Pacific Gas & Electric (PCG)

Reorganization Fees and Expenses

In accordance with the American Institute of Certified Public Accountants’ Statement of Position 90-7, “Financial Reporting by Entities in Reorganization Under the Bankruptcy Code,” or SOP 90-7, the Utility reports reorganization fees and expenses separately on its Consolidated Statements of Operations. These costs mainly include professional fees for services in connection with the Utility’s Chapter 11 proceedings and totaled approximately $6 million in 2004, $160 million in 2003 and

Reorganization Fees and Expenses

        In accordance with the American Institute of Certified Public Accountants' Statement of Position 90-7, "Financial Reporting by Entities in Reorganization Under the Bankruptcy Code," or SOP 90-7, the Utility reports reorganization fees and expenses separately on its Consolidated Statements of Operations. These costs mainly include professional fees for services in connection with the Utility's Chapter 11 proceedings and totaled approximately $6 million in 2004, $160 million in 2003 and $155 million in 2002. The Utility discontinued reporting in accordance with SOP 90-7 upon its emergence from Chapter 11 on April 12, 2004.