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July 15, 2009Retirement Savings Plan for UnionRepresented EmployeesSummary Plan DescriptionThe PG&E Corporation Retirement Savings Plan for Union-RepresentedEmployees document contains details of the provisions of the Plan. If aconflict exists between this Summary Plan Description and the Plandocument, the Plan document governs. Unless specified otherwise in thePlan document, the provisions of the Plan, as amended and restated, areeffective as of July 15, 2009.This document constitutes part of a prospectus covering securities that havebeen registered under the Securities Act of 1933.
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Table of ContentsI.Introduction .1II.Eligibility and Participation .3Eligibility .3Participation .3Enrollment .3III.Contributions .4Employee Contributions .4Catch-Up Contributions .5Matching Employer Contributions .5Rollover Contributions from Previous Employer Plans .6IV.Contribution Limits .7Internal Revenue Code §402(g) Limit .7Internal Revenue Code §415 Limit .7Other Contribution Limits/Excess Contributions .7V.Investment Options .9Tier 1: Target Date Funds .9Tier 2: Core Funds .10Tier 3: Self-Directed Account (Fidelity BrokerageLink) .17VI.PG&E Corporation Stock Fund Dividends .18Dividend Election .18Dividend Pass Through .18Voting Rights .18VII.Money Movement .19Fund Transfers/Exchanges .19Restricted Fund Exchanges .21PG&E Corporation Stock Fund Exchanges .21VIII. Loans .23Loan Terms and Borrowing Limits .23Interest Rates .24Fees .24Electronic Funds Transfer Service .24Repayment .25Loan Repayment Suspensions .25Loan Defaults and Distributions .26Deemed Loans.26Funding Process and Recordkeeping .26
IX.Withdrawals .28Source and Sequence of Withdrawals .28After-tax Contributions .28Rollover Contributions .29Matching Employer Contributions .29Pre-tax Contributions (Including Catch-Up Contributions) .29Hardship Withdrawals .30Suspensions .31Withdrawals from Merged Plans .31Withdrawal Options When You Leave the PG&E Group .31X.Taxes and Penalties .33Withdrawals of PG&E Corporation Stock .33Direct Rollovers .34Early Distribution Penalties .34Minimum Required Distributions .35XI.Investment and Advisory Services (Financial Engines) .37On-Line Advice . 37Professional Management .37XII. Additional Plan Information .39Service .39Absence from Work .39Termination of Employment .39Re-employment .39Death of a Participant .40Significant Accounting Policies and Investment Disclosure .40Fees and Expenses .40Participant Account Activity and Plan Service Provider .41Plan Administration and the Corporation’s Powers and Duties .42Claims and Appeals Procedures .42ERISA Rights .43Borrowing, Pledging, and Assigning Interests in the Plan .44Future of the Plan .45Qualified Domestic Relations Orders (QDROs) .45Incorporation of Certain Documents by Reference .45Requests for Documents .46XIII. Significant Facts About the Plan .48Plan Name .48Type of Plan .48Plan Sponsor .48Plan Number and Employer ID Number .48Plan Year .48Participating Employers (“PG&E Group”) .48
Plan Administrator and Type of Administration .48Trustee .49Agent for Service of Legal Process .49
I.IntroductionPG&E Corporation (the Corporation) offers eligible employees of the Corporation and itssubsidiaries (the PG&E Group) a tax-advantaged way to save for retirement. The PG&ECorporation Retirement Savings Plan for Union-Represented Employees (the Plan) is arestatement of the Pacific Gas and Electric Company Savings Fund Plan for Union-RepresentedEmployees and is intended to evidence the transfer of sponsorship of the Plan from Pacific Gasand Electric Company to the Corporation. The Plan also includes an additional component—anEmployee Stock Ownership Plan (ESOP). The Plan is intended to qualify under §401(a) and§401(k) of the Internal Revenue Code (the IRC). The Plan is also intended to satisfy therequirements of §404(c) of the Employee Retirement Income Security Act of 1974, as amended(ERISA), including all applicable regulations issued by the United States Department of Labor andthe United States Treasury Department. Participants in the Plan are at all times fully vested intheir contributions and in all employer contributions credited to their account, together withearnings thereon.Employees who want to participate in the Plan may contribute a portion of their salary to the Planon a pre-tax basis, an after-tax basis, or a combination of both. Contributions made on a pre-taxbasis are made before income taxes are withheld, reducing the participant’s taxable income.Income taxes on pre-tax contributions and any earnings are deferred (postponed) until theparticipant withdraws the money from the Plan. Although after-tax contributions are deducted froma participant’s income after taxes are withheld, taxes on earnings