**Exhibit 10.1**

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 

OF 

PG&E CORPORATION 

(As Amended Effective as of September 15, 2010) 

 

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This is the controlling and definitive statement of the Supplemental Executive Retirement Plan (“PLAN”)1 for ELIGIBLE EMPLOYEES of PG&E Corporation (“CORPORATION”), Pacific Gas and Electric Company(“COMPANY”) and such other companies, affiliates, subsidiaries, or associations as the BOARD OF DIRECTORS may designate from time to time. The PLAN is the successor plan to the Supplemental Executive Retirement Plan of the COMPANY.The PLAN as contained herein was first adopted effective January 1, 2005. 

ARTICLE 1 

DEFINITIONS 

1.01 Basic SERP Benefit shall mean the benefit described in Section 2.01. 

1.02 Board or Board of Directors shall mean the BOARD OF DIRECTORS of the CORPORATION or, when appropriate, any committeeof the BOARD which has been delegated the authority to take action with respect to the PLAN. 

1.03 Company shall meanthe Pacific Gas and Electric Company, a California corporation. 

1.04 Corporation shall mean PG&E Corporation, aCalifornia corporation. 

1.05 Eligible Employee shall mean individuals who are (1) (a) employees of theCOMPANY or, with respect to PG&E Corporation, PG&E Corporation Support Services, Inc., and PG&E Corporation Support Services II, Inc. only, (i) prior to April 1, 2007, were employees who transferred to PG&E Corporation,PG&E Corporation Support Services, Inc., or PG&E Corporation Support Services II, Inc. from Pacific Gas and Electric Company; or (ii) after March 31, 2007, all employees, and (b) officers in Officer Bands I-V, or (2) suchother employees of the COMPANY, the CORPORATION, PG&E Corporation Support Services, Inc., PG&E Corporation Support Services II, Inc., or such other companies, affiliates, subsidiaries, or associations, as may be designated by the ChiefExecutive Officer of the CORPORATION. ELIGIBLE EMPLOYEES shall not include employees who retired prior to January 1, 2005, or whose employment relationship with any of the PARTICIPATING EMPLOYERS was otherwise terminated prior toJanuary 1, 2005. 

1.06 STIP Payment shall mean amounts received by an ELIGIBLE EMPLOYEE under the Short-TermIncentive Plan maintained by the CORPORATION. 

1.07 Participating Employer shall mean the COMPANY, the CORPORATION,PG&E Corporation Support Services, Inc., PG&E Corporation Support Services II, Inc., and any other companies, affiliates, subsidiaries or associations designated by the Chief Executive Officer of the CORPORATION. 

 

1.08 Plan shall mean the Supplemental Executive Retirement Plan (“SERP”) asset forth herein and as may be amended from time to time. 

1.09 Plan Administrator shall mean the Employee BenefitCommittee or such individual or individuals as that Committee may appoint to handle the day-to-day affairs of the PLAN. 

1.10Retirement Plan shall mean the Pacific Gas and Electric Company Retirement Plan for Management Employees. 

1.11Salary shall mean the base salary received by an ELIGIBLE EMPLOYEE. SALARY shall not include amounts received by an employee after such employee ceases to be an ELIGIBLE EMPLOYEE. For purposes of calculating benefits under the PLAN, SALARYshall not be reduced to reflect amounts that have been deferred under the PG&E Corporation Supplemental Retirement Savings Plan. 

1.12 Service shall mean “credited service” as that term is defined in the RETIREMENT PLAN or, if the Nominating and Compensation Committee of the BOARD OF DIRECTORS has granted anadjusted service date for an ELIGIBLE EMPLOYEE, “credited service” as calculated from such adjusted service date. In no event, however, shall SERVICE include periods of time after which an officer has ceased to be an ELIGIBLE EMPLOYEE.

ARTICLE 2 

SERP BENEFITS 

2.01 The BASIC SERP BENEFIT payable from the PLAN shall be amonthly annuity with an annuity start date of the later of (a) the first of the month following the month in which the ELIGIBLE EMPLOYEE has a separation from service (as provided under Code Section 409A and related guidance), or(b) the first of the month following the ELIGIBLE EMPLOYEE’s 55th birthday; provided, however, that no payments under the PLAN shall be made until the seventh month following the annuity start date. The first payment shall consist of themonthly annuity payment for the seventh month, plus the first six monthly annuity payments, including interest calculated at a rate to reflect the CORPORATION’s marginal cost of funds. The monthly amount of the BASIC SERP BENEFIT shall be equalto the product of: 

1.7% × the average of three highest calendar years’ combination of SALARY and STIP PAYMENT forthe last ten years of SERVICE x SERVICE x 1/12. 

