Document:

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                                                                  EXHIBIT 10.6

November 4, 1998

Mr. Thomas B. King

Dear Tom:

On behalf of PG&E Corporation, I am pleased to extend an invitation to you to
join our organization as President and COO - PG&E Gas Transmission and Sr. Vice
President PG&E Corporation, reporting to me.  We are unanimous in our view that
you are the right candidate for this position.  As we discussed, this position
would be physically located in our Houston office.

Below are the details of the compensation and benefit aspects of this offer.  It
you have any questions on compensation, please contact Brent Stanley at (415)
267-7136.  Your initial and 1999 target annual cash compensation is calculated
to be approximately $540,500.  You will also receive a one-time signing bonus of
$200,000.  In addition, you will participate in several short and long term
incentive plans and other plans, also described below.

1.   An annual base salary of $350,000 ($29,167 monthly) subject to possible
increases through our annual salary review plan.

2.   One-time bonus of $200,000 payable within 30 days of your hire, subject to
normal payroll withholdings, Should you decide to leave PG&E Corporation within
one year of your start date, a prorated amount of this bonus must be refunded to
the company.

3.   A target annual bonus of $175,000, which equals 50% of your base salary, in
an annual incentive plan under which your actual bonus dollars can reach from 0
to $350,000 based on your performance relative to established goals.

4.   An award of 10,000 performance units under our Performance Units Plan
(PUP), effective in December 1998.  The value of these units is tied to the
price of PG&E Corporation common stock.  The estimated target value of this
award is $333,000 based on a value of $33.00 per share.  In addition, you will
be awarded 11,000 performance units under the plan in January 1999 with an
estimated target value of $363,000 based on a value of $33.00 per share.

5.   Providing you meet general business goals for 1999 and 2000, the
Corporation will credit to your deferred compensation account, an amount equal
to $2,000,000 payable in two equal annual installments on January 1, 2000 and
January 1, 2001.  Should you terminate prior to the payment of an installment,
that installment as well as any remaining installment will be forfeited.  The
credited funds will be allocated to the PG&E Phantom Stock Fund.  Payment of
credited funds will occur in accordance with your selected payout option.

6.   A stock option grant of 50,000 shares of PG&E Corporation common stock.  In
addition, you will be granted an additional 100,000 stock options effective the
first business day of 1999.  The 50,000 options will be in effect and
<PAGE>

priced as of the day you are elected by the Board of Directors to your new
position. The remaining 100,000 options will be effective and priced on the
first business day of 1999.

7.   An annual perquisite allowance of $15,500.

8.   Participation in our health and welfare benefit plans.

9.   4 weeks of paid vacation per year.

10.  Executive relocation assistance package.

As we have discussed, a number of these compensation elements, as well as
election as an officer of PG&E Corporation, are subject to Board of Directors
approval.

Tom, I believe this position is a unique career opportunity.  PG&E Corporation
has the vision, the team, the resources, and the plan to be the premier energy
company in America.  We have the opportunity for great success and we all would
like you on our team.  I am interested in having you on board as soon as
possible.  We can mutually agree on a start date, which I hope would be no later
than December first.

Brent Stanley will be most helpful to you on any details of this offer, however,
I am ready and willing to discuss any aspect of it with you.

Sincerely

ROBERT D. GLYNN, JR.
Chairman, Chief Executive Officer and President

Accepted:

THOMAS B. KING
-------------------------

November 4, 1998
-------------------------
Date<PAGE>

                                                                  EXHIBIT 10.7

April 25, 1997

Mr. Lyn Maddox

Dear Lyn:

On behalf of PG&E Corporation, I am pleased to modify our previous offer for
you to join our organization as President and Chief Executive Officer of PG&E
Energy Trading and as Senior Vice President of PG&E Corporation reporting to me.

It is my understanding that these details are consistent with those described to
you by G. Brent Stanley and will form the basis for your acceptance of this
offer.

Your initial target annual total compensation plus a one-time signing bonus of
$50,000 is calculated to be approximately $935,000.  Listed below are
compensation and benefit details:

1.   An annual base salary of $300,000 ($25,000 monthly) subject to possible
increases through our merit review plan.

2.   One time bonus of $50,000 payable within 30 days of your hire, subject to
normal payroll withholdings.

3.   A target annual bonus of $135,000, which equals 45% of your base salary, in
an annual incentive plan under which your actual bonus dollars can reach from 0
to $270,000 based on your performance relative to established goals.  For 1997,
this bonus will be not less than $135,000.

4.   Annual award of 5,000 performance units under our Performance Units Plan
(PUP).  The value of these units is tied to the price of PG&E Corporation common
stock.  The estimated value of this award is $100,000 based on a value of $20
per share.

5.   A stock option grant of 120,000 shares of PG&E Corporation common stock.
The estimated value of this award is $333,600 based on a present value $2.78 per
share.

