Document:

Letter regarding Compensation Arrangement between PG&E Corporation and Rand L. Rosenberg dated October 19, 2005

    

      Exhibit
        10.18

      October
        19, 2005

      

      

      

      Mr.
        Rand
        L. Rosenberg

      945
        Crest
        Road

      Del
        Mar,
        CA 92014

      

      Dear
        Rand:

      

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

      

      Your
        initial total compensation package will consist of the following:

      

      	1.  	
              An
                annual base salary of $475,000 ($39,583.33/month) subject to possible
                increases through our annual salary review
                plan.

            

      

      	2.  	
              A
                target incentive of $261,250 (55% of your base salary) in an annual
                short-term incentive plan under which your actual incentive dollars
                may
                range from zero to $522,500 based on performance relative to established
                goals. For 2005, this incentive will be prorated for the number of
                months
                worked from your date of hire and will be payable in 2006.
                

            

      

      	3.  	
              Participation
                in the PG&E Corporation Long-Term Incentive Plan (LTIP) as a band 2
                officer. Your initial LTIP grant will take the form of restricted
                stock
                with annual time-based vesting over four calendar years on the first
                business days of January 2006, 2007, 2008, and 2009, respectively.
                That
                grant will have an initial value of $400,000, which will be converted
                to
                shares of restricted stock based on the closing price of PG&E
                Corporation common stock on your date of hire. You will also receive
                a
                2006 LTIP grant with an initial value of $800,000. That grant will
                be spit
                equally between restricted stock and performance shares, and will
                be made
                on the first business day of January 2006. The ultimate value that
                you
                realize from these grants will depend upon your employment status
                and the
                performance of PG&E Corporation common
                stock.

            

      

      	4.  	
              Participation
                in the PG&E Corporation Supplemental Executive Retirement Plan (SERP).
                The basic benefit payable from the SERP at retirement is a monthly
                annuity
                equal to the product of 1.7% x [average of the three highest years’
                combination of salary and annual incentive for the last ten years
                of
                service] x years of credited service x
                1/12.

            

      

      	5.  	
              Participation
                in the PG&E Corporation Retirement Savings Plan (RSP), a 401(k)
                savings plan. You will be eligible to contribute as much as 20% of
                your
                salary on either a pre-tax or after-tax basis, subject to legal limits.
                After your first year of service, we will match contributions you
                make up
                to 3% of your salary at 75 cents on each dollar contributed for the
                first
                three years of employment. Thereafter, we will match contributions
                up to
                6% of your salary at 75 cents on each dollar
                contributed.

            

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Mr.
        Rosenberg

      October
        19, 2005

      Page
        2

      

      

      	6.  	
              Participation
                in the PG&E Corporation Supplemental Retirement Savings Plan (SRSP), a
                non-qualified, deferred compensation plan. You may elect to defer
                payment
                of some of your compensation on a pre-tax basis. We will provide
                you with
                the full matching contributions that cannot be provided through the
                RSP,
                due to legal limitations imposed on highly compensated employees.
                

            

      

      	7.  	
              Participation
                in a cafeteria-style benefits program that permits you to select
                coverage
                tailored to your personal needs and circumstances. The benefits you
                elect
                will be effective the first of the month following the date of your
                hire.
                

            

      

      	8.  	
              PG&E
                Corporation also offers employees an initial allocation of Paid Time
                Off
                (PTO) upon hire; this initial allocation may be up to 160 hours based
                on
                start date. Future allocations of PTO are made each year on January
                1 and
                are based on your start date and amount worked in the preceding year.
                For
                example, by starting work in November and working full-time for the
                remainder of 2005, you will be eligible for 80 hours of PTO upon
                hire and
                27 hours on January 1, 2006. Beginning January 1, 2007, you will
                be
                eligible for 160 hours of PTO, provided that you work full-time for
                all of
                2006. In addition, PG&E Corporation recognizes 10 paid company
                holidays annually and provides 3 floating holidays immediately upon
                hire
                and at the beginning of each year.

            

      

      	9.  	
              An
                annual perquisite allowance of $25,000 to be used in lieu of individual
                authorizations for cars and memberships in clubs and civic organizations.
                For 2005, you will receive 50% of this amount
                ($12,500).

            

      

      	10.  	
              A
                comprehensive executive relocation assistance package, including:
                (1) the
                reimbursement of closing costs on the sale of your current residence,
                contingent upon using a PG&E-designated relocation company and
                purchasing a new residence; (2) the move of your household goods,
                including 60 days of storage and the movement of the goods out of
                storage;
                and (3) a lump sum payment of $10,000 payable within 60 days of your
                date
                of employment. Should you have any questions regarding the relocation
                package, please contact Denise Nicco, Director of Relocation at (415)
                817-8230.

            

      

      As
        we
        have discussed, this offer is contingent upon your passing a comprehensive
        background verification, including a credit check, and a standard drug analysis
        test. We will also need to verify your eligibility to work in the United
        States
        based on applicable immigration laws. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Mr.
        Rosenberg

      October
        19, 2005

      Page
        3

      

      

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

      

      Sincerely,

      

      

      

      /s/  Peter
        A.
        Darbee                

      PETER
        A.
        DARBEE

      Chief
        Executive Officer and President

      

      

      

      

      

      

      

      This
        is
        to confirm my acceptance of PG&E Corporation’s offer as the Senior Vice
        President, Corporate Strategy and Development outlined above.

