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Case: 19-30088 Doc# 3962 Filed: 09/23/19 Entered: 09/23/19 04:56:04 Page 6 of

119
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Case: 19-30088 Doc# 3962 Filed: 09/23/19 Entered: 09/23/19 04:56:04 Page 7 of

119
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Case: 19-30088 Doc# 3962 Filed: 09/23/19 Entered: 09/23/19 04:56:04 Page 8 of

119
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Case: 19-30088 Doc# 3962 Filed: 09/23/19 Entered: 09/23/19 04:56:04 Page 9 of

119
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Case: 19-30088 Doc# 3962 Filed: 09/23/19 Entered: 09/23/19 04:56:04 Page 35

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Case: 19-30088 Doc# 3962 Filed: 09/23/19 Entered: 09/23/19 04:56:04 Page 44

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Case: 19-30088 Doc# 3962 Filed: 09/23/19 Entered: 09/23/19 04:56:04 Page 47

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THIS IS NOT A SOLICITATION OF A VOTE ON A PLAN OF REORGANIZATION.

SUCH A SOLICITATION MAY ONLY OCCUR FOLLOWING APPROVAL BY THE

BANKRUPTCY COURT OF A DISCLOSURE STATEMENT PURSUANT TO SECTION

1125 OF THE BANKRUPTCY CODE

In re PG&E Corporation and Pacific Gas and Electric Company

Term Sheet for Plan of Reorganization

August 7September 19, 2019

This term sheet (the “Term Sheet”) is proposed by the Official Committee of Tort

Claimants (the “TCC”) and the Ad Hoc Committee of Senior Unsecured Noteholders of Pacific

Gas and Electric Company (the “Ad Hoc Committee”) and sets forth certain of the principal

terms and conditions for the proposed reorganization (the “Reorganization”) of PG&E

Corporation and Pacific Gas and Electric Company, each of which commenced cases (the

“Chapter 11 Cases”) under chapter 11 of title 11 of the United States Code (the “Bankruptcy

Code”) in the United States Bankruptcy Court for the Northern District of California (the

“Bankruptcy Court”) on January 29, 2019 (the “Petition Date”). The Reorganization

contemplated herein shall be implemented pursuant to a proposed joint chapter 11 plan of

reorganization (the “Plan”).

THIS TERM SHEET DOES NOT CONSTITUTE (NOR SHALL IT BE

CONSTRUED AS) AN OFFER WITH RESPECT TO ANY SECURITIES OR A

SOLICITATION OF ACCEPTANCES OR REJECTIONS AS TO ANY PLAN, IT BEING

UNDERSTOOD THAT SUCH A SOLICITATION, IF ANY, ONLY WILL BE MADE IN

COMPLIANCE WITH APPLICABLE PROVISIONS OF ALL APPLICABLE LAW.

THIS TERM SHEET DOES NOT ADDRESS ALL TERMS THAT WOULD BE

REQUIRED IN CONNECTION WITH ANY POTENTIAL TRANSACTIONS

REFERENCED HEREIN, AND THE ENTRY INTO OR THE CREATION OF ANY

BINDING AGREEMENT IS SUBJECT TO THE EXECUTION OF DEFINITIVE

DOCUMENTATION IN FORM AND SUBSTANCE CONSISTENT WITH THIS TERM

SHEET AND OTHERWISE ACCEPTABLE TO THE AD HOC COMMITTEE AND/OR

THE PG&E CORP. NEW MONEY COMMITMENT GROUP (AS DEFINED HEREIN).

THIS TERM SHEET IS BASED SOLELY ON PUBLICLY AVAILABLE

INFORMATION.

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THIS IS NOT A SOLICITATION OF A VOTE ON A PLAN OF REORGANIZATION. SUCH A

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DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

2

PG&E Corporation (“PG&E Corp.”) and Pacific Gas and Electric Company (the

“Utility” and together with PG&E Corp., the “Debtors”). Following the

occurrence of the effective date of the Plan (the “Effective Date”), PG&E Corp.

and the Utility will be referred to herein as “Reorganized PG&E Corp.” and the

“Reorganized Utility,” respectively, and collectively as the “Reorganized

Debtors.”

Transaction

Overview

As set forth in greater detail herein, the Plan shall provide for:

x Up to $31.0$28.4 billion 2 in new money investments in exchange for

common stock of Reorganized PG&E Corp. (representing approximately

58.8% of the outstanding common stock of Reorganized PG&E Corp. on a

fully diluted basis), new debt of Reorganized PG&E Corp. and new debt of

the Reorganized Utility, in each case as described herein;

x The proceeds of the new money investments shall be used to (a) pay in full

outstanding DIP Financing Facility Claims (as defined below), (b) pay in

full all Utility bond, term loan and revolving debt maturing prior to

December 31, 20222

, 3 (c) fund the creation of a trust (the “WildfireFire

Claims Trust”) for the purpose of paying wildfirefire claims related to

those Northern California wildfiresfires listed in Schedule 1 attached

hereto, not to exceed the sum of $16 billion,4 in the manner provided

belowequal to $24 billion in cash and shares of common stock of

Reorganized PG&E Corp. (representing approximately 39.5% of the

outstanding common stock of Reorganized PG&E Corp. on a fully diluted

basis) issued to the Fire Claims Trust and certain other fire consideration as

set forth herein (“Aggregate Fire Consideration”) and (d) fund the

Debtors’ contribution of $5.0 billion, which amount consists of both the

Debtors’ initial and first annual contributions, to the long-term California

statewide wildfire fund created for purposes of paying future utility-related

wildfires in California (the “Wildfire Fund”);

x Distributions of Long-Term Utility Replacement Notes (as defined below)

to holders of the Utility notes maturing on January 1, 2023 or later; and

x Reinstatement in full of the Long-Term Utility Unsecured Notes; and

x Payment of all trade claims in the ordinary course of business and

assumption and/or continuation of pension-related obligations.

PLAN OVERVIEW1

Debtors

1

 This document is based on publicly available information regarding the Debtors as of June 25, 2019. Certain of

the terms for the Plan included herein are subject to change depending upon the Debtors’ financial performance

over the remainder of the Chapter 11 Cases including, but not limited, to its cash generation and borrowings under

the DIP Financing Facility. 2 Assuming full upward adjustment based upon outcome of estimation proceeding as described in footnote 4 below. 2 Includes the Utility Unsecured Revolving Credit Facility Claims, Utility Unsecured Term Loan Claims, ShortTerm Utility Unsecured Notes Claims and Utility Pollution Control Bond-Related Claims, each as defined below. 3 Includes the Utility Unsecured Revolving Credit Facility Claims, Utility Unsecured Term Loan Claims, ShortTerm Utility Unsecured Notes Claims, each as defined below. 4 Subject to upward adjustment of up to 15% based upon outcome of estimation proceeding.

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DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

3

DIP Financing

Facility Claims

Each holder of a claim under the Senior Secured Superpriority Debtor-inPossession Credit, Guaranty and Security Agreement, dated as of February 1, 2019

(the “DIP Financing Facility,” and the claims arising thereunder, the “DIP

Financing Facility Claims”) shall receive, in full and final satisfaction,

compromise, settlement, release, and discharge of such DIP Financing Facility

Claim, payment in full in cash on the Effective Date.

PLAN TREATMENT OF PG&E CORP. AND UTILITY CLAIMS

Administrative

Expense

Claims

Each holder of an allowed administrative expense claim against the Debtors under

section 507(a)(2) of the Bankruptcy Code (other than DIP Financing Facility

Claims) (the “Administrative Expense Claims”) shall receive, in full and final

satisfaction, compromise, settlement, release, and discharge of such allowed

Administrative Expense Claim, cash equal to the allowed amount of such

Administrative Expense Claim on the later of (i) the Effective Date or as soon

thereafter as is reasonably practicable, and (ii) the date such Administrative

Expense Claim becomes an allowed Administrative Expense Claim or as soon

thereafter as is reasonably practicable.

Priority Tax

Claims

Each holder of an allowed claim of a governmental unit (as defined in section

101(27) of the Bankruptcy Code) of the type specified in section 507(a)(8) of the

Bankruptcy Code against any Debtor (the “Priority Tax Claims”) shall receive, in

full and final satisfaction, compromise, settlement, release, and discharge of such

allowed Priority Tax Claim, (a) cash equal to the amount of such allowed Priority

Tax Claim on the later of (i) the Effective Date or as soon thereafter as is

reasonably practicable and (ii) the date such Priority Tax Claim becomes an

allowed Priority Tax Claim or as soon thereafter as is reasonably practicable, or (b)

such other treatment consistent with the provisions of section 1129(a)(9) of the

Bankruptcy Code.

Unclassified Claims

PG&E Corp. Claims

Claim Classification/Treatment/Voting Estimated

Allowed

Claims

Claim

Estimated

%

Recovery

Class 1A:

Other PG&E

Corp. Priority

Claims

Treatment

Classification: Holders of allowed claims against

PG&E Corp. entitled to priority under section

507(a) of the Bankruptcy Code (other than DIP

Financing Facility Claims, Administrative Expense

Claims and Priority Tax Claims) (the “Other PG&E

Corp. Priority Claims”).

Treatment: Each holder of an allowed Other PG&E

Corp. Priority Claim against PG&E Corp. shall

[TBD] 100%

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DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

4

Class 2A:

Other PG&E

Corp. Secured

Claims

Classification: Holders of claims (other than DIP

Financing Facility Claims) (the “Other PG&E Corp.

Secured Claims”) that are secured by valid,

perfected and enforceable liens on property in which

PG&E Corp. has an interest or that are subject to

setoff pursuant to section 553 of the Bankruptcy

Code.

Treatment: Each holder of an allowed Other PG&E

Corp. Secured Claim shall receive, in full and final

satisfaction, compromise, settlement, release, and

discharge of such allowed Other PG&E Corp.

Secured Claim, (i) retention of its Other PG&E Corp.

