(San Francisco) - PG&E Corporation announced today that its Board of Directors has approved a policy regarding future shareholder rights plans. The policy provides that if the Board adopts a shareholder rights plan in the future, or if the Board extends the term of a future shareholder rights plan, it will submit such adoption or extension to a shareholder vote within 12 months of such adoption or extension. PG&E Corporation's shareholders approved a non-binding proposal on this issue at the Corporation's annual meeting on April 21, 2004.

As previously announced, in February 2004, the Board voted to terminate the Corporation's then-existing shareholder rights plan upon Pacific Gas and Electric Company's exit from Chapter 11. Pacific Gas and Electric Company emerged from Chapter 11 on April 12, 2004, and the rights that previously had been issued under the plan expired on that date.