are deferred so long as theamounts remain in the Plan.After an eligible employee has completed one year of service, certain participant contributions areeligible for matching employer contributions. Matching employer contributions are invested in unitsof the PG&E Corporation Stock Fund.The Plan is administered for the exclusive benefit of participants and their beneficiaries.Participation in the contributory portion of the Plan is voluntary. Individual investment strategiesfor voluntary contributions should reflect personal savings goals and tolerance for financial risk.Ultimately, a participant’s investment choice is an individual decision.Participants who need professional advice on how to invest contributions to the Plan should seekassistance from a financial consultant or tax advisor. Participants may also obtain investmentadvisory assistance through the services provided by Financial Engines. Specific information forparticipants about their individual accounts is available online at Fidelity Investments’ website,1
NetBenefitsSM, at www.401k.com, or by telephone from the Fidelity RSP Service Center at 1-877PGE-401K (1-877-743-4015). For information about the investment advisory services provided byFinancial Engines, please refer to Section XI.2
II. Eligibility and ParticipationEligibilityIn general, the Plan covers those union-represented employees of participating employers withinthe PG&E Group whose collective bargaining agreement provides for participation in the Plan.ParticipationIf you are a union-represented employee of a participating employer within the PG&E Group, youare automatically a participant in the Plan. Your voluntary contributions to the Plan will bededucted from your salary to the Plan starting with your first paycheck after you enroll.You may participate in the Plan for as long as you remain an employee of a participating employerwithin the PG&E Group.EnrollmentUpon commencement of employment, you are eligible to participate. You may enroll and elect tohave pre-tax, after-tax, or a combination of both types of contributions deducted from your pay.After your personal employment data is processed through your payroll department, you willreceive an enrollment kit from the Plan’s service provider, Fidelity Investments (Fidelity.)You can enroll through Fidelity NetBenefitsSM online account services at www.401k.com. You mayalso enroll using Fidelity’s RSP Service Center (1-877-PGE-401K or 1-877-743-4015). You maychoose the contribution percentage of your covered compensation and your investment elections.If you don’t provide investment instructions for your voluntary contributions, they will be allocatedto the Target Date Fund with a target date closest to your 65th birthday - until you specify otherwise(see “Investment Options,” page 9). Your contribution percentage will then be transmittedelectronically within seven days to your payroll department for processing within the next payrollcycle (see “Participant Account Activity and Plan Service Provider,” page 41). When you areenrolling, you should also designate a beneficiary. This may be done online by choosing“Personal Information”. If you do not have online access you may contact the Fidelity RSP ServiceCenter at 1-877-PGE-401K (1-877-743-4015) to request a beneficiary designation form. You maychange your beneficiary designation at any time.3
III. ContributionsEmployee ContributionsYou may elect to contribute any amount from 1% to 20% of your covered compensation on a pretax basis, on an after-tax basis, or a combination of both.COVERED COMPENSATION INCLUDES: straight-time pay for hours worked and for temporary upgrades; shift and nuclear premiums at the straight-time rate; vacation pay (including vacation upon termination or retirement), sick leave pay, holiday pay,and pay during an approved leave of absence ; inclement weather pay; differential pay for military service; pay for other time off with permission; temporary compensation under any state Workers’ Compensation Law; payments made directly by your employer because of your long-term disability; or Supplemental Benefits for Industrial Injury.COVERED COMPENSATION DOES NOT INCLUDE: pay or shift and nuclear premiums for more than 40 hours a week; overtime; one-time payments including incentives, recognition awards, severance payments, sale ofvacation, or any lump-sum payments; per diem allowances and other special fees or allowances; or payments from any other benefit plan provided through insurance, including short-termdisability, long-term disability, workers’ compensation, and state disability.Employee pre-tax, after-tax and catch-up contributions may be directed to any one or more of theinvestment fund options available under the Plan (see “Investment Options,” page 9).You may start, stop, or change the amount of your pre-tax, after-tax, or catch-up contributions tothe Plan at any time. You can do so by logging on to Fidelity NetBenefitsSM online accountservices at www.401k.com or by calling Fidelity’s RSP Service Center at 1-877-PGE-401K (1-877743-4015) and speaking with a Participant Services Representative or using the automated voiceresponse system.4