In computing a year’s combination of SALARY and STIP PAYMENT, theyear’s amount shall be the sum of the SALARY and STIP PAYMENT, if any, paid or payable in the same calendar year. If an ELIGIBLE EMPLOYEE has fewer than three years’ SALARY, the average shall be the combination of SALARY and STIP PAYMENTfor such shorter time, divided by the number of years and partial years during which such employee was an ELIGIBLE EMPLOYEE. 

The BASIC SERP BENEFIT is further reduced by any amounts paid or payable from the RETIREMENT PLAN, calculated before adjustments formarital or joint pension option elections. 

 
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The BASIC SERP BENEFIT is a benefit commencing at age 65. The amount of the benefit payableshall be reduced by the appropriate age and service factors contained in the RETIREMENT PLAN applicable to such employee. For such calculations, the service factor shall be SERVICE as defined in the PLAN. 

In computing amounts payable from the RETIREMENT PLAN as an offset to the benefit payable from this PLAN, the RETIREMENT PLAN benefitshall be calculated as though the ELIGIBLE EMPLOYEE elected to receive a pension from the RETIREMENT PLAN commencing on the same date as benefits from this PLAN. 

2.02 For ELIGIBLE EMPLOYEES of the PARTICIPATING EMPLOYERS, who transfer from any of said companies to another subsidiary or affiliate, the principles of Section 10 of the RETIREMENT PLAN shallgovern the calculation of benefits under this PLAN. 

2.03 An ELIGIBLE EMPLOYEE may elect to have his BASIC SERP BENEFIT paidin any one of the following forms that are actuarially equivalent within the meaning of Treasury Regulations Section 1.409A-2(b)(ii), with the first annuity payment commencing at the time set forth in Section 2.01: 

(a) BASIC SERP BENEFIT, or a reduced BASIC SERP BENEFIT as calculated under Section 2.02, paid as a monthly annuity for the life ofthe ELIGIBLE EMPLOYEE with no survivor’s benefit. 

(b) A monthly annuity payable for the life of the ELIGIBLE EMPLOYEEwith a survivor’s option payable to the ELIGIBLE EMPLOYEE’s joint annuitant beginning on the first of the month following the ELIGIBLE EMPLOYEE’s death. Subject to the requirements of Treasury Regulations Section 1.409A-2(b)(ii),the factors to be applied to reduce the BASIC SERP BENEFIT to provide for a survivor’s benefit shall be the factors which are contained in the RETIREMENT PLAN and which are appropriate given the type of joint pension elected and the ages andmarital status of the joint annuitants. 

An ELIGIBLE EMPLOYEE may make this election by the latest date permitted by the PLANADMINISTRATOR and in compliance with the rules of Treasury Regulations Section 1.409A-2(b)(2)(ii). 

2.04 Annuitiespayable to an ELIGIBLE EMPLOYEE who is receiving a (i) BASIC SERP BENEFIT, (ii) a BASIC SERP BENEFIT reduced to provide a survivor’s benefit to a joint annuitant, or (iii) a joint annuitant who is receiving a survivor’sbenefit shall be decreased by any additional amounts which can be paid from the RETIREMENT PLAN where such additional amounts are due to increases in the limits placed on benefits payable from qualified pension plans under Section 4l5 of theInternal Revenue Code. The amount of any such decrease shall be adjusted to reflect the type of pension elected by an ELIGIBLE EMPLOYEE under the RETIREMENT PLAN and this PLAN. 

ARTICLE 3 

SURVIVOR BENEFITS 

3.01 In the event that an ELIGIBLE EMPLOYEE who has accrued a benefit under this PLAN dies prior to the date that a BASIC SERP BENEFITwould otherwise commence, the 

 
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PLAN ADMINISTRATOR shall pay a survivor’s benefit (“SURVIVOR’S BENEFIT”) to the ELIGIBLE EMPLOYEE’s surviving spouse or BENEFICIARY (“Beneficiary” shall havethe same meaning as provided under the RETIREMENT PLAN): 

