8-K

UNITED STATES
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: June 25, 2007 (Date of earliest event reported)
PG&E CORPORATION
(Exact Name of Registrant as specified in Charter)
California	1-12609		94-3234914
(State or other jurisdiction of incorporation)	(Commission File Number)		(IRS Employer Identification No.)
One Market, Spear Tower, Suite 2400, San Francisco, CA		94105
(Address of principal executive offices)		(Zip code)
415-267-7000
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
PACIFIC GAS AND ELECTRIC COMPANY
(Exact Name of Registrant as specified in Charter)
California	1-2348		94-0742640
(State or other jurisdiction of incorporation)	(Commission File Number)		(IRS Employer Identification No.)
77 Beale Street, P. O. Box 770000, San Francisco, California				94177
(Address of principal executive offices)				(Zip code)
(415) 973-7000
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]	Soliciting Material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
[ ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure

The information included in Exhibit 99 is incorporated by reference in response to this Item 7.01, and is deemed to be furnished, not filed, pursuant to Item 7.01 of Form 8-K.

On June 26, 2007, members of PG&E Corporation’s management will participate in meetings with various investment professionals at which the materials attached hereto as Exhibit 99 will be used.  These materials also will be posted on the “Investors” section of PG&E Corporation’s website at www.pge-corp.com. 

Item 9.01 Financial Statements and Exhibits

Exhibits

The following exhibit is being furnished, and is not deemed to be filed:

Exhibit 99 PG&E Corporation materials used in investor discussions held on June 26, 2007

2

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 hereunto duly authorized.

	PG&E CORPORATION
Dated: June 25, 2007	By:	/s/ Linda Y.H. Cheng
		LINDA Y.H. CHENG  Vice President, Corporate Governance  and Corporate Secretary

	PACIFIC GAS AND ELECTRIC COMPANY
Dated: June 25, 2007	By:	/s/ Linda Y.H. Cheng
		LINDA Y.H. CHENG  Vice President, Corporate Governance  and Corporate Secretary

3

EXHIBIT INDEX

No.	Description of Exhibit
Exhibit 99	PG&E Corporation materials used in investor discussions held on June 26, 2007

EX-99

1

Exhibit 99

PG&E Corporation:  

     Preparing For the Future

Christopher P. Johns, CFO

Bank of America

Third Annual Utilities Mini-Conference

June 26, 2007, Los Angeles, CA

2

Cautionary Statement Regarding Forward-Looking
Information

This presentation contains forward-looking statements regarding management’s guidance for PG&E Corporation’s 2007 and 2008 earnings per
share from operations, targeted average annual growth rate for earnings per share from operations, anticipated dividend growth, as well as
management’s projections regarding Pacific Gas and Electric Company’s (Utility) capital expenditures, rate base and rate base growth, future
electricity resources, and energy efficiency funding levels. These statements are based on current expectations and various assumptions which
management believes are reasonable, including that substantial capital investments are made in Utility business over the 2007-2011 period,
Utility rate base averages $17 billion in 2007 and $18.7 billion in 2008, that the Utility earns at least its authorized rate of return on equity, and

that the Utility’s ratemaking capital structure is maintained at 52 percent equity. These statements and assumptions are necessarily subject to
various risks and uncertainties, the realization or resolution of which are outside of management's control. Actual results may differ materially.
Factors that could cause actual results to differ materially include:

§Utility’s ability to timely recover costs through rates; 

§the outcome of regulatory proceedings, including ratemaking proceedings pending at the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission; 

§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; 

§the effect of weather, storms, earthquakes, fires, floods, disease, other natural disasters, explosions, accidents, mechanical breakdowns, acts of terrorism, and other events or hazards that  
           could affect 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 business; 
            
          

§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 Utility’s Diablo Canyon nuclear generating facilities (Diablo Canyon), the occurrence of unplanned outages at  Diablo Canyon, or the temporary or 
          permanent cessation of operations at Diablo Canyon; 

§the ability of the Utility to recognize benefits from its initiatives to improve its business processes and customer service; 

§the ability of the Utility to timely complete its planned capital investment projects; 

§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 California Independent System Operator’s new rules 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 incur costs and liabilities in connection with pending litigation that are not recoverable through rates, from third parties, or through
           insurance recoveries; 

§the ability of PG&E Corporation and/or the Utility to access capital markets and other sources of credit; 

§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, and

§other risks and factors disclosed in PG&E Corporation’s and Pacific Gas and Electric Company’s SEC reports.

3

• PCG is a core utility holding, delivering strong investment
opportunities and low regulatory risk.

• Potential earnings “upsides” in 2008 and beyond are not
included in guidance.

• Emerging growth strategies present additional business
opportunities.

