1 Confidential – For discussion purposes only PG&E 2010 MBA Summer Interns Confidential – For discussion purposes only Low Income Oversight Board Sacramento, CA September 26, 2011 Credit and Collection Activity

2 Confidential – For discussion purposes only PG&E 2010 MBA Summer Interns Confidential – For discussion purposes only Credit and Collection Activity Increased customer outreach and communications: targeted marketing with CARE applications and development of Breathe Easy Brochures included in notices Targeted CARE enrollments 2011 YTD: 15-day notice inserts: 2,500 Third-party notification direct mail: 6,000 Pay plan outcalls: 2, hour notice outcalls: 7, hout notice direct mail: 2,000 LIHEAP automatic enrollment: 7,400 REACH automatic enrollment: 350 Implemented an automated CARE Interactive Voice Response (IVR) sign up system – July 2011 From August 2010 through August 2011, PG&E sent over 2.7M Breathe Easy Brochures which detail available customer assistance programs and payment arrangement options Offering Automatic Payment Service (APS) in lieu of deposits Temporary suspension of deposit request after service disconnection for non-payment Initially implemented 2 nd Chance Pay Plans for customers not previously eligible. Recently modified to a new payment arrangement policy whereby virtually any customer is eligible Offering residential bill guaranty as a means for another customer to co-sign in lieu of a deposit Late notices updated to contain additional program and customer assistance information All outbound customer calls include a feature for the customer to prompt back to a live agent PG&E also offers a Third Party Notification Program that allows residential customers to designate a third party to be sent a letter when the account becomes delinquent PG&E recognizes that its customers have been impacted by the economic downturn. As such, it offers several customer-centric policies and procedures, some of which have been in existence prior to the downturn:

3 Confidential – For discussion purposes only PG&E 2010 MBA Summer Interns Confidential – For discussion purposes only Credit and Collection Activity As a result of these policies and procedures: PG&E’s residential disconnection rate decreased by 34% from 2009 to YTD there are 5% less residential disconnections than YTD 2010 Average number of residential customers with active payment arrangements from the end of 2009 to current has increased by 63% 89% of payment arrangements have been approved YTD 2011 Customers enrolled in the CARE Program from the end of 2009 to current has increased by 36% Partnered with CPUC in 2010 to provide up to $5M in CARE Funds to support TEAF Program – over $2.9M in assistance provided to approximately 8,000 households Partnered with the CPUC to provide $3.9M in unused CARE / TEAF funds to leverage with the REACH program on a dollar for dollar basis. Since establishing the new REACH Plus Program, 1765 households have received an additional $622,000 in energy assistance an average of $352 per household 62,227 customers have elected the APS in lieu of deposit option YTD 2011, a 48% increase over YTD 2010 Under the American Recovery and Reinvestment Act (ARRA) PG&E received federal funding to assist low income customers with utility payments—leveraged with up to $5M in CARE funding On June 9, 2011, PG&E received permission to utilize $3.9M in remaining CARE funds to expand the REACH Program on a 1:1 dollar match. We also increased the maximum REACH pledge amount from $200 to $500 PG&E Customer Service Representatives (CSRs) are trained and expected to educate and inform customers of available assistance programs based upon the customer’s situation (i.e. CARE, FERA, HEAP, Medical Baseline, REACH, Payment Arrangement, Balanced Pay Plan, etc.). CSRs have the ability to offer an extended payment arrangement of up to 12 months LIHEAP—In 2010, nearly 112k customers received approximately $37M in assistance, and in 2011 YTD, nearly 68k customers have received approximately $23M in assistance All LIHEAP and REACH-assisted customers are automatically enrolled in CARE Policies and Procedures continued: