Document:

supplemental indenture

                                                           
Exhibit 4.1

                                                              
EXECUTION COPY

                                                                          

                                     

                         
FIRST SUPPLEMENTAL INDENTURE

                                    

           THIS FIRST
SUPPLEMENTAL INDENTURE (this "First Supplemental Indenture"),

dated as of October 18, 2002, is entered into by and between
PG&E CORPORATION, a

California Corporation (the "Company"), and U.S. BANK, N.A., a
national banking

association, as trustee (the "Trustee").

                                 
RECITALS

         
WHEREAS, the Company and the Trustee entered into an Indenture,
dated as of

June 25, 2002 (the "Indenture"), pursuant to which the Company
issued its 7.50%

Convertible Subordinated Notes due 2007 (the "2007 Securities")
(capitalized terms used

herein without definition shall have the respective meanings
ascribed to them in the

Indenture);

         
WHEREAS, Section 10.2 of the Indenture provides, among other
things, that the

Indenture may be amended or supplemented by the Company and the
Trustee with the written

consent of the Holders of at least a majority of the principal
amount of the Securities;

and

         
WHEREAS, the undersigned Holders collectively own 100% of the
principal

amount of the Securities presently outstanding;

         
NOW THEREFORE, in consideration of the foregoing and for other good
and

valuable consideration, the receipt of which is hereby
acknowledged, the Company and the

Trustee hereby agree as follows:

                                
ARTICLE 1

                         
SUPPLEMENTS AND AMENDMENTS

         
Section 1.1.     The Indenture is hereby
amended by the deletion of the text

"7.50% Convertible Subordinated Notes due 2007" in each place it
appears in the Indenture

(including, for the avoidance of doubt, in the exhibits thereto),
and insertion of the

text "9.50% Convertible Subordinated Notes due 2010" in lieu
thereof.

         
Section 1.2.     Section 1.1 of the Indenture
is hereby amended by the

insertion of the following new definition "NEG" immediately after
the definition of

"Majority Holders":

              
"'NEG' shall mean PG&E National Energy Group, LLC, a Delaware
limited

liability company."

         
Section 1.3.     The definition of "Restricted
Security" set forth in

Section 1.1 of the Indenture is hereby amended by the deletion of
the text "Exhibits A

and B " and the insertion of the text "Exhibits A, B and C" in lieu
thereof.

    
      Section 1.4.    
The definition of "Stated Maturity" set forth in the

Indenture is hereby amended by the deletion of the text "June 30,
2007" and the insertion

of the text "June 30, 2010" in lieu thereof.

         
Section 1.5.     Section 3.1 of the Indenture
is hereby amended by the

deletion of the text "POR Spin-Off" and the insertion of the text
"the Spin Off of POR

Spin Co" in lieu thereof in section (iv) of the definition of
"Change of Control."

         
Section 1.6.     Section 7.1(2) of the
Indenture is hereby amended by

inserting the text "or Section 13.1" after the text "Section 3.1"
in the third line

thereof.

         
Section 1.7.     Sections 7.1(5), 7.1(6) and
7.1(7) of the Indenture are

hereby amended by inserting the following text after each time the
text "Significant

Subsidiary" appears:  "(other than NEG and NEG's
Subsidiaries)."

         
Section 1.8.     Section 11.7(b) of the
Indenture is hereby amended by

inserting the text ", commencing on the earlier of (i) the date one
year after the date

hereof and (ii) the effective date of the Shelf Registration
Statement (as defined in the

Registration Rights Agreement)" after the text "The Company further
covenants that" in

the second sentence thereof.

         
Section 1.9.     The Indenture is hereby
amended by inserting the following

new Article XIII:

                               
"ARTICLE XIII

                       
REPURCHASE AT OPTION OF HOLDER

     Section 13.1    
Purchase of Securities at Option of the Holder on Purchase
Date.

Upon delivery of the Purchase Notice pursuant to Section 13.2, each
Holder shall have the

right, at the Holder's option, to require the Company to
repurchase, and upon the valid

exercise of such right the Company shall repurchase, on June 30,
2007 (and only on such

date) (the "Purchase Date"), all of such Holder's Securities, or
any portion of the

principal amount thereof; provided, that no single Security may be
repurchased in part

unless the portion of the principal amount of such Security to be
outstanding after such

repurchase is equal to an integral multiple of $1,000 (or any
integral multiple of $1.00

in the case of a PIK Security) for a purchase price equal to the
principal amount plus

accrued and unpaid interest, including any Liquidated Damages and
Pass-Through Dividends,

if any, payable with respect to such Security on the Purchase Date
(the "Purchase Price")

and subject to satisfaction by or on behalf of the Holder of the
requirements set forth

in Section 13.2. 

     

           Section
13.2     Exercise of Rights.  A Holder may
exercise its rights

specified in Section 13.1 by delivering a written notice of
purchase (a "Purchase

Notice") to the Paying Agent at any time no earlier than 90 days
nor later than 60 days

prior to the Purchase Date, specifying:

              
(1)  the certificate number of the Security which the Holder
will

deliver to be purchased;

              
(2)  the portion of the principal amount of the Security which
the

Holder will deliver to be purchased; and

              
(3)  that such Security shall be purchased pursuant to the
terms and

conditions specified in Section 5 of the Securities and in this
Indenture.

         
The delivery of such Security to the Paying Agent with the Purchase
Notice

(together with all necessary endorsements) at the offices of the
Paying Agent shall be a

condition to the receipt by the Holder of the Purchase Price
therefor.

         
Any purchase by the Company contemplated pursuant to the provisions
of

Section 13.1 and this Section 13.2 shall be consummated by the
delivery by the Paying

Agent of the consideration to be received by the Holder on the
Purchase Date.

         
Notwithstanding anything herein to the contrary, any Holder
delivering to the

Paying Agent the Purchase Notice contemplated by this Section 13.2
shall have the right

to withdraw such Purchase Notice at any time prior to the close of
business on the day

which is 8 Business Days immediately preceding the Purchase Date by
delivery of a written

notice of withdrawal to the Paying Agent in accordance with Section
13.3.

 

           The Paying
Agent shall promptly notify the Company of the receipt by it
of

any Purchase Notice or written withdrawal thereof.

    
Section 13.3     Effect of Purchase Notice;
Withdrawal.  Upon receipt by the

Paying Agent of a Purchase Notice as specified in Section 13.2, the
Holder of the

Security in respect of which such Purchase Notice was given shall
(unless such Purchase

Notice is withdrawn as specified in the following two paragraphs)
thereafter be entitled

to receive solely the Purchase Price with respect to such
Security.  Such Purchase Price

shall be paid to such Holder by the Paying Agent, (subject to the
deposit of funds with

the Paying Agent pursuant to Section 13.4), promptly following the
later of (x) the

Purchase Date with respect to such Security (provided the
conditions in Section 13.2 have

been satisfied) and (y) the time of delivery of such Security to
the Paying Agent by the

Holder thereof in the manner required by Section 13.2. 
Securities in respect of which a

Purchase Notice has been given by the Holder thereof may not be
converted pursuant to

Article 11 hereof on or after the date of the delivery of such
Purchase Notice unless

such Purchase Notice has first been validly withdrawn as specified
in the following two

paragraphs.

         
A Purchase Notice may be withdrawn, in whole or in part, by means
of a

written notice of withdrawal delivered to the office of the Paying
Agent at any time

prior to the close of business on the day which is 8 Business Days
immediately preceding

the Purchase Date, specifying:

         
(1)  the certificate number, if any, of the Security in
respect of which

such notice of withdrawal is being submitted;

         
(2)  the principal amount of the Security with respect to
which such notice

of withdrawal is being submitted; and

         
(3)  the principal amount, if any, of such Security which
remains subject to

the original Purchase Notice, and which has been or will be
delivered for purchase by the

Company.

         
The Paying Agent will promptly return to the respective Holders
thereof any

Securities with respect to which a Purchase Notice has been
withdrawn in compliance with

this Indenture, in which case, upon such return, the Purchase
Notice with respect thereto

shall be deemed to have been withdrawn.

         
Section 13.4   Deposit of Purchase Price.  On or
before the Purchase Date,

the Company shall deposit with the Paying Agent an amount of money
sufficient to pay the

Purchase Price of all the Securities or portions thereof which are
to be purchased as of

the Purchase Date.

       
   Section 13.5     Securities
Purchased in Part.  Any Security which is to be

purchased only in part pursuant to the provisions of this Article
XIII shall be

surrendered to the Paying Agent (with, if the Company or the
Trustee so requires, due

endorsement by, or a written instrument of transfer in form
satisfactory to the Company

and the Trustee duly executed by, the Holder thereof or such
Holder's attorney duly

authorized in writing) and the Paying Agent shall deliver such
Security to the Company.

The Company shall execute, and the Trustee shall authenticate and
deliver to the Holder

of such Security, without service charge, a new Security or
Securities, of any authorized

denomination as requested by such Holder, in an aggregate principal
amount equal to and

in exchange for the portion of the principal of the Security so
surrendered but not

purchased; provided, however that each such new Security will be in
a principal amount of

$1,000 or integral multiple thereof (or any integral multiple of
$1.00 in the case of a

PIK Security).

         
Section 13.6     Covenant to Comply With
Securities Laws Upon Purchase of

Securities.  When complying with the provisions of Section
13.1 hereof, the Company

shall, to the extent required by applicable law, (i) comply with
Rule 13e-4 and Rule

14e-1 (or any successor provision) under the Exchange Act, (ii)
file the related Schedule

TO (or any successor schedule, form or report) under the Exchange
Act, and (iii)

otherwise comply with all Federal and state securities laws so as
to permit the rights

and obligations under Article XIII to be exercised in the time and
in the manner

specified herein.

         
Section 13.7     Repayment to the
Company.  The Trustee and the Paying Agent

shall return to the Company any cash that remains unclaimed as
provided in Section 11 of

the Securities, held by them for the payment of the Purchase Price;
provided, however,

that to the extent that the aggregate amount of cash deposited by
the Company pursuant to

Section 13.4 exceeds the aggregate Purchase Price of the Securities
or portions thereof

which the Company is obligated to purchase as of the Purchase Date,
then, unless

otherwise agreed in writing with the Company, promptly after the
Business Day following

the Purchase Date, the Trustee shall return any such excess to the
Company together with

interest thereon (subject to the provisions of Section
8.1(f))."

         

           Section
1.10.    The Indenture is hereby amended by the
substitution of

Exhibits A, B and C thereto with new Exhibits A, B and C in the
respective forms attached

to this First Supplemental Indenture as Exhibits A, B and C. 
The 2007 Securities

outstanding on the date this First Supplemental Indenture becomes
effective pursuant to

Section 2.2 below, shall be exchanged by the Trustee pursuant to
Section 10.5 of the

Indenture for the form of Security attached hereto as Exhibit
C.

         

          

                                 
ARTICLE 2

                               
MISCELLANEOUS

         
Section 2.1.     This First Supplemental
Indenture is supplemental to the

Indenture and does and shall be deemed to form a part of, and shall
be construed in

connection with and as part of, the Indenture for any and all
purposes.

         
Section 2.2.     This First Supplemental
Indenture shall become effective

immediately upon its execution and delivery by each of the Company,
the Trustee and by

each of the Holders.

         
Section 2.3.     Except as specifically
modified herein, the Indenture and

the Securities are in all respects ratified and confirmed and shall
remain in full force

and effect in accordance with their terms.

         
Section 2.4.     Except as otherwise expressly
provided herein, no duties,

responsibilities or liabilities are assumed, or shall be construed
to be assumed, by the

Trustee by reason of this First Supplemental Indenture.  This
First Supplemental

Indenture is executed and accepted by the Trustee subject to all
the terms and conditions

set forth in the Indenture with the same force and
effect.

         
Section 2.5.     THIS FIRST SUPPLEMENTAL
INDENTURE SHALL BE GOVERNED BY, AND

CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

         
Section 2.6.     The parties may sign any
number of copies of this First

Supplemental Indenture.  Each signed copy shall be an
original, but all of them together

represent the same agreement.  One signed copy is enough to
prove this First Supplemental

Indenture.

                          
[Signature Pages Follow]

         
IN WITNESS WHEREOF, the undersigned, being duly authorized, have
executed

this First Supplemental Indenture on behalf of the respective
parties hereto as of the

date first above written.

                             
PG&E CORPORATION

                             
By:                              

                            
      Name:

                                
Title:

                             
U.S. BANK, N.A., as Trustee

                             
By:                              

                                 
Name:

  
                              
Title:

                             

Acknowledged and consented
to:

CITADEL CREDIT TRADING
LTD.

By:                               
Principal amount of

  
Name:                          
Securities owned: 
$        
    

    Title:

  

 JACKSON INVESTMENT FUND LTD.

By:                               
Principal amount of

  
Name:                          
Securities owned: 
$            

    Title:

CITADEL EQUITY FUND LTD.

By:                               
Principal amount of

  
Name:                          
Securities owned: 
$            

    Title:

                                    

                                
EXHIBIT A

                      
[FORM OF FACE OF GLOBAL SECURITY]

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY

TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR

PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH

OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST

COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS

REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY), ANY TRANSFER,

PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL SINCE

THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

TRANSFERS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS TO NOMINEES OF THE

DEPOSITORY TRUST COMPANY, OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND

TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN

ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE
INDENTURE REFERRED TO ON

THE REVERSE HEREOF.

                                    

                                    

                             
PG&E CORPORATION

                 
9.50% Convertible Subordinated Notes due 2010

    
No.                         
CUSIP:

     Issue Date:  ______,
20__       Principal Amount: 
$

         

    
PG&E CORPORATION, a California corporation, promises to pay to
Cede & Co. or

registered assigns, the principal amount of _____________________
dollars ($__________)

on June 30, 2010.

    
Interest Payment Dates:  June 30 and December 31, commencing
December 31, 2002.

    
Record Dates:  June 15 and December 15.

    
Reference is hereby made to the further provisions of this Security
set forth on

the reverse side of this Security, which further provisions shall
for all purposes have

the same effect as if set forth at this place.

     IN
WITNESS WHEREOF, the Company has caused this instrument to be duly
executed

under its corporate seal.

Dated:  _____,
20__         PG&E
CORPORATION

                       
By:                                   

                        

                        
Title:                                

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION

U.S. BANK, N.A.,

as Trustee, certifies that this is one

of the Securities referred to in the

within-mentioned Indenture.

By__________________________________

     Authorized Signatory

Dated:  _______ __, 20__

                                    

                                     

                                     

                      
[FORM OF REVERSE OF GLOBAL SECURITY]

                 
9.50% Convertible Subordinated Notes due 2010

                                    

     This
Security is one of a duly authorized issue of 9.50% Convertible
Subordinated

Notes due 2010 (the "Securities") of PG&E Corporation, a
California corporation

(including any successor corporation under the Indenture
hereinafter referred to, the

"Company"), issued under an Indenture, dated as of June 25, 2002
(together with any

supplemental indenture thereto, including the First Supplemental
Indenture, dated as of

October 18, 2002,  the "Indenture"), between the Company and
U.S. Bank, N.A., as trustee

(the "Trustee").  The terms of the Security include those
stated in the Indenture, those

made part of the Indenture by reference to the Trust Indenture Act
of 1939, as amended

("TIA"), and those set forth in this Security.  This Security
is subject to all such

terms, and Holders are referred to the Indenture and the TIA for a
statement of all such

terms.  To the extent permitted by applicable law, in the
event of any inconsistency

between the terms of this Security and the terms of the Indenture,
the terms of the

Indenture shall control.  Capitalized terms used but not
defined herein have the meanings

assigned to them in the Indenture referred to below unless
otherwise indicated.

1.  
Interest

     The
Company promises to pay interest on the principal amount of the
Securities at

the interest rate of 7.50% (the "Prior Interest Rate") from June
25, 2002 until October

18, 2002 and interest at the interest rate of 9.50% (the "Interest
Rate") from October

19, 2002 until repayment in full at June 30, 2010, or until an
earlier repurchase.  The

Company promises to pay interest on any PIK Security issued by the
Company at the

Interest Rate from the date of issuance of such PIK Security until
repayment in full at

June 30, 2010, or until an earlier repurchase.  The Company
will pay Interest on this

Security semi-annually in arrears on June 30 and December 31 of
each year (each, an

"Interest Payment Date"), commencing December 31, 2002.

    
Interest on the Securities shall be computed (i) for any full
semi-annual period

for which a particular Interest Rate is applicable, on the basis of
a 360-day year of

twelve 30-day months and (ii) for any period for which a particular
Interest Rate is

applicable for less than a full semiannual period for which
Interest is calculated, on

the basis of a 30-day month and, for such periods of less than a
month, the actual number

of days elapsed over a 30-day month. 

     The
Company shall have the right, at any time and from time to time,
during the

term of the Securities, to make payments of interest on any
Interest Payment Date prior

to the Maturity Date or to make payments on any accrued Liquidated
Damages by issuing

additional 9.50% Convertible Preferred Notes due 2010 (the "PIK
Securities"), on not less

than 30 days (and not more than 45 days) notice to the Trustee and
notice to the Holders

(the "PIK Notice") prior to each such Interest Payment Date;
provided that on the

Maturity Date the Company shall be required to pay all accrued and
unpaid interest on the

Securities, and any outstanding Liquidated Damages, in cash, and no
PIK Notice shall be

given with respect to such last interest payment date.  The
PIK Securities shall be

issued under the Indenture and, except to the extent set forth in
Section 2.14 of the

Indenture, shall in all respects be identical to the originally
issued Securities.

     No
PIK Securities may be issued in denominations of less than $1.00 of
principal

amount (and such PIK Securities must be issued in integral
multiples of $1.00) and no

fractional PIK Securities may be issued in lieu of cash interest
pursuant to the fourth

paragraph of this Section 1 and the Company shall, instead, pay a
cash adjustment in the

same manner as provided in the Indenture with respect to the
conversion of Securities in

shares of Common Stock.