Secured Claim and any properly perfected and valid

liens; (ii) payment in full in cash, including the

payment of any interest allowed and payable under

section 506(b) of the Bankruptcy Code, on the

Effective Date or as soon thereafter as is reasonably

practicable, or (iii) treatment of such allowed Other

PG&E Corp. Secured Claim in any other manner that

renders the claim unimpaired, including reinstatement

under section 1124(2) of the Bankruptcy Code.

Voting: Unimpaired – deemed to accept.

[TBD] 100%

receive, in full and final satisfaction, compromise,

settlement, release, and discharge of such allowed

Other PG&E Corp. Priority Claim, (i) cash in an

amount equal to such allowed claim on the Effective

Date or as soon thereafter as is reasonably practicable,

or (ii) such other treatment consistent with the

provisions of section 1129(a)(9) of the Bankruptcy

Code.

Voting: Unimpaired – deemed to accept.

Class 3A:

PG&E Corp.

Unsecured

Revolving

Credit Facility

Claims

Classification: Holders of claims arising under the

Second Amended and Restated Credit Agreement,

dated as of April 27, 2015, by and between PG&E

Corp. and Citibank, N.A., as administrative agent (the

“PG&E Corp. Unsecured Revolving Credit

Agreement”), in the aggregate principal amount of up

to $300 million (the “PG&E Corp. Unsecured

Revolving Credit Facility Claims”).

Treatment: On the Effective Date or as soon

thereafter as is reasonably practicable, each holder of

an allowed PG&E Corp. Unsecured Revolving Credit

Facility Claim shall receive, in full and final

Appx. $300

million

100%

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DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

5

Class 4A:

PG&E Corp.

Unsecured

Term Loan

Claims

Classification: Holders of claims arising under the

Term Loan Agreement, dated as of April 16, 2018, by

and between PG&E Corp. and Mizuho Bank, Ltd., as

administrative agent (the “PG&E Corp. Unsecured

Term Loan Credit Agreement”), in the aggregate

principal amount of $350 million (the “PG&E Corp.

Unsecured Term Loan Claims”).

Treatment: On the Effective Date or as soon

thereafter as is reasonably practicable, each holder of

an allowed PG&E Corp. Unsecured Term Loan Claim

shall receive, in full and final satisfaction,

compromise, settlement, release, and discharge of

such allowed PG&E Corp. Unsecured Term Loan

Claim, cash in an amount equal to (i) the outstanding

principal and accrued and unpaid interest as of the

Petition Date under the PG&E Corp. Unsecured Term

Loan Credit Agreement and (ii) accrued and unpaid

interest from the Petition Date through the Effective

Date at the contract rate.

Voting: Unimpaired – deemed to accept.

Appx. $350

million

100%

satisfaction, compromise, settlement, release, and

discharge of such allowed PG&E Corp. Unsecured

Revolving Credit Facility Claim, cash in an amount

equal to (i) the outstanding principal and accrued and

unpaid interest as of the Petition Date under the

PG&E Corp. Unsecured Credit Agreement and (ii)

accrued and unpaid interest from the Petition Date

through the Effective Date at the contract rate.

Voting: Unimpaired – deemed to accept.

Class 5A:

PG&E Corp.

General

Unsecured

Claims

Classification: Holders of general unsecured claims

(other than Other PG&E Corp. Priority Claims,

PG&E Corp. Unsecured Revolving Credit Facility

Claims and PG&E Corp. Unsecured Term Loan

Claims) against PG&E Corp. (the “PG&E Corp.

General Unsecured Claims”)

Treatment: Each holder of an allowed PG&E Corp.

General Unsecured Claim shall receive, in full and

final satisfaction, compromise, settlement, release,

and discharge of such allowed PG&E Corp. General

Unsecured Claim, cash in an amount equal to the

allowed PG&E Corp. General Unsecured Claim,

together with accrued and unpaid interest from the

Petition Date through the Effective Date at the

applicable contract rate or, in the absence of a

[TBD] 100%

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6

[TBD] 100%

contract rate, the Federal Judgement Rate, on the

earlier of (i) the Effective Date or as soon thereafter

as is reasonably practicable or (ii) as soon as

reasonably practicable following the date such PG&E

Corp. General Unsecured Claim becomes an allowed

PG&E Corp. General Unsecured Claim.

Voting: Unimpaired – deemed to accept.

Class 7A:

PG&E Corp.

Preferred

Interests

Classification: Holders of outstanding preferred

interests in PG&E Corp. (the “PG&E Corp.

Preferred Interests”).

Treatment: Holders of allowed PG&E Corp.

Preferred Interests shall retain ownership of all PG&E

Preferred Interests in Reorganized PG&E Corp.

(including any associated liquidation preference).

Voting: Unimpaired – not entitled to votedeemed to

accept.

N/A 100%

Class 8A:

PG&E Corp.

Common

Interests

Classification: Holders of outstanding common

interests in PG&E Corp. (the “PG&E Corp.

Common Interests”)

Treatment: Holders of allowed PG&E Corp.

Common Interests shall retain ownership of all PG&E

Corp. Common Interests in Reorganized PG&E Corp.

(the “Reorganized PG&E Corp. Common Stock”),

subject to dilution on account of the Reorganized

PG&E Corp. Common Stock issued pursuant to the

New Money Reorganized PG&E Corp. Common

Stock Issuance.

Voting: Impaired – entitled to vote.

Class 6A:

PG&E Corp.

Intercompany

Claims

N/A [TBD]%

Classification: Claims held by the Utility or any nonDebtor affiliate of PG&E Corp. against PG&E Corp.

(the “PG&E Corp. Intercompany Claims”).

TreamentTreatment: All allowed PG&E Corp.

Intercompany Claims, if any, shall be reinstated,

compromised or cancelled at the election of the

Debtors (with the consent of the Ad Hoc Committee,

not to be unreasonably withheld), such that the PG&E

Corp. Intercompany Claims are treated in a taxefficient manner.

Voting: Unimpaired – not entitled to votedeemed to

accept.

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DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

7

Claim Classification/Treatment/Voting Estimated

Allowed

Claims

Each holder of a PG&E Corp. Common Interest shall

have the opportunity to commit for its pro rata share

of 5% of the PG&E Corp. New Money Investment (as

defined herein).

Estimated

%

Recovery

Class 1B:

Other Utility

Priority Claims

Classification: Holders of allowed claims against the

Utility entitled to priority under section 507(a) of the

Bankruptcy Code (other than DIP Financing Facility

Claims, Administrative Expense Claims and Priority

Tax Claims) (the “Other Utility Priority Claims”).

Treatment: Each holder of an allowed Other Utility

Priority Claim shall receive, in full and final

satisfaction, compromise, settlement, release, and

discharge of such allowed Other Utility Priority

Claim, (i) cash in an amount equal to such allowed

Other Utility Priority Claim on the Effective Date or

as soon as practicable thereafter, or (ii) such other

treatment consistent with the provisions of section

1129(a)(9) of the Bankruptcy Code.

Voting: Unimpaired – deemed to accept.

[TBD] 100%

Class 2B:

Other Utility

Secured Claims

Utility Claims

Classification: Holders of claims (other than DIP

Financing Facility Claims) that are secured by valid,

perfected and enforceable liens on property in which

the Utility has an interest or that are subject to setoff

pursuant to section 553 of the Bankruptcy Code (the

“Other Utility Secured Claims”).

Treatment: Each holder of an allowed Other Utility

Secured Claim shall receive, in full and final

satisfaction, compromise, settlement, release, and

discharge of such allowed Other Utility Secured

Claim, (i) retention of its Other Utility Secured Claim

and any properly perfected and valid liens,

(ii) payment in full in cash, including the payment of

any interest allowed and payable under section 506(b)

of the Bankruptcy Code, on the Effective Date or as

soon thereafter as is reasonably practicable, or (iii)

[TBD] 100%

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DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

8

Class 3B:

Utility

Unsecured

Revolving

Credit Facility

Claims

Classification: Holders of claims arising under the

Second Amended and Restated Credit Agreement,

dated as of April 27, 2015, by and between the Utility

and Citibank, N.A., as administrative agent (the

“Utility Unsecured Revolving Credit Agreement”),

in the aggregate principal amount of up to $3 billion

(the “Utility Unsecured Revolving Credit Facility

Claims”).

Treatment: On the Effective Date or as soon

thereafter as is reasonably practicable, each holder of

an allowed Utility Unsecured Revolving Credit

Facility Claim shall receive, in full and final

satisfaction, compromise, settlement, release, and

discharge of such allowed Utility Unsecured

Revolving Credit Facility Claim, cash in an amount

equal to (i) the outstanding principal and accrued and

unpaid interest as of the Petition Date under the

Utility Unsecured Revolving Credit Agreement and

(ii) accrued and unpaid interest from the Petition Date

through the Effective Date at the contract rate.

Voting: Unimpaired – deemed to accept.

Appx.

$2.885

billion

100%

treatment of such allowed Other Utility Secured

Claim in any other manner that renders the Other

Utility Secured Claim unimpaired, including

reinstatement under section 1124(2) of the

Bankruptcy Code.

Voting: Unimpaired – deemed to accept.

Class 4B:

Utility

Unsecured

Term Loan

Claims

Classification: Holders of claims arising under the

Term Loan Agreement, dated as of February 23, 2018,

by and between the Utility and The Bank of TokyoMitsubishi UFJ, Ltd., as administrative agent (the

“Utility Unsecured Term Loan Agreement”), in the

aggregate principal amount of $250 million (the

“Utility Unsecured Term Loan Claims”).

