Pacific Gas & Electric (PCG)

OFF-BALANCE SHEET ARRANGEMENTS

For financing and other business purposes, PG&E Corporation and the Utility utilize certain arrangements that are not reflected in their Consolidated Balance Sheets. Such arrangements do not represent a significant part of either PG&E Corporation’s or the Utility’s activities or a significant ongoing source of financing. These arrangements are used to enable PG&E Corporation or the Utility to obtain financing or execute commercial transactions on favorable terms. For further information related to letter of credit agreements, the credit facilities, aspects of PG&E Corporation’s accelerated share repurchase program and PG&E Corporation’s guarantee related to certain NEGT indemnity obligations, see Notes 3, 6 and 12 of the Notes to the Consolidated Financial Statements. Amounts due under these contracts are contingent upon terms contained in these agreements and are not included in the table of contractual commitments above.

OFF-BALANCE SHEET ARRANGEMENTS

For financing and other business purposes, PG&E Corporation and the Utility utilize certain arrangements that are not reflected in their Consolidated Balance Sheets.  Such arrangements do not represent a significant part of either PG&E Corporation’s or the Utility’s activities or a significant ongoing source of financing.  These arrangements are used to enable PG&E Corporation or the Utility to obtain financing or execute commercial transactions on favorable terms, and amounts due under these contracts are contingent upon terms contained in these arrangements.  For further information related to letter of credit agreements, the credit facilities, aspects of PG&E Corporation’s accelerated share repurchase program, and PG&E Corporation’s guarantee related to certain NEGT indemnity obligations and the Utility’s workers’ compensation obligations, see Notes 3, 5, and 7 of the Notes to the Condensed Consolidated Financial Statements.

OFF-BALANCE SHEET ARRANGEMENTS

        For financing and other business purposes, PG&E Corporation and the Utility utilize certain arrangements that are not reflected in their Consolidated Balance Sheets. Such arrangements do not represent a significant part of either PG&E Corporation's or the Utility's activities or a significant ongoing source of financing. These arrangements are used to enable PG&E Corporation or the Utility to obtain financing or execute commercial transactions on favorable terms. For further information related to letter of credit agreements, the credit facilities, aspects of PG&E Corporation's accelerated share repurchase program and PG&E Corporation's guarantee related to certain NEGT indemnity obligations, see Notes 3, 6 and 12 of the Notes to the Consolidated Financial Statements. Amounts due

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under these contracts are contingent upon terms contained in these agreements and are not included in the table of contractual commitments above.