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: August 17, 1995
PACIFIC GAS AND ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
California 1-2348 94-0742640
(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification Number)
77 Beale Street, P.O.Box 770000, San Francisco, California 94177
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(415) 973-7000
Item 5. Other Events
A. 1996 Cost of Capital
On August 17, 1995, the California Public Utilities Commission's
(CPUC) Division of Ratepayer Advocates (DRA), the Company, and
several other intervenors agreed to jointly recommend a return on
common equity of 11.60% for the Company's authorized cost of capital
for 1996. This represents a reduction from the 12.10% return on
common equity authorized for 1995. The Company had originally
requested a return on common equity of 12.07%, while the DRA had
recommended 11.15%.
As a result of the proposed settlement, the Company's revenue request
in this part of the proceeding has changed from a request for no
change in rates to a decrease in revenue requirements of
approximately $37 million for electric rates and $11 million for gas
rates. The actual decreases, effective January 1, 1996, will be
determined in October after an updated filing to reflect updated
estimates of embedded costs of debt and preferred stock.
As part of its cost of capital application, the Company had requested
a separate capital structure and cost of capital for the Company's
portion of the PGT/PG&E Pipeline Expansion Project. The joint
recommendation does not address that separate request.
Agreements with the DRA do not constitute a CPUC decision and are
subject to modification by the CPUC in its final decision. A final
CPUC decision on the parties' settlement agreement is expected in
November 1995.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
PACIFIC GAS AND ELECTRIC COMPANY
GORDON R. SMITH
By ________________________________
GORDON R. SMITH
Senior Vice President and
Chief Financial Officer
Dated: August 17, 1995
