Pacific Gas & Electric (PCG)

Warrants

Concurrent with the negotiation of an amendment of a previously existing credit agreement in June 2002, now paid in full, warrants to purchase 2,397,541 shares of PG&E Corporation’s common stock were issued, at an exercise price of $0.01 per share. In October 2002, the above mentioned credit agreement was amended to increase the size of the facility by $300 million to a total of $720 million. In connection with this amendment, PG&E Corporation issued to affiliates of the lenders additional warrants to purchase 2,669,390 shares of PG&E Corporation’s common stock, with an exercise price of $0.01 per share. At December 31, 2004, 347,912 of these warrants were outstanding and exercisable with an expiration date of September 2, 2006.

Utility

In March 2004, in connection with the implementation of the plan of reorganization, the Utility issued $6.7 billion of First Mortgage Bonds and together with its consolidated subsidiaries, entered into $2.9 billion of credit facilities. The Utility obtained an interim $400 million cash collateralized letter of credit facility, which was terminated on the Effective Date and the letters of credit then outstanding were transferred to the $850 million revolving credit facility.

Warrants

        Concurrent with the negotiation of an amendment of a previously existing credit agreement in June 2002, now paid in full, warrants to purchase 2,397,541 shares of PG&E Corporation's common stock were issued, at an exercise price of $0.01 per share. In October 2002, the above mentioned credit agreement was amended to increase the size of the facility by $300 million to a total of $720 million. In connection with this amendment, PG&E Corporation issued to affiliates of the lenders additional warrants to purchase 2,669,390 shares of PG&E Corporation's common stock, with an exercise price of $0.01 per share. At December 31, 2004, 347,912 of these warrants were outstanding and exercisable with an expiration date of September 2, 2006.

Utility

        In March 2004, in connection with the implementation of the plan of reorganization, the Utility issued $6.7 billion of First Mortgage Bonds and together with its consolidated subsidiaries, entered into $2.9 billion of credit facilities. The Utility obtained an interim $400 million cash collateralized letter of credit facility, which was terminated on the Effective Date and the letters of credit then outstanding were transferred to the $850 million revolving credit facility.