Treatment: On the Effective Date or as soon

thereafter as is reasonably practicable, each holder of

an allowed Utility Unsecured Term Loan Claim shall

receive, in full and final satisfaction, compromise,

settlement, release, and discharge of such allowed

Utility Unsecured Term Loan Claim, cash in an

amount equal to (i) the outstanding principal and

accrued and unpaid interest as of the Petition Date

under the Utility Unsecured Term Loan Agreement

Appx. $250

million

100%

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9

Class 5B:

Short-Term

Utility

Unsecured

Notes Claims

Classification: Holders of claims arising under the

notes (or the applicable indenture relating thereto)

(the “Short-Term Utility Unsecured Notes” and the

indentures, the “Short-Term Utility Unsecured

Notes Indentures”) maturing on or before December

1, 2022 (the “Short-Term Utility Unsecured Notes

Claims”), identified in Schedule 2 hereto.53

Treatment: On the Effective Date or as soon

thereafter as is reasonably practicable, each holder of

an allowed Short-Term Utility Unsecured Notes

Claim shall receive, in full and final satisfaction,

compromise, settlement, release, and discharge of

such allowed Short-Term Utility Unsecured Notes

Claim, cash in an amount equal to the sum of (i)

outstanding principal and accrued and unpaid interest

as of the Petition Date at the contract rate under the

applicable Short-Term Utility Unsecured Notes or

Short-Term Utility Unsecured Notes Indentures, (ii)

accrued and unpaid interest from the Petition Date

through the Effective Date at the contract rate under

the applicable Short-Term Utility Unsecured Notes or

Short-Term Utility Unsecured Notes Indentures and

(iii) any prepayment premium, makewhole or other

similar call protection under the applicable ShortTerm Utility Unsecured Notes or Short-Term Utility

Unsecured Notes Indentures.

Voting: Unimpaired – not entitled to votedeemed to

accept.

Appx. $1.75

billion

100%

and (ii) accrued and unpaid interest from the Petition

Date through the Effective Date at the contract rate.

Voting: Unimpaired – deemed to accept.

Class 6B:

Long-Term

Utility

Classification: Holders of claims arising under any

notes (or the applicable indenture relating thereto)

(the “Long-Term Utility Unsecured Notes” and the

Appx. $15.8

billion

98-99100%

53 If required, the Plan will provide subclasses for claims arising from each separate issuance of the Short-Term

Utility Unsecured Notes.

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10

Unsecured

Notes Claims

indentures, the “Long-Term Utility Unsecured

Notes Indentures”) maturing on or after January 1,

2023 (the “Long-Term Utility Unsecured Notes

Claims”), identified in Schedule 3 hereto.64

Treatment: On the Effective Date or as soon

thereafter as is reasonably practicable, each holder of

an allowedall Long-Term Utility Unsecured Notes

Claim shall receive, in full and final satisfaction,

compromise, settlement, release, and discharge of

such allowedshall be reinstated in full. All LongTerm Utility Unsecured Notes Claim, (i) cash in an

amount equal to (aClaims relating to (i) accrued and

unpaid interest as of the Petition Date and (ii) accrued

and unpaid interest from the Petition Date through the

Effective Date, shall be paid in full in cash at the

contract rate under the applicable Long-Term Utility

Unsecured Notes or Long-Term Utility Unsecured

Notes Indentures, (b) accrued and unpaid interest

from the Petition Date through the Effective Date at

the contract rate under the applicable Long-Term

Utility Unsecured Notes or Long-Term Utility

Unsecured Notes Indentures and (ii) a replacement

note in the same principal amount and maturity date,

and otherwise on the same terms as, the existing

applicable Long-Term Utility Unsecured Note (the

“Long-Term Utility Replacement Notes”);

provided, that the Reorganized Utility’s obligations

under each Long-Term Utility Replacement Note and

the applicable Long-Term Utility Unsecured Notes

Indenture shall (A) be secured by a first mortgage on

all “Principal Property” of the Debtors, as that term is

defined in the applicable Long-Term Utility

Unsecured Notes Indentures and consistent with the

provisions of each of the applicable Long-Term

Utility Unsecured Notes providing for “equal and

ratable” liens,” that is of a status/ranking consistent

with utility bonds of other investor-owned California

utility operating companies and (B) bear interest at a

blended rate of 10 basis points less than the current

interest rates (the “Adjusted Rates”) on the

applicable Long-Term Utility Unsecured Notes, as set

forth in more detail in Schedule 4 attached hereto..

Voting: Impaired – entitled to voteUnimpaired –

deemed to accept.

64 If required, the Plan will provide subclasses for claims arising from each separate issuance of the Long-Term

Utility Unsecured Notes.

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11

$863 million 100%

Class 8B:

Utility

Intercompany

Claims

Classification: Claims held by the PG&E Corp. or

any non-Debtor affiliate of PG&E Corp. against the

Utility (the “Utility Intercompany Claims”).

Treatment: All allowed Utility Intercompany Claims,

if any, shall be reinstated, compromised or cancelled

at the election of the Debtors (with the consent of the

Ad Hoc Committee, not to be unreasonably withheld),

such that the Utility Intercompany Claims are treated

in a tax-efficient manner.

Voting: Unimpaired – not entitled to votedeemed to

accept.

[TBD] 100%

Class 9B:

WildfireFire

Victim Claims

General Procedures: With respect to each category of

prepetitionall unsecured claims arising out of the

prepetition Northern California wildfires and the

Class 7B:

Utility

Pollution

Control BondRelated Claims

$16 billion8

Unknown

100Unkno

wn%

Classification: Holders of claims arising under (a) the

Pollution Control Bonds issued by the California

Pollution Control Financing Authority and the

California Infrastructure and Economic Development

Bank (the “Utility Pollution Control Bonds”) or (b)

related reimbursement obligations from certain letter

of credit facilities (the “PCB Revolving Facilities”)

or reimbursement agreements with the Utility (the

“Reimbursement Agreements”) in the aggregate

outstanding principal amount of $863 million (the

“Utility Pollution Control Bond-Related Claims”).

Treatment: On the Effective Date or as soon

thereafter as is reasonably practicable, each holder of

an allowed Utility Pollution Control Bond-Related

Claim shall receive, in full and final satisfaction,

compromise, settlement, release, and discharge of

such allowed Utility Pollution Control Bond-Related

Claim, cash in an amount equal to the sum of (i)

outstanding principal and accrued and unpaid interest

as of the Petition Date at the contract rate under the

applicable Utility Pollution Control Bond, PCB

Revolving Facility or Reimbursement Agreement, and

(ii) accrued and unpaid interest from the Petition Date

through the Effective Date at the contract rate under

the applicable Utility Pollution Control Bond, PCB

Revolving Facility, or Reimbursement Agreement.

Voting: Unimpaired – deemed to accept.

8 Subject to upward adjustment of up to 15% based upon outcome of estimation proceeding.

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Ghost Ship fire (the “Wildfire, including, but not

limited to, any accrued and unasserted unsecured

claims as of the Effective Date related to the Fires (as

defined below), of individuals, businesses, insurance

subrogation claimants, nonprofits, charities, and any

federal, state and local entities (including

governmental and regulatory authorities and agencies)

for damages, losses, fines, penalties, punitive and/or

exemplary damages, restitution, reimbursement,

attorney’s fees, costs and/or interest, declaratory

and/or injunctive relief (the “Fire Claims”), the

aggregate maximum amount of allowed Wildfire

Claims in each such category of Wildfire Claims (the

“Agreed Capped Amount”)7 shall be as provided

below. Funding of the Wildfire Claims Trust in the

amounts of the Agreed Capped Amount for each

category of Wildfire Claims shall constitute payment

in full of all allowed Wildfire Claims in each such

category of Wildfire Claims. Each holder of a

Wildfire Claim that votes in favor of the Plan agrees

to receive payment in full of the allowed amount of

such Wildfire Claim as determined in accordance with

the procedures of the Wildfire Claims Trust, which

shall be subject to the Agreed Capped Amount and

which shall constitute payment in full of such

claim.consideration to be paid in respect of all Fire

Claims will be the Aggregate Fire Consideration.

Each holder of a Wildfire Claim that does not vote to

accept the Plan (“Opt-Out Wildfire Claimant”)

shall have the allowed amount of its Wildfire Claim

determined in accordance with the procedures of the

Wildfire Claims Trust, as outlined below.

The Reorganized Debtors will establish the Fire

Claims Trust which will be funded with: (i) $12

billion in cash; (ii) $12 billion in shares of common

stock of the Reorganized PG&E Corp. (at plan value);

and (iii) the assignment of rights, claims, and causes

of action as described in the Means for

Implementation section, including rights under certain

2015/2016 insurance policies of the Debtors

7 The Agreed Capped Amount for each category of Wildfire Claims shall be subject to downward adjustment by the

Wildfire Claims Trustee to account for claim values of Opt-Out Wildfire Claimants in each category, if necessary,

after the Estimated Wildfire Liability (as defined herein) is determined.

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Tubbs Wildfire Claim – A Wildfire Claim, other

than an Insurance Subrogation Wildfire Claim or

Public Entity Wildfire Claim (each as defined below),

for which the California Department of Forestry and

Fire Protection (“Cal Fire”) has determined,

following an investigation, that the Utility was not the

ignition source, including the Tubbs fire.

Agreed Capped Amount: $570 million

(collectively, the “Aggregate Fire Consideration”).

Notwithstanding any other provision herein, the rights

in and/or proceeds of the Debtors’ 2016 insurance

policies that provide coverage to the Debtors in

connection with the Ghost Ship fire shall be

transferred to the Fire Claims Trust solely for the

benefit of victims of the Ghost Ship fire and shall not

be used to pay any other allowed claims; provided,

however, the parties shall work together to ensure that

coverage under the Debtors’ 2016 insurance policies

shall be available to the Reorganized Debtors to pay

claims not related to Ghost Ship.

Fire Victim Claims – Any Fire Claim that is not a

Subrogation Fire Claim (as defined below) or

Governmental Fire Claim (as defined below).

Each category of Wildfire Claim shall constitute a

subclass within Class 9B.

Treatment: On the Effective Date, each holder of a

Fire Victim Claim that has been allowed in

accordance with the procedures for allowance and

payment of such claims as set forth in the Means for

Implementation section (an “Allowed Fire Victim

Claim”) shall be entitled to a claim against the Fire

Claims Trust in full and final satisfaction,

compromise, settlement, release, and discharge of

such claim.

Treatment under Class 9B shall exclude Subrogation

Fire Claims and Governmental Fire Claims which

shall be treated in Classes 10B and 11B respectively.

Voting: Impaired – entitled to vote.

Non-Tubbs Wildfire Claim – A Wildfire Claim,

other than an Insurance Subrogation Wildfire Claim,

Public Entity Wildfire Claim, Tubbs Wildfire Claim

or Ghost Ship Fire Claim, (a “Non-Tubbs Wildfire

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Claim”).