(a) If the sum of the age and SERVICE of the ELIGIBLE EMPLOYEE atthe time of death equaled 70 (69.5 or more is rounded to 70) or if the ELIGIBLE EMPLOYEE was age 55 or older at the time of death, the surviving spouse’s or BENEFICIARY’s benefit shall be a monthly annuity commencing at the time set forthin Section 2.01 and shall be payable for the life of the surviving spouse or BENEFICIARY. The amount of the monthly benefit shall be a monthly benefit that is actuarially equivalent to one-half of the monthly BASIC SERP BENEFIT that would havebeen paid to the ELIGIBLE EMPLOYEE calculated: 

(i) as if he had elected to receive a BASIC SERP BENEFIT, withoutsurvivor’s option; and 

(ii) the monthly annuity starting date was the first of the month following the month in whichthe ELIGIBLE EMPLOYEE died; and 

(iii) without the application of early retirement reduction factors. However, if thesurviving spouse or BENEFICIARY is more than 10 years younger than the ELIGIBLE EMPLOYEE, the amount of the surviving spouse’s or BENEFICIARY’s benefit shall be reduced one-twentieth of 1 percent for each full month in excess of 120months’ difference in their ages, except that such reduction shall not result in a SURVIVOR’S BENEFIT lower than would have been payable if the ELIGIBLE EMPLOYEE had retired as of the date of death and elected a 50 percent joint pensionwith a spouse of the same gender and age as the surviving spouse or BENEFICIARY. 

(b) If the ELIGIBLE EMPLOYEE is less than 55years of age or had fewer than 70 points (as calculated under Section 3.01(a)) at the time of death, the surviving spouse or BENEFICIARY will be entitled to receive a monthly annuity commencing at the time set forth in Section 2.01. Theamount of the monthly annuity payable to the surviving spouse or BENEFICIARY shall be equal to the BASIC SERP BENEFIT converted to a marital joint annuity providing for a 50 percent survivor’s benefit, calculated as if: 1) the ELIGIBLE EMPLOYEEhad terminated employment at the date of death, 2) had lived until age 55, 3) had begun to receive PENSION payments at age 55, and 4) had subsequently died. 

(c) If a former ELIGIBLE EMPLOYEE was age 55 or older at the time of his death and not yet receiving a SERP BENEFIT under the PLAN, the surviving spouse or BENEFICIARY will be entitled to receive amonthly annuity at the time set forth in Section 2.01 in an amount equal to the BASIC SERP BENEFIT converted to a marital joint annuity providing for a 50 percent survivor’s benefit, calculated as if the former ELIGIBLE EMPLOYEE had begunreceiving the converted SERP BENEFIT immediately prior to his death. 

(d) If a former ELIGIBLE EMPLOYEE was younger than age55 and had fewer than 70 points (as calculated under Section 3.01(a)) at the time of his death, the surviving spouse or BENEFICIARY will be entitled to receive a monthly annuity at the time set forth in Section 2.01 in an amount equal tothe BASIC SERP BENEFIT converted to a marital joint annuity providing for a 50 percent survivor’s benefit, calculated as if: 1) the former ELIGIBLE EMPLOYEE had survived until age 55, 2) had begun receiving the converted SERP BENEFIT at age 55,and 3) had subsequently died. 

 
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3.02 A surviving spouse or BENEFICIARY who is entitled to receive a SURVIVOR’S BENEFITunder Section 3.01 shall not be entitled to receive any other benefit under the PLAN. 

ARTICLE 4 

ADMINISTRATIVE PROVISIONS 

4.01 Administration. The PLAN shall be administered by the Senior Human Resources Officer of the CORPORATION (“PLAN ADMINISTRATOR”), who shall have the authority to interpret thePLAN and make and revise such rules as he or she deems appropriate. The PLAN ADMINISTRATOR shall have the duty and responsibility of maintaining records, making the requisite calculations, and disbursing payments hereunder. The PLANADMINISTRATOR’s interpretations, determinations, rules, and calculations shall be final and binding on all persons and parties concerned. 

4.02 Amendment and Termination. The CORPORATION may amend or terminate the PLAN at any time, provided, however, that no such amendment or termination shall adversely affect an accrued benefit whichan ELIGIBLE EMPLOYEE has earned prior to the date of such amendment or termination, nor shall any amendment or termination adversely affect a benefit which is being provided to an ELIGIBLE EMPLOYEE, surviving spouse, joint annuitant, or beneficiaryunder Article II or Article III on the date of such amendment or termination. Anything in this Section 4.02 to the contrary notwithstanding, the CORPORATION may (but is not obligated to) reduce or terminate any benefit to which an ELIGIBLEEMPLOYEE, surviving spouse or joint annuitant, is or may become entitled provided that such ELIGIBLE EMPLOYEE, surviving spouse or joint annuitant is or becomes entitled to an amount equal to such benefit under another plan, practice, or arrangementof the CORPORATION that preserves the time and form of payment rules under the PLAN and otherwise in a manner that complies with Code Section 409A, to the extent required to not violate Code Section 409A. 