     If
this Security is repurchased by the Company on a date that is after
the record

date and prior to the corresponding Interest Payment Date, interest
and additional

amounts, if any, accrued and unpaid hereon to but not including the
applicable Change of

Control Purchase Date, as the case may be, will be paid to the same
Holder to whom the

Company pays the principal of this Security.

     A
Holder of any Security at the close of business on a record date
will be entitled

to receive interest (including Liquidated Damages, if any) on such
Security on the

corresponding Interest Payment Date.  Interest on Securities
converted after a record

date but prior to the corresponding Interest Payment Date (other
than any Security whose

maturity is prior to such Interest Payment Date) will be paid to
the Holder of the

Securities on the record date but, upon conversion, the Holder must
pay the Company the

interest, Liquidated Damages and Pass-Through Dividends, if any,
which have accrued and

will be paid on such Interest Payment Date upon receipt of such
amounts from the Company.

     If
the principal amount hereof or any portion of such principal amount
or any

interest, including the payment of Liquidated Damages and
Pass-Through Dividends, if any,

on any Security is not paid when due (whether upon acceleration
pursuant to Section 7.2

of the Indenture, upon the date set for repurchase pursuant to
Section 13.1 of the

Indenture, upon the date set for payment of the Change of Control
Purchase Price pursuant

to Section 6 hereof or upon the Stated Maturity of this Security),
then in each such case

the overdue amount shall, to the extent permitted by law, bear
interest at 1% over the

then currently applicable rate, compounded semi-annually, which
interest shall accrue

from the date on which such overdue amount was originally due to
the date of payment of

such amount, including interest thereon, has been made or duly
provided for.  All such

interest shall be payable on demand.

    
Subject to the record date provisions described in the Indenture,
the Company shall

pay to each Holder an amount per Security equal to the Cash
Dividends, if any, paid by

the Company per share of Common Stock multiplied by the principal
amount of such Security

divided by the Conversion Price in effect on the record date for
such payment.  Pass-

Through Dividends, if any,
will be payable on the payment date of each such Pass-Through

Dividend to Holders as of the record date for determination of the
stockholders entitled

to receive each such Pass-Through Dividend.

2.   Method of
Payment.

    
Except as provided below, interest and Liquidated Damages will be
paid (i) on

Global Securities to DTC in immediately available funds or (ii) on
Certificated

Securities, to the person in whose name Securities are registered
at the close of

business on the record date, (a) on any Certificated Securities
having an aggregate

principal amount of $5,000,000 or less, by check mailed to the
Holders of such

Securities; (b) on any Certificated Securities having an aggregate
principal amount of

more than $5,000,000, by wire transfer in immediately available
funds at the election of

the Holders of those Securities; and (c) in the case of interest or
Liquidated Damages

payable in kind, by deposit or delivery of PIK
Securities.

     At
Stated Maturity the Company will pay principal and interest in cash
on

Securities at the Company's office for payment, which initially
will be the Corporate

Trust Office of the Trustee.

    
Subject to the terms and conditions of the Indenture, the Company
will make

payments in cash in respect of the Change of Control Purchase Price
and amounts payable

at Stated Maturity to Holders who surrender Securities to the
Paying Agent to collect

such payments in respect of the Securities. The Company will pay
cash amounts in money of

the United States that at the time of payment is legal tender for
payment of public and

private debts.  However, the Company may make such cash
payments by check payable in such

money.

3.   Paying Agent,
Conversion Agent and Registrar.

    
Initially, U.S. Bank, N.A. (the "Trustee") will act as Paying
Agent, Conversion

Agent and Registrar. The Company may appoint and change any of the
Paying Agent,

Conversion Agent or Registrar without notice, other than notice to
the Trustee.  Neither

the Company nor any of its
Subsidiaries nor any of their Affiliates may act as Paying

Agent, Conversion Agent or Registrar.

4.  
Indenture.

     This
Security is one of a duly authorized issue of Securities of the
Company

designated as its 9.50% Convertible Subordinated Notes due 2010,
issued under the

Indenture.  The terms of this Security include those stated in
the Indenture and those

required by or made part of the Indenture by reference to the Trust
Indenture Act of

1939, as amended, as in effect on the date of the Indenture. 
This Security is subject to

all such terms, and the Holder of this Note is referred to the
Indenture and said Act for

a statement of them.

     The
Securities are general unsecured subordinated obligations of the
Company

limited to $280,000,000. Notwithstanding the foregoing, the
aggregate principal amount of

the Securities aggregate principal amount permitted to be
outstanding at any time may

exceed the amount set forth in the foregoing sentence only by an
amount sufficient to

permit payments of interest or Liquidated Damages in PIK Securities
as provided for in

the Indenture.

5.   Purchase By the
Company at the Option of the Holder.

     Upon
the valid delivery of the Purchase Notice no earlier than 90 days
and no later

than 60 days prior to June 30, 2007, the Holder shall have the
right, at the option of

the Holder, and subject to the terms and conditions of the
Indenture, to require the

Company to repurchase, and the Company shall become obligated to
repurchase, on June 30,

2007 (and only on such date), the Securities held by such Holder or
any portion of the

principal amount hereof, provided that the portion of the principal
amount of the

Security to be outstanding after such purchase is at least equal to
$1,000 (or in the

case of a PIK Security, at least an integral multiple of $1.00) for
a purchase price

equal to the principal amount plus accrued and unpaid interest,
including any Liquidated

Damages and Pass-Through Dividends, if any, payable with respect to
such Security.  The

Purchase Price shall be paid in cash.

6.   Purchase By the
Company at the Option of the Holder upon Change of
Control.

     At
the option of the Holder by provision of a Change of Control
Purchase Notice and

subject to the terms and conditions of the Indenture, the Company
shall become obligated

to offer to purchase the Securities held by such Holder or any
portion of the principal

amount hereof that is at least an integral multiple of $1,000 (or
in the case of any PIK

Security, at least an integral multiple of $1.00), within 30 days
after the occurrence of

a Change of Control of the Company for a Change of Control Purchase
Price equal to the

principal amount plus accrued and unpaid interest, including any
Liquidated Damages and

Pass-Through Dividends, if any, payable with respect to such
Security on the Change of

Control Purchase Date.  The Change of Control Purchase Date
shall be no earlier than 30

days nor later than 60 days after the delivery of the notice
described in the preceding

sentence. The Change of Control Purchase Price shall be paid in
cash.

    
Holders have the right to withdraw any Change of Control Purchase
Notice, as the

case may be, by delivering to the Paying Agent a written notice of
withdrawal in

accordance with the provisions of the Indenture.

     If
cash sufficient to pay the Change of Control Purchase Price of all
Securities or

portions thereof to be purchased as of the Change of Control
Purchase Date is deposited

with the Paying Agent, on the Business Day following the Change of
Control Purchase Date,

interest will cease to accrue on such Securities (or portions
thereof) (including

Liquidated Damages and Pass-Through Dividends, if any) immediately
after such Change of

Control Purchase Date, and the Holder thereof shall have no other
rights as such other

than the right to receive the Change of Control Purchase Price upon
surrender of such

Security.

7.  
Conversion.

    
(a)  Subject to and in compliance with the provisions of the
Indenture, a Holder

shall have the right, at such Holder's option, to convert all or
any portion, if the

portion to be converted is $1,000 or an integral multiple $1,000
(or, in the case of a

PIK Security, the portion to be converted may be $1.00 or an
integral multiple of $1.00),

of such security into fully paid and nonassessable shares of Common
Stock at the

Conversion Price in effect on the Conversion Date.

    
(b)  No Holder may convert any Security to the extent that,
immediately following

any such conversion and upon receipt of any shares of Common Stock
issuable upon such

conversion, such Holder would either (i) become or be included in
any person, including

any syndicate or group deemed to be a "person" under Section
13(d)(3) of the Exchange

Act, that is the single largest holder of voting power represented
by the Company's

capital stock (or otherwise become the single largest holder of the
Common Stock) (the

"Shareholder Limitation") or (ii) beneficially own or be included
in any "person" that

beneficially owns in excess of 4.9% of the voting power represented
by the Company's

capital stock (or otherwise beneficially own in excess of 4.9% of
the outstanding Common

Stock) (the "4.9% Limitation") after, in either case, giving effect
to such conversion

(the Shareholder Limitation and the 4.9% Limitation are
collectively referred to herein

as the "Conversion Limitations"). The determinations of the number
of shares that (i)

constitute 4.9% of the outstanding Common Stock or voting power and
(ii) are held by the

largest holder will be made in reliance upon the information
contained in publicly

available filings made with the SEC unless the Company is aware
that such information is

incorrect and has made the correct information public and disclosed
such information to

the Holders at the time of any such proposed conversion. In order
to facilitate

compliance with the foregoing, each Holder will be required to make
a representation that

it and its Affiliates will comply with the Conversion Limitations
immediately after

converting any Security and receipt of any shares of Common Stock
issuable upon such

conversion.

    
(c)  Notwithstanding the Shareholder Limitation, however, a
Holder may convert

Securities that would otherwise cause such Holder to hold shares of
Common Stock in

excess of the Shareholder Limitation if, as to such excess number
of shares of Common

Stock, (the "Excess Shares"), such Holder (i) irrevocably covenants
to the Company to

sell such Excess Shares within 10 days after the date of conversion
and (ii) confirms

that it has, on or prior to such conversion date, entered into a
binding arrangement to

sell the Excess Shares within 10 days after such conversion date
either (a) in a regular

way transaction on a national securities exchange (or the principal
market where the

shares of Common Stock are then traded) or (b) to one or more
persons that are not

"affiliates" (used herein as defined in Rule 144 promulgated under
the Securities Act) of

such Holder ("Third Parties"), each of whom represents for the
benefit of the company

that, upon purchase of the applicable Excess Shares, such Third
Party, together with its

affiliates, will not be the beneficial owner of a number of shares
of Common Stock in

excess of the Shareholder Limitation.  In addition, such
Holder, by converting its

securities, shall be deemed to agree to vote the applicable Excess
Shares only in

accordance with the recommendations of the Board of Directors of
the Company or any Third

Party that has agreed to purchase such shares, if any record date
for a vote of the

Common Stock is established for any day between the conversion date
and the consummation

of the sale of the applicable Excess Shares. The Shareholder
Limitation will cease to

have any force and effect upon consummation of a Spin-Off of POR
Spin-Co, if, on the date

that is 14 days after delivery to the Company of a request by the
Majority Holders to

such effect (which request may be given no more than once during
any 180-day period), the

Company shall not have delivered a certificate to the Holders
stating that the removal of

the Shareholder Limitation would, in the good faith judgment of the
Company, not be

consistent with the applicable regulatory or other legal
requirements.

     A
Security in respect of which a Holder has delivered a Change of
Control Purchase

Notice, exercising the option of such Holder to require the Company
to purchase such

Security, may be converted only if such Change of Control Purchase
Notice is withdrawn in

accordance with the terms of the Indenture.

     The
initial Conversion Price shall be $15.0873, subject to adjustment
in certain

events described in the Indenture.

     To
surrender a Security for conversion, a Holder must (1) complete and
manually

sign the conversion notice below (or complete and manually sign a
facsimile of such

notice) and deliver such notice to the Conversion Agent, (2)
surrender the Security to

the Conversion Agent, (3) furnish appropriate endorsements and
transfer documents and (4)

pay any transfer or similar tax, if required.

     No
fractional shares of Common Stock shall be issued upon conversion
of any

Security.  Instead of any fractional share of Common Stock
that would otherwise be issued

upon conversion of such Security, the Company shall pay a cash
adjustment as provided in

the Indenture.

     If
the Company (i) is a party to a consolidation, merger or binding
share exchange,

(ii) reclassifies the Common Stock or (iii) conveys, transfers or
leases its properties

and assets substantially as an entirety to any Person, the right to
convert a Security

into shares of Common Stock may be changed into a right to convert
it into securities,

cash or other assets of the Company or such other Person, in each
case in accordance with

the Indenture.

8.   Subordination
of Securities.

     The
indebtedness evidenced by the Securities is, to the extent and in
the manner

provided in Article 5 of the Indenture, expressly subordinate and
subject in right of

payment to the prior payment in full of all Senior Debt of the
Company, as defined in the

Indenture, whether outstanding at the date of the Indenture or
thereafter incurred, and

this Security is issued subject to the provisions of the Indenture
with respect to such

subordination.  Each Holder of this Security, by accepting the
same, agrees to and shall

be bound by such provisions and authorizes the Trustee on its
behalf to take such action

as may be necessary or appropriate to effectuate the subordination
so provided and

appoints the Trustee his or her attorney-in-fact for such
purpose.

     No
reference herein to the Indenture and no provision of this Security
or of the

Indenture shall alter or impair the obligation of the Company,
which is absolute and

unconditional, to pay the principal of and interest (including the
Change of Control

Purchase Price, Liquidated Damages or Pass-Through Dividends, if
any) on this Security at

the place, at the respective times, at the rate and in the coin or
currency herein

prescribed.

9.   Denominations;
Transfer; Exchange.

     The
Securities are in fully registered form, without coupons, in
denominations of

$1,000 of principal amount and integral multiples of $1,000 (or in
the case of PIK

Securities, denominations of $1.00 of principal amount and integral
multiples of $1.00).

A Holder may register, transfer or exchange of Securities in
accordance with the

Indenture.  The Registrar may require a Holder, among other
things, to furnish

appropriate endorsements, legal opinions and transfer documents and
to pay any taxes and

fees required by law or permitted by the Indenture.  The
Registrar need not transfer or

exchange any Securities in respect of which a Change of Control
Purchase Notice has been

given and not withdrawn.

10.  Persons Deemed
Owners.

     The
registered Holder of this Security shall be treated as the owner of
this

Security for all purposes.

11.  Unclaimed Money or
Securities.

     The
Trustee and the Paying Agent shall pay to the Company upon written
request any

money held by them for the payment of any amount with respect to
the Securities that

remains unclaimed for two years after the date upon which such
payment shall have been

due.  After payment to the Company, Holders entitled to the
money or securities must look

to the Company for payment as general creditors unless an
applicable abandoned property

law designates another person after the date upon which such
payment shall have become

due.

12.  Amendment;
Waiver.

    
Subject to certain exceptions set forth in the Indenture, (i) the
Indenture or the

Securities may be amended with the written consent of the Holders
of at least a majority

in aggregate principal amount of the outstanding Securities and
(ii) certain Defaults may

be waived with the written consent of the Holders of a majority in
aggregate principal

amount of the outstanding Securities.  The Indenture and the
Securities may also be

amended by the Company and the Trustee, without the consent of any
Holder, in certain

circumstances set forth in the Indenture; provided, that certain
provisions of the

Indenture and the Securities may not be amended without the consent
of each affected

Holder.

13.  Defaults and
Remedies.

     If
any Event of Default with respect to the Securities shall occur and
be

continuing, the principal of all the Securities may be declared due
and payable in the

manner and with the effect provided in the Indenture.

14.  Trustee Dealings
with the Company.

    
Subject to certain limitations imposed by the TIA, the Trustee
under the Indenture,

in its individual or any other
capacity, may become the owner or pledgee of Securities

and may otherwise deal with and collect obligations owed to it by
the Company or its

Affiliates and may otherwise deal with the Company or its
Affiliates with the same rights

it would have if it were not Trustee.

15.  No Recourse Against
Others.

     A
director, officer, employee or shareholder, as such, of the Company
shall not

have any liability for any obligations of the Company under the
Securities or the

Indenture or for any claim based on, in respect of or by reason of
such obligations or

their creation.  By accepting a Security, each Securityholder
waives and releases all

such liability. The waiver and release are part of the
consideration for the issue of the

Securities.

16. 
Authentication.

     This
Security shall not be valid until an authorized signatory of the
Trustee

manually signs the Trustee's Certificate of Authentication on the
other side of this

Security.

17. 
Abbreviations.

    
Customary abbreviations may be used in the name of a Securityholder
or an assignee,

such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN

(=joint tenants with right of survivorship and not as tenants in
common), CUST

(=custodian), and U/G/M/A (=Uniform Gift to Minors Act).

18.  GOVERNING
LAW.

     THE
LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THIS
SECURITY.

19.  Requests for
Copies.

     The
Company will furnish to any Securityholder upon written request and
without

charge a copy of the Indenture and, if requested, a copy of this
Security in larger type.

Requests may be made to:

    
PG&E CORPORATION

     One Market, Spear Tower

     Suite 2400

     San Francisco, California 
94105

     Attention:  Assistant Treasurer

     Facsimile:  (415) 267-7625

     Telephone:  (415) 267-7052

    

      with a copy to:

    

      PG&E Corporation

     One Market, Spear Tower

     Suite 2400

     San Francisco, California 94105

     Attention:  Chief
Counsel—Corporate

      Facsimile:  (415) 817-8225

     Telephone:  (415) 817-8200

    

20.  Registration
Rights.

     The
Holders of the Securities are entitled to the benefits of the
Resale

Registration Rights Agreement, dated as of June 25, 2002, between
the Company and the

purchasers identified on the signature pages thereto, including the
receipt of Shelf

Liquidated Damages upon a
Registration Default (as defined in such agreement).

	
ASSIGNMENT FORM

	
CONVERSION NOTICE

	
To assign this Security fill
in the form below:

	
To convert this Security into
Common Stock of the Company check the box [  ]

	
I or we assign and transfer
this Security to

    __________________________________________

    __________________________________________

  (Insert assignee's soc. sec. or tax ID no.)

   __________________________________________

    __________________________________________

    __________________________________________

  (Print or type assignee's name, address and   zip
code)

   and irrevocably appoint____________________

   agent to transfer this Security on the
  books of the Company.  The agent may
  substitute another to act for him.

