Pacific Gas & Electric (PCG)

Recognition of Regulatory Assets

In light of the satisfaction of various conditions to the implementation of the Utility’s plan of reorganization, the Utility recorded the regulatory assets provided for under the Settlement Agreement in the first quarter of 2004. This resulted in the recognition of a one-time non-cash, pre-tax gain of $3.7 billion for the Settlement Regulatory Asset and $1.2 billion for the Utility retained generation regulatory assets, for a total after-tax gain of $2.9 billion. See the “Overview” section of this MD&A and Note 2 of the Notes to the Consolidated Financial Statements for further discussion.

Recognition of Regulatory Assets

In light of the satisfaction of various conditions to the implementation of the Utility’s plan of reorganization, the Utility recorded the regulatory assets provided for under the Settlement Agreement in the first quarter of 2004.  This resulted in the recognition of a one-time non-cash, pre-tax gain of $3.7 billion for the Settlement Regulatory Asset and $1.2 billion for the Utility retained generation regulatory assets, for a total after-tax gain of $2.9 billion

Recognition of Regulatory Assets

        In light of the satisfaction of various conditions to the implementation of the Utility's plan of reorganization, the Utility recorded the regulatory assets provided for under the Settlement Agreement in the first quarter of 2004. This resulted in the recognition of a one-time non-cash, pre-tax gain of $3.7 billion for the Settlement Regulatory Asset and $1.2 billion for the Utility retained generation regulatory assets, for a total after-tax gain of $2.9 billion. See the "Overview" section of this MD&A and Note 2 of the Notes to the Consolidated Financial Statements for further discussion.