       

                                                      /s/
        Rand
        Rosenberg                10/21/05

                                                              (Signature
        and Date)Unassociated Document

    

      Exhibit
        10.22  

      

      

      2006
        OFFICER SHORT-TERM INCENTIVE PLAN 

      

       

      On
        December 21, 2005, the Nominating, Compensation, and Governance Committee
        (Committee) of the PG&E Corporation Board of Directors established the
        structure of the 2006 Short-Term Incentive Plan (STIP), under which officers
        of
        PG&E Corporation and Pacific Gas and Electric Company (Utility) are provided
        an opportunity to receive annual incentive cash payments. For these officers,
        corporate financial performance, as measured by corporate earnings from
        operations, will account for 70 percent of the award and Utility operational
        performance, as measured by 11 equally weighted financial, operating, and
        service measures, will account for 30 percent of the award. 

       

      

      At
        its
        meeting on February 15, 2006, the Committee approved the specific
        performance scale that will be used to determine the extent to which the
        corporate financial objective, as measured by earnings from operations, has
        been
        met. The Committee used the same methodology to establish the performance
        scale
        for the corporate financial performance portion of the 2006 STIP as was used
        for
        the 2005 STIP. The corporate financial performance measure is based on PG&E
        Corporation's budgeted earnings from operations that were previously approved
        by
        the Board of Directors, consistent with the basis for reporting and guidance
        to
        the financial community. As with previous earnings performance scales,
        unbudgeted items impacting comparability such as changes in accounting methods,
        workforce restructuring, and one-time occurrences will be excluded.

      

      The
        Committee also approved the following 2006 performance targets for each of
        the
        11 equally weighted financial, operating, and service measures that will
        be used
        to determine whether the portion of the STIP award based on the achievement
        of
        operational excellence and improved customer service has been met. The 2005
        performance results for each measure are included for reference: 

       

      2006
        STIP Performance Targets

       

      
        	
                Measure

              	
                2005
                  Results

              	
                2006
                  Target 

              
	
                1.

              	
                Customer
                  Satisfaction (Residential & Business) 1

              	
                94.0

              	
                96.0

              
	
                2.

              	
                Timely
                  bills (% issued within 35 days)

              	
                99.38%

              	
                99.51%

              
	
                3.

              	
                Estimate
                  of Outage Restoration Accuracy 

              	
                47%

              	
                50%

              
	
                4.

              	
                System
                  Average Interruption Duration Index (SAIDI) 2

              	
                178.7

              	
                166

              
	
                5.

              	
                System
                  Average Interruption Frequency Index (SAIFI) 2

              	
                1.344

              	
                1.31

              
	
                6.

              	
                Energy
                  Availability (Generation and Procurement) 3

              	
                --
                  3

              	
                --
                  3

              
	
                7.

              	
                Telephone
                  Service Level 4

              	
                75/20

              	
                76/20

              
	
                8.

              	
                Expense
                  Per Customer

              	
                $278

              	
                $283
                  5

              
	
                9.

              	
                Diablo
                  Canyon composite performance index6

              	
                98.2
                  

              	
                98.2
                  

              
	
                10.

              	
                Employee
                  survey (Premier) index

              	
                64.0%

              	
                68.0%

              
	
                11.

              	
                Lost
                  workday case rate7

              	
                1.04

              	
                0.878

              

      

      

      1 This
        measure is based on the JD Power Residential Survey and the JD Power Business
        Survey combined with equal weighting. The 2006 target assumes the 2006 quartile
        ranges will be the same as the 2005 quartile ranges. The 2006 target will
        be
        adjusted to reflect the revised quartile ranges expected to be available
        in July
        2006. 

      

      2 “SAIDI,”
        or system average interruption duration index, refers to the average outage
        time
        over a one-year period. “SAIFI,” or system average interruption frequency index,
        refers to the average number of sustained outages over a one-year period.
        

      

      3 The
        Energy Availability measure combines two separate reliability measures, each
        equally weighted. One assesses whether Utility-owned generation is available
        as
        planned and the other assesses whether the Utility has obtained adequate
        electric supplies for its customers, as measured by California Independent
        System Operator alerts. This is a new measure in 2006. 

      

      4 This
        refers to the percentage of customer calls to the contact centers that are
        answered within a specified number of seconds; 75/20 means that 75% of calls
        are
        answered within 20 seconds. 

      

      5 The
        2006
        target expense per customer amount is based on the approved budget for 2006.
        The
        increase of 1.7 percent over the 2005 recorded amount of $278 is comprised
        of a
        3.3 percent increase in expenses, offset by a 1.5 percent increase in customers.
        

      

      6 The
        composite performance index provides a quantitative indication of plant
        performance in the areas of nuclear plant safety and reliability and plant
        efficiency. 

      

      7 This
        measures the number of non-fatal injury and illness cases that (1) satisfy
        certain federal requirements for recordability, (2) occur in the current
        year,
        and (3) result in at least one day away from work. The rate measures how
        frequently new lost workday cases occur for every 200,000 hours worked, or
        for
        approximately every 100 employees. 

      

       

      The
        Chief
        Executive Officer of PG&E Corporation has the discretion to recommend to the
        Committee an additional performance rating for an individual officer. This
        rating will be determined by such officer’s efforts to manage his or her
        organization’s respective financial budget. This additional performance rating
        can modify (up or down) an individual officer’s final STIP award by no more than
        15 percent. The Committee will continue to retain full discretion as to the
        determination of final officer STIP awards.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]