Agreed Capped Amount: $5.45 billion.

Public Entity Wildfire Claim – A Wildfire Claim

the holder of which is a public entity (a “Public

Entity Wildfire Claim”).

Agreed Capped Amount: $1.0 billion

Class 10B:

Subrogated

Fire Claims

General Procedures: same as apply to Class 9B

above.

Subrogation Tubbs WildfireFire Claims – A

WildfireAny Fire Claim arising by way of

subrogation under applicable law or contract on

account of amounts incurred (paid and reserved) by

an insurer under and pursuant to the terms and

coverage provisions of a property & casualty policy

for losses for which Cal Fire has determined,

following an investigation, that the Utility was not the

ignition source, including the Tubbs fire (an

“Insurance Subrogation Tubbs Wildfireinsurance

policy (a “Subrogation Fire Claim”).

Treatment: On the Effective Date, each holder of a

Subrogation Fire Claim that has been allowed in

accordance with the procedures for allowance and

payment of such claims as set forth in the Means for

Implementation section (an “Allowed Subrogation

Fire Claim”) shall be entitled to a claim against the

Fire Claims Trust in full and final satisfaction,

compromise, settlement, release, and discharge of

such claim.

Agreed Capped Amount: $975 million

Voting: Impaired – entitled to vote.

$Unknown Unknown

%

Ghost Ship Fire Claim – A Wildfire Claim arising

out of the 2016 Ghost Ship fire.

Agreed Capped Amount: $25 million

Class 11B:

Governmental

Fire Claims

General Procedures: same as apply to Class 9B

above.

Subrogation Non-Tubbs WildfireGovernmental

Fire Claims – A WildfireAny Fire Claim arising byin

any way of subrogationfrom and asserted by a federal,

state or local government entity under applicable law

or contract on account.

$Unknown Unknown

%

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Agreed Attorneys’ Fees and Costs – an agreed

distribution amount for attorneys’ fees and costs

incurred by holders of Tubbs Wildfire Claims, NonTubbs Wildfire Claims and the Ghost Ship Fire

Claims to be paid to their attorneys in amounts to be

determined by the beneficiaries thereof (the “Agreed

Attorneys’ Fees and Costs”).

Agreed Capped Amount: $1.15 billion

of amounts incurred (paid and reserved) by an insurer

under and pursuant to the terms and coverage

provisions of a property & casualty policy for losses

that is not a Subrogation Tubbs Wildfire Claim (an

“Insurance Subrogation Non-Tubbs Wildfire

Claim” and together with the Insurance Subrogation

Non-Tubbs Wildfire Claim, the “Insurance

Subrogation Wildfire Claim”).Treatment: On the

Effective Date, each holder of a Governmental Fire

Claim that has been allowed in accordance with the

procedures for allowance and payment of such claims

as set forth in the Means for Implementation section

(an “Allowed Governmental Fire Claim”) shall be

entitled to a claim against the Fire Claims Trust in full

and final satisfaction, compromise, settlement,

release, and discharge of such allowed claim.

Agreed Capped Amount: $6.82 billion

Voting: Impaired – entitled to vote.

Class 1012B:

Other Utility

General

Unsecured

Claims

Classification: Holders of general unsecured claims

(other than Other Utility Priority Claims, Utility

Unsecured Revolving Credit Facility Claims, Utility

Unsecured Term Loan Claims, Short-Term Utility

Unsecured Notes Claims, Long-Term Utility

Unsecured Notes Claims, WildfireFire Claims, and

Utility Workers’ Compensation Claims) against the

Utility (the “Other Utility General Unsecured

Claims”).

Treatment: Each holder of an allowed Other Utility

General Unsecured Claim shall receive, in full and

final satisfaction, compromise, settlement, release,

and discharge of such allowed Other Utility General

Unsecured Claim, cash in an amount equal to the

allowed Other Utility General Unsecured Claim,

together with accrued and unpaid interest from the

Petition Date through the Effective Date at the

applicable contract rate or, in the absence of a

[TBD] 100%

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100%

contract rate, the Federal Judgement Rate, on the

earlier of (i) the Effective Date or as soon thereafter

as is reasonably practicable or (ii) the date such Other

Utility General Unsecured Claim becomes an allowed

Other Utility General Claim or as soon thereafter as is

reasonably practicable.

Voting: Unimpaired – deemed to accept.

Class 1214B:

Utility

Preferred

Interests

Classification: Holders of outstanding preferred

Interests in the Utility (the “Utility Preferred

Interests”)

Treatment: Holders of allowed Utility Preferred

Interests shall retain ownership of all Utility Preferred

Interests in the Reorganized Utility (including any

associated liquidation preference).

Voting: Unimpaired – deemed to accept.

N/A 100%

Class 1315B:

Utility

Common

Interests

Classification: PG&E Corp. as holder of all

outstanding common Interests in the Utility (the

“Utility Common Interests”).

Treatment: The Reorganized PG&E Corp., as holder

of the Utility Common Interests, shall retain

ownership of all Utility Common Interests in the

Reorganized Utility.

Voting: Unimpaired – deemed to accept.

Class 1113B:

Utility

Workers’

Compensation

Claims

N/A 100%

Classification: Holders of claims against the Utility

by employees of the Utility for the payment of

workers’ compensation benefits under applicable law

(the “Utility Workers’ Compensation Claims”).

Treatment: Each allowed Utility Workers’

Compensation Claim shall be satisfied in full in the

ordinary course of business at such time and in such

manner as the Utility is obligated to satisfy such

Utility Workers’ Compensation Claim under

applicable law.

Voting: Unimpaired – deemed to accept.

MEANS FOR IMPLEMENTATION

Estimation

[TBD]

Estimation proceedings will be initiated pursuant to which the Bankruptcy Court

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WildfireFire

Claims Trust

On the Effective Date, the Reorganized Debtors will establish the WildfireFire

Claims Trust with $16 billion of the proceeds of the PG&E Corp. New Money

Investment (as defined below).10. The Fire Claims Trust will be funded with the

Aggregate Fire Consideration will include (i) $12 billion in cash, (ii) $12 billion of

shares of common stock of Reorganized PG&E Corp. (at plan value), and (iii) the

assignment of rights, claims, and causes of action as described below in the Means

for Implementation section, including rights under certain 2015/2016 insurance

policies of the Debtors.

As part of the Aggregate Fire Consideration, the Debtors shall also assign to the

Fire Claims Trust any and all rights, claims, causes of action, and defenses related

thereto related directly or indirectly to any of the prepetition fires listed in Schedule

1 (the “Fires”) that the Debtors may have against any third party, including,

without limitation, against vendors, suppliers, third party contractors and

consultants (including those who provided services regarding PGE’s electrical

system, system equipment, inspection and maintenance of the system, and

vegetation management), and current and former directors and officers of the

Debtors (to be mutually agreed upon by the TCC and the Ad Hoc Committee and

included as an annex to the Plan).

The WildfireFire Claims Trust shall be administered by a trustee (the

“WildfireFire Claims Trustee”) and governed by an oversight committee (the

“WildfireFire Claims Trust Oversight Committee”) selected by the TCC. An

agreement (the “WildfireFire Claims Trust Agreement”) shall establish and set

forth the provisions of the WildfireFire Claims Trust. The WildfireFire Claims

Trust Agreement shall be in form and substance reasonably acceptable to the Ad

Hoc CommitteeTCC.

The WildfireFire Claims Trustee shall be selected by the [TBD]TCC. The

WildfireFire Claims Trust Oversight Committee shall consist of three members,

which shall be selected by [TBD].TCC.

The WildfireFire Claims Trustee and the WildfireFire Claims Trust Oversight

Committee shall have the authority to retain any advisors for the purpose of

carrying out their respective duties under the WildfireFire Claims Trust Agreement.

The Wildfire Claims Trust Agreement shall set forth procedures that will permit an

Opt-Out Wildfire Claimant to (i) enter into a settlement with the Wildfire Claims

Proceeding and/or the District Court will estimate the Debtors’ liability on all personal injury,

wrongful death, property damage, insurance subrogation, and any other Wildfire

Claims for purposes of confirming the Plan and for purposes of distribution

thereunder, in accordance with the Bankruptcy Code and applicable law. Such

estimation proceedings shall conclude prior to the hearing on Plan confirmation.

The estimated amount of the Debtors’ aggregate wildfire liability as determined by

Bankruptcy Court and/or District Court order is referred to herein as the

“Estimated Wildfire Liability.” A condition precedent to the Effective Date shall

be the Estimated Wildfire Liability not exceeding $16 billion.9

9

 Subject to upward adjustment of up to 15% based upon outcome of estimation proceeding. 10 Subject to upward adjustment of up to 15% based upon outcome of estimation proceeding.

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Trust as to the allowed amount of its Wildfire Claim, (ii) submit to binding

arbitration with the Wildfire Claims Trust to determine the allowed amount of its

Wildfire Claim, or (iii) solely with respect to Wildfire Claims that are personal

injury tort or wrongful death claims, have the allowed amount of such Wildfire

Claim determined pursuant to 28 U.S.C. §157(b)(5), all of which shall be subject to

the cap determined by the estimation proceeding outlined above.

Allowance of Claims: The Trust Agreement will provide procedures for the holders

of Fire Claims to resolve their claims, at their respective option, via a settlement

matrix or allowed claim requirements and procedures approved by the TCC and the

Court as part of plan confirmation, including mediation, streamlined binding

arbitration procedures, or a jury trial to the extent a holder of Fire Claims is entitled

to such a trial. The Court would retain jurisdiction over the Trust, Trustee,

Oversight Committee, and administration of the Fire Claims Trust, subject to the

terms of the Trust Agreement, until the Trust is terminated.

Payment of Claims and Reserve: Given that the amount of the Trust is limited, the

Trustee shall provide for an appropriate payment reserve, in his reasonable business

judgment, to ensure equal payment for all holders of Fire Claims in accordance

with applicable law. Neither the Plan nor the Trust Agreement shall elevate the

priority of claims of holders of Subrogation Fire Claims over the claims of holders

of Fire Victim Claims regardless of their status as allowed claims. The Trustee

shall release reserves only when appropriate and it is clear that claimants will

receive equitable distributions as described below.