	
To convert only part of this
Security, state the principal amount to be converted (which must be
$1,000 or an integral multiple of $1,000 or in the case of any PIK
Security $1.00 or an integral multiple of $1.00):

 If you want the stock certificate made out in another person's
name fill in the form below:

 ________________________________________

 ________________________________________

 (Insert the other person's soc. sec. Tax ID no.)

 ________________________________________

 ________________________________________

 ________________________________________

 (Print or type other person's name, address and zip code)

 The undersigned, on behalf of itself and its affiliates, hereby
represents to the Company that upon and immediately after the
conversion of Securities into shares of Common Stock, it and its
affiliates are
and                                
will be in compliance with the Conversion Limitations applicable to
such Securities pursuant to paragraph 6 of this
Security.

 

  

Date:  __________ Your
Signature:  _________________________________

_________________________________________________________________________

   (Sign exactly as your name appears on the other side
of this Security)

Signature
Guaranteed

________________________________

Participant in a Recognized Signature

Guarantee Medallion Program

By:_____________________________

       
         Authorized
Signatory

                                    

             
SCHEDULE OF INCREASES AND DECREASES OF GLOBAL SECURITY

       Initial
Principal Amount of Global Security:
____________($___________).

	
Date

	
Amount of Increase in
Principal Amount of Global Security

	
Amount of Decrease in
Principal Amount of Global Security

	
Principal Amount of Global
Security After Increase or Decrease

	
Notation by Registrar or
Security Custodian

					
					
					
					
					
					
					

                                    

                                
EXHIBIT B

                    
[FORM OF FACE OF 144A GLOBAL SECURITY]

THE SECURITY EVIDENCED BY THIS
CERTIFICATE AND ANY SHARES OF COMMON STOCK ISSUABLE UPON

THE CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF

1933, AS AMENDED (THE "SECURITIES ACT") OR ANY STATE SECURITIES
LAWS, AND MAY NOT BE

OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE. BY

ACQUISITION HEREOF, THE HOLDER:

(1)  REPRESENTS THAT IT
IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A

UNDER THE SECURITIES ACT (A "QIB"); OR (B) IT IS AN INSTITUTIONAL
"ACCREDITED INVESTOR"

(AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D
UNDER THE SECURITIES ACT)

(AN "IAI");

(2)  AGREES THAT IT WILL
NOT, (I) WITHIN THE TIME PERIOD REFERRED TO UNDER RULE 144(k)

(TAKING INTO ACCOUNT THE PROVISIONS OF RULE 144(d) UNDER THE
SECURITIES ACT, IF

APPLICABLE) UNDER THE SECURITIES ACT AS IN EFFECT ON THE DATE OF
THE TRANSFER OF THIS

SECURITY, RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO
THE COMPANY OR ANY

SUBSIDIARY THEREOF, (B) TO A QIB PURCHASING FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF A

QIB IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C)
OUTSIDE THE UNITED STATES

IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (D)

PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT

(IF AVAILABLE), (E) TO AN IAI THAT, PRIOR TO SUCH TRANSFER,
FURNISHES TO THE TRUSTEE A

SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE

REGISTRATION OF TRANSFER OF THIS SECURITY (THE FORM OF WHICH LETTER
CAN BE OBTAINED FROM

THE TRUSTEE) AND AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY
THAT SUCH TRANSFER IS IN

COMPLIANCE WITH THE SECURITIES ACT OR (F) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT

UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH
APPLICABLE STATE

SECURITIES LAWS, OR (II) AFTER THE TIME PERIOD REFERRED TO UNDER
RULE 144(k) (TAKING INTO

ACCOUNT THE PROVISIONS OF RULE 144(d) UNDER THE SECURITIES ACT, IF
APPLICABLE) UNDER THE

SECURITIES ACT AS IN EFFECT ON THE DATE OF THE TRANSFER OF THIS
SECURITY, PROVIDE A

REPRESENTATION TO THE COMPANY THAT IT HAS HELD THE SECURITY
EVIDENCED BY THIS CERTIFICATE

FOR A PERIOD OF TWO YEARS AND IS NOT AN AFFILIATE (AS SUCH TERM IS
DEFINED IN RULE 144

UNDER THE SECURITIES ACT);

(3)   AGREES THAT IT WILL
DELIVER TO EACH PERSON TO WHOM THIS SECURITY OR AN INTEREST

HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND;

(4)  AGREES THAT IT WILL,
IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY OR ANY

INTEREST HEREIN WITHIN THE TIME PERIOD REFERRED TO IN CLAUSE 2(I)
OF THIS LEGEND,

COMPLETE AND DELIVER A TRANSFER CERTIFICATE, THE FORM OF WHICH IS
AVAILABLE FROM THE

TRUSTEE TO THE TRUSTEE.  AS USED HEREIN, THE TERMS "OFFSHORE
TRANSACTION," "UNITED

STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY RULE
902 OF REGULATION S

UNDER THE SECURITIES ACT.  THE INDENTURE CONTAINS A PROVISION
REQUIRING THE TRUSTEE TO

REFUSE TO REGISTER ANY TRANSFER OF THIS SECURITY IN VIOLATION OF
THE FOREGOING

RESTRICTIONS.

         
The foregoing legend may be removed from this Security on
satisfaction of the

conditions specified in the Indenture.

                             
PG&E CORPORATION

                 
9.50% Convertible Subordinated Notes due 2010

    
No.               
         
    CUSIP:

     Issue Date:  ______,
20__       Principal Amount: 
$

    

    
PG&E CORPORATION, a California corporation, promises to pay to
Cede & Co. or

registered assigns, the principal amount of  _________________
dollars
($              
)

on June 30, 2010.

    
Interest Payment Dates:  June 30 and December 31, commencing
December 31, 2002.

    
Record Dates:   June 15 and December 15.

    
Reference is hereby made to the further provisions of this Security
set forth on

the reverse side of this Security, which further provisions shall
for all purposes have

the same effect as if set forth at this place.

     IN
WITNESS WHEREOF, the Company has caused this instrument to be duly
executed

under its corporate seal.

Dated:  _____,
20__          PG&E
CORPORATION

                       
By:                                   

                        

                        
Title:                                

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION

U.S. BANK, N.A.,

as Trustee, certifies that this is one

of the Securities referred to in the

within-mentioned Indenture.

By__________________________________

     Authorized Signatory

Dated:  _______ __, 20__

                                    

                                    

                  
[FORM OF REVERSE OF 144A GLOBAL SECURITY IS

                      
IDENTICAL TO REVERSE OF EXHIBIT A]

                                
EXHIBIT C

                    
[FORM OF FACE OF CERTIFICATED SECURITY]

THE SECURITY EVIDENCED BY THIS
CERTIFICATE AND ANY SHARES OF COMMON STOCK ISSUABLE UPON

THE CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF

1933, AS AMENDED (THE "SECURITIES ACT") OR ANY STATE SECURITIES
LAWS, AND MAY NOT BE

OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE. BY

ACQUISITION HEREOF, THE HOLDER:

(1)  REPRESENTS THAT IT
IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A

UNDER THE SECURITIES ACT (A "QIB"); OR (B) IT IS AN INSTITUTIONAL
"ACCREDITED INVESTOR"

(AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D
UNDER THE SECURITIES ACT)

(AN "IAI");

(2)  AGREES THAT IT WILL
NOT, (I) WITHIN THE TIME PERIOD REFERRED TO UNDER RULE 144(k)

(TAKING INTO ACCOUNT THE PROVISIONS OF RULE 144(d) UNDER THE
SECURITIES ACT, IF

APPLICABLE) UNDER THE SECURITIES ACT AS IN EFFECT ON THE DATE OF
THE TRANSFER OF THIS

SECURITY, RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO
THE COMPANY OR ANY

SUBSIDIARY THEREOF, (B) TO A QIB PURCHASING FOR ITS OWN ACCOUNT OR
FOR THE ACCOUNT OF A

QIB IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C)
OUTSIDE THE UNITED STATES

IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (D)

PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT

(IF AVAILABLE), (E) TO AN IAI THAT, PRIOR TO SUCH TRANSFER,
FURNISHES TO THE TRUSTEE A

SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE

REGISTRATION OF TRANSFER OF THIS SECURITY (THE FORM OF WHICH LETTER
CAN BE OBTAINED FROM

THE TRUSTEE) AND AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY
THAT SUCH TRANSFER IS IN

COMPLIANCE WITH THE SECURITIES ACT OR (F) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT

UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH
APPLICABLE STATE

SECURITIES LAWS, OR (II) AFTER THE TIME PERIOD REFERRED TO UNDER
RULE 144(k) (TAKING INTO

ACCOUNT THE PROVISIONS OF RULE 144(d) UNDER THE SECURITIES ACT, IF
APPLICABLE) UNDER THE

SECURITIES ACT AS IN EFFECT ON THE DATE OF THE TRANSFER OF THIS
SECURITY, PROVIDE A

REPRESENTATION TO THE COMPANY THAT IT HAS HELD THE SECURITY
EVIDENCED BY THIS CERTIFICATE

FOR A PERIOD OF TWO YEARS AND IS NOT AN AFFILIATE (AS SUCH TERM IS
DEFINED IN RULE 144

UNDER THE SECURITIES ACT);

(3)  AGREES THAT IT WILL
DELIVER TO EACH PERSON TO WHOM THIS SECURITY OR AN INTEREST

HEREIN IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND;

(4)  AGREES THAT IT WILL,
IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY OR ANY

INTEREST HEREIN WITHIN THE TIME PERIOD REFERRED TO IN CLAUSE 2(I)
OF THIS LEGEND,

COMPLETE AND DELIVER A TRANSFER CERTIFICATE, THE FORM OF WHICH IS
AVAILABLE FROM THE

TRUSTEE TO THE TRUSTEE.  AS USED HEREIN, THE TERMS "OFFSHORE
TRANSACTION," "UNITED

STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY RULE
902 OF REGULATION S

UNDER THE SECURITIES ACT.  THE INDENTURE CONTAINS A PROVISION
REQUIRING THE TRUSTEE TO

REFUSE TO REGISTER ANY TRANSFER OF THIS SECURITY IN VIOLATION OF
THE FOREGOING

RESTRICTIONS.

         
The foregoing legend may be removed from this Security on
satisfaction of the

conditions specified in the Indenture.

                 
            
PG&E CORPORATION

                 
9.50% Convertible Subordinated Notes due 2010

    
No.                         

      Issue Date:  ______,
20__       Principal Amount: 
$

         

    
PG&E CORPORATION, a California corporation, promises to pay to
___________________

or  registered  assigns,  the  principal 
amount  of   _________________ dollars

($              
) on June 30, 2010.

    
Interest Payment Dates:  June 30 and December 31, commencing
December 31, 2002.

    
Record Dates:   June 15 and December 15.

    
Reference is hereby made to the further provisions of this Security
set forth on

the reverse side of this Security, which further provisions shall
for all purposes have

the same effect as if set forth at this place.

      IN
WITNESS WHEREOF, the Company has caused this instrument to be duly
executed

under its corporate seal.

Dated:  _____,
20__         PG&E
CORPORATION

                       
By:                                   

                        

             
           
Title:                                

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION

U.S. BANK, N.A.,

as Trustee, certifies that this is one

of the Securities referred to in the

within-mentioned Indenture.

By__________________________________

     Authorized Signatory

Dated:  _______ __, 20__

                                    

                                    

[FORM OF REVERSE OF
CERTIFICATED SECURITY IS IDENTICAL TO THE REVERSE OF EXHIBIT A
EXCEPT

    THAT THE LAST PAGE THEREOF SHALL NOT BE INCLUDED
IN THE CERTIFICATED SECURITY]Warrant Agreement

                                                     
           
Exhibit 4.2

                             
WARRANT AGREEMENT

                               
By and Among

                             
PG&E CORPORATION

                                   
and

                              
LB I GROUP INC.

        
                           
and

                          
EACH OTHER INITIAL HOLDER

                               
PARTY HERETO

                         
__________________________

                                     

                         
Dated as of October 18, 2002

                         
__________________________

                                     

  

                              
TABLE OF CONTENTS

                                                                      
Page

ARTICLE I
Definitions............................................3

     SECTION 1.01.   
Definitions...................................3

ARTICLE II Warrant
Certificates.....................................6

     SECTION 2.01.    Form of
Warrant Certificates.....................6

     SECTION 2.02.    Execution
and Delivery of Warrants and Warrant
                      Certificates..................................6

     SECTION 2.03.    Loss or
Mutilation..............................7

ARTICLE III Representations, Warranties and
Covenants...................7

     SECTION 3.01.   
Representations Warranties and Covenants of the

                       Company...........................................7

     SECTION 3.02.   
Representations Warranties and Covenants of the Initial

                      
Holders......................................9

     SECTION 3.03.    Payments
of Cash Dividends......................10

ARTICLE IV Exercise
Terms..........................................10

     SECTION 4.01.    Terms of
Warrants; Exercise of Warrants...........10

     SECTION 4.02.    Adjustment
of Exercise Price and Number of Warrant Shares

                      
Issuable....................................11

     SECTION 4.03.    Manner of
Exercise.............................16

     SECTION 4.04.    Issuance
of Warrant Shares......................16

     SECTION 4.05.    Fractional
Warrant Shares.......................16

     SECTION 4.06.   
Reservation of Warrant Shares...................17

     SECTION 4.07.    Compliance
with Law............................17

     SECTION 4.08.    Payment of
Taxes..............................17

     SECTION 4.09.    Failure to
Deliver Shares.......................17

ARTICLE V Transfer
Restrictions.....................................17

     SECTION 5.01.   
Restrictions on Transfers of the Warrants and the Warrant

                   
   Shares......................................17

     SECTION 5.02.    Notation;
Removal of Legend.....................18

     SECTION 5.03.    Surrender
of Warrant Certificates................18

ARTICLE VI
Miscellaneous...........................................18

     SECTION 6.01.    SEC
Reports and other Financial Information........18

     SECTION 6.02.    Persons
Benefiting............................19

     SECTION 6.03.    Amendments
and Waivers.........................19

     SECTION 6.04.   
Notices......................................19

     SECTION 6.05.    Governing
Law; Waiver of Jury Trial; Submission of

                      
Jurisdiction.................................20

     SECTION 6.06.    Successors
and Assigns.........................20

     SECTION 6.07.   
Severability.................................21

     SECTION 6.08.    Entire
Agreement..............................21

     SECTION 6.09.   
Counterparts.................................21

     SECTION 6.10.   
Headings.....................................21

     SECTION 6.11.   
Remedies.....................................21

     SECTION 6.12.   
Waiver......................................21

     SECTION 6.13.   
Register.....................................21

                                                                           

 Annex A    Form of Addendum

 

 Exhibit A  Form of Warrant Certificate

Exhibit B  Form of Transfer Restriction Legend

Exhibit C  Form of Accredited Investor Certificate 

           
Transferee Letter of Representation

          

           WARRANT
AGREEMENT, dated as of October 18, 2002, by and among
PG&E

Corporation, a California corporation (the "Company"), LB I Group
Inc., a Delaware

corporation ("LB I Group"), and each other entity that becomes
signatory to an addendum

to this Agreement prior to the issuance of the Warrants (as defined
below) (each, an

"Initial Holder" and collectively, the "Initial
Holders"). 

                             
W I T N E S E T H:

          WHEREAS, the
Company and the Initial Lender (as defined below) are parties
to

the Credit Agreement (as defined below);

          WHEREAS, as
a condition to the effectiveness of the Credit Agreement, the

Company desires to issue to each Initial Holder a number of
warrants calculated in the

manner set forth in Section 2.02 below, (each, a "Warrant", which
term shall include

warrants issued upon transfer, division, combination of, or in
substitution for, any

Warrant) which will, subject to adjustment as provided herein,
entitle the Holders

thereof to purchase shares of common stock, no par value (the
"Common Stock"), of the

Company on the terms described herein (the Common Stock issuable
upon exercise of the

Warrants being referred to herein as the "Warrant Shares");

          WHEREAS, in
order to induce the Initial Lender to enter into the Credit

Agreement, the Company has agreed to provide to the Initial
Holders, among other things,

the Warrants and the registration rights for the Warrant Shares as
set forth in the

Equity Registration Rights Agreement, dated as of the date hereof
(the "Registration

Rights Agreement"), among the Company and the Initial
Holders;

         
NOW, THEREFORE, intending to be legally bound, each party hereto
agrees as

follows for the benefit of the other parties and for the equal and
ratable benefit of the

Holders of the Warrants:

                                
ARTICLE I

                                     

                                
Definitions

          SECTION
1.01.  Definitions.  Capitalized terms used but not
otherwise defined

herein shall have the meanings ascribed to such terms in the Credit
Agreement and the

principles of construction set forth in Appendix A to the Credit
Agreement shall apply to

this Agreement.  

           "Addendum":
an instrument, substantially in the form of Annex A hereto,
by

which each Initial Holder, other than LB I Group, becomes a party
to this Agreement prior

to the issuance of the Warrants.

          "Agreement"
shall mean this Warrant Agreement, as the same may be
amended,

modified or supplemented from time to time.

          "Aggregate
Warrant Number" shall have the meaning set forth in Section
2.02

hereof.

          "Assignee"
shall have the meaning set forth in Section 5.01(b) hereof.

          "Board"
shall mean the board of directors of the Company or any
committee

thereof duly authorized to act on behalf of such board of
directors.

          "Business
Day" shall mean any day other than a Saturday or Sunday or any
day

on which banking institutions in the City of New York or the City
of  San Francisco are

authorized or obligated by law or regulation to close.

          "Cash
Dividends" means periodic, special, extraordinary or non-recurring
cash

dividends on the Company's Common Stock as declared by the
Company's Board of Directors.

          "Cashless
Exercise"  shall have the meaning set forth in Section 4.01
hereof.

