Document:

ex1017.htm

    Exhibit 10.17

      

      Christopher
P.
Johns                               One
Market, Spear Tower

      Senior Vice President
and                             Suite
2400

      Chief Financial
Officer                                   San
Francisco, CA

                                                                                                                                                                             415.267.7036

                            
Fax: 415.267.7263

      August 8,
2005

      

      Mr. G.
Robert Powell

      335
Crosstree Lane

      Atlanta,
GA 30328

      

      Dear
Bob:

      

      On behalf
of PG&E Corporation, I am pleased to extend an invitation to you to join our
organization as Vice President and Controller, reporting to me.

      

      Your
initial total compensation package will consist of the following:

      

      
        	
                1.  

              	
                An
      annual base salary of $280,000 ($23,333.33/month) subject to possible
      increases through our annual salary review
plan.

              

      

      

      
        	
                2.  

              	
                A
      one-time bonus of $225,000 payable within 60 days of your date of hire,
      subject to normal payroll withholdings.  Should you leave the
      company or should your employment terminate for cause within three years
      of your date of hire, a prorated amount of this bonus must be refunded to
      the company.

              

      

      

      
        	
                3.  

              	
                A
      target incentive of $126,000 that equals 45% of your base salary in an
      annual short-term incentive plan under which your actual incentive dollars
      may range from zero to $252,000 based on performance relative to
      established goals.  For 2005, this incentive will be prorated
      for the number of months worked from your date of hire and will be payable
      in 2006.

              

      

      

      
        	
                4.  

              	
                Participation
      in the PG&E Corporation Long-Term Incentive Program (LTIP) as a band 4
      officer.  Grants under the LTIP are split into thirds and
      delivered through three separate vehicles: stock options, restricted stock
      and performance shares; and are generally made annually on the first
      business day of the year.  Your initial LTIP grant will be made
      in January 2006 and will have an estimated current value of
      $200,000.  This estimated current value is used only for the
      purpose of determining the number of shares or units for your
      grant.  The ultimate value that you realize will depend upon
      your employment status and the performance of PG&E Corporation common
      stock.

              

      

      

      
        	
                5.  

              	
                Participation
      in the PG&E Corporation Retirement Savings Plan (RSP), a 401 (k)
      savings plan.  You will be eligible to contribute as much as 20%
      of your salary on either a pre-tax or an after-tax basis.  We
      will make a basic contribution to your account equal to 5% of your
      salary.  Additionally, we will match, dollar-for-dollar, any
      contribution you make up to 5% of your salary after you have completed one
      year of service.  All of the above contributions are subject to
      applicable legal limits.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      
      

      

      

      
        	
                 
      

              	
                Mr.
      Powell

              

      

      
        	
                 
      

              	
                August
      8, 2005

              

      

      
        	
                 
      

              	
                Page
      2

              

      

      

      

      
        	
                6.  

              	
                Participation
      in the PG&E Corporation Supplemental Retirement Savings Plan (SRSP), a
      non-qualified, deferred compensation plan.  You may elect to
      defer payment of some of your compensation on a pre-tax
      basis.  We will provide you with the full matching and basic
      contributions that cannot be provided through the RSP, due to legal
      limitations imposed on highly compensated
      employees.  Additionally, we will make a basic contribution to
      your account equal to 5% of any amounts paid from the annual short-term
      incentive plan referenced in item 3
above.

              

      

      

      
        	
                7.  

              	
                Participation
      in a cafeteria-style benefits program that permits you to select coverage
      tailored to your personal needs and circumstances.  The benefits
      you elect will be effective the first of the month following the date of
      your hire.

              

      

      

      
        	
                8.  

              	
                PG&E
      Corporation also offers employees an initial allocation of Paid Time Off
      (PTO) upon hire; this initial allocation may be up to 160 hours based on
      start date.  Future allocations of PTO are made each year on
      January 1 and are based on your start date and amount worked in the
      preceding year.  For example, by starting work in September and
      working full-time for the remainder of 2005, you will be eligible for 80
      hours of PTO upon hire and 54 hours on January 1,
      2006.  Beginning January 1, 2007, you will be eligible for 160
      hours of PTO, provided that you work full-time for all of
      2006.  In addition, PG&E Corporation recognizes 10 paid
      company holidays annually and provides 3 floating holidays immediately
      upon hire and at the beginning of each
year.