Key Takeaways From Today’s Discussion

4

Business Unit	2006 Rate Base ($B)	Regulation
Electric and gas distribution	$10.3	CPUC
Electric generation	$1.8	CPUC
Gas transmission	$1.5	CPUC
Electric transmission	$2.3	FERC
PCG Total Business	$15.9	85% CPUC/15% FERC

Pacific Gas and Electric Company (PG&E)

•$12.5 B in Revenues 

•$34.8 B in Assets

•5.1 MM Electric/4.2 MM Gas Customers

•$18 B+ Market Capitalization

5

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

PG&E Vision

6

Our Business Strategy
          

•Competitive customer focus

•Operational excellence

•Regulatory alignment

•Environmental leadership

•Community involvement

7

Regulated Business Drivers

•Statewide Energy Strategy

-  California Energy Action Plan

-  Renewable Portfolio Standard

-  AB32 Greenhouse Gas Legislation 

•Constructive Regulatory Environment

-  Decoupling/Balancing Account Treatment

-  Purchased Power and Fuel Costs Pass-Through 

-  Pre-Approved CapEx

8

Core Business Investment Opportunities

•Electric and gas distribution

•Electric transmission 

-   System reliability

-   Growth to reach renewable resources

•Natural gas transmission and storage

•Electric resource requirements

-   Energy efficiency

-   Renewables

-   Conventional generation

9

Capital Expenditures ($MM)

Common Plant

Gas Trans.

Electric Trans.

Generation

Distribution

Chart Key

0

$1,000

$2,000

$3,000

2007

2008

2009

2010

2011

$3,200

$3,200

$2,500

$3,100

$2,200

Capital Expenditure Outlook

10

* Projected 2007-2011 rate base is not adjusted for the impact of the carrying cost credit that primarily results from
the second series of the Energy Recovery Bonds.   Earnings will be reduced by an amount equal to the deferred
tax balance associated with the Energy Recovery Bonds regulatory asset, multiplied by the utility's equity ratio and
by its equity return.  The carrying cost credit declines to zero when the taxes are fully paid in 2012.

Rate Base Growth

11

*Reg G reconciliation to GAAP for 2006 EPS from Operations and 2007 and 2008
 EPS Guidance available in Appendix and at www.pge-corp.com

EPS from Operations*

                                                    8%

EPS from Operations*:	2007 guidance of $2.70-$2.80 per share
	2008 guidance of $2.90-$3.00 per share

EPS Guidance

12

Survey of analyst estimates of EPS growth:

Source:  Thomson IBIS long-term EPS Growth Consensus Estimate Median May 8, 2007

EPS Growth - Comparator Group

EPS from operations annual growth targeted to average 8%
for 2007 - 2011

13

Potential Earnings Upsides

•Transformation benefits

•Energy efficiency incentives

•Additional transmission and generation investments

14

California Energy Policy

PG&E’s resource investment strategy is aligned with
California’s Energy Action Plan “preferred loading order”:

1.Energy Efficiency

2. Demand Response

3. Renewable Resources

4. Distributed Generation

5. Conventional Resources

15

Over the past 30 years, California per capita energy use has remained
relatively flat compared to the 50% increase in U.S. per capita energy use.

Source: California Energy Commission

California’s Success With Energy Efficiency

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1960

1965

1970

1975

1980

1985

1990

1995

2000

US

CA

Western Europe

16

Changing Legislative Environment for GHG

Recent greenhouse gas legislation:

•California global warming legislation enacted in 2006

•Federal legislation expected in 2 to 4 years

PG&E supports:

•Mandatory market-based approach

•Encouraging early action toward goals before full regulatory
implementation

•Recognition of prior actions

•Pursuit of all cost-effective reductions in greenhouse gases

•International cooperation

17

*   Comparison companies selected by Innovest.  Data include emissions of regulated and unregulated plants.
2004 is the most recent data available.

2004 CO2 Emissions and Emission Rates*

Source:  Innovest

Relative CO2 Emissions Rates - Generation

18

Industry Leadership and Emerging Growth

PG&E is looking ahead to the future of utility services

•Clean/renewable fuel technologies

•Smart Energy Web

•Plug-in anywhere technologies

•Sustainable Energy Communities

19

PCG Investment Opportunity Summary 

•First quartile EPS growth

-    Approved infrastructure investment

•Potential upsides

-    Transformation benefits

-    Energy efficiency incentives

-    Additional transmission and generation investment

•New Products and Services

-    Diverse management team with a competitive mindset

-    Record of innovation, well-positioned for industry change

20

Conference Notes

21

Appendix 

Bank of America

Third Annual Utilities Mini-Conference

June 26, 2007, Los Angeles, CA

22

GWh Savings:  Historic and Target

• About half of expected load growth will be met by energy efficiency • PG&E’s budget and goals for 2006-2008:
- Overall energy efficiency budget:	$975 million
- PG&E filled goals:	3,063 GWh; 47 therms

