidated Income Available for Common Shareholders in Accordance with GAAP.

2.   In June 2009, the Joint Committee of Taxation approved deferred gain treatment for power plant sales in 1998 and 1999.  This amount recognizes the interest benefit related to the federal tax refund.

3.   On April 16, 2009, the CPUC authorized recovery of costs incurred in connection with efforts to determine the market value of hydroelectric generation facilities.

4.   Forecast costs to perform accelerated system-wide gas integrity surveys and associated remedial work.

Management's statements regarding 2009, 2010, and 2011 guidance for earnings from operations per common share for PG&E Corporation, estimated rate base for 2009, 2010, and 2011 and general sensitivities for 2009, 2010, and 2011 earnings, constitute forward-looking statements that are based on current expectations and assumptions which management believes are reasonable.  These statements and assumptions are necessarily subject to various risks and uncertainties, the realization or resolution of which may be outside management’s control.  Actual results may differ materially.  Factors that could cause actual results to differ materially include:

· the Utility’s ability to manage capital expenditures and its operating and maintenance expenses within authorized levels;

· the outcome of pending and future regulatory proceedings and whether the Utility is able to timely recover its costs through rates;

· the adequacy and price of electricity and natural gas supplies, and the ability of the Utility to manage and respond to the volatility of the electricity and natural gas markets, including the ability of the Utility and its counterparties to post or return collateral;

Table 8 (continued): PG&E Corporation EPS Guidance

· the effect of weather, storms, earthquakes, floods, disease, other natural disasters, explosions, fires, accidents, mechanical breakdowns, disruption of information technology and computer systems, acts of terrorism, and other events or hazards on the Utility’s facilities and operations, its customers, and third parties on which the Utility relies;

· the potential impacts of climate change on the Utility’s electricity and natural gas businesses;

· changes in customer demand for electricity and natural gas resulting from unanticipated population growth or decline, general economic and financial market conditions, changes in technology, including the development of alternative energy sources, or other reasons;

· operating performance of the Diablo Canyon Power Plant (“Diablo Canyon”), the availability of nuclear fuel, the occurrence of unplanned outages at Diablo Canyon, or the temporary or permanent cessation of operations at Diablo Canyon;

· whether the Utility can maintain the cost savings that it has recognized from operating efficiencies that it has achieved and identify and successfully implement additional sustainable cost-saving measures;

· whether the Utility incurs substantial expense to improve the safety and reliability of its electric and natural gas systems;

· whether the Utility achieves the CPUC’s energy efficiency targets and recognizes any incentives that the Utility may earn in a timely manner;

· the impact of changes in federal or state laws, or their interpretation, on energy policy and the regulation of utilities and their holding companies;

· the impact of changing wholesale electric or gas market rules, including the impact of future Federal Energy Regulatory Commission-ordered changes that will be incorporated into the new day-ahead, hour-ahead, and real-time wholesale electricity markets established by the California Independent System Operator to restructure the California wholesale electricity market;

· how the CPUC administers the conditions imposed on PG&E Corporation when it became the Utility’s holding company;

· the extent to which PG&E Corporation or the Utility incurs costs and liabilities in connection with litigation that are not recoverable through rates, from insurance, or from other third parties;

· the ability of PG&E Corporation, the Utility, and counterparties to access capital markets and other sources of credit in a timely manner on acceptable terms;

· the impact of environmental laws and regulations and the costs of compliance and remediation;

· the effect of municipalization, direct access, community choice aggregation, or other forms of bypass;

· the outcome of federal or state tax audits and the impact of changes in federal or state tax laws, policies, or regulations; and

· other factors and risks discussed in PG&E Corporation and Pacific Gas and Electric Company’s 2008 Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.

Table 9: Rate Base - Pacific Gas and Electric Company

	2008		2009		2010		2011
	Recorded		Estimated		Estimated		Estimated
Total Weighted Average Rate Base (in billions)	$	18.2	$	20.1 - $ 20.3	$	22.1 - $ 22.4	$	24.3 - $ 25.4

The rate base estimates for 2009, 2010, and 2011 and the forecast of capital expenditures that the estimates are based on are forward-looking statements that are subject to various risks and uncertainties, including whether the amount and timing of actual expenditures are consistent with the forecasted amount and timing. Actual results may differ materially. For a discussion of the factors that may affect future results, see Table 8.