              

      

      

      
        	
                9.  

              	
                An
      annual perquisite allowance of $15,000 to be used in lieu of individual
      authorizations for cars and memberships in clubs and civic
      organizations.  For 2005, you will receive 50% of this amount
      ($7,500), since your date of hire will be after June
  30.

              

      

      

      
        	
                10.  

              	
                A
      comprehensive executive relocation assistance package, including:
      Reimbursement of closing costs on the sale of your current residence,
      contingent on using the PG&E designated relocation company and on the
      purchase of a new residence; the move of your household goods, 60 days of
      storage and delivery of the goods out of storage; and a lump sum payment
      of $10,000 payable within 60 days of your date of hire.  In
      addition, the package will include financial assistance in the form of a
      monthly mortgage subsidy of $3,000 (interest only) for a period of 48
      months.  This subsidy is contingent upon the following: (a) your
      purchase of a principal residence (within 50 miles of your work location)
      within one year of your date of hire, (b) your satisfying typical mortgage
      qualification criteria, and (c) use of a company-designated
      lender.  Should you have any questions regarding the relocation
      package, please contact Denise Nicco, Director of Relocation at (415)
      817-8230.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      

      
        	
                 
      

              	
                Mr.
      Powell

              

      

      
        	
                 
      

              	
                August
      8, 2005

              

      

      
        	
                 
      

              	
                Page
      3

              

      

      

      

      As we
have discussed, this offer is contingent upon your passing comprehensive
background verification, including a credit check, and a standard drug analysis
test.  We will also need to verify your eligibility to work in the
United States based on applicable immigration laws.  In addition, your
election as an officer of PG&E Corporation and elements of your compensation
are subject to approval by the Board of Directors of PG&E
Corporation.  Should you accept our offer, we will provide you with
additional details on meeting these requirements.

      

      Peter
Darbee and I look forward to your joining our team and believe you will make a
strong contribution to the achievement of the mission and goals of PG&E
Corporation.  I would appreciate receiving your written acceptance of
this offer as soon as possible.  Please call me at any time if you
have questions.

      

      Sincerely,

      

      /s/
Christopher P. Johns

      

      CHRISTOPHER
P. JOHNS

      Senior
Vice President, Chief Financial Officer and Controller

      

      

      Attachment

      

      

      

      This is
to confirm my acceptance of PG&E Corporation's offer as the Vice President
and Controller outlined above.

      

      

      

                                          /s/
G. Robert
Powell       8/9/05                

      (Signature and
Date)ex1019.htm

    

      Exhibit
10.19 

      

      

      2008 OFFICER SHORT-TERM
INCENTIVE PLAN

       

      On
February 20, 2008, the Compensation Committee of the PG&E Corporation Board
of Directors (“Committee”) approved the specific performance targets for each
component of the 2008 Short-Term Incentive Plan (“STIP”).  The
Committee previously approved the STIP structure and the weighting of each
component in December 2007.  Officers of PG&E Corporation and the
Utility are eligible to receive cash incentives under the STIP based on the
extent to which the adopted 2008 performance targets are met.  The
Committee will continue to retain full discretion as to the determination of
final officer STIP payments.

      

      The 2008
STIP structure for officers focuses the annual incentive opportunity on returns
to shareholders by emphasizing financial objectives such as earnings from
operations.  The structure also recognizes the equal importance of
improving reliability and customer satisfaction, and employee safety and
engagement.  Corporate financial performance, as measured by corporate
earnings from operations, will account for 40% of the incentive, 20% of the
incentive will be based on the Utility’s success in improving reliability, 20%
of the incentive will be based on the Utility’s success in improving customer
satisfaction, 10% will be based on the results of an employee opinion survey,
and the remaining 10% will be based on achieving safety
standards.  For 2008, the Committee has adopted a mechanism stating
that if corporate financial performance does not exceed 98% of the budgeted
earnings from operations, the aggregate operational metric contribution to the
2008 STIP pool will be capped at 100% of the operational component target award,
or 60% of the total target STIP award pool.