Contribution percentage elections must be allocated in 1% increments to any fund or combinationof funds and must equal 100% of your elected contribution amount. Changes are subject topayroll deadlines, but are generally effective within 30 days of receipt of your elections.Catch-Up ContributionsParticipants who will be age 50 or older before the close of the plan year (December 31) are eligibleto make catch-up contributions to the Plan in that plan year. If eligible, you may elect a catch-upcontribution from 1% to 20% of your covered compensation on a pre-tax basis up to the maximumdollar amount allowed by law (which amount is periodically adjusted by the Treasury Department.)The maximum catch-up contribution is 5,500 for 2009 and 2010.Catch-up contributions are in addition to your regular Plan contributions.In order for the amounts you elect to be eligible as catch-up contributions, you must reach one ofthe following limits (see “Contribution Limits,” page 7): IRC annual pre-tax §401(k) contribution limit ( 16,500 for 2009 and 2010), or IRC annual additions limit including your pre-tax, after-tax and employer contributionscombined ( 49,000 for 2009 and 2010), or Plan contribution percentage limit (20% of covered compensation).If you do not reach one of these limits, your catch-up contributions will be considered regular plancontributions. Catch-up contributions are not eligible for matching employer contributions.Your catch-up contributions will be treated as pre-tax contributions, but are not counted towardsthe IRC §401(k) limit or annual additions limit.Matching Employer ContributionsMatching employer contributions are made on behalf of all eligible employees who elect tocontribute to the Plan and are a way in which your employer shares in providing retirementsavings for you.You become eligible for matching employer contributions if you have completed 12 months of service.5
For eligible employees, matching employer contributions will be made in the following percentagesaccording to years of service:LENGTH OF SERVICEMATCHING EMPLOYER CONTRIBUTION1 to 3 years of service50% of the employee’s pre-tax and/or after-tax contributions that donot exceed 3% of the employee’s covered compensation.3 years of service or more50% of the employee’s pre-tax and/or after-tax contributions that donot exceed 6% of the employee’s covered compensation.To receive the maximum matching employer contribution, you must contribute the maximumpercentage of your pay that is eligible for the match each pay period. You must contribute 3% or6% of your covered compensation (depending on length of service) to receive the maximumemployer match.You are 100% vested at all times in matching employer contributions credited to your account.Matching employer contributions are invested in the PG&E Corporation Stock Fund. You may,however, reallocate the employer match to the other investment options after it has been creditedto your account.For more information about your investment options for matching employer contributions, (see“Investment Options,” page 9).Rollover Contributions from Previous Employer PlansYou may rollover (either directly or within 60 days upon receipt of the distribution) a taxable or nontaxable distribution from most qualified retirement plans offered by a previous employer – includingplans from tax-exempt non-profit organizations (IRC §403b plans) and state and local governments(IRC §457 plans) – or from an Individual Retirement Account (IRA). The Plan reserves the right torefuse any rollover from a participant that would disqualify the Plan under the IRC.You may invest rollover contributions in any of the investment options available under the Plan.Rollover contributions will be accounted for separately from any other contributions. Rollovercontributions and earnings may be withdrawn at any time.Rollover contributions are not eligible for matching employer contributions.6
