9-03-03 Form 8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: September 3, 2003


Commission File Number	Exact Name of Registrant as specified in its charter	State or other Jurisdiction of Incorporation	IRS Employer Identification Number
_____________	_____________	_____________	_____________
1-12609 1-2348	PG&E Corporation Pacific Gas and Electric Company	California California	94-3234914 94-0742640

Pacific Gas and Electric Company 77 Beale Street, P. O. Box 770000 San Francisco, California 94177		PG&E Corporation One Market, Spear Tower, Suite 2400 San Francisco, California 94105

(Address of principal executive offices) (Zip Code)

Pacific Gas and Electric Company (415) 973-7000		PG&E Corporation (415) 267-7000

(Registrant's telephone number, including area code)

Item 5. Settlement Conference in 2003 General Rate Case Proceeding

On September 2, 2003, Pacific Gas and Electric Company (Utility), a subsidiary of PG&E Corporation, served a notice of a confidential settlement conference to all parties participating in the Utility’s 2003 General Rate Case (GRC) proceeding. The Utility has reached an agreement in principle with The Utility Reform Network, the California Public Utilities Commission’s (CPUC) Office of Ratepayer Advocates, and Aglet Consumer Alliance, regarding most disputed economic issues in the revenue requirement phase of the 2003 GRC proceeding. The settlement conference is scheduled to occur on September 9, 2003. CPUC rules require the Utility to convene at least one all-party conference before signing a settlement agreement. The rules also preclude the Utility from discussing further details of the proposed settlement without the consent of the parties until a settlement agreement is signed and filed with the CPUC. After a settlement agreement is submitted to the CPUC for approval, there is a 45-day comment period. Depending on the comments submitted, a hearing may be held regarding the settlement. It is anticipated that a signed settlement agreement will be submitted to the CPUC, along with a motion seeking approval of the settlement agreement, shortly after the September 9, 2003 settlement conference. The CPUC may accept or reject the proposed settlement. PG&E Corporation and the Utility are unable to predict the outcome of this matter.

Item 9. Regulation FD Disclosure

The information included in this Current Report on Form 8-K, including portions of the Utility’s monthly operating report for the month ended July 31, 2003 filed with the U.S. Bankruptcy Court for the Northern District of California (Bankruptcy Court) attached hereto as an exhibit, is being furnished, not filed, pursuant to Item 9 of Form 8-K.

On September 2, 2003, the Utility filed its monthly operating report for the month ended July 31, 2003 with the Bankruptcy Court, as required by Section 704(8) of the U.S. Bankruptcy Code and Rule 2015 of the Federal Rules of Bankruptcy Procedure and prepared in accordance with U.S. Trustee Guidelines Region 17. The Utility's monthly operating report includes an unaudited income statement for the month and an unaudited balance sheet dated as of the end of the month. These unaudited financial statements are attached as an exhibit to this report. Although not included in the exhibit attached to this report, the monthly operating report filed with the Bankruptcy Court also includes a statement of receipts and disbursements, as well as other information. The preliminary financial statements were prepared using certain assumptions and estimates that are subject to revision. Any adjustments for these estimates (based upon changes in facts and circumstances, further analysis, and other factors) will be reflected in the financial statements in the period during which such adjustments are made. These adjustments could have a material impact on reported results in the future.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

	PG&E CORPORATION
	By: LINDA Y.H. CHENG

	LINDA Y.H. CHENG Corporate Secretary

	PACIFIC GAS AND ELECTRIC COMPANY
	By: LINDA Y.H. CHENG

	LINDA Y.H. CHENG Corporate Secretary

Dated: September 3, 2003

Exhibit Index

Exhibit 1:

Pacific Gas and Electric Company Income Statement for the month ended July 31, 2003, and Balance Sheet dated July 31, 2003

Exhibit 1

PACIFIC GAS AND ELECTRIC COMPANY
U.S. TRUSTEE BALANCE SHEET
AS OF JULY 31, 2003
(in millions, except share amounts)

			July, 2003
ASSETS
Current Assets
	Cash and cash equivalents		$ 4,010
	Accounts receivable:
		Customers (net of allowance for doubtful accounts of $61 million)	1,757
		Related parties	37
		Regulatory balancing accounts	161
	Inventories:
		Gas stored underground and fuel oil	235
		Materials and supplies	123
	Income taxes receivable		- -
	Prepaid expenses and other		64
	Assets from price risk management		11
	Total current assets		6,398

Property, Plant, and Equipment
	Electric		20,120
	Gas		8,220
	Construction work in progress		310
	Total property, plant, and equipment (at original cost)		28,650
	Accumulated depreciation and decommissioning		(12,687)
Net property, plant, and equipment			15,963

