ALJ/MFG/avs Date of Issuance 10/8/2008

Decision 08-10-013 October 2, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of PACIFIC GAS AND ELECTRIC COMPANY to issue, sell, and deliver one or more series of Debt Securities and to guarantee the obligations of others in respect to the issuance of Debt Securities, the total aggregate principal amount of such long-term indebtedness and guarantees not to exceed $4.0 billion; to execute and deliver one or more indentures; to sell, lease, assign, mortgage, or otherwise dispose of or encumber utility property; to issue, sell and deliver in one or more series, cumulative Preferred Stock -- $25 Par Value, Preferred Stock -- $100 Par Value, Preference Stock or any combination thereof; to utilize various debt enhancement features; enter into interest rate hedges; and for an exemption from the Commission's Competitive Bidding Rule. (U39M)

Application 08-05-033 (Filed May 22, 2008)

DECISION AUTHORIZING PACIFIC GAS AND ELECTRIC COMPANY

TO ISSUANCE UP TO $4.0 BILLION OF DEBT AND PREFERRED STOCK

1. Summary

This decision grants Pacific Gas and Electric Company (PG&E) the authority to issue $4 billion of Debt Securities consisting of long-term debt and preferred stock, as requested in Application (A.) 08-05-033. This decision also authorizes PG&E to: encumber utility property, including its accounts receivable, to secure Debt Securities; enter into interest-rate caps, collars, swaps, hedges, and other financial instruments (collectively, hedges) subject to the conditions enumerated in the body of this decision; exempt certain Debt Securities from the Commission's Competitive Bidding Rule as enumerated in the body of this order; exclude credit enhancements that do not increase the amount of debt owed by PG&E from the determination of its outstanding debt; and, report all Debt Securities information required by General Order (G0) 24-B to the Commission on a quarterly basis.