          "Common
Stock" shall have the meaning set forth in the second recital
hereof.

          "Company"
shall have the meaning set forth in the first paragraph hereof,
and

its successors and assigns.

          "Credit
Agreement" shall mean the Second Amended and Restated Credit

Agreement, dated as of the date hereof, among the Company, the
Initial Lender and the

other Lenders party thereto, Lehman Commercial Paper Inc., as
Syndication Agent and

Administrative Agent and Lehman Brothers Inc., as Lead Arranger and
Bookrunner, as such

agreement may be subsequently amended from time to time pursuant to
the provisions

thereof.  

           "Current
Market Price" of a Warrant Share as of any date shall mean,
except

as hereinafter provided, the average of the daily market prices for
the Common Stock of

the Company for the 20 consecutive Trading Days preceding such
date. The market price for

each such day shall be the last sale price on such day as reported
on the New York Stock

Exchange consolidated tape, or, if such Common Stock of the Company
is not listed on the

New York Stock Exchange, or reported on such consolidated tape,
then the last sale price

on such day on the principal domestic stock exchange on which such
Common Stock of the

Company is then listed or admitted to trading, or, if no sale takes
place on such day on

such exchange, the average of the closing bid and asked prices on
such day as officially

quoted on such exchange, or, if such Common Stock of the Company is
not then listed or

admitted to trading on any domestic stock exchange but is quoted on
the Nasdaq Stock

Market's National Market, then the Current Market Price for each
such Trading Day shall

be the last sale price on such day as quoted on the Nasdaq Stock
Market's National

Market, or, if no sale takes place on such day or if such Common
Stock of the Company is

neither listed or admitted to trading on any domestic stock
exchange nor quoted on such

day on the Nasdaq Stock Market's National Market, then the Current
Market Price for each

such Trading Day shall be the average of the reported closing bid
and asked price

quotations on such day in the over-the-counter market, as reported
by the Nasdaq Stock

Market, or, if not so reported, as furnished by the National
Quotation Bureau, Inc., or,

if such firm at the time is
not engaged in the business of reporting such prices, as

furnished by any similar firm then engaged in such business as
selected by the Company,

or, if there is no such firm, as furnished by any member of the
National Association of

Securities Dealers, Inc. selected by the Company with the written
approval of a Majority

in Interest of Evaluating Holders.

          If at any
time the Common Stock of the Company is not listed on any
domestic

exchange or quoted in the domestic over-the-counter market or not
registered under the

Exchange Act, the Current Market Price of a Warrant Share shall be
the fair market value

per share of the Common Stock of the Company as determined by a
panel of independent

appraisers (the "Appraisers") who shall be investment banks
experienced in the evaluation

of the value of securities of a corporation of a type similar to
the Company.  Initially,

such panel shall be comprised of two Appraisers, one selected by
the Company and one

selected by the relevant Holder or a Majority in Interest of
Evaluating Holders, as

applicable.  In making such determination, the Appraisers
shall not take into account any

discount attributable to the minority status of the Warrants and/or
Warrant Shares, or

any other minority interest, or the illiquidity of the Warrants
and/or Warrant Shares.

          In the event
the Appraisers are unable to agree upon the Current Market
Price

within 10 days of their selection, then the two Appraisers shall
select a third

independent Appraiser who shall be an investment bank experienced
in the evaluation of

the value of securities of a corporation of a type similar to the
Company to determine

the Current Market Price within 15 days of its selection. A
determination by such third

Appraiser of the Current Market Price shall be final and binding
upon the Company and the

Holders.  

           The Company
shall pay the fees and expenses of the Appraiser it appoints.
The

relevant Holder or Evaluating Holders, as applicable, shall pay the
fees and expenses of

the Appraiser it, or they, appoint; provided that, when applicable,
such fees and

expenses shall be divided pro rata among the Evaluating Holders in
proportion to their

respective ownership interests in the securities being
evaluated. 

           Should a
third Appraiser be appointed, each of the Company and the
relevant

Holder (or Evaluating Holders, where applicable) shall pay 50% of
the expense associated

with such appointment. Where applicable, the portion of the fees
and expenses payable by

the Evaluating Holders shall be divided pro rata among such
Evaluating Holders in

proportion to their respective ownership interests in the
securities being evaluated.

          "Dividend"
shall mean any dividend (including Cash Dividends) or other

distribution on the Common Stock whether in the form of cash,
evidences of the Company's

indebtedness, or any other assets, properties or securities (other
than shares of Common

Stock) or any options, warrants or other rights to subscribe for or
to purchase any of

the foregoing.

          "ERISA"
shall have the meaning set forth in Section 3.02(g) hereof.

          
"Evaluating Holders" shall mean, at any time and from time to time,
the

Holders of the securities whose Current Market Price is being
ascertained at such time.

          "Excess
Shares" shall have the meaning set forth in Section 4.01
hereof.

           "Exchange
Act" shall mean the Securities Exchange Act of 1934, as
amended,

and the rules and regulations of the SEC promulgated
thereunder.

          "Exercise
Limitations" shall have the meaning set forth in Section 4.01

hereof.

          "Exercise
Price" shall have the meaning set forth in Section 4.01
hereof.

          "Expiration
Date" shall have the meaning set forth in Section 4.01
hereof.

          "4.9%
Limitation" shall have the meaning set forth in Section 4.01
hereof.

         
"Governmental Authority" shall mean any federal, state, municipal
or other

governmental department, commission, board, bureau, agency or
instrumentality, or any

court, in each case whether of or within the United States of
America or foreign.

          "Holder"
shall mean the Initial Holders and any Assignee, designee or

transferee of the Warrants or any portion thereof or any Warrant
Shares.

         
"Initial Holders" shall have the meaning set forth in the first
paragraph

hereof.

          "Initial
Lender" shall mean Lehman Commercial Paper Inc.

          "LB I Group"
shall have the meaning set forth in the first paragraph
hereof.

          "Lehman"
shall have the meaning set forth in Section 2.02 hereof.

          "Majority in
Interest of Evaluating Holders" shall mean, at any time and
from

time to time, the Holders of more than a 50% interest in the
Warrant Shares whose Current

Market Price is being ascertained at such time.

          "Material
Adverse Change" shall mean, with respect to any Person, a
material

adverse change in the condition (financial or otherwise), results
of operations,

business, Properties or liabilities of such Person.

          "Material
Adverse Effect" shall mean any event, circumstance or
condition

which is reasonably likely to (A) have a material adverse effect on
the condition

(financial or otherwise), results of operations, business,
Properties, or liabilities of

the Company, as the case may be, (B) materially and adversely
affect the ability of the

Company, as the case may be, to perform its obligations under this
Agreement or (C)

materially and adversely affect the rights and remedies of the
Holders under this

Agreement.

          "Person"
means any individual, corporation, limited liability company,

partnership, joint venture, association, joint-stock company,
trust, unincorporated

organization, or government or any agency or political subdivision
thereof.

          "Preferred
Stock" shall mean, with respect to any Person, any capital
stock

issued by such Person which has a preference over such Person's
Common Stock.

          "Proceeding"
shall mean an action, claim, suit or proceeding (including,

without limitation, an investigation or partial proceeding, such as
a deposition),

whether commenced or threatened.

         
"Registration Rights Agreement" shall have the meaning set forth in
the third

recital hereof, as the same may be amended, modified or
supplemented from time to time.

          "Register"
shall have the meaning set forth in Section 6.13 hereof.

          "Required
Holders" shall mean the Holders of at least a 40% interest in
the

Warrants or the Warrant Shares.

          "Securities
Act" shall mean the Securities Act of 1933, as amended, and
the

rules and regulations promulgated by the SEC thereunder.

          "Share
Delivery Default"  shall have the meaning set forth in Section
4.09

hereof.

          "Shareholder
Limitation" shall have the meaning set forth in Section 4.01

hereof.

          "Third
Parties" shall have the meaning set forth in Section 4.01
hereof.

          "13D Person"
shall mean any "person" as such term is defined in Section

13(d)(3) of the Exchange Act.

          "Trading
Day" means a day during which trading in securities generally
occurs

on the NYSE or, if the Common Stock is not listed on the NYSE, on
the principal other

national or regional securities exchange on which the Common Stock
then is listed or, if

the Common Stock is not listed on a national or regional securities
exchange, on the

National Association of Securities Dealers Automated Quotation
System or, if the Common

Stock is not quoted on the National Association of Securities
Dealers Automated Quotation

System, on the principal other market on which the Common Stock is
then traded.

          "Transfer
Agent" shall have the meaning set forth in Section 4.04
hereof.

          "VWAP" shall
mean, for any security as of any date, the dollar-weighted

average price for such security on the principal United States
securities exchange on

which such security is traded (which is currently the New York
Stock Exchange with

respect to the Common Stock) during the period beginning at 9:30
a.m. (New York time) (or

such other time as such exchange publicly announces is the official
open of trading), and

ending at 4:00 p.m. (New York time) (or such other time as such
exchange publicly

announces is the official close of trading) as reported by
Bloomberg Financial Markets

(or any successor thereto, "Bloomberg") through its "Volume at
Price" functions, or, if

the foregoing does not apply, the dollar weighted average price of
such security in the

over-the counter-market on the electronic bulletin board for such
security during the

period beginning at 9:30 a.m. (New York time) (or such other time
as such exchange

publicly announces is the official open of trading), and ending at
4:00 p.m. (New York

time) (or such other time as such exchange publicly announces is
the official close of

trading) as reported by Bloomberg, or if no dollar weighted average
price is reported for

such security by Bloomberg for such hours, the average of the
highest closing bid price

and lowest closing ask price of any of the market makers for such
security as reported in

the "pink sheets" by the National Quotation Bureau, Inc.  If
the VWAP cannot be

calculated for such security on such date on any of the foregoing
bases, the VWAP of such

security on such date shall be the fair market value as mutually
determined by the

Company and the Holders of a majority of the Warrants then
outstanding.  All such

determinations to be appropriately adjusted for any stock dividend,
stock split, stock

combination or other similar transaction during such period.

          "Warrant"
shall have the meaning set forth in the second recital
hereof.

          "Warrant
Agreement" shall mean this Agreement.

          "Warrant
Certificates" shall have the meaning set forth in Section
2.01

hereof.

          "Warrant
Number" shall have the meaning set forth in Section 4.02
hereof.

          "Warrant
Shares" shall have the meaning set forth in the second
recital

hereof.

                                
ARTICLE II

                                     

                             
Warrant Certificates

          SECTION
2.01.   Form of Warrant Certificates.  Certificates
representing the

Warrants (the "Warrant Certificates") shall be in registered form
only and substantially

in the form attached hereto as Exhibit A.  The Warrant
Certificates shall be dated the

date of their issuance and signed by the Company and shall have
such insertions as are

appropriate or required or permitted by this Agreement and may have
such letters, numbers

or other marks of identification and such legends and endorsements
typed, stamped,

printed, lithographed or engraved thereon as the Company may deem
appropriate and as are

not inconsistent with the provisions of this Agreement, or as may
be required to comply

with any law or with any rule or regulation pursuant thereto, or to
conform to usage.

          The terms
and provisions contained in the form of Warrant Certificate
annexed

hereto as Exhibit A shall constitute, and are hereby expressly
made, a part of this

Agreement.

          The
definitive Warrant Certificates shall be typed, printed,
lithographed or

engraved or produced by any combination of these methods, all as
determined by the

officers of the Company executing such Warrant Certificates, as
evidenced by such

officers' execution of such Warrant Certificates.

           SECTION
2.02.   Execution and Delivery of Warrants and Warrant
Certificates. 

 The Company shall issue an aggregate number of Warrants (the
"Aggregate Warrant Number")

equal to the quotient of (a) 25,200,000, divided by (b) the sum of
(i) the average of the

VWAP of the Common Stock for each of the ten Trading Days beginning
on the fifth Trading

Day prior to the Closing Date and extending until the fourth
Trading Day following the

Closing Date (such ten Trading Day period to include the Closing
Date itself) minus (ii)

$0.01.  Warrant Certificates each evidencing the number of
Warrants to be issued to each

Initial Holder shall be executed and delivered to each Initial
Holder by the Company no

later than the tenth Trading Day following the Closing Date. 
The exact number of

Warrants to be distributed to any particular Initial Holder out of
the Aggregate Warrant

Number shall be based on terms previously agreed upon between
Lehman Brothers Inc.

("Lehman") and each Initial Holder and shall be provided to the
Company by Lehman prior

to the execution and delivery of the Warrant Certificates.

          The Warrant
Certificates shall be executed manually on behalf of the
Company

by its Chief Executive Officer, President, any Senior Vice
President or any Vice

President.  In case any officer of the Company whose signature
shall have been placed

upon any of the Warrant Certificates shall cease to be such officer
of the Company before

the issuance and delivery thereof, such Warrant Certificates may,
nevertheless, be issued

and delivered with the same force and effect as though such person
had not ceased to be

such officer of the Company.

          SECTION
2.03.   Loss or Mutilation.  In case any of the
Warrant Certificates

shall be mutilated, lost, stolen or destroyed, the Company, at its
expense, shall issue,

execute and deliver to the Holder of the lost, stolen, destroyed or
mutilated Warrant

Certificate, in exchange for or in lieu thereof, a new Warrant
Certificate of the same

tenor and for a like aggregate number of Warrants, but only upon
receipt of evidence

satisfactory to the Company of such loss, theft, mutilation or
destruction of such

Warrant Certificate and indemnity, if requested, also reasonably
satisfactory to the

Company; provided, however, that if the owner of the same is the
Initial Holders or any

affiliate thereof or an institutional lender or investor, its own
agreement of indemnity

shall be deemed to be satisfactory.  Every new Warrant
Certificate executed and delivered

pursuant to this Section 2.03 in lieu of any lost, stolen,
mutilated or destroyed Warrant

Certificate shall constitute a contractual obligation of the
Company, whether or not the

allegedly lost, stolen or destroyed Warrant Certificates shall be
at any time enforceable

by anyone, and shall be entitled to the benefits of this Agreement
equally and

proportionately with any and all other Warrant Certificates duly
executed and delivered

hereunder.  The provisions of this Section 2.03 are exclusive
and shall preclude (to the

extent lawful) all other rights or remedies with respect to the
replacement of mutilated,

lost, stolen, or destroyed Warrant Certificates.

                               
ARTICLE III

                                     

           
         
Representations, Warranties and Covenants

          SECTION
3.01.   Representations Warranties and Covenants of the
Company.  The

Company represents and warrants to, and agrees with, the Holders as
follows:

         
(a)  The Company has been duly incorporated and is
validly existing as a

corporation in good standing under the laws of the state of
California.

          (b) 
The Company has the corporate power and authority (i) to
execute,

deliver and perform its obligations under this Agreement and the
Registration Rights

Agreement, (ii) to issue and deliver the Warrants, (iii) to issue
and deliver the Warrant

Shares upon the due exercise of any Warrant, and (iv) to cause the
Transfer Agent to

record the issuance of the Warrant Shares issuable upon due
exercise of any Warrant.

          (c) 
This Agreement and the Registration Rights Agreement have been
duly

executed and delivered by the Company and, assuming the due
authorization, execution and

delivery by the Initial Holders, each of this Agreement and the
Registration Rights

Agreement constitutes a legally valid and binding agreement of the
Company, enforceable

against the Company in accordance with its terms, subject to the
effects of bankruptcy,

insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws

relating to or affecting creditors' rights generally, general
equitable principles

(whether considered in a proceeding in equity or at law) and an
implied covenant of good

faith and fair dealing, and except with respect to any rights of
indemnification and

contribution hereunder, where enforcement hereof may be limited by
federal or state

securities laws, the policies underlying such laws and public
policy considerations.

          (d) 
The Warrants have been duly authorized by the Company and, when
issued

and delivered by the Company, will constitute legally valid and
binding obligations of

the Company, enforceable against the Company in accordance with
their terms, subject to

the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium

and other similar laws relating to or affecting creditors' rights
generally, general

equitable principles (whether considered in a proceeding in equity
or at law) and an

implied covenant of good faith and fair dealing, and except with
respect to any rights of

indemnification and contribution hereunder, where enforcement
hereof may be limited by

federal or state securities laws, the policies underlying such laws
and public policy

considerations.

          (e) 
Each of (i) the execution, delivery and performance of this
Agreement

and the Registration Rights Agreement by the Company, (ii) the
offering, issuance and

delivery of the Warrants and the Warrant Shares issuable upon the
exercise of any

Warrant, and (iii) the fulfillment of and compliance with the terms
and provisions of

this Agreement (A) have been duly authorized by all requisite
corporate and, if

necessary, stockholder action of the Company and (B) will not (1)
conflict with, violate

or constitute a default under (x) any provision of the articles of
incorporation, by-laws

or other constitutive documents of the Company, (y) any law,
statute, rule or regulation

or any order of any Governmental Authority applicable to the
Company or any of its

subsidiaries or properties or (z) any provision of any indenture or
other material

agreement or other material instrument to which the Company or any
of its subsidiaries

are a party or by which they or any of their respective properties
are or may be bound,

(2) be in conflict with, result in a breach of or constitute (alone
or with notice or

lapse of time or both) a default under, or give rise to any right
to accelerate or to

require the prepayment, repurchase or redemption of any obligation
under, any such

indenture, agreement or other instrument or (3) result in the
creation or imposition of

any Lien upon or with respect to any property or assets now owned
or hereafter acquired

by  the Company or any of its subsidiaries, except, in each
case, where any such

conflict, creation or imposition would not result in a Material
Adverse Effect.

