On November 22, 2000, Pacific Gas and Electric Company filed a Rate
Stabilization Plan (RSP) with the California Public Utilities Commission.
PG&E requests that its proposed RSP rates and tariffs be adopted by January
1, 2001, on an ex parte basis, subject to refund, and that the Commission
approve the application no later than March 31, 2001.

The highlights of the plan are as follows:

1.  The rate stabilization plan would be mandatory for all residential,
agricultural, commercial and street lighting rate schedules. Large
industrial customers (those served on Rate Schedules  S, E-19,  E-20 and
E-25) may opt out of the plan starting on March 31, 2001.  Those who choose
to participate, must do so for a minimun 12 month period.

2.  The amount billed for commodity will start at 6.5 cents/kWh , with the
difference between costs and revenues tracked in a newly created Deferred
Procurement Revenue Account (DPRA).  Each year, on December 15th, PG&E will
file an advice letter  to adjust the commodity rate effective the following
January 1.  The new commodity rate will be calculated based on the initial
price of 6.5 cents/kWh plus an adjustment (determined by taking the amount
over or undercollected in the DPRA and dividing it by PG&E's sales forecasts
over the next two years).  The advice letter would become effective
automatically, without Commission resolution.

3.  The rate stabilization plan would be in effect five years.

4.  Direct access customers will come under the plan.  If the stabilized
price is lower than the actual price, the direct access customer will see a
credit on its bill; conversely, if the stabilized price exceeds the actual
price, the customer will see a charge.

5. PG&E proposes to recover the undercollected amounts in its TRA in the
following manner:  First it will transfer the undercollected amounts in the
TRA as of 1/1/01 to the proposed Unrecovered Cost of Service Account (USCA).
Second, it will credit a portion of its ongoing earnings from retained
generation against the undercollections.  Third, it would collect the
remaining amounts in the UCSA from all customers  (including direct access)
through a nonbypassable charge on the bill.


On a separate front, PG&E also filed on November 22, 200, Advice Letter
2057-E to implement post transition rates and tariffs.  The filing, if
approved by the commission would allow for a straight pass through of
commodity costs.  These end of rate freeze tariffs would be superceded by
PG&E's Rate Stabilization Application, if that is approved.

PG&E has been unable to send out the RSP application electronically, due to
technical difficulties.  I have asked Mark Huffman at PG&E to send a copy of
the application (via regular mail) to Roger Yang.

Jeanne