Table 10: General Earnings Sensitivities for 2009, 2010, and 2011

PG&E Corporation and Pacific Gas and Electric Company

Variable	Description of Change	Estimated 2009 Earnings Impact	Estimated 2010 Earnings Impact	Estimated 2011 Earnings Impact
Rate base	+/- $100 million change in rate base (1)	+/- $6 million	+/- $6 million	+/- $6 million
Return on equity (ROE)	+/- 0.1% change in allowed ROE	+/- $11 million	+/- $12 million	+/-$13 million
Share count	+/- 1% change in average shares	-/+ $0.03 per share	-/+ $0.03 per share	+/- $.04 per share
Revenues	+/- $7 million change in at-risk revenue (pre-tax), including Electric Transmission and California Gas Transmission	+/- $0.01 per share	+/- $0.01 per share	+/-$.01 per share

1.    Assumes earning an 11.45% combined CPUC and FERC authorized weighted average return on 52% equity portion of capital structure.

These general earnings sensitivities that may affect 2009, 2010, and 2011 earnings are forward-looking statements that are based on various assumptions that may prove to be inaccurate.  Actual results may differ materially.  For a discussion of the factors that may affect future results, see Table 8.

Table 11: Cash Flow Sources and Uses

Year-to-Date 2009

PG&E Corporation Consolidated

(in millions)

Cash and Cash Equivalents, December 31, 2008	$	219
Sources of Cash
Cash from operations	$	1,754
Proceeds from sale of assets		5
Decrease in restricted cash		15
Net proceeds from issuance of long-term debt		884
Net proceeds from issuance of short-term debt		499
Common stock issued		182
Other		7
	$	3,346
Uses of Cash
Capital expenditures	$	2,077
Investments in and proceeds from nuclear decommissioning trusts, net		31
Repayments of commercial paper, net		47
Long-term debt matured		600
Energy recovery bonds matured		174
Common stock dividends paid		286
Other		12
	$	3,227
Cash and Cash Equivalents, June 30, 2009	$	338

Source:  PG&E Corporation’s Condensed Consolidated Statement of Cash Flows included in PG&E Corporation and Pacific Gas and Electric Company’s combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

Table 12: PG&E Corporation and Pacific Gas and Electric Company’s Consolidated Cash Position

Second Quarter, 2009 vs. 2008

(in millions)

	2009		2008			Change
Cash Flow from Operating Activities (YTD June 30)
PG&E Corporation	$	104	$	(26	)	$	130
Pacific Gas and Electric Company		1,650		2,274			(624	)
	$	1,754	$	2,248		$	(494	)
Consolidated Cash Balance (at June 30)
PG&E Corporation	$	180	$	228		$	(48	)
Pacific Gas and Electric Company		158		69			89
	$	338	$	297		$	41
Consolidated Restricted Cash Balance (at June 30)
PG&E Corporation	$	-	$	-		$	-
Pacific Gas and Electric Company (1)		1,296		1,341			(45	)
	$	1,296	$	1,341		$	(45	)

1.    Includes $11 million and $19 million of restricted cash classified as Other Noncurrent Assets – Other in the Condensed Consolidated Balance Sheets at June 30, 2009 and 2008, respectively.

Source:  PG&E Corporation and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements included in PG&E Corporation’s and Pacific Gas and Electric Company’s combined Quarterly Report on Form 10-Q for the quarters ended June 30, 2009 and 2008.