          (f)  No
action, consent, waiver, authorization or approval of,
registration

or filing with or any other action by any Governmental Authority or
any nongovernmental

Person (including, without limitation, any creditor, partner or
shareholder of the

Company) is or will be required in connection with (i) the
execution, delivery and

performance of this Agreement and the Registration Rights Agreement
by the Company, other

than with respect to any filings required to be made pursuant to
the Registration Rights

Agreement, (ii) the issuance and delivery of the Warrants and the
Warrant Shares issuable

upon the exercise of any Warrant in accordance with this Agreement,
other than with

respect to any filings under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976

that may be required upon the exercise by any Holder of any
Warrants, and (iii) the

performance by the Company of its obligations under this Agreement
and the Registration

Rights Agreement, other than with respect to any filings required
to be made pursuant to

the Registration Rights Agreement, or as a condition to the
legality, validity or

enforceability of this Agreement or the Registration Rights
Agreement or the consummation

of the transactions contemplated hereby, other than such
authorizations and approvals as

have already been obtained and are in full force and
effect.  

           (g) 
Except as set forth on Schedule 5.6 to the Credit Agreement, there
are

no legal or arbitral proceedings or investigations, or any
proceedings by or before any

Governmental Authority or any Person, pending or threatened against
the transactions

contemplated by this Agreement or the Registration Rights Agreement
which could

reasonably be expected to have a Material Adverse Effect, and there
are no other legal or

arbitral proceedings or investigations, or any proceedings by or
before any Governmental

Authority or any Person pending against the Company, LLC, NEG, Inc.
or the Significant

Subsidiaries which could reasonably be expected to result in a
Material Adverse Change to

the Company, or a Material Adverse Change to LLC, NEG, Inc. and the
Significant

Subsidiaries, taken as a whole.  There are no legal or
arbitral proceedings or

investigations, or any proceedings by or before any Governmental
Authority or any Person,

pending or threatened which could reasonably be expected to have a
Material Adverse

Effect (other than under clauses (A) and (B) of the definition
thereof).

          (h) 
Subject to the accuracy of the Initial Holders' representations
set

forth in Section 3.02 and, in the case of a transfer of a Warrant
or Warrant Shares,

compliance with Article V, the issuance of the Warrants and the
offering, sale and

delivery of the Warrants and the Warrant Shares under the
circumstances contemplated by

this Agreement constitute exempt transactions under the
registration provisions of the

Securities Act, and do not require the registration of the Warrants
or the Warrant Shares

under the Securities Act.

          (i) 
The Warrant Shares, when issued and delivered against payment of
the

Exercise Price therefor, will be duly authorized, validly issued,
fully paid and

nonassessable, and subject to no Liens, taxes, security interests
or adverse claims

created by the Company, and such Warrant Shares will not be subject
to the preemptive or

similar rights of any securityholder of the Company. 

           (j) 
The Company will not amend its Charter Document in a manner

inconsistent with this Agreement or enter into any agreement
inconsistent with this

Agreement or that would make the Company unable to comply with the
terms of this

Agreement.

          (k)  As
of the date hereof, the Company's authorized capital stock
consists

of 800,000,000 shares of Common Stock and 85,000,000 shares of
preferred stock including

5,000,000 shares designated as Series A Preferred Stock.  As
of 8:00 a.m. (Eastern

Standard Time) on the date hereof, 404,191,726 shares of Common
Stock were validly issued

and outstanding and no shares of preferred stock were issued and
outstanding.  Such

404,191,726 shares of Common Stock have been validly issued, fully
paid and non-

assessable.

          (l) 
The Company will take no action to increase the par value of the
Common

Stock.

          SECTION
3.02.  Representations Warranties and Covenants of the
Initial

Holders.  Each Initial Holder represents and warrants to, and
agrees with, the Company,

severally and not jointly, as follows:

          (a) 
Such Initial Holder is a knowledgeable and sophisticated investor,
is

experienced in business and financial matters, qualifies as an
"accredited investor" as

defined in Rule 501(a) of Regulation D and as a "qualified
institutional buyer" as

defined in Rule 144A under the Securities Act.

          (b) 
Such Initial Holder is knowledgeable regarding the Company and has
been

afforded access to information about the Company and the financial
condition, results of

operations, business, property, management and prospects of the
Company sufficient to

enable it to evaluate its investment in the Warrants and the
Warrant Shares.  Such

Initial Holder and its advisors, if any, have been afforded the
opportunity to ask

questions of the Company.  Such Initial Holder has sought such
accounting, legal and tax

advice as it has considered necessary to make an informed
investment decision with

respect to its acquisition of the Warrants and the Warrant
Shares.

          (c) 
Such Initial Holder understands that its investment in the Warrants
and

the Warrant Shares involves a high degree of risk.  Such
Initial Holder is able to bear

the economic risk of its investment in the Warrants and the Warrant
Shares and is

presently able to afford the complete loss of such
investment.

          (d) 
Such Initial Holder is acquiring the Warrants and the Warrant
Shares

solely for its own account and not as a nominee or agent for any
other person and not

with a view to any distribution thereof in a transaction that would
violate the

Securities Act or the securities laws of any State of the United
States or any applicable

jurisdiction.

          (e) 
Such Initial Holder has not and will not offer or sell the Warrants
and

the Warrant Shares by means of any form of general solicitation or
general advertising

within the meaning of Rule 502(c) of Regulation D, including (i)
any advertisement,

article, notice or other communication published in any newspaper,
magazine or similar

medium or broadcast over television or radio, or (ii) any seminar
or meeting whose

attendees have been invited by any general solicitation or general
advertising in the

United States.

          (f) 
Such Initial Holder is a resident of that jurisdiction specified in
its

address for notices set forth (i) in the case of LB I Group, on its
signature page to

this Agreement and (ii) in the case of each other Initial Holder,
in the Addendum

executed by such Initial Holder.

           (g) 
Such Holder is not acquiring the Warrants with assets of any
"employee

benefit plan" (within the meaning of Section 3(3) of the Employee
Retirement Income

Security Act of 1974, as amended ("ERISA")) that is subject to
Title I of ERISA or

Section 4975 of the Internal Revenue Code of 1986, as
amended.

          (h) 
Assuming the capitalization of the Company set forth in its most
recent

report filed under the Exchange Act, such Initial Holder, together
with its "affiliates"

(as defined in Rule 144 promulgated under the Securities Act), is
the beneficial owner

(as defined in Rule 13d-3 promulgated under the Exchange Act) of
not more than 4.9% of

the outstanding shares of Common Stock immediately after the
purchase of the Warrants.

          The Company
and, for purposes of the opinions to be delivered pursuant to
the

Credit Agreement, counsel to the Company, General Counsel to the
Company and counsel to

the Initial Holders, will rely upon the accuracy and truth of the
foregoing

representations and agreements and the Initial Holders hereby
consent to such reliance.

          SECTION
3.03.   Payments of Cash Dividends.  Subject to the
record date

provisions described below, the Company shall pay to each holder of
Warrants an amount

per Warrant equal to the amount of all Cash Dividends, if any,
which would have been paid

by the Company with respect to each share of Common Stock then
issuable upon the exercise

of such Warrant if it had been exercised on the record date for the
payment of the cash

dividend. Cash Dividends, if any, will be payable on the payment
date of each such Cash

Dividend to Holders as of the record date for determination of the
stockholders entitled

to receive such Cash Dividend. 

                                 
ARTICLE IV

                                     

                               
Exercise Terms

          SECTION
4.01.  Terms of Warrants; Exercise of Warrants.  The
initial exercise

price per share at which Warrant Shares shall be issuable upon the
exercise of a Warrant

(the "Exercise Price") shall be equal to $0.01 per share of Common
Stock.  Each Warrant

shall entitle the Holder thereof, subject to and upon compliance
with the provisions of

this Agreement, to purchase from the Company one share of Common
Stock, subject to

adjustment pursuant to the terms of this
Agreement.  

           Subject to
the terms of this Agreement, each Holder shall have the
right,

which may be exercised commencing on the date that the Warrants
have been issued and

delivered to each Holder pursuant to Section 2.02 and shall
continue until 5:00 p.m., New

York City time on the later of (i) September 2, 2006 and (ii) to
the extent that any

Transfer Restricted Securities (as defined in the Registration
Rights Agreement) remain

outstanding on September 6, 2006, ten Business Days after the
effective date of a

registration statement under the Securities Act with respect to the
Warrant Shares

issuable upon the exercise of the Warrants, but no later than
September 2, 2007 (the

"Expiration Date"), to receive from the Company the number of fully
paid and

nonassessable Warrant Shares which the Holder may at the time be
entitled to receive on

exercise of the Warrants and payment of the Exercise Price then in
effect for such

Warrant Shares. In the alternative, each Holder may exercise its
right to receive Warrant

Shares on a net basis (a "Cashless Exercise"), such that, without
the exchange of any

funds, the holder receives that number of Warrant Shares otherwise
issuable (or payable)

upon exercise of the Warrants less that number of Warrant Shares
having an aggregate

Current Market Price at the time of exercise equal to the aggregate
Exercise Price that

would otherwise have been paid by the Holder of the Warrant Shares.
If the Warrants are

not exercised prior to 5:00 p.m., New York City time, on the
Expiration Date, they shall

become void and all rights thereunder and all rights in respect
thereof under this

Agreement shall cease as of such time. No adjustments as to
Dividends will be made upon

exercise of the Warrants.

          The Holders
will only be able to exercise their Warrants (i) by means of
a

cashless exercise or (ii) if any registration statement under the
Securities Act relating

to the Warrant Shares is effective or the exercise of such Warrants
is exempt from the

registration requirements of the Securities Act and such securities
are qualified for

sale or exempt from qualification under the applicable securities
laws of the states or

other jurisdictions in which such Holders reside.

          No Holder
may exercise any Warrant to the extent that, immediately
following

such exercise and upon receipt of any Warrant Shares issuable upon
such exercise, such

Holder would either (i) become or be included in any 13D Person
that is the single

largest holder of voting power represented by the Company's capital
stock (or otherwise

become the single largest holder of the Common Stock) (the
"Shareholder Limitation"), or

(ii) beneficially own (as such term is defined in Section 13(d)(3)
of the Exchange Act)

or be included in any 13D Person that beneficially owns in excess
of 4.9% of the voting

power represented by the Company's capital stock (or otherwise
beneficially own in excess

of 4.9% of the outstanding Common Stock) (the "4.9% Limitation")
after, in either case,

giving effect to such exercise (the Shareholder Limitation and the
4.9% Limitation are

collectively referred to herein as the "Exercise
Limitations").  The determinations of

the number of shares that (i) constitute 4.9% of the outstanding
Common Stock or voting

power and (ii) are held by the largest holder will be made in
reliance upon the

information contained in publicly available filings made with the
SEC unless the Company

is aware that such information is incorrect and has made the
correct information public,

to the extent material, and disclosed such information to the
Holders at the time of any

such proposed exercise. In order to facilitate compliance with the
foregoing, each Holder

will be required to make a representation that it and its
affiliates will comply with the

Exercise Limitations immediately after the exercise of any Warrant
and receipt of any

shares of Common Stock issuable upon such exercise.

         
Notwithstanding the Exercise Limitation, however, a Holder may
exercise any

Warrant that would otherwise cause such Holder to hold Warrant
Shares in excess of the

Exercise Limitations if, as to such excess number of Warrant Shares
(the "Excess

Shares"), such Holder (i) irrevocably covenants to the Company to
sell such Excess Shares

within 10 days after the date of exercise and (ii) confirms that it
has, on or prior to

such exercise date, entered into a binding arrangement to sell the
Excess Shares within

10 days after such exercise date either (a) in a regular way
transaction on a national

securities exchange (or the principal market where shares of Common
Stock are then

traded) or (b) to one or more persons that are not "affiliates"
(used herein as defined

in Rule 144 promulgated under the Securities Act) of such Holder
("Third Parties"), each

of whom represents for the benefit of the Company that, upon
purchase of the applicable

Excess Shares, such Third Party, together with its affiliates, will
not be the beneficial

owner of a number of shares of Common Stock in excess of the
Exercise Limitations.  In

addition, such Holder shall agree to vote the applicable Excess
Shares only in accordance

with the recommendations of the Board of Directors of the Company
or any Third Party that

has agreed to purchase such shares, if any record date for a vote
of the Common Stock is

established for any day between the exercise date and the
consummation of the sale of the

applicable Excess Shares.  The Exercise Limitations will cease
to have any force and

effect upon consummation of the Utility Spin-Off, if, on the date
that is 14 days after

delivery to the Company of a request by the Required Holders to
such effect (which

request may be given no more than once during any 180-day period),
the Company shall not

have delivered a certificate to the Holders stating that the
removal of the Exercise

Limitations would, in the good faith judgment of the Company, not
be consistent with

applicable regulatory or other legal requirements.

          SECTION
4.02.  Adjustment of Exercise Price and Number of Warrant
Shares

Issuable.  The number of Warrant Shares issuable upon the
exercise of each Warrant (the

"Warrant Number") is subject to adjustment from time to time upon
the occurrence of the

events enumerated in this Section 4.02; provided that no adjustment
shall be made

pursuant to this Section 4.02 which shall have the effect of
decreasing the Warrant

Number (except pursuant to Section 4.02(a)(3)) or increasing the
Exercise Price (except

pursuant to Section 4.02(a)(3)). For purposes of this Section 4.02,
"Common Stock" means

shares now or hereafter authorized of any class of common stock of
the Company and any

other stock of the Company, however designated, that has the right
(subject to any prior

rights of any class or series of preferred stock) to participate in
any distribution of

the assets or earnings of the Company without limit as to per share
amount.

          (a) 
Adjustment for Change in Capital Stock.

           If the
Company:

              
(1)  pays a dividend or makes a distribution on its Common
Stock in

     shares of its Common Stock;

              
(2)  subdivides its outstanding shares of Common Stock into a
greater

     number of shares;

              
(3)  combines its outstanding shares of Common Stock into a
smaller

     number;

              
(4)  makes a distribution on its Common Stock in shares of its
capital

     stock other than Common Stock; or

              
(5)  issues by reclassification of its Common Stock any shares
of its

     capital stock,

then Warrant Number immediately prior to such action shall be
proportionately adjusted so

that the Holder of any Warrant thereafter exercised shall receive
the aggregate number

and kind of shares of capital stock of the Company which such
Holder would have owned

immediately following such action if such Warrant had been
exercised immediately prior to

such action.

          The
adjustment shall become effective immediately after the record date
in

the case of a dividend or distribution and immediately after the
effective date in the

case of a subdivision, combination or reclassification.

          If after an
adjustment a Holder upon exercise of a Warrant may receive
shares

of two or more classes of capital stock of the Company, the Company
shall reasonably

determine the allocation of the adjusted Exercise Price between the
classes of capital

stock.  After such allocation, the exercise privilege and the
number of shares of each

such class of capital stock shall thereafter be subject to
adjustment on terms comparable

to those applicable to Common Stock in this Section 4.02.

          Such
adjustment shall be made successively whenever any event listed
above

shall occur.

          (b) 
Adjustment for Rights Issue. If the Company distributes any
rights,

warrants or options to all holders of its Common Stock entitling
them for a period

expiring within 60 days after the record date mentioned below to
purchase shares of

Common Stock at a price per share less than the Current Market
Price per share on that

record date, the Warrant Number shall be adjusted in accordance
with the formula:

                       
  O + A   

               
N' = N x   O +    A x
P  

    
                            
   M

               

 where:

          N' = the
adjusted Warrant Number.

          N = the
current Warrant Number.

          O = the
number of shares of Common Stock outstanding on the record
date.

          A = the
number of additional shares of Common Stock offered.

          P = the
purchase price per share of the additional shares.

          M = the
Current Market Price per share of Common Stock on the record
date.

          The
adjustment shall be made successively whenever any such rights,
warrants

or options are issued and shall become effective immediately after
the record date for

the determination of stockholders entitled to receive the rights,
warrants or options. If

at the end of the period during which such rights, warrants or
options are exercisable,

not all rights, warrants or options shall have been exercised, the
Warrant Number shall

be immediately readjusted to what it would have been if "A" in the
above formula had been

the number of shares actually issued.

          (c) 
Adjustment for Other Distributions. Except with respect to
any

distribution provided for in Section 4.02(d), if the Company
distributes to all holders

of its Common Stock any of its assets (other than Cash Dividends)
or debt securities or

any rights, options or warrants to purchase debt securities, assets
(other than Cash

Dividends) or other securities of the Company, the Warrant Number
shall be adjusted in

accordance with the formula:

                        
        M

              
N'  =  N  x     
_______

                     
        M  – 
F

              

          
where:

          N'
=      the adjusted Warrant Number.

          N
=       the current Warrant
Number.

          M
=       the Current Market Price per
share of Common Stock on the record

                   
date mentioned below.

          F
=       the fair market value on the
record date of the assets,

                   
securities, rights or warrants distributable to one share of

     
              
Common Stock. The Board of the Company shall reasonably and
in

                   
good faith determine the fair market value.

          The
adjustment shall be made successively whenever any such
distribution is

made and shall become effective immediately after the record date
for the determination

of stockholders entitled to receive the distribution.

          This
subsection (c) does not apply to rights, warrants or options
referred to

in subsection (b) of this Section 4.02 or any assets distributed
pursuant to subsection

(d) of this Section 4.02.  If any adjustment is made pursuant
to this subsection (c) as a

result of the issuance of rights, warrants or options and at the
end of the period during

which any such rights, warrants or options are exercisable, not all
such rights, warrants

or options shall have been exercised, the Warrants shall be
immediately readjusted as if

"F" in the above formula was the fair market value on the record
date of the indebtedness

or assets actually distributed upon exercise of such rights,
warrants or options divided

by the number of shares of Common Stock outstanding on the record
date. Notwithstanding

anything to the contrary contained in this subsection (c), if "M -
F" in the above

formula is less than $1.00 (or is a negative number) then in lieu
of the adjustment

otherwise required by this subsection (c), the Company shall
distribute to each Holder of

a Warrant, the evidences of indebtedness, assets, rights, warrants
or options (or the

proceeds thereof) which would have been distributed to such Holder
had such Warrant been

exercised immediately prior to the record date for such
distribution.