PG&E’s Energy Efficiency Programs 

23

MWs

Demand response impacts expected to double from 2007

Actual and Projected Capacity Savings from Demand Response Programs

Demand Response Programs

24

* 2008 to 2011 estimates are based on forecasted construction schedules and
additional contracted resources

Projected Deliveries Plus Contracts*

2006 deliveries comprised of:

Renewable Portfolio Standard target is 20% by 2010

Renewable Resource Procurement 

25

PPAs Counterparty/Facility	Size (MW)	Target Operational Date	Contract Term (years)
Calpine Hayward	601	2010	10
EIF Firebaugh	399	2009	20
Starwood Firebaugh	118	2009	15
EIF Fresno	196	2009	20
Tierra Energy Hayward	116	2009	20
Total	1,430

Facility	Size (MW)	Status	Target Operational Date	Estimated Capital Costs
Gateway	530	broken ground	2009	$370 million
Humboldt Bay	163	permitting	2009	$239 million
Colusa	657	permitting	2010	$673 million
Total	1,350			$1,282 million

New Generation Resources: Utility-Owned &
Conventional Power Purchase Agreements

26

*Over  20% of total retail sales expected to be eligible renewable resources coming from
utility-owned, QFs, Irrigation Districts, and other sources. 
**May include utility -owned resources.**

* Approximately 13% of total retail sales expected to be eligible renewable resources
coming from utility-owned, QFs, Irrigation Districts and other sources. 

2007 Projected Sources of Energy

85,500 GWh

2012 Projected Sources of Energy

89,900 GWh

•Energy efficiency expected to meet half of future load growth

•Growth in renewable resources and resources with operating flexibility

•Growth in utility ownership

Long-Term Electric Resources

27

• CA State legislation in place

    - Global Warming Solutions Act (AB 32)

    - Emissions Performance Standard for Baseload Generation (SB 1368)

•Potential federal near-term actions

- Expanded incentives for renewable energy

    - Energy efficiency incentives

    - Accelerated depreciation for advanced meters

    - Advanced transportation technology subsidies and tax incentives

• Potential federal longer-term actions

    - Proposed cap and trade programs

Carbon Legislation Landscape

28

	2007	2008	2009	2010	2011	2012
Rate Reduction Bond and Energy Recovery Bond Average Deferred Tax Balance	$854	$683	$542	$396	$243	$82
Estimated After-tax Carrying Cost Credit *	$(50)	$(40)	$(32)	$(23)	$(14)	$(5)
* Reduction Bonds are fully retired at the end of 2007. Estimated carrying cost credits assume a utility equity ratio of 52% and ROE at 11.35%.

Carrying Cost Credit Impacts

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

29

($MM)	2007	2008	2009	2010	2011	2012
Annual ERB Amortization	$340	$354	$369	$386	$404	$423
End-of-year ERB balance	$1,936	$1,582	$1,213	$827	$423	-

ERB Amortization Schedule

30

Credit Profile

•Current Ratings

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

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

•Average Utility Metrics (2007-2011)*

-   S&P Business Profile Rating:  5

-   Total Debt to capitalization (EOY):  53.6%

-   Funds from Operations Cash Interest Coverage:  5.1x

-   Funds from Operations to Average Total Debt:  22%

* Metrics include debt equivalents for long-term power purchase contracts

31

Dividend Policy

•Objectives:

-   Flexibility

-   Sustainability

-   Comparability

•Payout ratio range of 50% - 70%

•Growth balanced with funding for additional investment
opportunities

•Dividend growth is expected to be generally in line with the
growth in EPS from Operations

32

* Earnings per share from operations is a non-GAAP measure.  This non-GAAP measure is used
because it allows investors to compare the core underlying financial performance from one period to
another, exclusive of items that do not reflect the normal course of operations

2006

EPS on an Earnings from Operations Basis*	$2.57
Items Impacting Comparability:
Scheduling Coordinator Cost Recovery Environmental Remediation Liability Recovery of Interest on PX Liability Severance Costs	0.21 (0.05) 0.08 (0.05)
EPS on a GAAP Basis	$2.76

2006 EPS - Reg G Reconciliation

33

2007
	Low	High
EPS Guidance on an Earnings from Operations Basis* Estimated Items Impacting Comparability EPS Guidance on a GAAP Basis	$2.70 0.00 $2.70	$2.80 0.00 $2.80
2008
	Low	High
EPS Guidance on an Earnings from Operations Basis* Estimated Items Impacting Comparability EPS Guidance on a GAAP Basis	$2.90 0.00 $2.90	$3.00 0.00 $3.00
* Earnings per share from operations is a non-GAAP measure. This non-GAAP measure is used because it allows investors to compare the core underlying financial performance from one period to another, exclusive of items that do not reflect the normal course of operations.

EPS Guidance - Reg G Reconciliation