Par value is an arbitrary dollar value assigned to each share of stock. This value is set by the company at the time the stock is originally issued. Market value is the current trading price of the stock, and is established in the market place by purchases and sales on the major stock exchanges.

Preferred stock has priority over common stock in the distribution of dividends and upon liquidation or dissolution of a company. Most of Pacific Gas and Electric Company's preferred stock is redeemable at the company's option (but not by the shareholder), which means that the company can buy it back from the shareholder ata specified amount listed in Pacific Gas and Electric Company's Restated Articles of Incorporation.

Shareholders of record hold shares in their own names (rather than having their broker hold them in "street name", as discussed below). EQ Shareowner Services ("EQ"), the transfer agent for PG&E Corporation common and Pacific Gas and Electric Company preferred stock, maintains an account for each shareholder of record, and sends all dividend payments, tax information, annual reports, and proxy materials directly to the address for that account.

Because of the large number of companies with publicly traded stock, abbreviated listings are used both on the stock exchanges, where PG&E Corporation common stock is listed as PCG, and in financial papers, where PG&E Corporation common stock is listed as PG&E or PG&E Corporation (local newspapers symbols may vary). Stocks, such as ours, that are traded on more than one exchange are known as "multiple listings" and the price of the stock is normally the same on these exchanges.

When investors purchase securities and the securities are held for them by a broker, the securities are listed in the broker's name, or "street name". We do not know the identity of individual shareholders who hold their securities in this manner. We simply know that a broker holds a certain number of shares, which may be for any number of customers. Shareholders who hold their stock in street name are not eligible to participate in the Dividend Reinvestment and Stock Purchase Plan. They receive all dividend payments, tax information, annual reports, and proxy materials through their brokers.

The Transfer Agent is the person or organization responsible for transferring securities from one owner to another and for maintaining a company's official records of stock and bond owners.