          (d) 
Adjustments for Spin-Offs.  Upon consummation of any
distribution

consisting of shares of Capital Stock of, or similar equity
interests in, one or more of

the  Company's  Subsidiaries  (a 
"Spin-Off"),  including,  without  limitation, 
the

consummation of the Utility Spin-Off or a Spin-Off of NEG, Inc.,
the Warrant Number shall

be adjusted in accordance with the following formula: 

                         
  P + U

                 
N' = N

                 
          
P

                         

          
Where:

          N'
=           the
adjusted Warrant Number.

          N
=           
the then current Warrant Number.

          P
=           
the arithmetic average of the VWAP of the Common Stock of

                        
the reorganized Company over the Trading Period.

          U
=        
    the arithmetic average of the VWAP of the Common
Stock of

                        
the Subsidiary which was subject to the Spin-Off over the

                        
Trading Period.

          Trading
Period =  the 20 consecutive Trading Days commencing on and
including

                        
the 20th day of trading of the Common Stock after the

                        
effectiveness of such Spin-Off.

          The
adjustment shall be made successively whenever any such Spin-Off is
made

and shall become effective immediately after such
Spin-Off. 

           (e) 
Other Adjustments.  The Warrant Shares are subject to
further

adjustment in the manner set forth in Section 4.09 and Section 3 of
the Registration

Rights Agreement.

          (f) 
When De Minimis Adjustment May Be Deferred; Rounding. No adjustment
in

the Warrant Number need be made unless the adjustment would require
an increase or

decrease of at least 1% in the Warrant Number. Any adjustments that
are not made shall be

carried forward and taken into account in any subsequent
adjustment.

                                                                        
th

         
All calculations under this Section 4.02 shall be made to the
nearest 1/1000

cent or to the nearest 1/10 millionth of a share, as the case may
be.

          (g) 
When No Adjustment Required. No adjustment need be made for a

transaction referred to in subsections (b), (c) or (d) of this
Section 4.02 if the Holders are to participate, without requiring
the Warrants to be exercised, in the

transaction on a basis and with notice that the Board of the
Company reasonably determine

to be fair and appropriate in light of the basis and notice on
which holders of Common

Stock participate in the transaction. 

            To the
extent the Warrants become convertible into cash, no adjustment
need

be made thereafter as to the amount of cash into which the Warrants
are exercisable.

Interest will not accrue on the cash.

          (h) 
Notices to Holders.  Upon any adjustment of the Warrant Number
pursuant

to this Section 4.02, the Company shall promptly thereafter, and in
any event within ten

days, (i) provide a certificate executed by the Chief Financial
Officer, the Treasurer,

any Assistant Treasurer, Controller or any Assistant Controller of
the Company setting

forth the Warrant Number and the Exercise Price after such
adjustment and setting forth

in reasonable detail the method of calculation and the facts upon
which such calculations

are based and (ii) cause to be given to each of the Holders at its
address appearing on

the Register written notice of such adjustments by first-class
mail, postage prepaid.

Where appropriate, such notice may be given in advance and included
as a part of the

notice required to be mailed under the other provisions of this
Section 4.02(h). The

Holders shall be fully protected in relying on any such certificate
and on any adjustment

therein contained and shall not be deemed to have knowledge of such
adjustment unless and

until it shall have received such certificate.

          In
case:

          (1) 
the Company shall authorize the issuance to all holders of shares
of

Common Stock of rights, options or warrants to subscribe for or
purchase shares of Common

Stock or of any other subscription rights or warrants; or

          (2) 
the Company shall authorize the distribution to all holders of
shares

of Common Stock of evidences of its indebtedness or assets (other
than Cash Dividends or

Dividends payable in shares of Common Stock or distributions
referred to in subsection

(a) of this Section 4.02); or

          (3)  of
any consolidation or merger to which the Company is a party and
for

which approval of any shareholders of the Company is required, or
of the conveyance or

transfer of the properties and assets of the Company substantially
as an entirety, or of

any reclassification or change of Common Stock issuable upon
exercise of the Warrants

(other than as a result of a subdivision or combination), or a
tender offer or exchange

offer for shares of Common Stock; or

          (4)  of
the voluntary or involuntary dissolution, liquidation or winding
up

of the Company; or

          (5) 
the Company proposes to take any action (other than actions of
the

character described in Section 4.02(a) hereof) which would require
an adjustment of the

Warrant Number pursuant to this Section 4.02,

then the Company shall cause to be given to each Holder at its
address appearing on the

Register, at least 20 calendar days (or 10 calendar days in any
case specified in clauses

(1) or (2) above) prior to the applicable record date hereinafter
specified, or promptly

in the case of events for which there is no record date, by
first-class mail, postage

prepaid, a written notice stating (i) the date as of which the
holders of record of

shares of Common Stock to be entitled to receive any such rights,
options, warrants or

distribution are to be determined, or (ii) the date on which any
such consolidation,

merger, conveyance, transfer, dissolution, liquidation or winding
up is expected to

become effective or consummated, and the date as of which it is
expected that holders of

record of shares of Common Stock shall be entitled to exchange such
shares for securities

or other property, if any, deliverable upon such reclassification,
consolidation, merger,

conveyance, transfer, dissolution, liquidation or winding up. The
failure to give the

notice required by this Section 4.02(h) or any defect therein shall
not affect the

legality or validity of any distribution, right, option, warrant,
consolidation, merger,

conveyance, transfer, dissolution, liquidation or winding up, or
the vote upon any

action.

          (i) 
Voluntary Increase. The Company from time to time may increase
the

Warrant Number by any amount for any period of time (including,
without limitation,

permanently) if such period is at least 20 days.

          An increase
of the Warrant Number does not change or adjust the Warrant

Number otherwise in effect for purposes of subsections (a), (b),
(c) and (d) of this

Section 4.02.

          (j) 
Notice of Certain Transactions.

         
If: 

               
(1)  the Company takes any action that would require an
adjustment in

     the Warrant Number pursuant to subsections
(a), (b), (c) and (d) of this Section

     4.02 and if the Company does not arrange
for the Holders to participate pursuant to

     subsection (g) of this Section 4.02;

              
(2)  the Company takes any action that would require a
supplemental

     Warrant Agreement pursuant to subsection
(k) of this Section 4.02; or

              
(3)  there is a liquidation or dissolution of the
Company,

the Company shall, if not already provided pursuant to Section
4.02(h) above, mail to the

Holders a notice stating the proposed record date for a dividend or
distribution or the

proposed effective date of a subdivision, combination,
reclassification, consolidation,

merger, transfer, lease, liquidation or dissolution. The Company
shall mail the notice at

least 15 days before such date. Failure to mail the notice or any
defect in it shall not

affect the validity of the transaction.

          (k) 
Reorganization of Company.  If the Company consolidates or
merges with

or into any person, upon consummation of such transaction, the
Warrants shall

automatically become exercisable for the kind and amount of
securities, cash or other

assets which the Holder would have owned immediately after such
consolidation or merger

if such Holder had exercised the Warrant immediately before the
effective date of the

transaction.  Concurrently with the consummation of any such
transaction, the corporation

formed by or surviving any such consolidation or merger if other
than the Company shall

enter into a supplemental Agreement so providing and further
providing for adjustments

which shall be as nearly equivalent as may be practical to the
adjustments provided for

in this Section. The successor Company shall mail to Holders a
notice describing the

supplemental Agreement.

          If the
issuer of securities deliverable upon exercise of the Warrants
under

the supplemental Agreement is an affiliate of the formed or
surviving, corporation, that

issuer shall join in the supplemental Agreement.

          If this
subsection (k) applies, subsections (a), (b), (c) and (d) of
this

Section 4.02 do not apply.

          (l) 
When Issuance or Payment May Be Deferred.  In any case in
which this

Section 4.02 shall require that an adjustment in the Warrant Number
be made effective as

of a record date for a specified event, the Company may elect to
defer until the

occurrence of such event (i) issuing to the Holder of any Warrant
that is exercised after

such record date the Warrant Shares and other capital stock of the
Company, if any,

issuable upon such exercise over and above the Warrant Shares and
other capital stock of

the Company, if any, issuable upon such exercise on the basis of
the Warrant Number prior

to any adjustment and (ii) paying to such holder any amount in cash
in lieu of a

fractional share pursuant to Section 4.05 hereof, provided,
however, that the Company

shall deliver to such holder a due bill or other appropriate
instrument evidencing such

Holder's right to receive such additional Warrant Shares, other
capital stock and cash

upon the occurrence of the event requiring such adjustment.

          (m) 
Adjustment in Exercise Price. Upon each event that provides for
an

adjustment of the Warrant Number pursuant to this Section 4.02,
Section 4.09 and Section

3 of the Registration Rights Agreement, each Warrant outstanding
prior to making the

adjustment shall thereafter evidence the right to receive that
number of shares of Common

Stock (calculated to the nearest ten millionth) equal to the
adjusted Warrant Number at

an Exercise Price per share of Common Stock obtained from the
following formula:

                           
N

                 
E' = E x  N'

                        

          
where:

          N' = the
adjusted Warrant Number.

          N = 
the Warrant Number prior to adjustment.

          E' = the
adjusted Exercise Price per share of Common Stock.

          E = 
the Exercise Price per share of Common Stock prior to
adjustment.

          (n) 
Form of Warrants.  

           (i)
Irrespective of any adjustments in the Warrant Number or the number
or

          kind of
shares issuable upon the exercise of the Warrants, the
Warrants

          theretofore
or thereafter issued may continue to express the same price
and

          number and
kind of shares as are stated in the Warrants initially
issuable

          pursuant to
this Agreement.

          (ii) The
form of Warrant Certificate need not be changed because of
any

           adjustment
made pursuant to this Section 4.02, and Warrant Certificates

          issued after
such adjustment may state the same Warrant Number and the
same

          number of
shares of Common Stock issuable upon exercise of the Warrants
as

           are stated
in the Warrant Certificates initially issued pursuant to this

         
Agreement.  The Company, however, may at any time in its sole
discretion make

          any change
in the form of Warrant Certificate that they may deem
appropriate

           to give
effect to such adjustments and that does not affect the substance
of

          the Warrant
Certificate, and any Warrant Certificate thereafter issued,

          whether in
exchange or substitution for an outstanding Warrant Certificate
or

          otherwise,
may be in the form as so changed.

          SECTION
4.03.  Manner of Exercise.  

           (a) 
The Warrants may be exercised upon (i) surrender to the Company of
the

related Warrant Certificate, together with the form of election
attached thereto to

purchase Common Stock on the reverse thereof duly filled in and
signed by the Holder

thereof and (ii) payment to the Company of the Exercise Price for
the Warrant Shares

being purchased upon such exercise. 

           (b) 
Payment of the aggregate Exercise Price shall be made (i) in cash
or by

certified or official bank check payable to the order of the
Company in New York Clearing

House Funds, (ii) by Cashless Exercise in the manner provided in
the second paragraph of

Section 4.01.

          (c) 
Subject to the limitations set forth in the third paragraph of
Section

4.01, the Warrants shall be exercisable at the election of such
Holder either in full or

in part at any time or from time to time, but in no event later
than the Expiration Date.

          SECTION
4.04.  Issuance of Warrant Shares.  Upon the
surrender of the Warrant

Certificates and the payment of the Exercise Price, the Company
shall issue, and shall

cause its transfer agent for the Common Stock, which may be the
Company (the "Transfer

Agent"), to deliver with all reasonable dispatch to or upon the
written order of the

respective Holder and in such name or names as such Holder may
designate, a certificate

or certificates for the number of full Warrant Shares so purchased
upon the exercise of

such Warrants together with cash as provided in Section 4.05. 
Such certificate or

certificates shall be deemed to have been issued and any Person so
designated to be named

therein shall be deemed to have become a Holder of record of such
Warrant Shares as of

the date of the payment of the Exercise Price.  To the extent
required by Section

5.02(b), the Company shall, and shall cause the Transfer Agent to,
comply with the

requirements of such Section.

          The Company
shall keep copies of this Agreement and any notices given or

received hereunder available for inspection by the Holders during
normal business hours

at their respective offices at the addresses set forth in Section
7.04 hereof.

          SECTION
4.05.  Fractional Warrant Shares.  The Company shall
not be required

to issue fractional Warrant Shares on the exercise of the
Warrants.  If more than one

Warrant shall be presented for exercise in full at the same time by
the same Holder, the

number of full Warrant Shares which shall be issued upon the
exercise thereof shall be

computed on the basis of the aggregate number of Warrant Shares
issuable upon exercise of

the Warrants so presented.  If any fraction of a Warrant Share
would, except for the

provisions of this Section
4.05, be issuable on the exercise of any Warrant (or
specified

portion thereof), the Company shall pay an amount in cash equal to
the Current Market

Price per Warrant Share on the day immediately preceding the date
the Warrant is

presented for exercise, multiplied by such fraction, computed to
the nearest whole cent. 

           SECTION
4.06.  Reservation of Warrant Shares.  The Company
will at all times

reserve and keep available, free from preemptive or similar rights,
out of the aggregate

of its authorized but unissued Common Stock or its authorized and
issued Common Stock

held in its treasury, for the purpose of enabling it to satisfy any
obligation to

transfer Warrant Shares upon exercise of each Warrant, the maximum
number of shares of

Common Stock which may then be deliverable upon the exercise of all
outstanding Warrants. 

 The Holders shall have no duty to verify availability of such
shares set aside by the

Company.

          The Company
will keep a copy of this Agreement on file with the Transfer

Agent and with every subsequent transfer agent for any shares of
the Company's Common

Stock issuable upon the exercise of the Warrants.  The Company
will supply such Transfer

Agent with duly executed stock certificates required to honor the
Warrants upon exercise

thereof in accordance with the terms of this Agreement and the
Company will provide or

otherwise make available any cash which may be payable as provided
in Section 4.05

hereof.  The Company will furnish such Transfer Agent a copy
of all notices of

adjustments and certificates related thereto.

          SECTION
4.07.  Compliance with Law.  If any shares of Common
Stock required to

be reserved for purposes of exercise of the Warrants require, under
any Federal or state

law or applicable governing rule or regulation of any national
securities exchange,

registration with or approval of any Governmental Authority or
listing on any such

national securities exchange before such shares may be purchased
upon exercise, the

Company will in good faith and as expeditiously as possible
endeavor also to cause such

shares to be duly registered, approved or listed on the relevant
national securities

exchange, as the case may be. 

           SECTION
4.08.  Payment of Taxes.  Except as set forth in
Section 6.13, the

Company will pay all documentary stamp taxes attributable to the
issuance of Warrant

Shares upon the exercise of any Warrant.

          SECTION
4.09.  Failure to Deliver Shares.  If, for any
reason whatsoever, the

Company shall fail to, or is otherwise unable to, deliver any
Warrant Shares to any

Holder upon the exercise of such Holder's Warrants (a "Share
Delivery Default"), the

Company hereby agrees to pay liquidated damages to the Holders on a
monthly basis in an

amount such that, each Warrant outstanding shall evidence the right
to receive upon

payment of the Exercise Price that number of shares of Common Stock
(calculated to the

nearest ten millionth) obtained from the following formula:

              
N' = N  .  1.005

          Where:

          N' = 
the adjusted number of Warrant Shares issuable upon the exercise of
a

              
Warrant by payment of the Exercise Price.

          N 
=  the number of Warrant Shares previously issuable upon the
exercise of a 

               
Warrant by payment of the Exercise Price prior to adjustment.

The adjustment made pursuant to this Section shall be made on a
monthly basis beginning

on and including the day following the Share Delivery Default to
but excluding the day on

which the Share Delivery Default has been cured.  Following
the cure of each such Share

Delivery Default with respect to such Warrants and Warrant Shares,
the accrual of

liquidated damages with respect to such Warrants and Warrant Shares
will cease.

                                
ARTICLE V

                                     

                            
Transfer Restrictions

          SECTION
5.01.  Restrictions on Transfers of the Warrants and the
Warrant

Shares.  The following restrictions on transfer shall apply to
the Warrants and Warrant

Shares:

          (a)  No
Holder or transferee thereof shall sell, transfer or convey in
any

     manner whatsoever any Warrant or Warrant
Shares except in accordance with the terms

     and provisions of this Agreement.

          (b) 
Each Holder may, without the consent of the Company, sell or assign
any

     Warrants or Warrant Shares and the other
rights and obligations of such Holder to

     any Person or any assignee thereof (an
"Assignee"). The Assignee shall agree to be

     bound by the terms of this Agreement and
such Warrants pursuant to an assignment

     and assumption agreement in a form
reasonably acceptable to the Company and shall

     provide:

              
(i)  if such Warrants or Warrant Shares are being transferred
pursuant

          to an
exemption from registration in accordance with Rule 144 under
the

          Securities
Act or Regulation S under the Securities Act or, in the case
of

          the Warrant
Shares, pursuant to an effective registration statement under
the

          Securities
Act, a certification to that effect (in the form attached to
the

          Warrant
Certificate) and, in the case of a transfer pursuant to Rule 144,
an

          opinion of
counsel reasonably acceptable to the Company to the effect
that

          such
transfer does not require registration under the Securities Act or
any

          other
evidence reasonably satisfactory to the Company as to the
compliance

          with the
legend set forth in Exhibit B; or

              
(ii) if such Warrants or Warrant Shares are being transferred
in

          reliance on
another exemption from the registration requirements of the

          Securities
Act, a certification to that effect (in the form attached to
the

          Warrant
Certificate), an opinion of counsel reasonably acceptable to
the

          Company to
the effect that such transfer does not require registration
under

          the
Securities Act and a representation letter from the transferee in
the

          form of
Exhibit C hereto, 

 and effective immediately upon such transfer or assignment, the
Assignee shall be deemed

a Holder and shall have the rights and obligation of a Holder
pursuant to this Agreement.