      

      The
corporate financial performance measure is based on PG&E Corporation’s
budgeted earnings from operations that were previously approved by the Board of
Directors, consistent with the basis for reporting and guidance to the financial
community.  As with previous earnings performance scales, unbudgeted
items impacting comparability such as changes in accounting methods, workforce
restructuring, and one-time occurrences will be excluded.  The
Committee also approved the 2008 performance targets for each of the four other
measures set forth in the table below.  The 2007 performance results
for each of these measures are included for comparative purposes.

      

      2008 STIP Operational Performance
Targets(1)

      

      
        	
                Measure

              	 
      	
                Relative
      Weight

              	 
      	
                2007
      Results

              	 
      	
                2008
      Target

              
	
                
                  Customer
      Satisfaction and Brand Health Index (Residential &
      Business)(2)

                

              	 
      	
                
                  20%

                

              	 
      	
                
                  76.00

                

              	 
      	
                
                  77.00

                

              
	
                
                  Reliable Energy Delivery
      Index(3)

                

              	 
      	
                
                  20%

                

              	 
      	
                
                  1.17

                

              	 
      	
                
                  1.0

                

              
	
                
                  Employee Survey (Premier)
      Index(4)

                

              	 
      	
                
                  10%

                

              	 
      	
                
                  64.3%

                

              	 
      	
                
                  66.0%

                

              
	
                
                  Occupational
      Safety and Health Administration (OSHA) Recordable Injury
      Rate(5)

                

              	 
      	
                
                  10%

                

              	 
      	
                
                  4.097

                

              	 
      	
                
                  3.483

                

              

      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                1.

              	
                As
      explained above, 40% of the STIP award will be based on achievement of
      corporate earnings from operations
targets.

              

      

       

      
        	
                2.

              	
                The
      Customer Satisfaction and Brand Health Index is the result of a quarterly
      survey performed by an independent research firm, Research International,
      and is a combination of a customer satisfaction score, which has a 75%
      weighting, as well as a brand favorability score (measuring the relative
      strength of the PG&E brand against a select group of companies), which
      has a 25% weighting.  The customer satisfaction score will
      measure overall satisfaction with the Utility’s operational performance in
      delivering its services.  The brand favorability score will
      measure residential, small business and medium business customer
      perceptions.  This index replaces the index used in the 2006 and
      2007 STIP structures based on residential and business customer
      satisfaction indices as reported the J.D. Power Residential Customer
      Satisfaction Survey and the J.D. Power Business Customer Satisfaction
      Survey.

              

      

       

      
        	
                3.

              	
                The
      Reliable Energy Delivery Index is a composite index score that measures
      key drivers of reliability, including outage frequency and duration
      (System Average Interruption Frequency Index (SAIFI), Customer Average
      Interruption Duration Index (CAIDI)), Execution of Electric-Based Work
      Units, and Gas Transmission and Distribution Integrity.  This
      index replaces the Business Transformation Index used in the 2007 STIP
      structure.

              

      

       

      
        	
                4.

              	
                The
      Premier Survey is the primary tool used to measure employee engagement at
      PG&E Corporation and the Utility.  The employee index is
      designed around 15 key drivers of employee engagement and organizational
      health.  The average overall employee survey index score
      provides a comprehensive metric that is derived by adding the percent of
      favorable responses from all 40 core survey items (all of which fall into
      one of 15 broader topical areas), and then dividing the total sum by
      40.

              

      

       

      
        	
                5.

              	
                An
      “OSHA Recordable” is an occupational (job-related) injury or illness that
      requires medical treatment beyond first aid, or results in work
      restrictions, death or loss of consciousness. The “OSHA Recordable Rate”
      is the number of OSHA Recordables for every 200,000 hours worked, or for
      approximately 100 employees.  This metric measures the
      percentage reduction in the Corporation’s OSHA Recordable rate from the
      prior year and is used to monitor the effectiveness of the Corporation’s
      safety programs, which are intended to significantly reduce the number and
      degree of employee injuries and
illnesses.

              

      

      

       

      Cash
awards under the STIP may range from 30 percent to 100 percent of base salary
depending on officer level, with a maximum payout of 200 percent of base salary,
as determined by the Committee.

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