Unless otherwise ordered by the Court, in order to maintain an appropriate

reserve, the Trustee shall pay one or more interim distributions on Allowed

Fire Victim Claims, reserving a final distribution on such claims until the

end of Trust administration after equal percentage payments have been

made on Allowed Fire Victim Claims. At that time, at the end of Trust

administration, after each Allowed Fire Victim Claim has been paid in full,

the Trustee may then and only then pay an Allowed Subrogation Fire

Claim(s) that corresponds to the paid in full Allowed Fire Victim Claim.

In the event that the aggregate amount paid in consideration of Wildfire Claims

from the Wildfirethere are remaining funds after payment of all claims of the Fire

Claims Trust is less than the Estimated Wildfire Liability, the excess funds

remaining in the WildfireFire Claims Trust (the “Excess WildfireFire Claims

Trust Funds”) shall be refunded to Reorganized PG&E Corp. to be utilized in the

following manner:

paid to the Wildfire Fund. 1. 50% of the Excess Wildfire Claims Trust

Funds shall be used to pay down the New PG&E Corp. Senior Unsecured

Notes (as defined below); and

2. 50% of the Excess Wildfire Claims Trust Funds shall be used by

Reorganized PG&E Corp. for general corporate purposes, including, but not limited

to, investing in the Reorganized Utility.

Channeling

Injunction

The WildfireFire Claims Trust shall be the sole source of recovery for the

WildfireFire Claims against the Debtors. The Plan and order confirming the Plan

(the “Confirmation Order”) shall channel all WildfireFire Claims against the

Debtors to the WildfireFire Claims Trust for payment in accordance with the terms

and procedures provided therein. The Plan and the Confirmation Order shall bar

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SOURCES OF PLAN FUNDING

Insurance

ProceedsRights

and enjoin holders of WildfireFire Claims from seeking to recover on account of

their WildfireFire Claims against the Reorganized Debtors or any assets of the

Reorganized Debtors, except with respect to any and all rights under and the

proceeds of the Debtors’ insurance policies that provide coverage for the Fires (the

“Channeling Injunction”).

$2.2 billion in insurance proceeds owed to the Debtors in respect of 2017 and 2018

wildfire related losses.The parties shall work in good faith to determine whether

and how to treat the Debtors’ insurance policies consistent with this term sheet.

Up to $2.209 billion of the proceeds of 2017/2018 insurance policies of the Debtors

will be used as a source of cash funding under the Plan.

Cash on Hand $[●] billion of the Debtors’ cash on hand on the Effective Date.

New Money

Investment in

PG&E Corp.

Contributions

to the Wildfire

Fund

On the Effective Date, Reorganized PG&E Corp. shall issue shares of Reorganized

PG&E Corp. Common Stock (the “New Money Reorganized PG&E Corp.

Common Stock Issuance”) to the new money investors identified below (the

“PG&E Corp. New Money Investor Group”), in exchange for at least $19 billion

and up to $20 billion$14,886,190,507 in cash (the “PG&E Corp. New Money

Investment”).

The commitments for the PG&E Corp. New Money Investment shall be provided as

follows:

1. 50% by the consortium of large Utility bondholders identified in Schedule

54 attached hereto (the “PG&E Corp. New Money Commitment

Group”);

2. 45% by the members of the Ad Hoc Committee; and

3. 5% by the holders of PG&E Common Interests in Class 8A.

To the extent that the members of the Ad Hoc Committee and/or holders of PG&E

Common Interests in Class 8A do not provide the commitments described above for

the PG&E Corp. New Money Investment, the PG&E Corp. New Money

Commitment Group will provide commitments covering any such remaining

amount.

New PG&E

Corp. Senior

Unsecured

Notes

On the Effective Date, the Debtors will contribute $5.0 billion, which amount

consists of both the Debtors’ initial and first annual contributions, to the Wildfire

Fund in order to address future wildfire liability.

On the Effective Date, Reorganized PG&E Corp. shall issue at least $4.0 billion

and up to $5.4$5.5 billion in new senior unsecured notes (the “New PG&E Corp.

Senior Unsecured Notes”) to the new money investors identified below (the “New

PG&E Corp. Senior Unsecured Notes Investor Group”) in exchange for at least

$4.05.5 billion and up to $5.4 billion in cash (the “New PG&E Corp. Senior

Unsecured Notes Investment”). The New PG&E Corp. Senior Unsecured Notes

shall have terms materially consistent with the terms contained in the term sheet

(the “New PG&E Corp. Senior Unsecured Notes Term Sheet”) attached hereto

as Exhibit 1.

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The commitments for the New PG&E Corp. Senior Unsecured Notes Investment

shall be provided as follows:

1. 50% by a consortium of large Utility bondholders identified in Schedule 65

attached hereto (the “New PG&E Corp. Senior Unsecured Notes

Commitment Group”);

2. 50% by the members of the Ad Hoc Committee.

To the extent that the members of the Ad Hoc Committee do not provide the

commitments described above for the New PG&E Corp. Senior Unsecured Notes

Investment, the PG&E Corp. New Money Commitment Group will provide

commitments covering any such remaining amount.

New Utility

Secured Notes

The Debtors shall use commercially reasonable efforts to have the Reorganized

Utility issue, on the Effective Date, $5.5 billion7,978,610,000 in new secured

notes (collectively, the “New Utility Secured Notes”) to third party investors in

exchange for $5.5 billion7,978,610,000 in cash, with the proceeds being used to pay

down all existing Utility Unsecured Term Loan Claims, Utility Unsecured

Revolving Credit Facility Claims and Short-Term Utility Unsecured Notes Claims.

The New Utility Secured Notes issued to third party investors shall have terms that

are acceptable to the Ad Hoc Committee and at least as favorable to the

Reorganized Utility as the terms contained in the term sheet (the “New Utility

Secured Notes Term Sheet”) attached hereto as Exhibit 2.

In the event that the Reorganized Utility fails to issue all or a portion of the New

Utility Secured Notes to third party investors on the Effective Date after using

commercially reasonable efforts to do so as described above, on the Effective Date,

the Reorganized Utility shall issue New Utility Secured Notes (on terms materially

consistent with those contained in the New Utility Secured Notes Term Sheet) in

the amount of any such shortfall to the new money investors identified below (the

“Reorganized Utility Secured Notes Investor Group” and together with the

PG&E Corp. New Money Investor Group and the New PG&E Corp. Senior

Unsecured Notes Investor Group, the “Investor Group”) (on pro rata basis as

described in the Amended and Restated Commitment Letter, dated as of August 7,

2019 to be executed in connection with this Plan Term Sheet (the “Commitment

Letter”)) in exchange for the equivalent amount of cash (the “New Utility

Secured Notes Investment”).

The commitments for the New Utility Secured Notes Investment shall be provided

as follows:

1. 50% by a consortium of large Utility bondholders identified in Schedule 76

attached hereto (the “New Utility Secured Notes Commitment Group”);

2. 50% by the members of the Ad Hoc Committee.

To the extent that the members of the Ad Hoc Committee do not provide the

commitments described above for the New Utility Secured Notes Investment, the

PG&E Corp. New Money Commitment Group will provide commitments covering

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Backstop

Commitment

Fees

In consideration of the agreement to backstop the commitments described above,

the following backstop commitment fees (the “Backstop Commitment Fees”)

shall be payable:

1. 3.0% of the PG&E Corp. New Money Investment to the PG&E Corp. New

Money Commitment Group; and

2. 1.5% of the New PG&E Corp. Senior Unsecured Notes Investment to the

New PG&E Corp. Senior Unsecured Notes Commitment Group.

3. 0.751.5% of the maximum amount of New Utility Secured Notes

Investmentissuable pursuant to this term sheet ($7,978,610,000) to the New

Utility Secured Notes Commitment Group, with such amount being

reduced to 0.50% of the New Utility Secured Notes Investment in the event

that all of the New Utility Secured Notes are issued to third party investors

(i.e., not the Reorganized Utility Secured Notes Investor Group pursuant to

the backstop commitment hereunder)..

The Backstop Commitment Fees shall be payable by Reorganized PG&E Corp. in

cash or Reorganized PG&E Corp. Common Stock at the election of each backstop

commitment party.

REGULATORY REQUIREMENTS

FERC

any such remaining amount.

The PG&E Corp. New Money Commitment Group and the New PG&E Corp.

Senior Unsecured Notes Commitment Group agree to use commercially reasonable

efforts to structure the New Money Reorganized PG&E Corp. Common Stock

Issuance and the New PG&E Corp. Senior Unsecured Notes in a manner that will

facilitate the issuance of the New Utility Secured Notes on customary market terms,

including with respect to the fees payable by the Utility in connection therewith.