          (c) 
Notwithstanding any other provision contained in this Agreement to
the

     contrary, any Holder may assign all or any
portion of the Warrants or Warrant

     Shares held by it as collateral
security.

           SECTION
5.02.  Notation; Removal of Legend.  (a)  A
notation will be made in

the appropriate transfer records of the Company with respect to any
such transfer of the

Warrants and Warrant Shares referred to in this
Agreement. 

             
(b)  If any Warrant or Warrant Shares are being transferred
pursuant to an

exemption from registration in accordance with Rule 144 under the
Securities Act, the

Company shall, or shall cause the Transfer Agent to, remove from
any Warrant Certificate

or other certificate representing the Warrant Shares, the transfer
restriction legend set

forth in Exhibit B hereto or any other legend or markings which in
any way purport  to

restrict the transferability of the Warrants or the Warrant
Shares.

          SECTION
5.03.  Surrender of Warrant Certificates.  Any
Warrant Certificate

surrendered for registration of transfer, exchange or exercise of
the Warrants

represented thereby shall, if surrendered to the Company, be
promptly canceled by the

Company and shall not be reissued by the Company and, except as
provided in this

Article V or in Article II hereof in case of the exercise of less
than all the Warrants

represented thereby or in case of a mutilated Warrant Certificate
or in the case of a

transfer, no Warrant Certificate shall be issued hereunder in lieu
thereof.  The Company

shall dispose of such canceled Warrant Certificates in any manner
as the Company may so

desire.

                                
ARTICLE VI

                                     

  
                              
Miscellaneous

          SECTION
6.01.  SEC Reports and other Financial Information. 
The Company shall

provide the Holders, within 15 days after the Company files the
same with the SEC, copies

of the Company's annual report and of the information, documents
and other reports (or

copies of such portions of any of the foregoing as the SEC may by
rules and regulations

prescribe) which the Company is required to file with the SEC
pursuant to Section 13 or

15(d) of the Exchange Act, provided that if any such information,
documents or reports

are filed with the SEC and available to Holders through EDGAR, then
no such information,

documents or other reports need be provided. Notwithstanding that
the Company may not be

required to remain subject to the reporting requirements of Section
13 or 15(d) of the

Exchange Act, until such time as there are no Warrants or Warrant
Shares which constitute

Transfer Restricted Securities (as defined in the Registration
Rights Agreement), the

Company shall continue to file such annual reports and information,
documents and other

reports with the SEC, if such continue to be accepted by the SEC,
and the Company shall

provide the Holders with such annual reports and such information,
documents and other

reports as the Company provides to the holders of its Common Stock
or other securities.

          SECTION
6.02.  Persons Benefiting.  Nothing in this
Agreement is intended or

shall be construed to confer upon any Person other than the Company
and the Holders any

right, remedy or claim under or by reason of this Agreement or any
part hereof.  

           SECTION
6.03.  Amendments and Waivers.  The provisions of
this Agreement,

including the provisions of this sentence, may not be amended,
modified or supplemented,

and waivers or consents to departures from the provisions hereof
may not be granted

except by the written agreement of the Company and the holders of a
majority of the

Warrants then outstanding.  

           SECTION
6.04.  Notices.  All notices, requests and other
communications

provided for hereunder shall be in writing (including, unless the
context expressly

otherwise provides, by facsimile transmission, provided that any
matter transmitted by

the Company by facsimile (i) shall be immediately confirmed by a
telephone call to the

recipient at the number specified on the applicable signature page
hereof, and (ii) shall

be followed promptly by a hard copy original thereof by express
courier) and faxed or

delivered, to the address or facsimile number specified for notices
on the applicable

signature page hereof or to such other address as shall be
designated by such party in a

written notice to the other parties hereto.

          All such
notices, requests and communications (i) sent by express
courier

will be effective upon delivery to or refusal to accept delivery by
the addressee, and

(ii) transmitted by facsimile will be effective when sent and
facsimile confirmation

received; except that all notices and other communications to any
Holder shall not be

effective until actually received.

          The Company
acknowledges and agrees that any agreement of any Holder to

receive certain notices by telephone and facsimile is solely for
the convenience and at

the request of the Company. The Holder shall be entitled to rely on
the authority of any

Person purporting to be a Person authorized by the Company to give
such notice and the

Holder shall not have any liability to the Company or other Person
on account of any

action taken or not taken by the Holder in reliance upon such
telephonic or facsimile

notice.

          If the
notice or communication shall be in writing, then such notice
or

communication shall be delivered (i) to the Company at the address
set forth below in

this Section 6.04(c) (or to such other address or addresses as the
Company may notify the

Holders in accordance with this Section 6.04), (ii) to LB I Group
at the address or

addresses set forth on its signature page to this Agreement (or to
such other address or

addresses as LB I Group may notify the Company in accordance with
this Section 6.04,

(iii) to any other Initial Holder at the address or addresses set
forth on the Addendum

executed by such Initial Holder (or to such other address or
addresses as such Initial

Holder may notify the Company in accordance with this Section 6.04)
and (iii) to any

other Holders at the address or addresses provided by such Holder
to the Company in

accordance with this Section 6.04 upon becoming a Holder (or to
such other address or

addresses as such Initial Holder may notify the Company in
accordance with this Section

6.04):

          The
Company:

              
PG&E Corporation

              
One Market, Spear Tower

              
Suite 2400

 
             
San Francisco, California  94105

              
Attention:  Assistant Treasurer

              
Facsimile:  (415) 267-7265

              
Telephone:  (415) 267-7052

               

           with copies
to:

              
PG&E Corporation

              
One Market, Spear Tower

              
Suite 2400

              
San Francisco, California 94105

              
Attention: Chief Counsel – Corporate

              
Facsimile: (415) 817-8225

              
Telephone: (415) 817-8200

              
and

              
Latham & Watkins

              
633 West Fifth Street

              
Suite 4000

              
Los Angeles, California 90071

              
Attention: Tom Sadler, Esq.

              
Facsimile: (213) 891-8763

   
            

           Each party
hereto by notice to the other parties may designate additional
or

different addresses for subsequent notices or communications.

          Failure to
mail a notice or communication to a Holder or any defect in
it

shall not affect its sufficiency with respect to any other Holders.
If a notice or

communication is mailed in the manner provided above, it is duty
given, whether or not

the addressee receives it.

          

           SECTION
6.05.  Governing  Law;  Waiver   of 
Jury  Trial;  Submission  of

Jurisdiction.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN

ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          (a) 
EACH OF THE COMPANY AND THE HOLDERS CONSENTS AND AGREES TO
THE

JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN THE COUNTY OF
NEW YORK, STATE OF

NEW YORK, AND WAIVES ANY OBJECTION BASED ON VENUE OR FORUM NON
CONVENIENS WITH RESPECT TO

ANY ACTION INSTITUTED THEREIN, AND AGREES THAT, EXCEPT WITH THE
WRITTEN CONSENT OF THE

HOLDERS, ANY DISPUTE CONCERNING THE CONDUCT OF ANY PARTY IN
CONNECTION WITH THIS

AGREEMENT OR OTHERWISE SHALL BE HEARD ONLY IN THE COURTS DESCRIBED
ABOVE.

          (b) 
EACH OF THE COMPANY AND THE HOLDERS HEREBY WAIVES PERSONAL SERVICE
OF

ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF
PROCESS MAY BE MADE BY

HAND DELIVERY TO EACH SUCH PERSON AT ITS ADDRESS SET FORTH ABOVE
OR, AT THE OPTION OF A

HOLDER, BY SERVICE UPON CT CORPORATION SYSTEM, WHICH THE COMPANY
IRREVOCABLY APPOINTS AS

SUCH PERSON'S AGENT FOR THE PURPOSE OF ACCEPTING SERVICE OF PROCESS
WITHIN THE STATE OF

NEW YORK. THE COMPANY HEREBY CONSENTS TO SERVICE OF PROCESS AS
AFORESAID.

          (c) 
NOTHING IN THIS SECTION 6.05 SHALL AFFECT THE RIGHT OF THE HOLDERS
TO

SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT
THE RIGHT OF THE

HOLDERS TO BRING ANY ACTION OR PROCEEDING AGAINST THE COMPANY OR
THEIR PROPERTY IN THE

COURTS OF ANY OTHER JURISDICTION.

          (d) 
EACH THE COMPANY AND THE HOLDERS HEREBY WAIVES ANY RIGHT TO TRIAL
BY

JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING
UNDER THIS AGREEMENT OR

ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH

OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
DEALINGS OF THE PARTIES

HERETO OR ANY OF THEM IN RESPECT TO THIS AGREEMENT OR ANY OTHER
INSTRUMENT, DOCUMENT OR

AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE
TRANSACTIONS RELATED

HERETO, IN EACH CASE, WHETHER NOW EXISTING OR HEREAFTER ARISING,
AND WHETHER SOUNDING IN

CONTRACT OR TORT OR OTHERWISE. EACH OF THE COMPANY AND THE HOLDERS
HEREBY AGREE AND

CONSENT THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
SHALL BE DECIDED BY COURT

TRIAL WITHOUT A JURY AND THAT ANY PARTY MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF

THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
THE PARTIES HERETO TO

THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

          SECTION
6.06.  Successors and Assigns.  All agreements of
each of the parties

hereto in this Agreement shall inure to the benefit and be binding
upon their respective

successors and permitted assigns. The Company may not assign its
rights or obligations

hereunder without the prior written consent of each of the
Holders.

          SECTION
6.07.  Severability.  Any provision hereof which is
prohibited or

unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the

extent of such prohibition or unenforceability without invalidating
the remaining

provisions hereof and without affecting the validity or
enforceability of any provision

in any other jurisdiction.

          SECTION
6.08.  Entire Agreement.  This Agreement represents
the final and

complete agreement of the parties hereto, and all prior
negotiations, representations,

understandings, writings and statements of any nature are hereby
superseded in their

entirety by the terms of this Agreement. There are no restrictions,
agreements,

warranties or undertakings other than those set forth or referred
to herein, including

with respect to the registration rights granted by the Company with
respect to the

Warrant Shares.  

           SECTION
6.09.  Counterparts.  This Agreement may be executed
in any number of

counterparts and by the different parties hereto on separate
counterparts, each of which

when so executed and delivered shall be an original, but all of
which shall together

constitute one and the same instrument.

          SECTION
6.10.  Headings.  The headings of the Articles and
Sections of this

Agreement have been inserted for convenience of reference only, are
not intended to be

considered a part hereof and shall not modify or restrict any of
the terms or provisions

hereof.

          SECTION
6.11.  Remedies.  In the event of a breach by the
Company or a Holder

of any of their obligations under this Agreement, each Holder or
the Company, as the case

may be, in addition to being entitled to exercise all rights
provided herein or granted

by law, including recovery of damages, will be entitled to specific
performance of its

rights under this Agreement. The Company and each Holder agree that
monetary damages

would not be adequate compensation for any loss incurred by reason
of a breach by it of

any of the provisions of this Agreement and hereby further agrees
that, in the event of

any action for specific performance in respect of such breach, it
shall waive the defense

that a remedy at law would be adequate. The remedies provided
herein are cumulative and

not exclusive of any remedies provided by law.

          SECTION
6.12.  Waiver.  The Company waives any claim it may
have against any

Holder for any consequential, exemplary or punitive damage now or
hereafter under or in

connection with or relating to this Agreement or any other
Financing Document.

          SECTION
6.13.  Register.  The Company hereby agrees to
maintain a register

(the "Register") on which it will record the number of Warrants
held by each Holder from

time to time. With respect to any Holder, the transfer, exchange or
exercise of any

Warrants of such Holder and the rights pursuant to such Warrant
shall not be effective

until such transfer, exchange or exercise is recorded on the
Register maintained by the

Company with respect to ownership of such Warrants and any Warrant
Certificate

representing such Warrants is surrendered to the Company for
recordation of such

transfer, exchange or exercise and prior to such recordation all
rights of the transferor

with respect to such Warrants shall remain the transferor's. The
registration of

assignment or transfer of all or part of any Holder's Warrants
shall be recorded promptly

by the Company only upon the receipt by the Company of a properly
executed and delivered

assignment and assumption agreement pursuant to, and all other
documents and instruments

required under, Section 5.01(b). Upon the request of any Holder,
the Company shall at any

time and from time to time provide the requesting Holder, at no
cost, a list of all of

the Holders of the Warrants.  To permit registrations of
transfers and exchanges, the

Company shall make available a sufficient number of executed
Warrant Certificates to

effect such registrations of transfers and exchanges.  No
service charge shall be made to

the Holder for any registration of transfer or exchange of
Warrants, but the Company may

require from the transferring or exchanging Holder payment of a sum
sufficient to cover

any transfer tax or similar governmental charge payable upon
exchanges pursuant to

Section 2.03 and exchanges in respect of portions of Warrants not
exercised and the

Company may deduct such taxes from any payment of money to be made
and such transfer or

exchange shall not be consummated (if such taxes are not deducted
in full) unless or

until the Holder shall have paid to the Company the amount of such
tax or shall have

established to the satisfaction of the Company that such tax has
been paid.  

                           
[signature pages follow]

           IN WITNESS
WHEREOF, the parties have caused this Agreement to be duly

executed as of the date first written above.

                               
PG&E CORPORATION

                               
By:                         

                  
                 
Name: 

                                   
Title:  

                                 

                                
LB I GROUP INC.

                               
By:                         

                                   
Name:  

                                   
Title:  

     Notice Address: Executive Office:

                
   745 Seventh Avenue,

                
   New York, NY 10019

                  

                
    Registered Office:

                   
1013 Centre Road,

                   
Wilmington, DE 19805

                  

     Attention:      Anthony
Felella

    Telephone:      (212)
526-8197

    Facsimile:      (212)
526-6643

     Jurisdiction of Organization: 
Delaware

    

                          
       

                                 

                                                                     
ANNEX A

                             
FORM OF ADDENDUM

          Reference is
made to the Warrant Agreement (as amended, supplemented or

otherwise modified from time to time, the "Warrant Agreement"),
dated as of October 18,

2002, among PG&E Corporation, a California corporation (the
"Company"), LB I Group, Inc.,

a Delaware corporation ("LB I Group"), and each other entity that
is a signatory to an

addendum to the Warrant Agreement prior to the issuance of the
Warrants (as defined

therein)(each, an "Initial Holder" and collectively, the "Initial
Holders").  Unless

otherwise defined herein, terms defined in the Warrant Agreement
and used herein shall

have the meanings given to them in the Warrant Agreement.

          By executing
and delivering this Addendum, the undersigned hereby becomes
a

party to the Warrant Agreement as an Initial Holder thereunder with
the same force and

effect as if originally a signatory thereto. The undersigned hereby
represents and

warrants that each of the representations and warranties contained
in Section 3.2 of the

Warrant Agreement is true and correct on and as of the date hereof
as if made on and as

of such date.

          THIS
ADDENDUM SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN

ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

          This
Addendum may be executed by one or more of the parties hereto on
any

number of separate counterparts, and all of said counterparts taken
together shall be

deemed to constitute one and the same instrument.  Delivery of
an executed signature page

hereof by facsimile transmission shall be effective as delivery of
a manually executed

counterpart hereof.

          

           IN WITNESS
WHEREOF, the parties hereto have caused this Addendum to be
duly

executed and delivered by their proper and duly authorized officers
as of this ___ day of

October, 2002. 

                              
__________________________________________

                             
Name of Holder

                             
By:                                

                                 
Name:  

                                 
Title:  

              
                       

  

 Accepted and agreed:

 

 PG&E CORPORATION

 

  

 By:                
_______

  Name:  

   Title: 

    

    

 LB I GROUP INC. 

 By:                      

    Name:  

    Title:

       Schedule 1

                              
NOTICE ADDRESS

1.  Name of Holder: ____________________________

    Notice Address:
____________________________

                 
____________________________

                 
____________________________

    Attention:    
____________________________

    Telephone:    
____________________________

    Facsimile:    
____________________________

2.   Jurisdiction of Organization:  

     

           

                                                                            

  

                 
                                               
EXHIBIT A TO

                                                           
WARRANT AGREEMENT

 

 No. [     ] Certificate for
[     ] Warrants

                     
WARRANTS TO PURCHASE COMMON STOCK OF

      
                       
PG&E CORPORATION

THE WARRANTS ARE SUBJECT TO THE SUBORDINATION AND OTHER PROVISIONS
SET FORTH IN THE

INTERCREDITOR AND SUBORDINATION AGREEMENT DATED AS OF JUNE 25, 2002
AMONG THE

ADMINISTRATIVE AGENT,  THE TRANCHE A LENDERS PARTY THERETO,
THE TRANCHE B LENDERS PARTY

THERETO, THE HOLDERS PARTY THERETO, AND THE COLLATERAL AGENT,
AND  THE HOLDER OF THIS

INSTRUMENT, BY ITS ACCEPTANCE HEREOF, SHALL BE BOUND BY THE TERMS
OF SUCH INTERCREDITOR

AND SUBORDINATION AGREEMENT, AS THE SAME MAY BE AMENDED,
SUPPLEMENTED OR OTHERWISE

MODIFIED FROM TIME TO TIME.  A COPY OF THE INTERCREDITOR AND
SUBORDINATION AGREEMENT

REFERENCED IN THIS LEGEND IS ON FILE WITH THE COLLATERAL AGENT AND
IS AVAILABLE FOR

INSPECTION AT THE COLLATERAL AGENT'S OFFICES AT DEUTSCHE BANK TRUST
COMPANY AMERICAS, 100

PLAZA ONE, MS: 0603, JERSEY CITY, NJ 07311.