Other Noncurrent Assets
	Regulatory assets		1,886
	Nuclear decommissioning trust funds		1,414
	Other		1,021
	Total other noncurrent assets		4,321
TOTAL ASSETS			$ 26,682

LIABILITIES AND EQUITY
Liabilities
	Accounts payable
		Trade creditors	412
		Related parties	195
		Regulatory Balancing Accounts	174
		Other	317
	Accrued taxes		253
	Rate reduction bonds		1,255
	QUID's		- -
	Deferred income taxes		1,520
	Deferred tax credits		134
	Asset retirement obligations		1,403
	Pre-petition secured debt		3,056
	Pre-petition liabilities		3,909
	Pre-petition financing debt		5,639
	Other liabilities		3,208
	Total liabilities		21,475

Preferred Stock With Mandatory Redemption Provisions			137

Stockholders' Equity
	Preferred stock without mandatory redemption provisions
		Nonredeemable--5% to 6%, outstanding 5,784,825 shares	145
		Redeemable--4.36% to 7.04%, outstanding 5,973,456 shares	149
	Common stock, $5 par value, authorized 800,000,000 shares;
		issued 321,314,760 shares	1,606
	Additional paid in capital		1,964
	Reinvested earnings (Accumulated deficit)		1,266
	Accumulated other comprehnsive loss		(60)
	Total stockholders' equity		5,070

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$ 26,682

PACIFIC GAS AND ELECTRIC COMPANY
U.S. TRUSTEE BALANCE SHEET
AS OF JULY 31, 2003


Notes

1		These unaudited financial statements are prepared for the U.S. Trustee and differ from the requirements of generally accepted accounting principles in that they exclude certain financial statements (statements of cash flows, stockholders equity, and other comprehensive income), relevant footnotes and certain reclassifications.

2		These unaudited financial statements were prepared using certain assumptions and estimates. These assumptions and estimates are subject to revision. Further, the amounts shown in this statement, when reported on a quarterly basis, may differ materially due to adjustments in accruals, changes in facts and circumstances, changes in estimates, further analysis, and other factors.

3		Cash and cash equivalents have been reduced for uncleared checks. On the balance sheet included with the Utility's Annual Report, Form 10-K and 10-Q, uncleared checks are treated as an accounts payable liability.

PACIFIC GAS AND ELECTRIC COMPANY
U.S. TRUSTEE INCOME STATEMENT
FOR THE MONTH ENDED JULY 31, 2003
AND THE TWENTY-EIGHT MONTHS ENDED JULY 31, 2003
(in millions)
		Case to date
	Month	twenty-eight months
	ended	ended
	July 31, 2003	July 31, 2003
OPERATING REVENUES	$ 1,089	$ 24,292

OPERATING EXPENSES:
Cost of Electric Energy	222	3,270
Cost of Gas	64	2,772
Operating and Maintenance	233	6,532
Depreciation, Decommissioning, and Amortization	111	2,578
Total Operating Expenses	630	15,152

OPERATING INCOME (LOSS)	459	9,140

Interest Income (Expense)	(70)	(2,059)
Professional Fees	(1)	(72)
Other Income and (Expense)	1	4

PRE-TAX INCOME (LOSS)	389	7,013

Income Taxes	154	2,677

EARNINGS (LOSS)	235	4,336

Preferred Dividend Requirement	2	58
Cumulative Effect of Change in Accounting Principle	- -	1

EARNINGS (LOSS) AVAILABLE FOR (ALLOCATED TO) COMMON STOCK	$ 233	$ 4,277

PACIFIC GAS AND ELECTRIC COMPANY
U.S. TRUSTEE INCOME STATEMENT
FOR THE MONTH ENDED JULY 31, 2003
AND THE TWENTY-EIGHT MONTHS ENDED JULY 31, 2003


Notes

1		These unaudited financial statements are prepared for the U.S. Trustee and differ from the requirements of generally accepted accounting principles in that they exclude certain financial statements (statements of cash flows, stockholders equity, and other comprehensive income), relevant footnotes and certain reclassifications.

2		These unaudited financial statements were prepared using certain assumptions and estimates. These assumptions and estimates are subject to revision. Further, the amounts shown in this statement, when reported on a quarterly basis, may differ materially due to adjustments in accruals, changes in facts and circumstances, changes in estimates, further analysis, and other factors.

		The results for the month of July 2003 are not indicative of future earnings. Future earnings could differ materially.

3		These unaudited financial statements were prepared using certain assumptions and estimates, including the estimated amount payable to the California Department of Water Resources (DWR). The estimated amount recorded is subject to revision and actual results could differ materially. Revenues collected on behalf of the DWR and the related costs are not reflected in these unaudited financial statements as Pacific Gas and Electric Company is a collection agent for the DWR.

4		Case to date results reflect the entire twenty-eight month period ended July 31, 2003. The bankruptcy petition date is April 6, 2001.