Pacific Gas & Electric (PCG)

Low-Income Housing Partnerships

The Utility invests in low-income housing partnerships, or LIHPs.  The entities were formed to invest in low-income housing projects sponsored by non-profit organizations in the state of California.  The Utility determined that it was the primary beneficiary of one LIHP, resulting in its consolidation, and an increase in total assets and total liabilities of $10 million in PG&E Corporation’s and the Utility’s Consolidated Balance Sheets.  The consolidated LIHP has issued debt in the amount of $4 million, which is secured by assets of the partnership, totaling $24 million, and the Utility’s commitment to make capital infusions of approximately $10 million over the next five years.

The Utility is not considered to be the primary beneficiary of any other LIHPs.  The maximum exposure to loss from its investment in unconsolidated LIHPs is the Utility’s investment of $5 million at March 31, 2005.

Low-Income Housing Partnerships

The Utility invests in low-income housing partnerships, or LIHPs. The entities were formed to invest in low-income housing projects sponsored by non-profit organizations in the state of California. The Utility determined that it was the primary beneficiary of one LIHP, resulting in its consolidation, and an increase in total assets and total liabilities of $12 million in PG&E Corporation’s and the Utility’s Consolidated Balance Sheets. The consolidated LIHP has issued debt in the amount of $5 million, which is secured by assets of the partnership, totaling $26 million, and the Utility’s commitment to make capital infusions of approximately $11 million over the next five years.

The Utility is not considered to be the primary beneficiary of any other LIHPs. The maximum exposure to loss from its investment in unconsolidated LIHPs is the Utility’s investment of $5 million at December 31, 2004.

Low-Income Housing Partnerships

        The Utility invests in low-income housing partnerships, or LIHPs. The entities were formed to invest in low-income housing projects sponsored by non-profit organizations in the state of California. The Utility determined that it was the primary beneficiary of one LIHP, resulting in its consolidation, and an increase in total assets and total liabilities of $12 million in PG&E Corporation's and the Utility's Consolidated Balance Sheets. The consolidated LIHP has issued debt in the amount of $5 million, which is secured by assets of the partnership, totaling $26 million, and the Utility's commitment to make capital infusions of approximately $11 million over the next five years.

        The Utility is not considered to be the primary beneficiary of any other LIHPs. The maximum exposure to loss from its investment in unconsolidated LIHPs is the Utility's investment of $5 million at December 31, 2004.