 

           THIS
CERTIFIES THAT
[                      
], or its registered assigns, is

the registered holder of the number of Warrants set forth above
(the "Warrants").  Each

Warrant entitles the holder thereof (the "Holder"), at its option
and subject to the

provisions contained herein and in the Warrant Agreement referred
to below, to purchase

from PG&E CORPORATION, a California corporation (the
"Company"), one share of Common

Stock, no par value (the "Common Stock"), of  the Company, at
the per share Exercise

Price of $0.01 (the "Exercise Price").  Each Warrant shall
terminate and become void as

of 5:00 p.m., New York City time, on the later of (i) September 2,
2006 and (ii) to the

extent that any Transfer Restricted Securities (as defined in the
Equity Registration

Rights Agreement, dated as of  October 18, 2002, among the
Company, LB I Group Inc. and

each other entity named on the signature pages thereof (the
"Registration Rights

Agreement"), remain outstanding on September 6, 2006 and ten
Business Days after the

effective date of a registration statement under the Securities Act
with respect to the

Warrant Shares issuable upon the exercise of the Warrants, but no
later than September 2,

2007 (the "Expiration Date").  The number of Warrant Shares
issuable upon exercise of

each Warrant (the "Warrant Number") and the Exercise Price per
share shall be subject to

adjustment from time to time upon the occurrence of certain events
enumerated in the

Warrant Agreement.

          This Warrant
Certificate is issued under and in accordance with the
Warrant

Agreement, dated as of October 18, 2002 (the "Warrant Agreement"),
by and among the

Company and each entity named on the signature pages thereof (each,
an "Initial Holder"

and collectively, the "Initial Holders"), and is subject to the
terms and provisions

contained in the Warrant Agreement, to all of which terms and
provisions the Holder of

the Warrants evidenced by this Warrant Certificate consents by
acceptance hereof.  The

Warrant Agreement is hereby incorporated herein by reference and
made a part hereof. 

 Reference is hereby made to the Warrant Agreement for a full
statement of the respective

rights, limitations of rights, duties and obligations of the
Company and the Holders of

the Warrants.  Capitalized terms used but not defined herein
shall have the meanings

ascribed thereto in the Warrant Agreement.

          Subject to
the terms of the Warrant Agreement, the Warrants may be
exercised

in whole or in part by presentation and surrender of this Warrant
Certificate with the

Election to Purchase attached hereto duly executed and with the
simultaneous payment of

the Exercise Price in cash or check to the Company (for its
account) at the office of the

Company designated for such purpose.  Notwithstanding the
foregoing, Warrants may also be

exercised without exchange of funds pursuant to the net exercise
("Cashless Exercise")

provisions of Section 4.01 of the Warrant Agreement.

          As provided
in the Warrant Agreement and subject to the terms and
conditions

therein set forth, the Warrants shall be exercisable at any time
and from time to time on

any Business Day on or after the date on which the Warrants have
been issued and

delivered to each Holder pursuant to Section 2.02 of the Warrant
Agreement, but no later

than 5:00 p.m., New York City time on the Expiration Date;
provided, however, that

Holders of Warrants will only be able to exercise their Warrants
(i) by means of a

Cashless Exercise or (ii) if any Registration Statement under the
Securities Act relating

to the Warrant Shares is effective or the exercise of such Warrants
is exempt from the

registration requirements of the Securities Act of 1933 and such
securities are qualified

for sale or exempt from qualification under the applicable
securities laws of the states

or other jurisdictions in which such Holders reside; provided,
further, however, that no

Warrant shall be exercisable after the Expiration Date.

          No Holder
may exercise any Warrant to the extent that, immediately
following

such exercise and upon receipt of any Warrant Shares issuable upon
such exercise, such

Holder would either (i) become or be included in any 13D Person
that is the single

largest holder of voting power represented by the Company's capital
stock (or otherwise

become the single largest holder of the Common Stock) (the
"Shareholder Limitation"), or

(ii) beneficially own (as such term is defined in Section 13(d)(3)
of the Exchange Act)

or be included in any 13D Person that beneficially owns in excess
of 4.9% of the voting

power represented by the Company's capital stock (or otherwise
beneficially own in excess

of 4.9% of the outstanding Common Stock) (the "4.9% Limitation")
after, in either case,

giving effect to such exercise (the Shareholder Limitation and the
4.9% Limitation are

collectively referred to herein as the "Exercise
Limitations").  The determinations of

the number of shares that (i) constitute 4.9% of the outstanding
Common Stock or voting

power and (ii) are held by the largest holder will be made in
reliance upon the

information contained in publicly available filings made with the
SEC unless the Company

is aware that such information is incorrect and has made the
correct information public,

to the extent material, and disclosed such information to the
Holders at the time of any

such proposed exercise. In order to facilitate compliance with the
foregoing, each Holder

will be required to make a representation that it and its
affiliates will comply with the

Exercise Limitations immediately after the exercise of any Warrant
and receipt of any

shares of Common Stock issuable upon such exercise.

          
Notwithstanding the Exercise Limitation, however, a Holder may
exercise any

Warrant that would otherwise cause such Holder to hold Warrant
Shares in excess of the

Exercise Limitations if, as to such excess number of Warrant Shares
(the "Excess

Shares"), such Holder (i) irrevocably covenants to the Company to
sell such Excess Shares

within 10 days after the date of exercise and (ii) confirms that it
has, on or prior to

such exercise date, entered into a binding arrangement to sell the
Excess Shares within

10 days after such exercise date either (a) in a regular way
transaction on a national

securities exchange (or the principal market where shares of Common
Stock are then

traded) or (b) to one or more persons that are not "affiliates"
(used herein as defined

in Rule 144 promulgated under the Securities Act) of such Holder
("Third Parties"), each

of whom represents for the benefit of the Company that, upon
purchase of the applicable

Excess Shares, such Third Party, together with its affiliates, will
not be the beneficial

owner of a number of shares of Common Stock in excess of the
Exercise Limitations.  In

addition, such Holder shall agree to vote the applicable Excess
Shares only in accordance

with the recommendations of the Board of Directors of the Company
or any Third Party that

has agreed to purchase such shares, if any record date for a vote
of the Common Stock is

established for any day between the exercise date and the
consummation of the sale of the

applicable Excess Shares.  The Exercise Limitations will cease
to have any force and

effect upon consummation of the Utility Spin-Off, if, on the date
that is 14 days after

delivery to the Company of a request by the Required Holders to
such effect (which

request may be given no more than once during any 180-day period),
the Company shall not

have delivered a certificate to the Holders stating that the
removal of the Exercise

Limitations would, in the good faith judgment of the Company, not
be consistent with

applicable regulatory or other legal requirements.

          The Holders
are entitled to certain registration rights with respect to
the

Warrant Shares.  Said registration rights are set forth in
full in the  Registration

Rights Agreement.

          The Warrant
Agreement provides that the number of Warrant Shares and the

Exercise Price may, subject to certain conditions, be
adjusted.  No fractional Warrant

Shares will be issued upon the exercise of the Warrants, but the
Company shall pay an

amount in cash equal to the Current Market Value per Warrant Share
on the day immediately

preceding the date the Warrant is presented for exercise,
multiplied by the fraction of a

Warrant Share that would be issuable on the exercise of any
Warrant.

          The Company
may require from the transferring or exchanging Holder payment
of

a sum sufficient to cover any transfer tax or similar governmental
charge payable upon

exchanges pursuant to Section 2.03 of the Warrant Agreement and
exchanges in respect of

portions of Warrants not exercised and the Company may deduct such
taxes from any payment

of money to be made and such transfer or exchange shall not be
consummated (if such taxes

are not deducted in full) unless or until the Holder shall have
paid to the Company the

amount of such tax or shall have established to the satisfaction of
the Company that such

tax has been paid.

          Upon any
exercise of the Warrants for less than all of the Warrants

represented by this Warrant Certificate, there shall be issued to
the Holder hereof a new

Warrant Certificate representing those Warrants which were not
exercised.  This Warrant

Certificate may be exchanged at the office of the Company by
presenting this Warrant

Certificate properly endorsed with a request to exchange this
Warrant Certificate for

other Warrant Certificates evidencing an equal number of
Warrants.  All shares of Common

Stock issuable by the Holders upon the exercise of the Warrants
shall be duly and validly

issued and fully paid and non-assessable.

          The holder
in whose name this Warrant Certificate is registered may be
deemed

and treated by the Company as the absolute owner of the Warrants
evidenced by this

Warrant Certificate for all purposes whatsoever and the Company
shall not be affected by

notice to the contrary.

          The Warrants
do not entitle any Holder hereof to any of the rights of a

stockholder of the Company.

          THE TERMS
AND CONDITIONS OF THE WARRANTS SHALL BE GOVERNED BY, AND
CONSTRUED

AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

                                     

                           
[Signature page follows]

          

           This
Warrant Certificate shall not be valid or obligatory for any
purpose

until it shall have been signed by the Company.

 

 PG&E CORPORATION

 

 By:                           

   Name:

  Title:

                  
FORM OF ELECTION TO PURCHASE WARRANT SHARES

                
(to be executed only upon exercise of Warrants)

                      
        PG&E
CORPORATION

          The
undersigned hereby irrevocably elects to exercise ______________
Warrants

to acquire from PG&E Corporation (the "Company") shares of
Common Stock, no par value

(the "Common Stock"), of the Company, at an Exercise Price per
share of Common Stock of

$0.01 and otherwise on the terms and conditions specified in the
within Warrant

Certificate and the Warrant Agreement therein referred to,
surrenders this Warrant

Certificate and all right, title and interest therein to PG&E
Corporation and directs

that the shares of Common Stock deliverable upon the exercise of
such Warrants be

registered or placed in the name and at the address specified below
and delivered

thereto.  Notwithstanding the foregoing, the undersigned may
elect to exercise the

Warrants without the exchange of funds pursuant to the net exercise
provisions of Section

4.01 of the Warrant Agreement if the box set forth below opposite
"Cashless Exercise" is

checked.  If such election is not made, payment of the
Exercise Price by check must

accompany this election.

 

 Cashless Exercise:   __

Date:

 

  

                                                          
1/

 
_________________________________________________________

(Signature of Owner)

__________________________________________________________

(Street Address)

__________________________________________________________

(City)    (State)   (Zip Code)

Signature Guaranteed by:_________________________________

Securities and/or check to be issued to:__________________

Please insert social security or identifying number:

    
Name:_______________________________________________

     Street
Address______________________________________

     City, State and Zip
Code:___________________________

          A new
Warrant Certificate evidencing any unexercised Warrants evidenced
by

the within Warrant Certificate is to be issued to:

     Please insert social security or
identifying number:__________________

    
Name:______________________________________________

     Street
Address:____________________________________

     City, State and Zip
Code:__________________________

          The
undersigned, on behalf of itself and its affiliates, hereby
represents to

the Company that upon and after the exercise of the Warrants
pursuant to this certificate

into shares of Common Stock, it and its affiliates are and will be
in compliance with the

Exercise Limitations applicable to such Warrants pursuant to
paragraphs 6 and 7 of the

warrant certificate.

          

                   
                
____________________________

                                  
Signature

Signature Guarantee:

                                  
____________________________

                                        
Signature

          1/ The
signature must correspond with the name as written upon the face of
the attached Warrant Certificate in every particular, without
alteration or enlargement or any change whatever, and must be
guaranteed by a national bank or trust company or by a member firm
of any national securities exchange.

                    
        FORM OF TRANSFER
CERTIFICATE

                                     

           In
connection with any transfer of any of the Warrants attached
hereto

occurring prior to the expiration of the period referred to in Rule
144(k) under the

Securities Act after the later of the date on which the Warrants
have been issued and

delivered to each Holder pursuant to Section 2.02 of the Warrant
Agreement and the last

date, if any, on which such Warrants were owned by the Company or
any Affiliate of the

Company, the undersigned certifies that such Warrants are being
transferred in accordance

with its terms:

          

 CHECK ONE BOX BELOW

     (1)      to the
Company; or

     (2)      pursuant
to an effective registration statement under the Securities
Act

            
of 1933; or

     (3)      pursuant
to Rule 144 under the Securities Act of 1933; or

     (4)      outside
the United States in accordance with Rule 904 of Regulation S

            
under the Securities Act of 1933; or

     (5)      pursuant
to another available exemption from registration provided
under

            
the Securities Act of 1933.

          Unless one
of the boxes is checked, the Company will refuse to register
any

of the Warrants evidenced by this certificate in the name of any
person other than the

registered holder thereof; provided, however, that if box (3) or
(5) is checked, the

Company may require, prior to registering any such transfer of the
Warrants, such legal

opinions, additional certifications and other information as the
Company has reasonably

requested to confirm that such transfer is being made pursuant to
an exemption from, or

in a transaction not subject to, the registration requirements of
the Securities Act of

1933, such as the exemption provided by Rule 144 under such
Act.

                                       
____________________________

                                     
   Signature

 

  

                                                                   
EXHIBIT B

                                                     
TO THE WARRANT AGREEMENT

          

                      
FORM OF TRANSFER RESTRICTION LEGEND

 

 THIS SECURITY (OR ITS PREDECESSOR) AND THE WARRANT SHARES TO BE
ISSUED UPON ITS EXERCISE

HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE
"SECURITIES ACT"), OR ANY

STATE SECURITIES LAWS.  NEITHER THIS SECURITY NOR ANY INTEREST
OR PARTICIPATION HEREIN

MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED
OR OTHERWISE DISPOSED

OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION
IS EXEMPT FROM, OR NOT

SUBJECT TO, REGISTRATION AS SET FORTH BELOW.  BY ITS
ACQUISITION HEREOF, THE HOLDER

REPRESENTS THAT (1) IT  IS AN INSTITUTIONAL "ACCREDITED
INVESTOR" OR NOT A "U.S. PERSON"

(AS DEFINED IN RULE 902 OF THE SECURITIES ACT) AND (2) AGREES TO
OFFER, SELL OR OTHERWISE

TRANSFER SUCH SECURITY PRIOR TO THE DATE WHICH IS TWO YEARS AFTER
THE LATER OF THE

ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY
OR ANY AFFILIATE OF THE

COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS
SECURITY) ONLY (A) TO

THE COMPANY OR ANY OF THEIR SUBSIDIARIES, (B) PURSUANT TO A
REGISTRATION STATEMENT WHICH

HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) OUTSIDE
THE UNITED STATES IN

ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT
OR (D) PURSUANT TO RULE

144 OR ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES

ACT.

                                                               
EXHIBIT C TO

                                                           
WARRANT AGREEMENT

                    
FORM OF ACCREDITED INVESTOR CERTIFICATE

                     
TRANSFEREE LETTER OF REPRESENTATION

 

 PG&E Corporation

One Market, Spear Tower

Suite 2400

San Francisco, California  94105

Attention:  Assistant Treasurer

 

 Ladies and Gentlemen:

          In
connection with our proposed purchase of
[        ] Warrants (the

"Warrants") entitling the holders thereof to purchase shares of
common stock, no par

value, of PG&E Corporation, a California corporation (the
"Company"), we confirm that:

         
1.   We are (a) an institutional "accredited investor"
(as defined in

Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act of 1933, as

amended (the "Securities Act")), purchasing for our own account or
for the account of

such an institutional "accredited investor" as to which we exercise
sole investment

discretion, and we have such knowledge and experience in financial
and business matters

as to be capable of evaluating the merits and risks of our
investment in the Warrants,

and we and any account for which we are acting are each able to
bear the economic risk of

our or its investment or (b) a non "U.S. person" (as defined in
Rule 902 of the

Securities Act).

         
2.   We understand and acknowledge that the Warrants have
not been

registered under the Securities Act or any other applicable
securities law, and that the

Warrants may not be offered or sold except as permitted in the
following sentence.  We

agree, on our own behalf and on behalf of any account for which we
are acting, that if we

should sell any Warrants within the time period referred to in Rule
144(k) of the

Securities Act, we will do so only (A) to the Company or any
subsidiary thereof, (B) to

an institutional "accredited investor" (as defined above) that,
prior to such transfer,

furnishes to the Company under the Warrant Agreement, dated as of
October 18, 2002,

governing the Warrants a signed letter containing certain
representations and agreements

relating to the restrictions on transfer of the Warrants (the form
of which letter can be

obtained from either the Company) and an opinion of counsel
acceptable to the Company

that such transfer is in compliance with the Securities Act, (C)
outside the United

States in accordance with Rule 904 of Regulation S under the
Securities Act, (D) pursuant

to the exemption from registration provided by Rule 144 under the
Securities Act (if

available) or (E) pursuant to an effective registration statement
under the Securities

Act, and we further agree to provide to any person purchasing any
of the Warrants from us

a notice advising such purchaser that resales of the Warrants are
restricted as stated

herein.

         
3.   We understand that, on any proposed resale of any
Warrants, we will be

required to furnish to the Company such certifications, legal
opinions and other

information as the Company may reasonably require to confirm that
the proposed sale

complies with the foregoing restrictions.  We further
understand that the Warrants

purchased by us will bear a legend to the foregoing effect.

         
4.   We are acquiring the Warrants for investment
purposes and not with a

view to distribution thereof or with any present intention of
offering or selling any

Warrants, except as permitted above; provided that the disposition
of our property and

property of any accounts for which we are acting as fiduciary will
remain at all times

within our control.

          You and the
Company are entitled to rely upon this letter and you are

irrevocably authorized to produce this letter or a copy hereof to
any interested party in

any administrative or legal proceeding or official inquiry with
respect to the matters

covered hereby.

          THIS LETTER
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF

THE STATE OF NEW YORK.

                             
Very truly yours,

                             
(Name of Purchaser)

                             
By: ____________________________

                               
Name:

                               
Title:

 

                              
Date: ___________________________

                              

                               

           Upon
transfer, the Warrants would be registered in the name of the
new

beneficial owner as follows:

By: ______________________________

Date: _____________________________

 

 Taxpayer ID number: _______________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]