Prior to the Effective Date, the Debtors and Reorganized Debtors shall receive a

final order, as necessary or appropriate, all of the following approvals from the

Federal Energy Regulatory Commission (“FERC”) (collectively, the “FERC

Approvals”). The Debtors and Reorganized Debtors shall receive a final order,

satisfactory to the Ad Hoc Committee, from the FERC granting authorization under

Section 203 of the Federal Power Act (the “FPA”) to implement the Plan. In

addition, if the reorganization results in the transfer of FERC-jurisdictional natural

gas assets or hydroelectric assets, the Debtors and Reorganized Debtors shall

receive, as necessary or appropriate, approval satisfactory to the Ad Hoc

Committee under Section 7 of the Natural Gas Act (“NGA”) and FPA Section 8,

respectively, to transfer those assets. Prior to the Effective Date, the Debtors and

Reorganized Debtors shall also receive, if and to the extent necessary or

appropriate, a final order from FERC, satisfactory to the Ad Hoc Committee

granting authorization under Section 204 of the FPA to issue new securities as

provided under the Plan. Finally, prior to the Effective Date, the Debtors and

Reorganized Debtors shall receive FERC acceptance, satisfactory to the Ad Hoc

Committee, with respect to any new or modified service tariffs under the FPA or

NGA necessary or appropriate to implement the Plan, and shall receive approval or

acceptance under FPA Section 305 with respect to the creation of any interlocking

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Prior to the Effective Date, the Debtors and Reorganized Debtors shall receive

approval, if required,all necessary or appropriate approvals, authorizations and

final orders from the California Public Utilities Commission (“CPUC”) under

Public Utilities Code Sections 851-854. Prior to the Effective Date, the Debtors

and Reorganized Debtors also shall receive the issuance of a financing order, if

required, from the CPUC for the overall financing structure of the Plan, including

the issuance of new securities as provided under the Plan, and shall receive final

CPUC approval for all other rates, tariffs, and agreements necessary to implement

the Plan.required to implement the Plan, to participate in the Wildfire Fund, and to

be eligible for the presumption of reasonableness provided in Public Utilities Code

section 451.1, in each case satisfactory to the Ad Hoc Committee, including, but

not limited to: (a) successful conclusion of the ROE/Cap Structure Proceedings (as

defined below); (b) approval of transfer of control over the Utility and any changes

to PG&E’s corporate structure and authorizations for the Utility to operate as a

utility, if required; (c) resolution of claims for monetary fines or penalties under the

California Public Utilities Code for conduct prior to the Petition Date, (d) approval

(or exemption from approval) of the overall financing structure and securities to be

issued under the Plan; (e) approvals and determinations pursuant AB 1054

necessary for participation in the Wildfire Fund, including, but not limited to, a

determination that the Plan fully and finally compensates ratepayers in full

compliance with Public Utilities Code section 3292(b)(1)(E) throughout the

existence of the Wildfire Fund, and (f) approval that the Plan, including in regards

to compensation for executive officers, complies with the requirements of Public

Utilities Code section 8389 (collectively, the “CPUC Determinations”).

The “ROE/Cap Structure Proceeding” shall mean the proceeding(s) before the

CPUC governing the authorized return on equity and regulated capital structure of

the Utility. A successful conclusion of the ROE/Cap Structure Proceeding for

purposes of this proceeding shall mean, either (x) a determination that the current

authorized capital structure and a minimum of 10.25% ROE shall be fixed for three

(3) years, or (y) a mutually agreed deferral of the Utility’s 2020 general rate case

and/or cost of capital proceeding before the CPUC for a period of 24 months from

the Effective Date of the Plan, with the current authorized capital structure and/or a

minimum of 10.25% ROE, as relevant, to remain unchanged until expiration of the

deferral period.

NRC If required, prior to the Effective Date, the Debtors and Reorganized Debtors shall

receive approval from the Nuclear Regulatory Commission (“NRC”) for the

transfer of the license for the Diablo Canyon Power Plant (the “NRC Approval”).

directorates.

OTHER TERMS

Releases The Plan shall provide for customary release of all claims and causes of action

against (i) the Debtors, (ii) each of the members of the Ad Hoc Committee, (iii) the

Creditors’ Committee and each of its members, (iv) the Tort Claimants

CommitteeTCC and each of its members, (v) the WildfireFire Claims Trustee, (vi)

the WildfireFire Claims Trust Oversight Committee and each of its members and

(vii) with respect to each of the foregoing entities in clauses (i) through (vi), such

entities’ Related Persons115 (each such entity in foregoing clauses (i) through (vii),

CPUC

115 “Related Persons” with respect to an entity shall mean that entity’s current and former affiliates, and such

entities’ and their current and former affiliates’ current and former directors, managers, officers, equity holders

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a “Released Party”).

Releases shall be provided by (i) the Debtors, (ii) each of the members of the Ad

Hoc Committee, (iii) the Creditors’ Committee and each of its members, (iv) the

Tort Claimants CommitteeTCC and each of its members, (v) the WildfireFire

Claims Trustee, (vi) the WildfireFire Claims Trust Oversight Committee and each

of its members and (vii) with respect to each of the foregoing entities in clauses (i)

through (vi), such entities’ Related Persons, and (viii) all holders of claims and

interests against the Debtors, as provided in more detail below (each such entity in

foregoing clauses (i) through (viii), a “Releasing Party”).

The releases to be set forth in the Plan shall include consensual releases from each

holder of a claim or interest (as set forth in the “Plan Treatment of PG&E Corp.

and Utility Claims” section above) that (i) votes to accept the Plan or (ii) is deemed

to accept the Plan, of each Released Party from any claims or causes of action,

including any derivative claims asserted or assertable on behalf of any of the

Debtors, that the Debtors, the Reorganized Debtors, or their Estates or affiliates or

that each other Releasing Party, as applicable, would have been legally entitled to

assert in its own right (whether individually or collectively) or on behalf of the

holder of any claims or interest or other entity, based on or relating to, or in any

manner arising from, in whole or in part, the Debtors, the Debtors’ capital

structure, the assertion or enforcement of rights and remedies against the Debtors,

the Debtors’ in- or out-of-court restructuring discussions, intercompany

transactions between or among the Debtors and/or their Affiliates, the purchase,

sale, or rescission of the purchase or sale of any security of the Debtors or the

Reorganized Debtors, the subject matter of, or the transactions or events giving rise

to, any claim or interest that is treated in the Plan, the business or contractual

arrangements between any Debtor and any Released Party, the Chapter 11 Cases

and related adversary proceedings, the formulation, preparation, dissemination,

negotiation, filing, or consummation of the Plan, the disclosure statement to the

Plan, or any restructuring transaction, contract, instrument, release, or other

agreement or document created or entered into in connection with the foregoing, or

upon any act or omission, transaction, agreement, event or other occurrence taking

place on or before the Effective Date.

The Plan shall provide for consensual releases to the Released Parties of all claims

and causes of action that could be asserted against, or in any way relating to, or

arising out of (i) any Debtor, the Reorganized Debtors, their businesses, or their

property, (ii) the Chapter 11 Cases, (iv) the formulation, preparation, negotiation,

dissemination, implementation, administration, or consummation of the Plan, or (v)

any other act or omission in connection with the Chapter 11 Cases.

Exculpation The Plan shall provide certain customary exculpation provisions, which shall

include a full exculpation from liability in favor of the Debtors, each of the

members of the Ad Hoc Committee and each of its members and their

entities’ and their current and former affiliates’ current and former directors, managers, officers, equity holders

(regardless of whether such interests are held directly or indirectly), predecessors, successors and assigns,

subsidiaries, and each of their respective current and former equity holders, officers, directors, managers,

principals, members, employees, agents, advisory board members, financial advisors, partners, attorneys,

accountants, investment bankers, consultants, representatives, and other professionals, each in their capacity as

such.

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SOLICITATION MAY ONLY OCCUR FOLLOWING APPROVAL BY THE BANKRUPTCY COURT OF A

DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

24

Corporate

Governance

Upon the Effective Date and for a period of two (2) years thereafter, the board of

directors of Reorganized PG&E Corp. (the “New PG&E Corp. Board”) shall

consist of nine (9) members. From the second anniversary of the Effective Date

through the fifth anniversary of the Effective Date, the New PG&E Board Corp.

Board shall consist of at least nine (9) and no more than eleven (11) members. The

chief executive officer of Reorganized PG&E Corp. (the “New PG&E Corp.

CEO”) shall be a director on the New PG&E Corp. Board. The New PG&E Corp.

CEO shall not be the chairperson of the New PG&E Corp. Board. The remaining

directors of the New PG&E Corp. Board shall be appointed on the Effective Date,

and thereafter elected annually, in the following manner:

1. One (1) director shall be nominated by IBEW Local 1245, on behalf of the

employees of Reorganized PG&E Corp.;

2. One (1) director shall be nominated by TURN, on behalf of ratepayers;

3. One (1) director shall be nominated by the Wildfire Fund; and

4. Each other director shall be nominated by the shareholders of Reorganized

PG&E Corp.

The board of directors of the Reorganized Utility (the “New Utility Board” and

together with the New PG&E Corp., the “New Boards”) will consist of the same

nine (9) members of the New PG&E Corp. Board. The chairperson of the New

PG&E Corp. Board shall not be the chairperson of the New Utility Board.

The New Boards shall consist of a diverse set of individuals (including, among

other things, complying with the requirements of California State Bill-826). The

majority of the directors of each of the New Boards shall consist of Californians

and individuals who have credentialed experience in the areas of utility operations,

engineering, safety, regulation and/or clean energy.

Renaming /

Rebranding

For the first 60 days following the Effective Date, all employees of the Reorganized

Utility will have the opportunity to submit recommendations for renaming or

rebranding the Reorganized Utility. If, after a period of 90 days following the

Effective Date, no employee recommendation is selected for renaming or

rebranding the Reorganized Utility, the Reorganized Utility shall effect a change of

name to “Golden State Power Light & Gas Co.,” and the Reorganized PG&E Corp.

shall effect a change of name to “GSPL&G Corp.”

professionals, the Creditors’ Committee and each of its members and their

professionals, the Tort Claimants CommitteeTCC and each of its members and

their professionals, and the Related Persons of all of the foregoing parties from any

and all claims and causes of action arising on or after the Petition Date and any and

all claims and causes of action relating to any act taken or omitted to be taken in

connection with, or related to, formulating, negotiating, preparing, disseminating,

implementing, administering, soliciting, confirming or consummating the Plan, the

disclosure statement to the Plan or any contract, instrument, release or other

agreement or document created or entered into in connection with the Plan or any

other act taken or omitted to be taken in connection with or in contemplation of the

Chapter 11 Cases or the restructuring of the Debtors, with the sole exception of

willful misconduct or gross negligence.

Prohibition

Against Rate

Increases

The Debtors and the Reorganized Debtors will not seek to recover the contributions

made to the Wildfire Claims Trust or the Wildfire Fund, either directly or

indirectly, through rate increases.

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SOLICITATION MAY ONLY OCCUR FOLLOWING APPROVAL BY THE BANKRUPTCY COURT OF A

DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

25

Utility Rates to

Consumers

Post-Effective

Date

Management

The Utility will seek to enter into a long-term management, oversight, O&M or

similar contract(s)/agreement(s) with a qualified management team and/or top-tier

U.S.-domiciled utility/energy holding company (all previously identified) to

oversee and run the Utility beginning on the Effective Date. Such entity or

management team may be provided the opportunity to participate in the PG&E

Corp. New Money Investment in connection therewith.