Table 13: PG&E Corporation and Pacific Gas and Electric Company’s Long-Term Debt

Second Quarter 2009 vs. Year-End 2008

(in millions)

	Balance at
	June 30, 2009			December 31, 2008
PG&E Corporation
Convertible subordinated notes, 9.50%, due 2010	$	252		$	280
Less: current portion		(252	)		-
Total convertible subordinated notes		-			280
Senior notes, 5.75%, due 2014		350			-
Unamortized discount		(2	)		-
Total senior notes		348			280
Total PG&E Corporation long-term debt		348			280
Utility
Senior notes:
3.60% due 2009		-			600
4.20% due 2011		500			500
6.25% due 2013		400			400
4.80% due 2014		1,000			1,000
5.625% due 2017		700			700
8.25% due 2018		800			800
6.05% due 2034		3,000			3,000
5.80% due 2037		700			700
6.35% due 2038		400			400
6.25% due 2039		550			-
Less: current portion		-			(600	)
Unamortized discount, net of premium		(28	)		(22	)
Total senior notes		8,022			7,478
Pollution control bonds:
Series 1996 C, E, F, 1997 B, variable rates(1), due 2026(2)		614			614
Series 1996 A, 5.35%, due 2016		200			200
Series 2004 A-D, 4.75%, due 2023		345			345
Series 2008 A-D, variable rates(3), due 2016 and 2026(4)		309			309
Series 2008 F and G, 3.75%(5), due 2018 and 2026		95			95
Total pollution control bonds		1,563			1,563
Total Utility long-term debt, net of current portion		9,585			9,041
Total consolidated long-term debt, net of current portion	$	9,933		$	9,321
(1) At June 30, 2009, interest rates on these bonds and the related loans ranged from 0.13% to 0.35%.
(2) Each series of these bonds is supported by a separate letter of credit which expires on February 24, 2012. Although the stated maturity date is 2026, each series will remain outstanding only if the Utility extends or replaces the letter of credit related to the series or otherwise obtains a consent from the issuer to the continuation of the series without a credit facility.
(3) At June 30, 2009, interest rates on these bonds and the related loans ranged from 0.18% to 0.30%.
(4) Each series of these bonds is supported by a separate direct-pay letter of credit which expires on October 29, 2011. The Utility may choose to provide a substitute letter of credit for any series of these bonds, subject to a rating requirement.
(5) These bonds bear interest at 3.75% per year through September 19, 2010, are subject to mandatory tender on September 10, 2010, and may be remarketed in a fixed or variable rate mode.

Source:  PG&E Corporation and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company’s combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

Table 14: PG&E Corporation and Pacific Gas and Electric Company Repayment Schedule and Interest Rates - Long-Term Debt and Energy Recovery Bonds as of June 30, 2009

(in millions, except interest rates)

	2009		2010			2011			2012			2013			Thereafter			Total
LONG-TERM DEBT:
PG&E Corporation
Average fixed interest rate		-		9.50	%		-			-			-			5.75	%		7.32	%
Fixed rate obligations	$	-	$	252		$	-		$	-		$	-		$	350		$	602
Utility
Average fixed interest rate		-		3.75	%		4.20	%		-			6.25	%		6.01	%		5.89	%
Fixed rate obligations	$	-	$	95		$	500			-		$	400		$	7,695		$	8,690
Variable interest rate as of June 30, 2009		-		-			0.23	%		0.23	%		-			-			0.23	%
Variable rate obligations	$	-	$	-		$	308	(1)	$	614	(2)	$	-		$	-		$	922
Total consolidated long-term debt	$	-	$	347		$	808		$	614		$	400		$	8,045		$	10,214
(1) These bonds, due in 2016-2026, are backed by a direct-pay letter of credit which expires on October 29, 2011. The bonds will be subject to a mandatory redemption unless the letter of credit is extended or replaced or the issuer consents to the continuation of these series without a credit facility. Accordingly, the bonds have been classified for repayment purposes in 2011.
(2) The $614 million pollution control bonds, due in 2026, are backed by letters of credit which expire on February 24, 2012. The bonds will be subject to a mandatory redemption unless the letters of credit are extended or replaced. Accordingly, the bonds have been classified for repayment purposes in 2012.

