ANNEX A TO ATTACHMENT B Pacific Gas and Electric Company Collections Curve Description May 2, 2001

BACKGROUND

The purpose of the Collections Curve is to the display the rate at which billed energy revenues are collected from PG&E's five retail customer classes. Collections performance is expressed as a percentage of the total amount billed to the sample customer population. Collections have been adjusted for write-off using the applicable factor authorized by the California Public Utilities Commission in PG&E's most recent (1999) General Rate Case.

PG&E reads its meters and bills approximately 4.8 million customers once each month on a sequential 21-serial schedule, customers likewise remit payments on a sequential basis.

KEY PARAMETERS AND ASSUMPTIONS

The tabulation of historical daily collections receipts used to generate the Collections Curve was derived from a sample of customer accounts billed during July 2000.

Collections performance is assumed not to vary materially over the course of a year.

· Bills are issued on one of PG&E's 21 billing serials.

The sample customer population represents a revenue-weighed average of PG&E's five customer classes and includes a total of 26,253 accounts. Sample size characteristics:

Customer Class	Sample Size	Number of	Revenue Class
	as % of	Accounts in	Contribution
	Total Class	Sample	as % of Total
	Size		Revenue
Residential	0.5%	23,221	46%
Small Commercial	0.5%	1,803	13%
Medium Commercial	1.0%	493	28%
Agricultural	1.0%	470	6%
Large Commercial	25.0%	266	8%

· The write-off factor (i.e., uncollectibles) as approved in the 1999 General Rate Case is 0.00267.

In order to produce aggregated monthly collection data, the daily collection pattern is assumed to be the same for each day of the month and that the billed amounts for a given month are spread evenly over each day of the month.

Credit and collection policies are approved by the CPUC. Generally, customer's charges not collected within 180 days are written off.

The methodology used to produce the collection curve and the above parameters and assumptions are consistent with the methodology, parameters and assumptions approved for use in remitting the Trust Transfer Amount (TTA) to the Bond Trustee.

ANNEX A TO ATTACHMENT B Pacific Gas and Electric Company Collections Curve Description May 2, 2001

DATA EXTRACTION AND PROCESSING