The Plan shall be rate-neutral to end-market consumers in California on a net basis.

The Plan will rely on securitization amounts up to similar levels of the

securitization bonds issued in 2001. The proceeds of such new securitization bonds

will be used for future statewide Wildfire Fund purposes. The proceeds of any new

securitization bonds will not be used for the Debtors’ or Reorganized Debtors’

benefit for plan purposes.

Key Corporate

Operating

Businesses

PG&E agrees not to sell, and will oppose any attempt to municipalize, any portion

of the operating business or assets, for a period of (5) years after the Effective Date

of the Plan; provided, however, this provision does not apply to any owned,

including currently occupied real estate. For the avoidance of doubt, this

restriction will not limit any change in control transaction relating to Reorganized

PG&E Corp., including, without limitation, a merger, tender offer or similar

transaction.

Key Employee

Matters

All PG&E Corp. common stock currently held by employees and retirees in

pension accounts, 401(k) accounts and company-sponsored plans will be trued-up

for any dilution on account of the Plan with new equity issuances within 90 days

after the Effective Date. Such equity interests will be structured to comply with all

applicable securities laws.

Subject to the support of the International Brotherhood of Electrical Workers

(“IBEW”) for the Plan, contingent upon and after confirmation of the Plan, the

Reorganized Debtors shall enter into an agreement with Local Union No. 1245 of

the International Brotherhood of Electrical Workers (“Local 1245”) with such

agreement to apply only to the period starting on the Effective Date, extending the

two (2) Collective Bargaining Agreements currently in place between Pacific Gas

and Electric Company and Local 1245 (the IBEW Physical Agreement and the

IBEW Clerical Agreement, collectively the “IBEW CBAs”), until December 31,

2023 with such extension to include (i) a reasonable and appropriate general wage

increase for each of the extension years (2022 and 2023) deemed to be appropriate,

reasonable, consistent with past practice and included in go-forward allowed rates;

(ii) a prohibition on any involuntary layoffs during the term of the extended IBEW

CBAs; provided, however such prohibition will not limit any individual employee

terminations or displacements and will not apply to contract workforce or nonbargaining unit members; and (iii) reemphasize the Reorganized Debtors’ and

Local 1245’s commitment to maintaining a spirit of cooperation between labor and

management.

Utility

Consumer Rate

Credit

Other

Employee

Compensation-related agreements between any of the Debtors and any directors,

officers and employees of the Debtors existing as of the Effective Date, including

Plan to include sale of certain key real estate assets of the Debtors to previously

identified party or parties to allow for up to $1 billion rate credit for the benefit of

all PG&E customers, to be applied equally over a period of 10 years from the

Effective Date.

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SOLICITATION MAY ONLY OCCUR FOLLOWING APPROVAL BY THE BANKRUPTCY COURT OF A

DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

26

Matters

Executory

Contracts and

Unexpired

Leases

All executory contracts and unexpired leases not expressly listed for rejection on an

exhibit to the Plan or previously assumed or rejected by order of the Bankruptcy

Court shall be deemed assumed as of the Effective Date.

The Debtors or Reorganized Debtors, as applicable, may alter, amend, modify, or

supplement the list of assumed executory contracts and unexpired leases and the

schedules of executory contracts and unexpired leases with respect to the Debtors

or Reorganized Debtors, as applicable, at any time, through and including 45 days

after the Effective Date.

any indemnification and severance obligations, short term incentive plan and other

incentive plans, with the exception of the revisions set forth herein, existing as of

the Effective Date, shall be assumed by the Reorganized Debtors.

The New Boards shall revise the long term incentive compensation programs of

Reorganized PG&E Corp. and the Reorganized Utility by increasing the proportion

of LTIP awards subject to performance-based vesting criteria. Performance criteria

for LTIP awards will be modified by increasing/implementing performance

weightings that are based on achievement of public safety, infrastructure hardening

and other related strategic long term objectives.

Renewable

Energy Power

Purchase

Agreements

Notwithstanding anything to the contrary in this Term Sheet, the Debtors and

Reorganized Debtors shall not reject any renewable energy power purchase

agreement.

Tax Matters The Debtors and the Ad Hoc Committee will work together in good faith and will

use commercially reasonable efforts to structure and implement the Reorganization

in a tax efficient and cost-effective manner for the Reorganized Debtors and

creditors.

Post-Effective Date ownership of PG&E Corp. shall be structured to maximize the

usage of go-forward tax attributes.

Pension

Matters

Timing / Key

Dates

Emergence from chapter 11 is to be achieved as soon as reasonably practicable,

with specific deadlines as follows:

1. A plan of reorganization materially consistent with the terms provided in

this Term Sheet and disclosure statement corresponding to such plan to be

filed no later than September 16October 31, 2019;

2. Order confirming such plan of reorganization entered no later than May

15June 30, 2020; and

3. Effective date of the plan of reorganization to occur no later than June 30,

202060 days after the entry of the Confirmation Order.

Upon the Effective Date, the Reorganized Debtors shall assume and continue to

maintain the PG&E Retirement Plan under its current terms, except to the extent

any amendment is required by law, and shall make any and all contributions

necessary to satisfy the minimum funding requirements under ERISA Section 302

and Internal Revenue Code Section 430.

Conditions

Precedent to

The following conditions must be satisfied in order for the Effective Date to occur:

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DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

27

1. the Estimated Wildfire Liability shall not exceed $16 billion.12A plan of

reorganization that provides a binding cap on the recoveries to the holders

of Fire Claims (including fines, penalties, reimbursement and other similar

obligations) that shall not be greater than the Aggregate Fire Consideration

shall have been confirmed;

2. the Confirmation Order shall have been entered by the Court in form and

substance acceptable to the Ad Hoc Committee and TCC, be in full force

and effect and not be subject to any stay or injunction and shall have

become a final order;

3. all definitive documents relating to the Plan shall be in form and substance

acceptable to the Ad Hoc Committee;

4. the WildfireFire Claims Trust shall be have been established in accordance

with the terms provided herein and the procedures in connection therewith

shall be in form and substance acceptable to the TCC;

5. the WildfireFire Claims Trustee shall have been appointed in accordance

with the terms provided herein;

6. the members of the WildfireFire Claims Trust Oversight Committee shall

have been appointed in accordance with the terms provided herein;

7. a Wildfire Fund has been established pursuant to Public Utilities Code

section 3292, and the Utility has satisfied (i) the conditions to participate in

the Wildfire Fund pursuant to Public Utilities Code sections 3292 and

3293, (ii) the conditions to obtain a safety certification pursuant to Public

Utilities Code section 8389, and (iii) any other conditions that are required

to participate in the Wildfire Fund and be eligible for the presumption of

reasonableness provided in Public Utilities Code section 451.1;

8. the CPUC has determined that the Plan fully and finally compensates

ratepayers in full compliance with Public Utilities Code section

3292(b)(1)(E) throughout the existence of the Wildfire Fund in a manner

acceptable to the Ad Hoc Committee;

98. the New PG&E Corp. Common Stock, New PG&E Corp. Senior

Unsecured Notes and the New Utility Secured Notes shall have been issued

in accordance with the terms provided herein and in a manner acceptable to

the Ad Hoc Committee and the TCC;

109. all actions, documents, certificates and agreements necessary or

appropriate to implement the Plan shall have been effected or executed or

deemed executed and delivered, as the case may be, to the required parties

and, to the extent required, filed with the applicable governmental units in

accordance with applicable laws; and

1110. all authorizations, consents, regulatory approvals, rulings or

documents that are necessary or appropriate to implement and effectuate

the Plan (including, but not limited to, the FERC Approvals, the CPUC

Determinations, and the NRC Approval) shall have been received.

Conditions

Precedent to

Funding

The following conditions must be met in order for the PG&E Corp. New Money

Investment, New PG&E Corp. Senior Unsecured Notes Investment, and New

Utility Secured Notes Investment to be funded:

1. A plan of reorganization that provides a binding cap on the Wildfire Claims

Effective Date

of Plan

12 Subject to upward adjustment of up to 15% based upon outcome of estimation proceeding.

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THIS IS NOT A SOLICITATION OF A VOTE ON A PLAN OF REORGANIZATION. SUCH A

SOLICITATION MAY ONLY OCCUR FOLLOWING APPROVAL BY THE BANKRUPTCY COURT OF A

DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

28

equal to the Estimated Wildfire Liability, not to exceed $16.0 billion plus a

maximum 15% upward adjustment,recoveries to the holders of Fire Claims

(including fines, penalties, reimbursement and other similar obligations)

that shall not be greater than the Aggregate Fire Consideration shall have

been confirmed and the Effective Date shall have occurred;

2. Satisfactory conclusion of the Utility’s 2020 general rate case and cost of

capital proceedings before the CPUC, which shall mean, either (x) a

determination that the current authorized capital structure and 10.25% ROE

shall be fixed for three (3) years, or (y) a mutually agreed deferral of the

Utility’s 2020 general rate case and/or cost of capital proceeding before the

CPUC for a period of 24 months from the Effective Date of the Plan, with

the current authorized capital structure and/or 10.25% ROE, as relevant, to

remain unchanged until expiration of the deferral period;There shall not

have occurred one or more fires in the Debtors’ service territory after the

Petition Date and prior to January 1, 2020 that is asserted by any person to

arise out of the Debtors’ activities and that destroys or damages more than

500 dwellings or commercial structures (individually or in the aggregate);

3. There shall not have occurred one or more fires on or after January 1, 2020

destroying or damaging at least 500 dwellings or commercial structures

(individually or in the aggregate) within PG&E’s service area at a time

when the portion of PG&E’s system at the location of such fires was not

de-energized;

3. CPUC approval, including issuance of a financing order, if required, of the

overall financing structure, including issuance of new securities under the

Plan;

4. No material wildfire claims exposure to the Debtors due to postpetition

fires during the pendency of the chapter 11 cases;

54. The form of all common equity documents and the plan of reorganization

and confirmation order are in form and substance acceptable to the Investor

Group; and

65. Customary closing conditions for an equity and unsecured debt financing

including, but not limited to, no material adverse change to PG&E Corp.