ENERGY RECOVERY BONDS (1):	2009		2010	2011		2012	Total
Utility
Average fixed interest rate		4.43%	4.49%		4.59%	4.66%		4.56%
Energy recovery bonds	$	196	$ 386	$	404	$ 423	$	1,409

(1) These bonds were issued by PG&E Energy Recovery Funding LLC (“PERF”), a wholly owned consolidated subsidiary of Pacific Gas and Electric Company.  The proceeds were used by PERF to purchase from Pacific Gas and Electric Company the right, known as "recovery property," to be paid a specified amount from a dedicated rate component.  While PERF is a wholly owned subsidiary of Pacific Gas and Electric Company, it is legally separate from Pacific Gas and Electric Company.  The assets, including recovery property, of PERF are not available to creditors of PG&E Corporation or Pacific Gas and Electric Company, and recovery property is not legally an asset of PG&E Corporation or Pacific Gas and Electric Company.

Source:  PG&E Corporation and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company’s combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

Table 15: Pacific Gas and Electric Company

Docket Numbers of Selected Regulatory Cases

Name Brief Description Docket Number

Cost of Capital 2008	CPUC proceeding to establish capital structure and cost of capital for the California investor-owned electric utilities.  The CPUC issued a final decision on December 20, 2007, maintaining the Utility’s authorized return on equity (“ROE”) at 11.35% and its common equity ratio at 52%.	A.07-05-008 D.07-12-049
Three-Year Cost of Capital Mechanism	On May 29, 2008, the CPUC adopted a uniform three-year cost of capital mechanism to replace the annual cost of capital proceeding.  The Utility’s cost of capital, including an 11.35% ROE, is set until 2011 and will be changed before 2011 only if the annual automatic adjustment mechanism established by the CPUC is triggered.	D.08-05-035
Proposed Electric Distribution Reliability Program (Cornerstone Improvement Program)	The Utility has requested the CPUC to authorize $2.1 billion in capital expenditures and operating and maintenance expense associated with the Utility’s proposed electric distribution reliability program over a six-year period beginning in 2010 through 2016.  The requested amounts are incremental to amounts previously authorized for recovery in the 2007 General Rate Case and are incremental to amounts the Utility intends to request in its 2011 General Rate Case. Hearings have been scheduled to begin in August 2009 with a final decision scheduled to be issued in January 2010.	A.08-05-023
SmartGrid Order Instituting Rulemaking	CPUC proceeding to consider the development of SmartGrid technologies in California.	R.08-12-009
Energy Efficiency Order Instituting Rulemaking  Post-2005	CPUC proceeding to establish incentive ratemaking mechanisms for implementation of the utilities’ energy efficiency programs and to resolve the utilities’ claims for 2006-2008 shareholder incentives.   On May 21, 2009, the CPUC was asked to approve a proposed settlement agreement that would resolve the utilities’ incentive claims based on 2006-2008 program performance.  A CPUC decision is expected by December 2009.	R.09-01-019 D.08-12-059
Photovoltaic Program	The Utility has requested the CPUC to approve a proposal to develop up to 250 MW of Utility-owned renewable generation resources based on solar photovoltaic (“PV”) technology and to execute power purchase agreements for up to 250 MW of PV projects to be developed by independent power producers.	A.09-02-019
Retirement Plan Contribution Application	The Utility requested the CPUC approve a ratemaking mechanism to annually adjust gas and electric revenue requirements beginning in 2011 (outside of the 2011 General Rate Case) to ensure timely recovery of contributions to the Utility’s retirement plan. On July 31, 2009, the Utility and other parties requested the CPUC to approve an all-party settlement that would provide fixed pension-related revenue requirements for 2011, 2012 and 2013.	A.09-03-003

