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Pacific Gas And Electric Company Receives Court Appproval To Pay $281 Million Mortgage Bond Maturity

07/22/2003

SAN FRANCISCO - PG&E Corporation's (NYSE: PCG) utility unit, Pacific Gas and Electric Company, has received approval from the U.S. Bankruptcy Court to pay $281 million of 6-1/4 percent Series 93C First and Refunding Mortgage Bonds maturing August 1, 2003. Pacific Gas and Electric Company will pay the bondholders from its current available cash.

Bondholders who hold the bonds in a brokerage account will have principal and interest paid to their account. Certificate holders will need to deliver their certificates to the trustee, The Bank of New York, to receive payment for the principal. Interest checks to certificate holders will be mailed separately.

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