76. All Conditions Precedent to the Effective Date of the Plan, as set forth

above, shall have been satisfied.

87. The Debtors shall have maintained and held in good standing all of their

operating licenses, certificates and other regulatory authorizations and

approvals necessary to operate the Utility’s business with no pending

revocations of any such license, certificate, approval or authorization or

open proceedings contemplating such revocation.

8. Each of the conditions to funding under the Commitment Letter shall have

been satisfied or waived by all applicable parties thereto.

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THIS IS NOT A SOLICITATION OF A VOTE ON A PLAN OF REORGANIZATION. SUCH A

SOLICITATION MAY ONLY OCCUR FOLLOWING APPROVAL BY THE BANKRUPTCY COURT OF A

DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

SCHEDULE 1

List of Northern California WildfiresFires Covered by WildfireFire Claims Trust

1. Butte Fire (2015)

2. 2017 North Bay WildfiresFires

a. LaPorte (La Porte)

b. McCourtney

c. Lobo

d. Honey

e. Redwood / Potter Valley

f. Sulphur

g. Cherokee

h. 37

i. Blue

j. Pocket

k. Atlas

l. Cascade

m. Nuns

n. Adobe

o. Norrbom

p. Pressley

q. Patrick

r. Pythian / Oakmont

s. Maacama

t. Tubbs

u. Point

3. Camp Fire (2018)

4. Ghost Ship (2016)

29

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THIS IS NOT A SOLICITATION OF A VOTE ON A PLAN OF REORGANIZATION. SUCH A

SOLICITATION MAY ONLY OCCUR FOLLOWING APPROVAL BY THE BANKRUPTCY COURT OF A

DISCLOSURE STATEMENT PURSUANT TO SECTION 1125 OF THE BANKRUPTCY CODE

SCHEDULE 2

Short-Term Utility Unsecured Notes

1. $550 million principal amount of 3.50% senior notes due October 1, 2020

2. $250 million principal amount of 3.50% senior notes due October 1, 2020

3. $300 million principal amount of 4.25% senior notes due May 15, 2021

4. $250 million principal amount of 3.25% senior notes due September 15, 2021

5. $400 million principal amount of 2.45% senior notes due August 15, 2022

30

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SCHEDULE 3

Long-Term Utility Unsecured Notes

1. $375 million principal amount of 3.25% senior notes due June 15, 2023

2. $500 million principal amount of 4.25% senior notes due August 1, 2023

3. $300 million principal amount of 3.85% senior notes due November 15, 2023

4. $450 million principal amount of 3.75% senior notes due February 15, 2024

5. $350 million principal amount of 3.40% senior notes due August 15, 2024

6. $400 million principal amount of 3.50% senior notes due June 15, 2025

7. $200 million principal amount of 3.50% senior notes due June 15, 2025

8. $600 million principal amount of 2.95% senior notes due March 1, 2026

9. $400 million principal amount of 3.30% senior notes due March 15, 2027

10. $1,150 million principal amount of 3.30% senior notes due December 1, 2027

11. $300 million principal amount of 4.65% senior notes due August 1, 2028

12. $3,000 million principal amount of 6.05% senior notes due March 1, 2034

13. $700 million principal amount of 5.80% senior notes due March 1, 2037

14. $250 million principal amount of 5.80% senior notes due March 1, 2037

15. $400 million principal amount of 6.35% senior notes due Feb 15, 2038

16. $550 million principal amount of 6.25% senior notes due March 1, 2039

17. $550 million principal amount of 5.40% senior notes due January 15, 2040

18. $250 million principal amount of 5.40% senior notes due January 15, 2040

19. $250 million principal amount of 4.50% senior notes due December 15, 2041

20. $400 million principal amount of 4.45% senior notes due April 15, 2042

21. $350 million principal amount of 3.75% senior notes due August 15, 2042

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22. $375 million principal amount of 4.60% senior notes due June 15. 2043

23. $500 million principal amount of 5.125% senior notes due November 15, 2043

24. $450 million principal amount of 4.75% senior notes due February 15, 2044

25. $225 million principal amount of 4.75% senior notes due February 15, 2044

26. $500 million principal amount of 4.30% senior notes due March 15, 2045

27. $100 million principal amount of 4.30% senior notes due March 15, 2045

28. $450 million principal amount of 4.25% senior notes due March 15, 2046

29. $400 million principal amount of 4.00% senior notes due December 1, 2046

30. $200 million principal amount of 4.00% senior notes due December 1, 2046

31. $850 million principal amount of 3.95% of senior notes due December 1, 2047

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0.13%

Senior Unsecured Notes due Mar 2037

Senior Unsecured Notes due Aug 2024

3/1/37

Name

950.0

8/15/24

5.80%

Senior Unsecured Notes due Aug 2023

5.68%

350.0

0.12%

3.40%

Senior Unsecured Notes due Feb 2038

8/1/23

2/15/38

3.33%

400.0 6.35% 6.21%

500.0

0.07%

0.14%

Senior Unsecured Notes due Mar 2039 3/1/39

Change

550.0

Senior Unsecured Notes due Jun 2025

6.25%

4.25%

6.12%

6/15/25

0.13%

600.0

Senior Unsecured Notes due Jan 2040

4.16%

1/15/40

3.50%

800.0 5.40%

3.43%

5.28% 0.12%

Maturity

Senior Unsecured Notes due Dec 2041

0.07%

12/15/41 250.0 4.50%

0.09%

4.40%

Senior Unsecured Notes due Mar 2026

0.10%

3/1/26

Senior Unsecured Notes due Apr 2042 4/15/42

600.0

400.0

Senior Unsecured Notes due Jun 2023

4.45%

2.95%

4.35%

Senior Unsecured Notes due Nov 2023

2.89%

0.10%

SCHEDULE 4

Adjusted Rates for the Long-Term Utility Replacement Notes

Senior Unsecured Notes due Aug 2042 8/15/42

11/15/23

350.0

0.06%

3.75% 3.67%

6/15/23

0.08%

Senior Unsecured Notes due Mar 2027

Senior Unsecured Notes due Jun 2043

300.0

6/15/43

3/15/27

375.0

Principal

4.60%

400.0

4.50%

3.85%

3.30%

0.10%

$375.0

Senior Unsecured Notes due Nov 2043

3.23%

11/15/43

3.77%

500.0 5.13% 5.02%

0.07%

0.11%

Senior Unsecured Notes due Feb 2044 2/15/44

Senior Unsecured Notes due Dec 2027

675.0

3.25%

4.75%

12/1/27

4.65%

0.08%

1,150.0

0.10%

Senior Unsecured Notes due Mar 2045

3.30%

3/15/45 600.0

3.23%

4.30%

Old Rate

4.21%

Senior Unsecured Notes due Feb 2024

0.09%

0.07%

Senior Unsecured Notes due Mar 2046 3/15/46 450.0

3.18%

4.25%

Senior Unsecured Notes due Aug 2028

4.16%

2/15/24

8/1/28

0.09%

Senior Unsecured Notes due Dec 2046

300.0

12/1/46

450.0

600.0

4.65%

4.00% 3.91%

4.55%

3.75%

0.09%

Senior Unsecured Notes due Dec 2047

New Rate

12/1/47

0.10%

850.0 3.95% 3.87%

3.67%

Senior Unsecured Notes due Mar 2034

0.08%

0.07%

Total

3/1/34

$15,775.0

3,000.0

4.67% 4.57%

6.05%

0.08%

0.10%

5.92%

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SCHEDULE 5

PG&E Corp. New Money Commitment Group

1. Apollo Capital Management, L.P.

2. Canyon Capital Advisors LLC

3. Capital Research and Management Company

4. Citadel Advisors LLC

5. Davidson Kempner Capital Management LP

6. Elliott Management Corporation

7. Farallon Capital Management, L.L.C.

8. Oaktree Fund GP, LLC

9. Pacific Investment Management Company LLC

10. Theater Investor LLC (wholly owned by funds managed by OZ Management LP)

11. Third Point LLC

12. Varde Partners, Inc.

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SCHEDULE 65

New PG&E Corp. Senior Unsecured Notes Commitment Group

1. Apollo Capital Management, L.P.

2. Canyon Capital Advisors LLC

3. Capital Research and Management Company

4. Citadel Advisors LLC

5. Davidson Kempner Capital Management LP

6. Elliott Management Corporation

7. Farallon Capital Management, L.L.C.

8. Oaktree Fund GP, LLC

9. Pacific Investment Management Company LLC

10. Theater Investor LLC (wholly owned by funds managed by OZ Management LP)

11. Third Point LLC

12. Varde Partners, Inc.

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SCHEDULE 76

New Utility Secured Notes Commitment Group

1. Apollo Capital Management, L.P.

2. Canyon Capital Advisors LLC

3. Capital Research and Management Company

4. Citadel Advisors LLC

5. Davidson Kempner Capital Management LP

6. Elliott Management Corporation

7. Farallon Capital Management, L.L.C.

8. Oaktree Fund GP, LLC

9. Pacific Investment Management Company LLC

10. Theater Investor LLC (wholly owned by funds managed by OZ Management LP)

11. Third Point LLC

12. Varde Partners, Inc.

Case: 19-30088 Doc# 3962 Filed: 09/23/19 Entered: 09/23/19 04:56:04 Page 114

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EXHIBIT 1

New PG&E Corp. Senior Unsecured Notes Term Sheet

Case: 19-30088 Doc# 3962 Filed: 09/23/19 Entered: 09/23/19 04:56:04 Page 115

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EXHIBIT 2

New Utility Secured Notes Term Sheet

Case: 19-30088 Doc# 3962 Filed: 09/23/19 Entered: 09/23/19 04:56:04 Page 116

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Case: 19-30088 Doc# 3962 Filed: 09/23/19 Entered: 09/23/19 04:56:04 Page 117

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