2. Request

PG&E seeks authorization to issues $4.0 billion of Debt Securities, including preferred stock, until the aggregate principal amount authorized has been fully utilized. PG&E intends to utilize debt enhancement features to improve the terms and conditions of the Debt Securities and to lower its overall cost of money for the benefit of its ratepayers. As detailed in its application, these enhancement features include credit enhancements, redemption provisions, put options, sinking funds, tax-exempt financing, and warrants.

PG&E also seeks authorization to utilize its accounts receivable to secure Debt Securities and use swaps and hedges to manage interest rate risk. Finally, PG&E seeks an exemption from the Commission's Competitive Bid Rule and modification to the GO 24-B Debt Securities reporting requirement.