Table 15 (continued): Pacific Gas and Electric Company

Docket Numbers of Selected Regulatory Cases

Name Brief Description Docket Number

SmartMeterTM Program Upgrade Application	On March 12, 2009, the CPUC approved the Utility’s request to upgrade elements of the SmartMeterTM program and to recover additional costs of $466.8 million related to the upgrade program.	A.07-12-009 D.09-03-026
Request for New Generation Offers and Potential New Utility-Owned Generation	The Utility has developed a shortlist of participants who responded to the Utility’s request for offers solicitation for 800 to 1,200 megawatts of dispatchable and operationally flexible new generation resources to be on-line no later than May 2015.  The Utility anticipates executing contracts and requesting CPUC approval of the executed contracts in the second half of 2009.	R.06-02-013 A.09-04-001
Application to Recover Hydroelectric Generation Facility Divestiture Costs	On April 16, 2009, the CPUC authorized the Utilityto recover approximately $47 million, including approximately $12 million of interest, of costs incurred in connection with the Utility’s efforts to determine the market value of its hydroelectric generation facilities in 2000 and 2001.	A.08-04-022 D.09-04-033
Transmission Owner 11 Rate Case	On June 18, 2009, the FERC approved the settlement in the Utility’s Transmission Owner (“TO”) 11 rate case that set a retail base transmission revenue requirement of $776 million, effective March 1, 2009.	ER08-1318-000
Transmission Owner 12 Rate Case	On July 30, 2009, the Utility filed its TO 12 rate case at the FERC, requesting a retail transmission revenue requirement of $946 million, with rates likely to be effective March 1, 2010. A final decision is expected in the second or third quarter of 2010.	ER09-1521-000
2011 General Rate Case	On July 20, 2009, the Utility submitted to the CPUC’s Division of Ratepayer Advocates a draft of the Utility’s 2011 General Rate Case (“GRC”) application along with a notice indicating that the Utility intends to file the application by December 1, 2009.  In the 2011 GRC, the CPUC will determine the amount of base revenues that the Utility may collect in rates to recover costs for the Utility’s gas and electric distribution and electric generation operations for the period from 2011 to 2013. A CPUC decision is expected to be issued by the end of 2010.	Application to be filed in December 2009

Discussion of these regulatory cases is included in PG&E Corporation and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, and PG&E Corporation and Pacific Gas and Electric Company’s combined Annual Report on Form 10-K for the year ended December 31, 2008.

Table 16: PG&E Corporation

Condensed Consolidated Statements of Income

(in millions, except per share amounts)

PG&E CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
	(Unaudited)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2009			2008			2009			2008
Operating Revenues
Electric	$	2,554		$	2,645		$	4,980		$	5,159
Natural gas		640			933			1,645			2,152
Total operating revenues		3,194			3,578			6,625			7,311
Operating Expenses
Cost of electricity		883			1,097			1,766			2,124
Cost of natural gas		188			487			745			1,262
Operating and maintenance		1,038			991			2,097			2,027
Depreciation, amortization, and decommissioning		429			419			848			821
Total operating expenses		2,538			2,994			5,456			6,234
Operating Income		656			584			1,169			1,077
Interest income		17			33			26			59
Interest expense		(178	)		(185	)		(359	)		(372	)
Other income, net		22			5			40			10
Income Before Income Taxes		517			437			876			774
Income tax provision		125			140			240			250
Net Income		392			297			636			524
Preferred stock dividend requirement of subsidiary		4			4			7			7
Income Available for Common Shareholders	$	388		$	293		$	629		$	517
Weighted Average Common Shares Outstanding, Basic		368			356			366			355
Weighted Average Common Shares Outstanding, Diluted		369			357			367			356
Net Earnings Per Common Share, Basic	$	1.03		$	0.80		$	1.68		$	1.42
Net Earnings Per Common Share, Diluted	$	1.02		$	0.80		$	1.67		$	1.42
Dividends Declared Per Common Share	$	0.42		$	0.39		$	0.84		$	0.78

Source:  PG&E Corporation and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

Table 17: PG&E Corporation

Condensed Consolidated Balance Sheets

(in millions)

	(Unaudited)
	Balance At
	June 30, 2009			December 31, 2008
ASSETS
Current Assets
Cash and cash equivalents	$	338		$	219
Restricted cash		1,285			1,290
Accounts receivable:
Customers (net of allowance for doubtful accounts of $77 million in 2009 and $76 million in 2008)		1,481			1,751
Accrued unbilled revenue		757			685
Regulatory balancing accounts		1,304			1,197
Inventories:
Gas stored underground and fuel oil		107			232
Materials and supplies		204			191
Income taxes receivable		171			120
Prepaid expenses and other		781			718
Total current assets		6,428			6,403
Property, Plant, and Equipment
Electric		29,580			27,638
Gas		10,387			10,155
Construction work in progress		1,523			2,023
Other		13			17
Total property, plant, and equipment		41,503			39,833
Accumulated depreciation		(13,904	)		(13,572	)
Net property, plant, and equipment		27,599			26,261
Other Noncurrent Assets
Regulatory assets		5,969			5,996
Nuclear decommissioning funds		1,740			1,718
Other		461			482
Total other noncurrent assets		8,170			8,196
TOTAL ASSETS	$	42,197		$	40,860

