Exhibit 99

PG&E Corporation:

Strategic Value Creation

Edison Electric Institute International Utility Conference

London Hilton on Park Lane, London, UK

March 4 – March 7, 2007

2

Cautionary Statement Regarding Forward-Looking

Information

3

Discussion Outline

•

PG&E Company Overview

•

Value Creation Strategy

•

Climate Change Profile

Electric and gas distribution customers	5.1 MM electric 4.2 MM gas
Electric transmission circuits	18,640 miles (29,880 kilometers)
Gas transmission backbone	6,138 miles (9,839 kilometers)
Electric generation capacity	6,271 MW
Workforce	20,400 employees

4

Pacific Gas and Electric Company (PG&E)

•

Provides energy to nearly 1 in 20 people in the United States

•

70,000 square-mile (112,000 square-kilometer) service territory

•

2007 projected rate base of $17.3 B

We act with integrity and communicate honestly and openly.

We are passionate about meeting our customers’ needs

and delivering for our shareholders.

We are accountable for all of our own actions: these include

safety, protecting the environment, and supporting our communities.

We work together as a team and are committed to excellence and innovation.

We respect each other and celebrate our diversity.

The

leading
utility in the
United States

  Delighted   Energized   Rewarded

   customers  employees  shareholders

Our values

Operational excellence

Transformation

Our strategies

Our goals

Our vision

5

Strategic Direction

6

PG&E’s Business Priorities 2006-2010

1.     Advance business transformation

2.     Provide attractive shareholder returns

3.     Increase utility infrastructure investment

4.     Implement effective energy procurement plan

5.     Improve reputation through effective

communications

6.     Evaluate the evolving industry for related investment

opportunities

7

Value Creation Strategy

•

Solid Regulated Growth

•

Business Transformation

•

Environmental Leadership

­

Nationally-recognized energy efficiency programs

         -

­

         -

Growing renewable resource portfolio

­

         -

Clean conventional generation additions

­

Helping to shape California and U.S. greenhouse gas

legislation

         -

*    CPUC jurisdictional equity ratio is mandated by the Bankruptcy Settlement until PG&E achieves an A- rating or its equivalent from S&P or

Moody’s.

**   The remainder of rate base is FERC jurisdictional – with a targeted 12% ROE.

8

Solid Regulated Growth

•

Regulated Earnings Drivers:

­

Authorized equity ratio: 52%; Authorized ROE: 11.35% (CPUC)*

­

Projected 2007 total rate base: $17.3 B (CPUC ~85% of rate base)**

•

Regulatory Environment

­

Forward-looking approvals for revenue and cost recovery

­

“Decoupling” of sales levels and revenue requirement collection

­

 Pass-through for energy procurement cost differences from revenue requirements

•

2006 Rate Base Levels (CPUC jurisdictional unless indicated):

­

Electric and gas distribution:  $10.3 B 

­

Electric procurement and owned generation:   $1.8 B 

­

Natural gas transmission:  $1.5 B

­

Electric transmission:  $2.3 B (FERC regulated)

•

Credit Ratings

­

Utility issuer rating:  BBB (S&P) and Baa1 (Moody’s)

­

Utility unsecured debt:  BBB (S&P) and Baa1 (Moody’s)

Proceeding	Status
2007 GRC Settlement	• Final decision after March 15, 2007
2007 Renewable Energy Solicitation	• RPS solicitation filed March 12, 2007 • Expect contracts executed by 2007 year end
2006 Long-Term Procurement (Electric resource needs beyond 2011)	• L-T Plan filed in December 2006 • Final decision expected mid-2007 or later
FERC TO9 (2008 electric transmission rates)	• Settlement filed February 2007 • Final decision expected May 2007
Gas Accord III (Post-2007 gas transmission and  storage rates)	• Filing expected March 15, 2007 • Final decision expected 2007 year end

9

Key Regulatory Proceedings

4,714

4,927

5,052

5,212

5,302

10

2007 GRC Proposed Settlement:

Distribution and Generation

*Reg G reconciliation to GAAP for 2005 and 2006 EPS from Operations, and 2007 EPS Guidance available in

Appendix and at www.pge-corp.com

$2.70-2.80

11

EPS Guidance and Growth

EPS from Operations*:     2007 guidance of $2.70-$2.80 per share

5-Year projected EPS growth of at least 7.5%

Year	Gross Costs	Gross Benefits	Percentage
2006	$265 MM	$175 MM	65%
2005	$125 MM	$20 M	15%

•

2006 benefits result from initiatives that were

implemented in 2005 and 2006

•

44 of 77 planned Transformation initiatives

deployed

•

Net benefits anticipated in 2008 and beyond

12

Business Transformation Progress

Benefits from Transformation are increasingly

offsetting the costs:

13

PG&E Environmental Leadership

Electric Resources “Preferred Loading Order”:

•

Energy Efficiency/Demand-Side Management Programs

•

Renewable Resources

•

Distributed Generation

•

Clean Conventional Generation

Source: California Energy

Commission

Why is California successful?

•

Regulatory policy of “decoupling” sales from revenues to support conservation 

•

Large scale, sustained energy efficiency programs over the past 30 years

•

Highly effective building codes and standards programs

14

Per Capita Electricity Consumption

Energy Efficiency Savings:   Past and Future

MW Savings: Historic & Target

15

•

Renewable Portfolio Standard target is 20% by 2010

•

For 2006, PG&E is currently at 12% RPS deliveries, or 16%-18% including all signed

contracts*

•

1% of load = 730 GWh

*  Assumes all signed contracts perform.