6.   An annual perquisite allowance of $15,500.

7.   Participation in our health and welfare benefit plans.

8.   Four weeks of paid vacation per year.

As we have discussed, a number of these compensation elements, as well as
election as an officer of PG&E Corporation, are subject to Board of Directors
approval.
<PAGE>

We are enthused that you are planning to join our team and working with us for
the success of PG&E Corporation.

I would appreciate receiving your written acceptance of this offer as soon as
possible.

Please call me at the office or at home (510) 933-9369 at any time.

Sincerely,

ROBERT D. GLYNN, JR.

Accepted:

L E MADDOX
--------------------

4/26/97
--------------------
Date<PAGE>

                                                                  EXHIBIT 10.9

                         Description of Relocation Plan
                  Between PG&E Corporation and Lyn E. Maddox

Position:  Senior Vice President of PG&E Corporation and President and COO -
PG&E Energy Trading effective August 16, 2000.

1.   A moving allowance equal to one month's pay.

2.   Reimbursement for travel expenses incurred in finding a principal
residence, without a limitation on the number of trips required.  Mr. Maddox
will be reimbursed for the reasonable cost of temporary housing, which, subject
to the prior approval of the CEO of PG&E Corporation, can be extended beyond the
period provided under the plan.

3.   Reimbursement of all closing costs incurred in the sale of Mr. Maddox's
existing residence and the purchase of a new residence.  The relocation plan
also will indemnify him for any loss that he may suffer on the sale of his
existing residence.

4.   The plan will provide for the reimbursement of any tuition loss which Mr.
Maddox incurs as a result of his children changing schools, including enrollment
and application fees, testing, and school travel costs incurred in placing his
children in comparable schools in the Bethesda area.

5.   Mr. Maddox will be provided with a temporary mortgage buy-down of $3,500
per month, payable for four years, commencing with the first mortgage payment
for his new residence.  Should he voluntarily resign from employment with PG&E
Corporation or one of its subsidiaries or affiliates prior to December 31, 2004,
he will be required to repay all amounts provided to him under the temporary
mortgage buy-down.

Mr. Maddox's target bonus is 50 percent of his base pay of $400,000 with a
potential bonus of 100 percent. In addition to continuation of his current
compensation and benefit package, and in recognition of the additional expenses
associated with his relocation at PG&E Corporation's request to Bethesda, he
also will receive a one-time payment of $250,000, net of taxes, and a one-time
taxable payment of $75,000.  Should he voluntarily resign from his position and
no longer be employed by PG&E Corporation or one of its subsidiaries or
affiliates prior to December 31, 2004, he will be required to repay the gross
amount of these payments.  Inasmuch as these payments are considered to be
additional compensation, payment is conditioned on approval by PG&E
Corporation's Nominating and Compensation Committee.<PAGE>

                                                                   EXHIBIT 10.10

                                                                PG&E Corporation
                                           Nominating and Compensation Committee
                                                               February 21, 2001

                           SENIOR EXECUTIVE RETENTION
                           --------------------------

Action Recommended
------------------

It is recommended that the Nominating and Compensation Committee approve Special
Senior Executive Retention Grants as a mechanism to retain a small group of key
executive officers.  The concept is outlined below.  Specific individual
recommendations will be presented for the Committee's approval at its meeting on
December 20, 2000.

Background
----------

We have built a very strong senior executive team.  Many of our key executives
are very attractive candidates for senior positions in other companies.  Our
goal is to retain individuals who are sought after to be CEOs or senior officers
in other companies that may have more attractive growth prospects.  Our ability
to retain these key individuals is critical to our success.  We must provide a
retention mechanism to make them less vulnerable to leaving by providing them
with a strong incentive to stay.

The eligible group excludes any key executives from the National Energy Group
(NEG) who might otherwise be eligible were it not for the Corporation's plan to
take that entity public in the near future.

The concept is a multi-year, cliff-vesting incentive award of phantom PG&E
Corporation restricted stock units.

Description
-----------

The phantom restricted stock units will provide an incentive equal three times
an eligible officer's base salary plus target short-term incentive award.
Grants will be made effective January 1, 2001, and will vest on December 31,
2004 subject to either one of the following conditions:

-    50 percent will automatically vest on December 31, 2004. The remaining 50
     percent will vest on December 31, 2004 only if the Corporation's
     performance, as measured by relative Total Shareholder Return (TSR) on a
     cumulative basis over four years, is at or above the 55th percentile of its
     comparator group; or

-    if, at the end of the third year of the grant, December 31, 2003, the
     Corporation's performance as measured by relative TSR on a cumulative
     basis, is at or above the 75th percentile of its comparator group, the
     entire grant will vest.
<PAGE>

Eligible executives may elect to defer award payments under the PG&E Corporation
Supplemental Retirement Savings Plan prior to the award cliff vesting.  Such
deferrals will be made in PG&E Corporation phantom stock units on the first
business day of January of the year following vesting.  Awards not deferred will
be paid either entirely in PG&E Corporation stock, or half in PG&E Corporation
stock and half in cash in January of the year following vesting.

Key Administrative Provisions
-----------------------------

The following provisions will apply to the early termination of an eligible
officer:

--------------------------------------------------------------------------------
            Circumstance                            Award Status
--------------------------------------------------------------------------------
          Death or disability                       Fully vested
--------------------------------------------------------------------------------
          Change in control                         Fully vested
--------------------------------------------------------------------------------
          Voluntary termination                       Forfeited
--------------------------------------------------------------------------------
          Termination for cause                       Forfeited
--------------------------------------------------------------------------------
     Involuntary termination (severed)        Full or prorated vesting at the
                                            discretion of the PG&E Corporation
                                            CEO or at the discretion of the
                                            Committee in the case of the PG&E
                                                       Corporation CEO
--------------------------------------------------------------------------------
               Retirement                      Forfeited subject to full or
                                            prorated vesting at the discretion
                                            of the PG&E Corporation CEO or at
                                            the discretion of the Committee in
                                            the case of the PG&E Corporation CEO
--------------------------------------------------------------------------------

Estimated Costs
---------------

The cost of the grants will depend on the specific amounts granted and the
actual stock price over the four-year period.  The estimated four-year cost
could range up to $15 million assuming a full payment at the current stock
price.  This cost will change over the four-year period with changes in the
stock price.

                                       2
<PAGE>

                                                                PG&E Corporation
                                           Nominating and Compensation Committee
                                                               February 21, 2001

                           SENIOR EXECUTIVE RETENTION
                           --------------------------

Action Recommended
------------------

It is recommended that the Nominating and Compensation Committee expand the
eligible officer population covered by the Senior Executive Retention program to
include additional officers of Pacific Gas and Electric Company as well as
several key officers of PG&E National Energy Group.  Specific individual
recommendations will be presented for the Committee's approval at its meeting on
February 21, 2001.

Background
----------

On December 20, 2000, the Nominating and Compensation Committee approved the
Senior Executive Retention program as a mechanism to retain a small group of key
executive officers.  The aim of the program is to provide certain key officers,
who are critical to our success and sought after by other companies, with a
retention mechanism to make them less vulnerable to leaving, by providing them
with a strong incentive to stay.

The number of shares needed to accommodate the addition of these officers to the
program will exceed the current number of authorized shares available under the
PG&E Corporation Long-Term Incentive Plan by approximately 700,000 shares.
Therefore, award payments under the program, if not deferred, will be paid
entirely in cash rather than half in cash and half in stock as provided for
under the program approved by the Committee at its meeting on December 20, 2000.

A general description of the program is attached (Attachment A).
<PAGE>

                                                                    ATTACHMENT A
                                                                    ------------

                       SENIOR EXECUTIVE RETENTION PROGRAM
                       ----------------------------------

The concept is a multi-year, cliff-vesting incentive award of phantom PG&E
Corporation restricted stock units.

Description
-----------

The incentive award will take the form of phantom restricted stock units to be
granted effective February 21, 2001, and will vest on December 31, 2004, subject
to either one of the following conditions:

-    50 percent will automatically vest on December 31, 2004. The remaining 50
     percent will vest on December 31, 2004, only if the Corporation's
     performance, as measured by relative Total Shareholder Return (TSR) on a
     cumulative basis over four years, is at or above the 55th percentile of its
     comparator group; or

-    if, at the end of the third year of the grant, December 31, 2003, the
     Corporation's performance as measured by relative TSR on a cumulative
     basis, is at or above the 75th percentile of its comparator group, the
     entire grant will vest.

Eligible executives may elect to defer award payments under the PG&E Corporation
Supplemental Retirement Savings Plan prior to the award cliff vesting.  Such
deferrals will be made in PG&E Corporation phantom stock units on the first
business day of January of the year following vesting.  Awards not deferred will
be paid in cash in January of the year following vesting.

Key Administrative Provisions
-----------------------------

The following provisions will apply to the early termination of an eligible
officer:

--------------------------------------------------------------------------------
             Circumstance                               Award Status
--------------------------------------------------------------------------------
          Death or disability                           Fully vested
--------------------------------------------------------------------------------
          Change in control                             Fully vested
--------------------------------------------------------------------------------
         Voluntary termination                            Forfeited
--------------------------------------------------------------------------------
        Termination for cause                             Forfeited
--------------------------------------------------------------------------------
   Involuntary termination (severed)           Full or prorated vesting at the
                                              discretion of the PG&E Corporation
                                               CEO or at the discretion of the
                                               Committee in the case of the
                                                      PG&E Corporation CEO
--------------------------------------------------------------------------------
               Retirement                         Forfeited subject to full or
                                             prorated vesting at the discretion
                                              of the PG&E Corporation CEO or at
                                             the discretion of the Committee in
                                            the case of the PG&E Corporation CEO
--------------------------------------------------------------------------------

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