Source:  PG&E Corporation and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

Table 17 (continued): PG&E Corporation

Condensed Consolidated Balance Sheets

(in millions, except share amounts)

	(Unaudited)
	Balance At
	June 30, 2009			December 31, 2008
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings	$	743		$	287
Long-term debt, classified as current		252			600
Energy recovery bonds, classified as current		378			370
Accounts payable:
Trade creditors		863			1,096
Disputed claims and customer refunds		1,552			1,580
Regulatory balancing accounts		611			730
Other		367			343
Interest payable		842			802
Deferred income taxes		424			251
Other		1,400			1,567
Total current liabilities		7,432			7,626
Noncurrent Liabilities
Long-term debt		9,933			9,321
Energy recovery bonds		1,031			1,213
Regulatory liabilities		3,838			3,657
Pension and other postretirement benefits		2,177			2,088
Asset retirement obligations		1,539			1,684
Income taxes payable		9			35
Deferred income taxes		3,816			3,397
Deferred tax credits		91			94
Other		2,133			2,116
Total noncurrent liabilities		24,567			23,605
Commitments and Contingencies
Equity
Shareholders’ Equity
Preferred stock, no par value, authorized 80,000,000 shares, $100 par value, authorized 5,000,000 shares, none issued		-			-
Common stock, no par value, authorized 800,000,000 shares, issued 368,841,539 common and 673,491 restricted shares in 2009 and issued 361,059,116 common and 1,287,569 restricted shares in 2008		6,219			5,984
Reinvested earnings		3,934			3,614
Accumulated other comprehensive loss		(207	)		(221	)
Total shareholders’ equity		9,946			9,377
Noncontrolling Interest – Preferred Stock of Subsidiary		252			252
Total equity		10,198			9,629
TOTAL LIABILITIES AND EQUITY	$	42,197		$	40,860

Source:  PG&E Corporation and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

Table 18: PG&E Corporation

Condensed Consolidated Statements of Cash Flows

(in millions)

	(Unaudited)
	Six Months Ended
	June 30,
	2009			2008
Cash Flows from Operating Activities
Net income	$	636		$	524
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and decommissioning		944			902
Allowance for equity funds used during construction		(47	)		(32	)
Deferred income taxes and tax credits, net		377			346
Other changes in noncurrent assets and liabilities		(46	)		493
Effect of changes in operating assets and liabilities:
Accounts receivable		198			(68	)
Inventories		113			(57	)
Accounts payable		(143	)		121
Income taxes receivable/payable		161			21
Regulatory balancing accounts, net		(228	)		(351	)
Other current assets		10			431
Other current liabilities		(224	)		(79	)
Other		3			(3	)
Net cash provided by operating activities		1,754			2,248
Cash Flows from Investing Activities
Capital expenditures		(2,077	)		(1,712	)
Proceeds from sale of assets		5			12
Decrease (increase) in restricted cash		15			(7	)
Proceeds from nuclear decommissioning trust sales		954			636
Purchases of nuclear decommissioning trust investments		(985	)		(665	)
Other		7			-
Net cash used in investing activities		(2,081	)		(1,736	)
Cash Flows from Financing Activities
Net repayments under revolving credit facility		-			(250	)
Net repayments of commercial paper, net of discount of $3 million in 2009 and $2 million in 2008		(47	)		(114	)
Proceeds from issuance of short-term debt, net of issuance costs of $1 million in 2009		499			-
Proceeds from issuance of long-term debt, net of premium, discount, and issuance costs of $16 million in 2009 and $2 million in 2008		884			598
Long-term debt matured or repurchased		(600	)		(454	)
Energy recovery bonds matured		(174	)		(165	)
Common stock issued		182			82
Common stock dividends paid		(286	)		(267	)
Other		(12	)		10
Net cash provided by (used in) financing activities		446			(560	)
Net change in cash and cash equivalents		119			(48	)
Cash and cash equivalents at January 1		219			345
Cash and cash equivalents at June 30	$	338		$	297