IV. Contribution LimitsInternal Revenue Code §402(g) LimitPre-tax contribution amounts (other than catch-up contributions) are limited by rules contained inIRC §402(g). For 2009 and 2010, the annual limit for 401(k) plan pre-tax contributions is 16,500.This limit is adjusted periodically for inflation.If you reach the annual limit before the end of the year and want to continue to receive thematching employer contribution for the entire year, you should consider a provision under the Plancalled the “spillover election.” This election automatically changes your pre-tax contributions toafter-tax contributions when you reach the pre-tax limit. You may make the spillover election bycontacting Fidelity’s RSP Service Center at 1-877-PGE-401K (1-877-743-4015) or through FidelityNetBenefitsSM online account service (www.401k.com). If you make a spillover election, youroriginal pre-tax contribution elections will resume automatically in January of the following yearunless you specify otherwise.Internal Revenue Code §415 LimitAll employee pre-tax and after-tax contributions, excluding catch-up contributions, as well as allemployer contributions, may not exceed the IRC annual additions limit, which is the lesser of:(i) 100% of your adjusted gross compensation (Form W-2 Wage and Tax Statement reportedincome, including elective salary deferrals and/or reductions to a Corporation- or subsidiarysponsored welfare benefit plan or to a flex plan (cafeteria plan), and long-term disability benefits,but excluding bonuses, overtime pay, and other payments and benefits); or(ii) a dollar amount specified under IRC §415 ( 49,000 for 2009 and 2010) as adjusted periodicallyfor inflation.If you reach the IRC §415 limit before the end of any calendar year, your contributions to the Plan(except for eligible catch-up contributions) will be stopped.Other Contribution Limits/Excess ContributionsIRC §401(a)(17) specifies a dollar limit for annual covered compensation on which contributions maybe made, which is adjusted periodically for inflation. The earnings limit for 2009 and 2010 is 245,000. In addition, the average contribution percentages made by and on behalf of “highlycompensated” employees may not exceed the average contribution made by and on behalf of “nonhighly compensated” employees by more than the amounts set forth in IRC §401(k) and §401(m). Ingeneral, employees earning more than 110,000 per year in 2009 and 2010 are considered highlycompensated. This amount is generally updated annually.7
If any of the limits described above are exceeded, the Plan Administrator will notify you and willrefund any excess contributions by April 15 of the year following the year in which the excesscontributions were made. Any earnings or losses on refunds of participants’ excess contributionswill be allocated in accordance with IRS regulations. However, if you are eligible for catch-upcontributions, any excess contributions will be re-characterized as catch-up contributions (to theextent allowed by law).8
V. Investment OptionsPlan participants have a number of investment options for building individual investment portfoliosto achieve their retirement savings goals. You should keep in mind several factors whendetermining your individual investment strategy and deciding which investment funds meet yourneeds. Primarily, you should weigh your tolerance for risk against your personal savings goalsand how long you have to reach them. You should also consider your overall financial picture,including any external investments. Regardless of which funds you choose, it is always yourresponsibility to ensure that your fund choices meet your investment objectives.The Plan is an IRC §404(c) plan, and, as such, the Employee Benefit Committee of PG&ECorporation, which is the Plan Administrator, and other Plan fiduciaries may be relieved of liabilityfor any losses that result from a participant’s or beneficiary’s investment instructions.Investment information, including prospectuses and Fund Fact Sheets, can be found by logging on toFidelity NetBenefitsSM online account services at www.401k.com or by calling Fidelity’s RSP ServiceCenter at 1-877-PGE-401K (1-877-743-4015).Participants’ investment options are structured in three tiers:Tier 1: Target Date FundsTier 2: Core FundsTier 3: Self-Directed AccountTier 1: Target Date FundsTier 1 provides a suite of ten individual funds that each provides a broadly diversified portfolioconsisting principally of U.S. and international common stock and marketable fixed incomesecurities with an asset allocation that is suitable for a participant with a retirement date in thefund’s specified target year. The asset allocation is established by the fund’s investment managerand is incrementally adjusted to reflect an appropriate balance of opportunities for growth andstable income relative to the stated target retirement date. The RSP Retirement Income Fund isdesigned for investors who have reached their retirement date. The strategy is comprised mostlyof bond funds to provide stability and income; it also includes an allocation to equities to providediversification and some growth during retirement. You should be aware that the RSP RetirementIncome Fund will still be exposed to fluctuations in the market.Each Target Date Fund has its own Fact Sheet which describes the investment mix and strategyof each fund. These funds are based on well established investing concepts related to9