16

PG&E’s Renewable Resource Procurement

*   Approximately 12% of total retail sales are supplied by eligible renewable resources coming from utility-owned, QF,

Irrigation District, and other sources.  Other generation includes diesel fuel and petroleum coke (charcoal)

2006 Energy Portfolio *

17

PG&E: Existing Resource Mix

Note:  Construction costs for the utility-owned generation are estimated to be in the range of $900 – 1,100 per KW.

18

2006 Long-Term RFO Contract Approvals

2004 CO₂Emissions and Emission Rates*

Source: Natural Resources Defense Council and Innovest

*   Comparison companies selected by Innovest.  Data include emissions of regulated and unregulated

plants. 2004 is the most recent data available.

19

Relative Generation CO₂ Emissions Rates

20

PCG: Investment Conclusion

ü

Delivering solid regulated returns with upside

ü

Well positioned for the future

­

Focused on operational excellence and the customer

­

Leader in energy efficiency and energy policy

­

Helping to shape future legislation/regulation

Appendix

•

Business Profile

•

Ratemaking Framework

•

Reg G Reconciliations

22

Electric Sales Outlook

Average Electric Sales Growth of Approx. 1% Per Yr.

23

Gas Sales Outlook

Average Gas Sales Growth of Approx. 1% Per Yr.

Gas Customers: 4.2 Million

(836 bcf delivered)

Electric Customers: 5.1 Million

(84,310 GWH delivered)

Commercial

40%

Residential

37%

Industrial

18%

Agricultural

& Other

5%

24

2006 PG&E Customer Profiles – % by Sales

^*   Authorized revenues = operating costs + (rate of return x rate base)

    Rate base = net plant ± adjustments to approximate invested capital

25

Electric & Gas Distribution

Business Scope

•

Retail electricity and natural gas distribution service (construction,

operations, and maintenance)

•

Customer services (call centers, meter reading, billing)

•

5.1 million electric and 4.2 million gas customer accounts

•

Service territory covers 70,000 square miles and 47 counties

Primary Assets

•

$10.3 billion of rate base (2006 wtd. avg.)

Revenues/Margins

•

Cost of service ratemaking*   

•

Formulaic attrition revenue increases (through 2006)

•

Revenues stabilized by sales balancing accounts

Business Scope

•

Wholesale electric transmission services (construction,

maintenance)

•

Operation by CA Independent System Operator

Primary Assets 

•

$2.3 billion of rate base (2006 wtd. avg.)

Revenues/Margins

•

Federally regulated (FERC)

•

Cost of service ratemaking

•

Significant growth in rate base

•

Revenues vary with system load

transmission lines

18,640 circuit miles

of electric

Electric Transmission

26

6,138 miles of backbone transportation import capacity

of 2.0 bcf/day Canadian gas,
1.1 bcf/day Southwest gas

•

•

Three storage facilities with 42.0 bcf cycle capacity

Malin

, OR

Topock

Burney

Tionesta

Gerber

Delevan

Bethany

Panoche

Kettleman

Kern River Station

Hinkley

C

C

C

C

S

C

S

Los

Medanos

McDonald Island

Milpitas

C

C

C

Antioch

Malin

, OR

Topock

Burney

Tionesta

Gerber

Delevan

Bethany

Panoche

Kettleman

Kern River Station

Hinkley

C

C

C

C

C

C

C

C

S

S

C

C

S

S

Los

Medanos

McDonald Island

Milpitas

C

C

C

C

C

C

Antioch

27

Natural Gas Transmission

Gas Transmission Business Scope

•

Natural gas transportation, storage, parking and lending services

•

C

businesses, industrial customers, California electric generators, and
marketers

ustomers: PG&E’s natural gas distribution and electric generation

Primary Assets

•

$1.5 billion of rate base (2006 wtd. avg.)

Revenues/Margins

•

State-regulated (CPUC)

•

Incentive ratemaking framework (Gas Accord)

•

Revenues vary with throughput

Helms

Pumped
Storage

Humboldt

Diablo Canyon

Nuclear Plant

Conventional

Hydroelectric
facilities

28

Electric Procurement and Owned Generation

Business Scope

•

Electricity and ancillary services from owned/controlled

resources

•

Energy procurement program

Primary Assets

•

Diablo Canyon nuclear power plant (2,240 MW)

•

Largest privately owned hydro system (3,896 MW)

•

$1.8 billion rate base (2006 wtd. avg.)

•

Funded nuclear plant decommissioning trusts of $1.6 billion

Revenues/Margins

•

Cost of service ratemaking for utility owned generation

•

Power procurement cost recovery in place

•

More than 2,700 MW of new generation to be owned/contracted by 2010

Balancing Accounts           = • Cost of procuring energy • Sales volume • Selected other elements of operating costs such as energy conservation programs

Ratemaking     =                        Projected Test Year

w/ Attrition adjustments

Rate Base       = Net Plant (in service) -  deferred taxes from accelerated depreciation +/-  net working capital (may exclude many balance sheet assets or liabilities)

29

Ratemaking Summary

30

2005 and 2006 EPS - Reg G Reconciliation

31

2007 EPS Guidance - Reg G Reconciliation

*  Rate Reduction Bonds are fully retired at the end of 2007.   

   Carrying cost credit is a reduction to utility earnings (e.g. average rate base x equity ratio x ROE). 

   Estimated carrying cost credits assume a utility equity ratio of 52% and ROE at 11.35%.

	2006	2007	2008	2009	2010	2011	2012
Rate Reduction Bond and Energy Recovery Bond Average Deferred Tax Balance	$1,125	$878	$683	$542	$396	$242	$82
Estimated Carrying Cost Credit *	($66)	($52)	($40)	($32)	($23)	($14)	($5)

Estimated Average Deferred Tax Balances and Carrying Cost Credit Impacts ($MM)

32

Carrying Cost Credit Impacts