Table 18 (continued): PG&E Corporation

Condensed Consolidated Statements of Cash Flows

(in millions)

Supplemental disclosures of cash flow information
Cash received (paid) for:
Interest, net of amounts capitalized	$	(298	)	$	(260	)
Income taxes, net		201			60
Supplemental disclosures of noncash investing and financing activities
Common stock dividends declared but not yet paid	$	155		$	140
Capital expenditures financed through accounts payable		245			180
Noncash common stock issuances		39			6

Source:  PG&E Corporation and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

Table 19: Pacific Gas and Electric Company

Condensed Consolidated Statements of Income

(in millions)

	(Unaudited)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2009			2008			2009			2008
Operating Revenues
Electric	$	2,554		$	2,645		$	4,980		$	5,159
Natural gas		640			933			1,645			2,152
Total operating revenues		3,194			3,578			6,625			7,311
Operating Expenses
Cost of electricity		883			1,097			1,766			2,124
Cost of natural gas		188			487			745			1,262
Operating and maintenance		1,037			991			2,096			2,027
Depreciation, amortization, and decommissioning		429			418			848			820
Total operating expenses		2,537			2,993			5,455			6,233
Operating Income		657			585			1,170			1,078
Interest income		17			33			26			57
Interest expense		(166	)		(178	)		(339	)		(358	)
Other income, net		15			7			36			26
Income Before Income Taxes		523			447			893			803
Income tax provision		132			134			263			254
Net Income		391			313			630			549
Preferred stock dividend requirement		4			4			7			7
Income Available for Common Stock	$	387		$	309		$	623		$	542

Source:  PG&E Corporation and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

Table 20: Pacific Gas and Electric Company

Condensed Consolidated Balance Sheets

(in millions)

	(Unaudited)
	Balance At
	June 30, 2009			December 31, 2008
ASSETS
Current Assets
Cash and cash equivalents	$	158		$	52
Restricted cash		1,285			1,290
Accounts receivable:
Customers (net of allowance for doubtful accounts of $77 million in 2009 and $76 million in 2008)		1,481			1,751
Accrued unbilled revenue		757			685
Related parties		1			2
Regulatory balancing accounts		1,304			1,197
Inventories:
Gas stored underground and fuel oil		107			232
Materials and supplies		204			191
Income taxes receivable		120			25
Prepaid expenses and other		775			705
Total current assets		6,192			6,130
Property, Plant, and Equipment
Electric		29,580			27,638
Gas		10,387			10,155
Construction work in progress		1,523			2,023
Total property, plant, and equipment		41,490			39,816
Accumulated depreciation		(13,893	)		(13,557	)
Net property, plant, and equipment		27,597			26,259
Other Noncurrent Assets
Regulatory assets		5,969			5,996
Nuclear decommissioning funds		1,740			1,718
Related parties receivable		26			27
Income taxes receivable		18			-
Other		382			407
Total other noncurrent assets		8,135			8,148
TOTAL ASSETS	$	41,924		$	40,537

Source:  PG&E Corporation and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

Table 20 (continued): Pacific Gas and Electric Company

Condensed Consolidated Balance Sheets

(in millions, except share amounts)

