Pacific Gas & Electric (PCG)

Conference Call with the Financial Community to Discuss First Quarter Results:

• Today’s call at 1:00 p.m. Eastern time is open to the public on a listen-only basis via webcast.  Please visit www.pgecorp.com for more information and instructions for accessing the webcast. The call will be archived on the website. Also, a toll-free replay will be accessible shortly after the live call through 9:00 p.m. EDT, on May 11, 2005, by dialing 877-690-2095. International callers may dial 402-220-0650.

This press release and the attachment contain forward-looking statements regarding 2005 and 2006 guidance for earnings from operations per common share for PG&E Corporation that are based on current expectations and assumptions which management believes are reasonable and on information currently available to management.   These statements are necessarily subject to various risks and uncertainties.  In addition to the risk that the assumptions on which the statements are based (including that Pacific Gas and Electric Company (Utility) earns an authorized return on equity of 11.22 percent, the second series of energy recovery bonds is issued in November 2005, and that the Utility makes certain capital expenditures) prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include:

• The timing and resolution of the pending appeals of the California Public Utilities Commission’s (CPUC) approval of the Utility’s Chapter 11 settlement agreement and the bankruptcy court’s confirmation of the Utility’s plan of reorganization;
      
• Unanticipated changes in operating expenses or capital expenditures, which may affect the Utility’s ability to earn its authorized rate of return;
      
• The level and volatility of wholesale electricity and natural gas prices and supplies, the Utility’s ability to manage and respond to the levels and volatility successfully, and the extent to which the Utility is able to timely recover increased costs related to such volatility;
      
• The operation of the Utility’s Diablo Canyon nuclear power plant, which exposes the Utility to potentially significant environmental costs and capital expenditure outlays;
      
• The impact of current and future ratemaking actions of the CPUC, including the risk of material differences between forecasted costs used to determine rates and actual costs incurred;
      
• Whether the assumptions and forecasts underlying the Utility’s CPUC-approved long-term electricity procurement plan prove to be accurate, the terms and conditions of the generation or procurement commitments the Utility enters into in connection with its plan, the extent to which the Utility is able to recover the costs it incurs in connection with these commitments, and the extent to which a failure to perform by any of the counterparties to the Utility’s electricity purchase contracts or the California Department of Water Resources’ contracts allocated to the Utility’s customers affects the Utility’s ability to meet its obligations or to recover its costs;
      
• The extent to which the CPUC or the Federal Energy Regulatory Commission delays or denies recovery of the Utility’s costs, including electricity purchase costs, from customers due to a regulatory determination that such costs were not reasonable or prudent or for other reasons, resulting in write-offs of regulatory balancing accounts;
      
• How the CPUC administers the capital structure, stand-alone dividend, and first priority conditions of the CPUC’s decisions permitting the establishment of holding companies for the California investor-owned electric utilities;
      
• The impact of future legislative or regulatory actions or policies;
      
• Increased competition;
      
• The outcome of pending litigation; and
      
• Other factors discussed in PG&E Corporation's SEC reports.

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