December 21, 2004
ISSUED BY:   Corporate Communications 1-800-743-6397


(San Francisco) - PG&E Corporation (NYSE: PCG) announced its intention to repurchase up to $975 million of its common stock that will likely take the form of an accelerated share repurchase with Goldman, Sachs & Co. early next year. The stock buy back program was authorized by the company’s Board of Directors last week.

The proceeds to purchase the stock will come primarily from cash following the refinancing of part of Pacific Gas and Electric Company’s balance sheet, which is expected to occur early next year. The Corporation’s previously issued earnings guidance for 2005 already reflects the impact of these projected share repurchases.

Additionally, the Corporation has repurchased $350 million in common stock with cash on hand since November, retiring over 10 million shares.

Today the Corporation filed a $1 billion common equity shelf registration statement with the U.S. Securities and Exchange Commission. The registration statement by itself does not affect the Corporation’s number of shares outstanding. It will enable the company to offer shares of its common stock from time to time in order to retire debt or for other general corporate purposes, such as providing the flexibility to settle obligations under any current or future accelerated share repurchase transactions with either cash or stock.

“PG&E Corporation continues to focus on returning value to shareholders through common stock dividends and share repurchases,” said Robert D. Glynn, Jr., Chairman, CEO and President of PG&E Corporation. “As we previously said, it is our intention to return as much as $1.75 billion to shareholders by the end of next year through dividends and stock repurchases.”

The company announced earlier this year its plans to re-establish a common stock dividend in 2005, with a target annual dividend of $1.20 per share.