SAN FRANCISCO – In a filing this morning with the U.S. Bankruptcy Court, Pacific Gas and Electric Company stated that all conditions to effectiveness of its plan of reorganization have been satisfied as of today. The company stated that the effective date of the plan will occur on April 12, 2004, and that the distribution record date for purposes of determining the holders of record of allowed claims who are entitled to receive payment under the plan on the effective date will be March 29, 2004.

Holders of allowed claims or equity interests as of the close of business on the distribution record date are entitled to the distributions that will be made under the plan on the effective date or as soon as practicable thereafter. The company will have no obligation to recognize any transfer of any allowed claim or equity interest occurring after the distribution record date.

PG&E voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code on April 6, 2001. Under the company’s confirmed plan of reorganization, PG&E will pay in full or otherwise satisfy undisputed claims of creditors on the effective date or as soon as practicable thereafter.

FINANCIAL DEBT

Undisputed claims to be paid or otherwise satisfied include those relating to PG&E’s medium-term notes, floating rate notes, senior notes, first and refunding mortgage bonds, Southern San Joaquin Power Authority Bonds, and commercial paper. On the effective date or as soon as practicable thereafter holders of these claims will be paid 100 percent of the principal amount of these obligations (plus any applicable premium), plus accrued and unpaid interest to April 12, 2004. Separate first quarter interest payments for medium-term notes, floating rate notes, senior notes, Southern San Joaquin Power Authority Bonds, and commercial paper will be made on April 1, 2004.

The various trustees’ records as to holders of these obligations generally will be closed as of March 29, 2004, the distribution record date. Following payment on the effective date, these securities will be retired.

QUIDS

PG&E will pay the principal and all accrued and unpaid interest on all its 7.90 percent Deferrable Interest Subordinated Debentures, or QUIDS. On the effective date or as soon as practicable thereafter, QUIDS holders of record as of the distribution record date will be paid principal of $25.00 per debenture, or 100 percent of the principal amount totaling $300 million, plus accrued and unpaid interest from April 1, 2004 to April 12, 2004, for a total of $25.060347 per debenture. A separate interest payment for the quarter ending March 31, 2004 will be made on March 31, 2004. Following payment on the effective date, the QUIDS will be retired.

The transfer agent’s books will be closed as of the March 29, 2004 distribution record date, and trading will be suspended. National City Bank of Indiana is the trustee for the QUIDS.

PREFERRED DIVIDENDS

On the effective date or as soon as practicable thereafter, holders of preferred stock will be paid previously unpaid dividends for the period from November 1, 2000 through January 31, 2004. PG&E has 11 series of preferred stock. The amount of accumulated, unpaid dividends is $82.3 million. The amount to be paid per series per share is as follows:

The American Stock Exchange has advised the company that the ex-dividend date for these payments will be April 13, 2004.

SINKING FUNDS

Also on the effective date or as soon as practicable thereafter, the company will bring current its preferred stock sinking fund obligations. Two of PG&E’s preferred stock series, 6.57 percent and 6.30 percent, have past due sinking fund payments totaling $10.6 million. The sinking fund payments will be used to redeem, on a pro rata basis, 10 percent of the 6.57 percent series and 5 percent of the 6.30 percent series. A redemption price of $25.00 will be paid per redeemed share, plus unpaid dividends from February 1, 2004 through April 12, 2004. Holders of redeemed shares of the 6.57 percent series will receive a total of $25.3285 per redeemed share and holders of redeemed shares of the 6.30 percent series will receive a total of $25.315 per redeemed share.

UNDISPUTED CREDITOR CLAIMS

All allowed creditor claims held by lenders, energy suppliers, vendors and other creditors with undisputed claims will be paid consistent with the terms of the company’s plan of reorganization.

DISPUTED CREDITOR CLAIMS

Funds for disputed claims that are not resolved before the effective date will be held in escrow, pending successful resolution of those claims.

PASS-THROUGH CLAIMS

Certain claims, including those related to environmental, pending litigation and tort claims, will pass through the company’s bankruptcy and be satisfied in the ordinary course of business at such time and in such manner as the company is obligated to satisfy such claims under applicable law.