	(Unaudited)
	Balance At
	June 30, 2009			December 31, 2008
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Short-term borrowings	$	743		$	287
Long-term debt, classified as current		-			600
Energy recovery bonds, classified as current		378			370
Accounts payable:
Trade creditors		863			1,096
Disputed claims and customer refunds		1,552			1,580
Related parties		11			25
Regulatory balancing accounts		611			730
Other		366			325
Interest payable		836			802
Income tax payable		-			53
Deferred income taxes		430			257
Other		1,201			1,371
Total current liabilities		6,991			7,496
Noncurrent Liabilities
Long-term debt		9,585			9,041
Energy recovery bonds		1,031			1,213
Regulatory liabilities		3,838			3,657
Pension and other postretirement benefits		2,127			2,040
Asset retirement obligations		1,539			1,684
Income taxes payable		3			12
Deferred income taxes		3,859			3,449
Deferred tax credits		91			94
Other		2,093			2,064
Total noncurrent liabilities		24,166			23,254
Commitments and Contingencies
Shareholders’ Equity
Preferred stock without mandatory redemption provisions:
Nonredeemable, 5.00% to 6.00%, outstanding 5,784,825 shares		145			145
Redeemable, 4.36% to 5.00%, outstanding 4,534,958 shares		113			113
Common stock, $5 par value, authorized 800,000,000 shares, issued 264,374,809 shares in 2009 and 2008		1,322			1,322
Additional paid-in capital		2,986			2,331
Reinvested earnings		6,403			6,092
Accumulated other comprehensive loss		(202	)		(216	)
Total shareholders’ equity		10,767			9,787
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	41,924		$	40,537

Source:  PG&E Corporation and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.

Table 21: Pacific Gas and Electric Company

Condensed Consolidated Statements of Cash Flows

(in millions)

	(Unaudited)
	Six Months Ended
	June 30,
	2009			2008
Cash Flows from Operating Activities
Net income	$	630		$	549
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and decommissioning		932			902
Allowance for equity funds used during construction		(47	)		(32	)
Deferred income taxes and tax credits, net		368			316
Other changes in noncurrent assets and liabilities		(34	)		480
Effect of changes in operating assets and liabilities:
Accounts receivable		199			(66	)
Inventories		113			(57	)
Accounts payable		(140	)		123
Income taxes receivable/payable		64			57
Regulatory balancing accounts, net		(228	)		(351	)
Other current assets		10			429
Other current liabilities		(220	)		(73	)
Other		3			(3	)
Net cash provided by operating activities		1,650			2,274
Cash Flows from Investing Activities
Capital expenditures		(2,077	)		(1,712	)
Proceeds from sale of assets		5			12
Decrease (increase) in restricted cash		15			(7	)
Proceeds from nuclear decommissioning trust sales		954			636
Purchases of nuclear decommissioning trust investments		(985	)		(665	)
Net cash used in investing activities		(2,088	)		(1,736	)
Cash Flows from Financing Activities
Net repayments under revolving credit facility		-			(250	)
Net repayments of commercial paper, net of discount of $3 million in 2009 and $2 million in 2008		(47	)		(114	)
Proceeds from issuance of short-term debt, net of issuance costs of $1 million in 2009		499			-
Proceeds from issuance of long-term debt, net of premium, discount, and issuance costs of $12 million in 2009 and $2 million in 2008		538			598
Long-term debt matured or repurchased		(600	)		(454	)
Energy recovery bonds matured		(174	)		(165	)
Preferred stock dividends paid		(7	)		(7	)
Common stock dividends paid		(312	)		(284	)
Equity contribution		653			50
Other		(6	)		16
Net cash provided by (used in) financing activities		544			(610	)
Net change in cash and cash equivalents		106			(72	)
Cash and cash equivalents at January 1		52			141
Cash and cash equivalents at June 30	$	158		$	69

Table 21 (continued): Pacific Gas and Electric Company

Condensed Consolidated Statements of Cash Flows

(in millions)

Supplemental disclosures of cash flow information
Cash received (paid) for:
Interest, net of amounts capitalized	$	(286	)	$	(246	)
Income taxes, net		70			60
Supplemental disclosures of noncash investing and financing activities
Capital expenditures financed through accounts payable	$	245		$	180

Source:  PG&E Corporation and Pacific Gas and Electric Company’s Condensed Consolidated Financial Statements and Notes thereto included in PG&E Corporation and Pacific Gas and Electric Company's combined Quarterly Report on Form 10-Q for the quarter ended June 30, 2009.