February 16, 2005
ISSUED BY:   PG&E Corporation 1-800-743-6397


Quarterly Dividends also Declared for all Series of Utility’s Preferred Stock

(San Francisco) – PG&E Corporation (NYSE: PCG) today declared a first quarter 2005 regular cash dividend of 30 cents per share on the Corporation’s common stock. The dividend is payable on April 15, 2005, to shareholders of record on March 31, 2005.

“The declaration of a common stock dividend is a major milestone that reflects our commitment to pay a dividend comparable to other companies in the utility and power sector now that we have strengthened our balance sheet,” said Peter A. Darbee, President and CEO.

The Corporation last declared a common stock dividend in October 2000 for the fourth quarter of that year.

PG&E Corporation announced its plans to re-establish a target annual common stock dividend of $1.20 per share, or 30 cents per share on a quarterly basis, in October of last year, noting that the actual declaration of a dividend had been deferred until Pacific Gas and Electric Company’s capital structure reached an equity ratio of 52 percent.

The target reflects the Corporation’s policy to pay dividends at levels that strike a balance among comparability with dividend yields and payout ratios of similar utility companies, the ability to sustain payments in the future, and the desire to retain adequate financial flexibility to make investments in its core business. The Corporation’s dividend policy results in a target payout ratio of 50 percent to 70 percent, relative to earnings per share from operations.

Pacific Gas and Electric Company Preferred Stock Dividends

In addition, PG&E Corporation’s utility unit, Pacific Gas and Electric Company, today declared dividends on all outstanding series of Pacific Gas and Electric Company’s preferred stock for the three months ending April 30, 2005. The dividends will be payable on May 15, 2005, to shareholders of record on April 29, 2005.

Pacific Gas and Electric Company will pay dividends on its 11 series of preferred stock as follows:

First Preferred Stock, $25 Par Value Quarterly Dividend to be Paid Per Share
7.04% $0.4400000
6.57% $0.4106250
6.30% $0.3937500
5.00% $0.3125000
5.00% Series A $0.3125000
4.80% $0.3000000
4.50% $0.2812500
4.36% $0.2725000
6.00% $0.3750000
5.50% $0.3437500
5.00% $0.3125000