3-17-03 Form 8-K

SECURITIES AND EXCHANGE COMMISSION


Washington, D.C.  20549



FORM 8-K


CURRENT REPORT


Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report: March 17, 2003



Commission
File
Number

Exact Name of
Registrant
as specified in
its charter


State or other
Jurisdiction of
Incorporation


IRS Employer
  Identification
Number

_____________

_____________

_____________

_____________

1-12609

1-2348

PG&E Corporation

Pacific Gas and
Electric Company

California

California

94-3234914

94-0742640

Pacific Gas and Electric Company
77 Beale Street, P. O. Box 770000
San Francisco, California  94177

PG&E Corporation
One Market, Spear Tower, Suite 2400
San Francisco, California  94105

(Address of principal executive offices) (Zip Code)


Pacific Gas and Electric Company
(415) 973-7000

PG&E Corporation
(415) 267-7000

(Registrant's telephone number, including area code)


Item 5. Other Events

Pacific Gas and Electric Company’s 2002 Attrition Revenue Adjustment

          On March 13, 2003, the California Public Utilities Commission (CPUC) denied Pacific Gas and Electric Company’s (Utility) request for a 2002 attrition revenue adjustment.  As previously disclosed, an administrative law judge of the CPUC had issued a draft decision on December 3, 2002 that proposed denying the Utility’s request.  The Utility had requested an annual increase of $76.7 million to its electric distribution revenue requirement and an annual increase of $19.5 million to its gas distribution revenue requirement to allow for recovery of its capital investments and escalating costs of providing electric and gas distribution services in 2002.  The attrition rate adjustment mechanism is designed to avoid a reduction in earnings in years between general rate cases to reflect increases in rate base and expenses.

          The CPUC stated that the Utility’s recorded umbers were out of date, the escalation rates were too uncertain to sustain a finding increasing rates and any increase in rates would require a general rate case. 

          The Utility has thirty days to file an application for rehearing with the CPUC.


                                       

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized.

                                                      

PG&E CORPORATION

                                                        

By:  CHRISTOPHER P. JOHNS

                                                       

                                                                  

                                                       

       CHRISTOPHER P. JOHNS
       Senior Vice President and Controller

                                                       

                                                       

PACIFIC GAS AND ELECTRIC COMPANY

                                                       

By:  LINDA Y.H. CHENG

                                                       

                                                                      

                                                       

     LINDA Y.H. CHENG
     Corporate Secretary

Dated:  March 17, 2003