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Exhibit 10.47.2    
  

September 9,
2002 

P.
Chrisman Iribe

4608 Rockwood Pkwy, N.W.

Washington, D.C. 20016 

Dear
Chris: 

As
you are aware, Standard & Poor's and Moody's Investors Service recently downgraded the credit ratings of the PG&E National Energy Group (the "Company") and two of its subsidiaries to below
investment grade. While disappointing, these downgrades are in keeping with the rating agencies' larger overall review of the energy sector. In response to the downgrades and the challenging market
conditions affecting our sector of the energy industry, the Company has embarked upon a major cost reduction effort with the goal of achieving a reduction of at least $40 million in annual
operating expenses. 

In
order to encourage you to continue your contribution to the success of the Company amidst these challenging and disruptive business conditions, you are being provided with a retention award subject
to the terms and conditions set forth in this letter (the "Letter") and the PG&E National Energy Group Management Retention Program (the "Program"). 

1.    Retention Award

	a.
	Retention Award Amount—Your award will be an amount equal to twenty-five percent (25%) of your base salary as of
the first business day of September 2002 (the "Retention Award").

	b.
	Timing of Payment—One third of the Retention Award is payable as soon as reasonably practicable after January 15,
2003. The remaining two thirds is payable on the earlier of on the first business day in October 2003 or should your employment with the Company cease through no fault of your own, as soon as
reasonably practicable following any such event.

	c.
	Forfeiture of Retention Award—You will not be entitled to any Retention Award and shall forfeit any
claim to the Retention Award if any of the following occur:

	(i)
	voluntary
termination, or termination of employment for cause; or

	(ii)
	retirement.

	2.
	Other Benefits—The opportunity to earn the Retention Award is in addition to other compensation and benefits for which you
otherwise may be eligible under any plan in which you are eligible to participate during or at the time of your termination of employment. Because this Retention Award represents a unique payment to
you, this amount will not be considered in calculating salary-related benefits (e.g., 401(k) plan deferrals and retirement plan benefits).

	3.
	Withholding—All federal, state, city or other taxes that are required to be withheld pursuant to any applicable law or
regulation, will be deducted from your Retention Award payment.

	4.
	Resolution of Disputes—The Plan Administrator (as defined in the Program) or its designee, is responsible for the
interpretation of this Letter and the Program. The Plan Administrator shall have sole and absolute discretion to resolve any questions, ambiguities or disputes arising under this Letter and the
Program, and its decision shall be final and binding. 

P.
Chrisman Iribe

September 9, 2002

Page 2 

	5.
	Disclosure—As a condition of receipt of the Retention Award, you agree that you will not disclose, publicize, or circulate
to anyone in whole or in part, any information concerning the existence, terms, and/or conditions of this Program without the express written consent of the Chief Legal Officer of the Company unless
required by court order or law. Notwithstanding the preceding sentence, you may disclose the terms and conditions of this program to your immediate family members, and any attorneys or tax advisors,
if any, to whom there is a bona fide need for disclosure in order for them to render professional services to you, provided that you first instruct each affected family member, attorney, and tax
advisor that he/she must keep the information confidential and may not make any disclosure of the terms and conditions of this Program, unless required by court order or law.

	6.
	No Guarantee of Employment—Nothing in this Letter guarantees you any specific term of employment or specific assignment.
Nothing in this Letter shall constitute a contract of employment, implied or otherwise, for a specified duration. Additionally, the Company is an employment-at-will company,
unless otherwise specified in a written individual employment contract or collective bargaining agreement. Under employment-at-will, either the Company and/or the employee may
terminate the employment relationship at any time, for any reason, with or without notice or cause. 

Sincerely, 

Thomas
G. Boren

Executive Vice President 

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Exhibit 10.47.3    
  

September 9,
2002 

Lyndell
E. Maddox

11513 Dalyn Terrace

Potomac, MD 20854 

Dear
Lyn: 

As
you are aware, Standard & Poor's and Moody's Investors Service recently downgraded the credit ratings of the PG&E National Energy Group (the "Company") and two of its subsidiaries to below
investment grade. While disappointing, these downgrades are in keeping with the rating agencies' larger overall review of the energy sector. In response to the downgrades and the challenging market
conditions affecting our sector of the energy industry, the Company has embarked upon a major cost reduction effort with the goal of achieving a reduction of at least $40 million in annual
operating expenses. 

In
order to encourage you to continue your contribution to the success of the Company amidst these challenging and disruptive business conditions, you are being provided with a retention award subject
to the terms and conditions set forth in this letter (the "Letter") and the PG&E National Energy Group Management Retention Program (the "Program"). 