4.03 Nonassignability of Benefits. Except to the extent otherwise directed by a domestic relations order that the PlanAdministrator determines is a Qualified Domestic Relations Order under Section 401(a)(12) of the Internal Revenue Code, the benefits payable under this PLAN or the right to receive future benefits under this PLAN may not be anticipated,alienated, pledged, encumbered, or subject to any charge or legal process, and if any attempt is made to do so, or a person eligible for any benefits becomes bankrupt, the interest under the PLAN of the person affected may be terminated by the PLANADMINISTRATOR which, in its sole discretion, may cause the same to be held if applied for the benefit of one or more of the dependents of such person or make any other disposition of such benefits that it deems appropriate. 

4.04 Nonguarantee of Employment. Nothing contained in this PLAN shall be construed as a contract of employment between aPARTICPATING EMPLOYER and the ELIGIBLE EMPLOYEE, or as a right of the ELIGIBLE EMPLOYEE to be continued in the employ of a PARTICIPATING EMPLOYER, to remain as an officer of a PARTICIPATING EMPLOYER, or as a limitation on the right of aPARTICIPATING EMPLOYER to discharge any of its employees, with or without cause. 

 
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4.05 Apportionmentof Costs. The costs of the PLAN may be equitably apportioned by the PLAN ADMINISTRATOR among the PARTICIPATING EMPLOYERS. Each PARTICIPATING EMPLOYER shall be responsible for making benefit payments pursuant to the PLAN on behalf of its ELIGIBLEEMPLOYEES or for reimbursing the CORPORATION for the cost of such payments, as determined by the CORPORATION in its sole discretion. In the event the respective PARTICIPATING EMPLOYER fails to make such payment or reimbursement, and the CORPORATIONdoes not exercise its discretion to make the contribution on such PARTICIPATING EMPLOYER’s behalf, future benefit accruals of the ELIGIBLE EMPLOYEES of that PARTICIPATING EMPLOYER shall be suspended. If at some future date, the PARTICIPATINGEMPLOYER makes all past-due contributions, plus interest at a rate determined by the PLAN ADMINISTRATOR in his or her sole discretion, the benefit accrual of its ELIGIBLE EMPLOYEES will be recognized for the period of the suspension. 

4.06 Benefits Unfunded and Unsecured. The benefits under this PLAN are unfunded, and the interest under this PLAN of any ELIGIBLEEMPLOYEE and such ELIGIBLE EMPLOYEE’s right to receive a distribution of benefits under this PLAN shall be an unsecured claim against the general assets of the CORPORATION. 

4.07 Applicable Law. All questions pertaining to the construction, validity, and effect of the PLAN shall be determined in accordancewith the laws of the United States, and to the extent not preempted by such laws, by the laws of the State of California. The PLAN is intended to comply with the provisions of Code Section 409A. However, the CORPORATION makes no representationthat the benefits provided under this PLAN will comply with Code Section 409A and makes no undertaking to prevent Code Section 409A from applying to the benefits provided under this PLAN or to mitigate its effects on any deferrals orpayments made under this PLAN. 

4.08 Satisfaction of Claims. Notwithstanding Section 4.05 or any other provision of thePLAN, the CORPORATION may at any time satisfy its obligations (either on a before-tax or after-tax basis) for any benefits accrued under the PLAN by the purchase from an insurance company of an annuity contract on behalf of an ELIGIBLE EMPLOYEE.Such purchase shall be in the sole discretion of the CORPORATION and shall be subject to the ELIGIBLE EMPLOYEE’s acknowledgement that the CORPORATION’s obligations to provide benefits hereunder have been discharged, without regard to thepayments ultimately made under the contract. In the event of a purchase pursuant to this Section 4.07, the CORPORATION may in its sole discretion make payments to or on behalf of an ELIGIBLE EMPLOYEE to defray the cost to such ELIGIBLE EMPLOYEEof any personal income tax in connection with the purchase. 

 
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