(San Francisco) – PG&E Corporation’s (NYSE: PCG) utility unit, Pacific Gas and Electric Company, is moving forward to refinance a portion of its balance sheet in an effort that will save its customers up to an estimated $1 billion over the next nine years. A wholly owned subsidiary of the utility began marketing $1.9 billion of Energy Recovery Bonds (ERBs) this week, after the U.S. Securities and Exchange Commission declared the registration statement for the bonds effective on January 28, 2005. The company currently anticipates that this first series of ERBs could be sold as early as February 10.

As previously announced, a portion of the proceeds of the ERBs will be used by PG&E Corporation to repurchase common stock. Consistent with the current schedule for the ERBs, the Corporation has cancelled the accelerated share repurchase agreement it entered into with Goldman Sachs & Co. in late December, which called for approximately $975 million of repurchases to be made in early February. The Corporation expects to enter into a new accelerated share repurchase agreement in late February or early March. The current schedule for the sale of the ERBs and the accelerated share repurchase program is not expected to have a material impact on the company’s previously issued guidance for 2005 earnings per share.