1.    Retention Award

	a.
	Retention Award Amount—Your award will be an amount equal to one hundred percent (100%) of your base salary as of the first
business day of September 2002 (the "Retention Award").

	b.
	Timing of Payment—One third of the Retention Award is payable as soon as reasonably practicable after January 15,
2003. The remaining two thirds is payable on the earlier of on the first business day in October 2003 or should your employment with the Company cease through no fault of your own, as soon as
reasonably practicable following any such event.

	c.
	Forfeiture of Retention Award—You will not be entitled to any Retention Award and shall forfeit any
claim to the Retention Award if any of the following occur:

	(i)
	voluntary
termination, or termination of employment for cause; or

	(ii)
	retirement.

	2.
	Other Benefits—The opportunity to earn the Retention Award is in addition to other compensation and benefits for which you
otherwise may be eligible under any plan in which you are eligible to participate during or at the time of your termination of employment. Because this Retention Award represents a unique payment to
you, this amount will not be considered in calculating salary-related benefits (e.g., 401(k) plan deferrals and retirement plan benefits).

	3.
	Withholding—All federal, state, city or other taxes that are required to be withheld pursuant to any applicable law or
regulation, will be deducted from your Retention Award payment.

	4.
	Resolution of Disputes—The Plan Administrator (as defined in the Program) or its designee, is responsible for the
interpretation of this Letter and the Program. The Plan Administrator shall have sole and absolute discretion to resolve any questions, ambiguities or disputes arising under this Letter and the
Program, and its decision shall be final and binding. 

Lyndell
E. Maddox

September 9, 2002

Page 2 

	5.
	Disclosure—As a condition of receipt of the Retention Award, you agree that you will not disclose, publicize, or circulate
to anyone in whole or in part, any information concerning the existence, terms, and/or conditions of this Program without the express written consent of the Chief Legal Officer of the Company unless
required by court order or law. Notwithstanding the preceding sentence, you may disclose the terms and conditions of this program to your immediate family members, and any attorneys or tax advisors,
if any, to whom there is a bona fide need for disclosure in order for them to render professional services to you, provided that you first instruct each affected family member, attorney, and tax
advisor that he/she must keep the information confidential and may not make any disclosure of the terms and conditions of this Program, unless required by court order or law.

	6.
	No Guarantee of Employment—Nothing in this Letter guarantees you any specific term of employment or specific assignment.
Nothing in this Letter shall constitute a contract of employment, implied or otherwise, for a specified duration. Additionally, the Company is an employment-at-will company,
unless otherwise specified in a written individual employment contract or collective bargaining agreement. Under employment-at-will, either the Company and/or the employee may
terminate the employment relationship at any time, for any reason, with or without notice or cause. 

Sincerely, 

Thomas
G. Boren

Executive Vice President 

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EXHIBIT 10.47

PG&E NATIONAL ENERGY GROUP

MANAGEMENT RETENTION/PERFORMANCE AWARD PROGRAM  

1.    Purpose and Term  

        This
Management Retention/Performance Award Program (the "Program"), effective as of September 1, 2002, is intended to enable PG&E National Energy Group (the "Company") to retain
and motivate quality employees of the Company who are critical to the Company's ability to meet the difficult challenges facing the energy sector. The Program will provide financial incentives to
eligible employees of the Company to continue their employment with the Company through the Payment Dates (defined below). In addition, the Program will provide awards for specific performance for key
employees of PG&E Gas Transmission-Northwest (GT-NW). 

2.    Administration  

        The
Plan Administrator shall be the Senior Vice President of Human Resources for PG&E Corporation or his designee, who shall manage, operate and administer the Program for all
participants. The Plan Administrator may, in his sole discretion, delegate responsibility to an individual or individuals to handle the day-to-day affairs of the Program. The
Plan Administrator is empowered to effectuate the purposes and terms of the Program as set forth herein and is authorized to perform certain duties, including, but not limited to: 

	(a)
	the
establishment and implementation of rules for the management, operation and administration of the Program;

	(b)
	the
determination of the eligibility of employees of the Company for benefits under the Program;

	(c)
	the
correction of any defect or omission and the reconciliation of any inconsistency in the Program in such manner and to such extent as he shall deem appropriate, in his sole
discretion; and

	(d)
	the
interpretation of the Program in good faith to the fullest extent permitted by law, which interpretation shall be final and conclusive upon all persons. 

3.    Eligible Employees  

        The
employees who are eligible to participate in the Program are set forth on Schedule A hereto. The employees who are eligible to participate in the Program shall be designated
by the Plan Administrator (each employee eligible to participate in the Program is hereinafter referred to as a "Participant"). 

4.    Notice of Participation  

        Each
Participant shall be notified in writing of his or her eligibility to participate in the Program, subject to all of the conditions specified in the Program and such notice being
satisfied. Such notice shall indicate the type and amount of award for which the Participant is eligible and any additional terms and conditions as the Nominating and Compensation Committee, in its
sole and absolute discretion, may determine. 

