Company Sees Average Annual Earnings Growth at 7.5 Percent for 2006-2010

(San Francisco) – PG&E Corporation (NYSE: PCG) will report fourth quarter and full-year 2005 financial results on Friday, February 17, 2006.

The company will host a meeting for members of the financial community on Wednesday, March 1, in New York to provide an update on the outlook for 2006 and beyond, including a target growth rate for earnings per share from operations averaging approximately 7.5 percent annually for the period 2006-2010.

The target 7.5 percent earnings per share growth rate for the 2006 through 2010 period reflects the positive impact of share repurchases and the substantial annual investment forecast for the company’s core utility business, aimed to provide faster, better, and more cost-effective customer service.

The March 1 analyst meeting will be available to the public via webcast beginning at 8:30 a.m. EST at http://www.pge-corp.com/investors/investor_info/presentations/index.shtml.

This press release contains forward-looking statements regarding guidance for 2005 earnings per share and future earnings growth that are based on various assumptions, including that substantial capital investments are made by PG&E Corporation’s subsidiary, Pacific Gas and Electric Company (Utility) over the 2006-2010 period. These statements and assumptions are necessarily subject to various risks and uncertainties the realization or resolution of which are outside of management's control. Actual results may differ materially. Factors that could cause actual results to differ materially include:

• Unanticipated changes in operating expenses or capital expenditures, which may affect the Utility’s ability to earn its authorized rate of return;
• The adequacy of natural gas supplies and the effect of increasing prices for natural gas on the Utility’s electric generation portfolio and its natural gas distribution operations, the ability of the Utility to manage and respond to increasing natural gas costs successfully and to timely recover its natural gas costs and increased electricity procurement costs;
• The operation of the Utility’s Diablo Canyon nuclear power plant, which could cause the Utility to incur potentially significant environmental costs and capital expenditures, and the extent to which the Utility is able to timely increase its spent nuclear fuel storage capacity at Diablo Canyon by 2007;
• The outcome of proceedings pending at the California Public Utilities Commission (CPUC) and the Federal Energy Regulatory Commission (FERC);
• Whether the assumptions and forecasts underlying the Utility’s CPUC-approved long-term electricity procurement plan prove to be accurate, the terms and conditions of the generation or procurement commitments the Utility enters into in connection with its plan, the extent to which the Utility is able to recover the costs it incurs in connection with these commitments, and the extent to which a failure to perform by any of the counterparties to the Utility’s electricity purchase contracts or the California Department of Water Resources’ contracts allocated to the Utility’s customers affects the Utility’s ability to meet its obligations or to recover its costs;
• The extent to which the CPUC or the FERC delays or denies recovery of the Utility’s costs, including electricity purchase costs, from customers due to a regulatory determination that such costs were not reasonable or prudent or for other reasons, resulting in write-offs of regulatory balancing accounts;
• How the CPUC administers the capital structure, stand-alone dividend, and first priority conditions of the CPUC’s decisions permitting the establishment of holding companies for the California investor-owned electric utilities, and the outcome of the CPUC's new rulemaking proceeding concerning the relationship between the California investor-owned energy utilities and their holding companies and non-regulated affiliates;
• The impact of the recently adopted Energy Policy Act of 2005 and future legislative or regulatory actions or policies affecting the energy industry;
• The timing and resolution of the pending appeal of the bankruptcy court’s confirmation of the Utility’s plan of reorganization;
• The outcome of the litigation pending against the Utility in California state court involving allegations of injury allegedly caused by exposure to chromium at certain of the Utility's gas compressor stations and other pending litigation;
• Increased competition and forms of bypass; and
• Other factors discussed in PG&E Corporation's SEC reports.