Effective October 1, 2007, the PG&E Corporation Dividend Reinvestment and Stock Purchase Plan (PG&E Corporation Plan) replaced the Investor Services Program for Shareholders of PG&E Corporation (Investor Services Program) sponsored and administered by Mellon Bank, N.A.

Participants in the new PG&E Corporation Plan will be able to reinvest dividends paid on PG&E Corporation common stock or Pacific Gas and Electric Company preferred stock and make additional cash purchases of PG&E Corporation common stock, just like they could under the former Investor Services Program. The same investment options and services are available under the PG&E Corporation Plan that were available under the Investor Services Program. Mellon Bank, N.A. is the administrator for the PG&E Corporation Plan. The market-based fees charged by Mellon Bank, N.A. did not increase.

If you were a participant in the Investor Services Program, no action was required on your part. All participants in the Investor Services Program as of October 1, 2007 were automatically enrolled in the new PG&E Corporation Plan.

PG&E Corporation has filed a registration statement with the Securities and Exchange Commission relating to the shares of PG&E Corporation common stock to be offered under the new PG&E Corporation Plan. The registration statement includes a prospectus that describes the features, fees, terms, and conditions of the PG&E Corporation Plan. The prospectus is available at www.melloninvestor.com or by clicking here (PDF 1.09 MB) . You may also call Mellon Investor Services at 1-800-719-9056 to request a printed prospectus.

Shareholders who were not participants in the Investor Services Program may enroll in the new PG&E Corporation Plan by contacting Mellon Investor Services.

Enrollment in the new PG&E Corporation Plan is entirely voluntary and those participating may terminate their participation at any time.

If you have any questions concerning the new PG&E Corporation Plan, please contact Mellon Investor Services at 1-800-719-9056.