5.    Types and Amounts of Awards  

        A
Participant may be awarded either a retention award ("Retention Award") or a performance award ("Performance Award"). 

 

        The
amount of the Retention Awards shall vary from 25% to 100% of a Participant's base salary as of the Program effective date, as set forth on Schedule A hereto. 

        The
amount of the Performance Awards shall vary from $10,000 to $20,000, as set forth on Schedule A hereto. 

6.    Vesting and Payment of Awards  

        Subject
to satisfying the terms of the Program, a Participant's Retention Award shall vest, and be payable, in two installments. 

        The
first installment of one-third of the Retention Award shall be payable as soon as practicable after January 15, 2003. The second installment of the remaining
two-thirds is payable on the earlier of on the first business day in October 2003 or should your employment with the Company cease through no fault of your own, as soon as
reasonably practicable following any such event. 

        Subject
to satisfying the terms of the Program, a Participant's Performance Award shall be payable as soon as practicable after the successful accomplishment of a specific performance
objective. 

7.    Termination of Participation  

        A
Participant's participation in the Program shall automatically terminate, without notice to or consent of such Participant, upon the first to occur of any one of the following events
with respect to such Participant: (a) voluntary termination, or (b) termination of employment and ineligible for rehire. 

8.    Binding Authority  

        The
decisions of the Plan Administrator or his duly authorized delegate(s) shall be final and conclusive for all purposes of the Program, and shall not be subject to any appeal or
review. 

9.    No Property Interest  

        The
Program is unfunded and all liabilities hereunder shall be unsecured obligations of the Company. 

10.  Other Rights  

        The
Program shall not affect or impair the rights or obligations of the Company or its subsidiaries or a Participant under any other written contract, arrangement, or pension, profit
sharing or other compensation program, and all amounts payable under the Program shall be characterized as special bonuses and not as additional salary for purposes of such other contracts,
arrangements or programs. 

11.  Amendment or Termination  

        The
Company may amend, alter, suspend or terminate the Program at any time, retroactively or otherwise; provided,  however, unless otherwise required by law or
specifically provided herein, no such amendment, alteration, suspension or termination shall be made that
would materially impair the previously vested rights of any Participant without his or her written consent. 

2

 

12.  Severability  

        If
any term or condition of the Program shall be invalid, illegal or unenforceable, the remainder of the Program, with the exception of such invalid, illegal or unenforceable provision,
shall not be affected thereby and shall continue in effect and application to its fullest extent. 

13.  No Employment Rights  

        Neither
the establishment nor the terms of the Program shall be held or construed to confer upon any Participant the right to a continuation of employment by the Company. Subject to any
applicable employment agreement, the Company reserves the right to dismiss any Participant, or otherwise deal with any Participant to the same extent as though the Program had not been adopted. 

14.  Transferability of Rights  

        The
Company shall have the unrestricted right to transfer its obligations under the Program with respect to one or more Participants to any person, including any purchaser of all or any
part of the Company's business. No Participant or spouse of a Participant shall have any right to commute, encumber, transfer or otherwise dispose of or alienate any present or future right or
expectancy which the Participant may have at any time to receive payments of benefits hereunder, except to the extent required by law. Any attempt to transfer or assign a benefit, or any rights
granted hereunder, by a Participant shall (after consideration of such facts as it deems pertinent), be grounds for terminating any rights of the Participant to any portion of the Retention Award or
Performance Award not previously paid. 

15.  Withholding  

        The
payment of the Retention Award or Performance Award shall be subject to all applicable withholding taxes and deductions. 

16.  Governing Law  

        The
Program shall be construed, administered, and enforced according to the laws of the State of California, without regard to conflict of law principles. 

        Adopted
pursuant to the delegation contained in the Minutes of the Nominating and Compensation Committee of PG&E Corporation dated August 26, 2002. 

	

By:	
 	

 	
 	

 
	 	 	
 Robert D. Glynn, Jr.

Chairman of the Board, Chief Executive Officer, and President

PG&E Corporation

	 	 

3

 
SCHEDULE A

PARTICIPANTS AND RETENTION AWARDS  

	

	Participant Grouping	 	Total Number of Participants	 	Retention Award

(percent of base salary)
	

	

Officers	
 	

20	
 	

75-100%
	

	

Directors	
 	

50	
 	

50-75%
	

	

Managers/Senior-level Individual Contributors	
 	

20	
 	

25%
	

	

GT-NW

Directors/Managers/Individual

Contributors	
 	

10	
 	

$10,000 - $20,000
	

	Total Participants:	 	100
	Minimum Total Awards:	 	$6 million
	Maximum Total Awards:	 	$10 million
	Average Award (Minimum):	 	$66,000
	Average Award (Maximum):	 	$110,000

4

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EXHIBIT 10.47

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