diversification and risk. However, these funds do not guarantee a positive return or adequatefunds throughout retirement. Be sure to review the applicable Fact Sheet before making yourinvestment decision.The Target Date Funds are the Plan’s default investment option(s). If you do not provideinstructions on how you want your contributions invested, they will be invested in the Target DateFund with a target date closest to your 65th birthday. For participants over age 65, they will beinvested in the RSP Retirement Income Fund.PG&E staff provides oversight and monitoring of the Target Date Funds investment manager toensure that the funds remain consistent with their stated objectives. Current information regardingfund performance and fees is available through Fidelity NetBenefitsSM at www.401k.com or by callingFidelity’s RSP Service Center at 1-877-PGE-401K (1-877-743-4015).Tier 2: Core FundsThe Core Funds include the following ten investment options: RSP Stable Value Fund RSP Bond Index Fund RSP Government Bond Index Fund RSP Large Company Stock Index Fund RSP Small Company Stock Index Fund RSP Total U.S. Stock Index Fund RSP International Stock Index Fund RSP World Stock Index Fund RSP Emerging Markets Enhanced Index Fund PG&E Corporation Stock FundPG&E staff provides oversight and monitoring of the Core Fund managers to ensure that the fundsremain consistent with their stated objectives.RSP STABLE VALUE FUNDThis Fund’s primary objective is preservation of principal, and a relatively stable rate of return. TheFund seeks to mitigate risk by investing in high credit quality instruments and by managing the Fund’sexposure to specific issuers. This does not mean that the Fund will never experience a negative rateof return, but the portfolio is managed with the intent of reducing this possibility.The Fund invests in a diversified portfolio of investment contracts issued by insurance companies,banks, and other financial institutions. An investment contract is an agreement where the issuer10
promises to pay a specific rate of return to the Fund for a period of time. Investment contractsmay be secured by fixed-income securities that are held in trust, or they may be unsecuredobligations where the strength of the promise to pay depends on the financial strength of thecontract issuer.The return on this Fund is determined by the pooled rates of return on all contracts, plus short-terminvestment earnings. The Fund is not immune from conditions that impact the financial markets andprincipal stability could be impacted should issuing entities experience financial difficulties. The Fundis not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmentagency.Be sure to review the Fund Fact Sheet for more information including the Fund’s investmentmanager, applicable fees and investment return experience before making your investmentdecision. The Fund Fact Sheet can be found on NetBenefitsSM at www.401k.com or by callingFidelity’s RSP Service Center at 1-877-PGE-401K (1-877-743-4015).Participants are not allowed to make more than one exchange into or out of the RSP Stable ValueFund in any 7-day period.RSP BOND INDEX FUNDThis Fund seeks to match the returns of the Barclays Capital Aggregate Bond Index, a benchmarkrepresenting the broad, intermediate maturity, investment-grade U.S. bond market.The Fund invests primarily in government, corporate, mortgage-backed, and asset-backed fixedincome securities of intermediate maturity; all bonds are investment grade.Since it is an index fund, the Fund invests in a well-diversified portfolio that is representative of thebroad domestic bond market.The performance of the Fund depends primarily on the value of its bond holdings, changes ininterest rates, and the credit quality and maturity of its investments. In general, bond prices tendto increase when interest rates decrease, and vice versa. This price fluctuation can producedecreases in principal value if interest rates rise; this effect is often most pronounced for longermaturity bonds. Therefore, the Fund’s investment in high-quality bonds with an intermediate-termmaturity will generally produce steady income with reduced risk compared with funds that invest inlonger maturity bonds.Be sure to review the Fund Fact Sheet for more information including the Fund’s investmentmanager, applicable fees and investment return experience before making your investment decision.11
The Fund Fact Sheet can be found on NetBenefitsSM at www.401k.com or by calling Fidelity’s RSPService Center at 1-877-PGE-401K (1-877-743-4015).RSP GOVERNMENT BOND INDEX FUNDThis Fund seeks to match the returns of the Barclays Capital US Government Bond Index, abenchmark representing investment-grade fixed income securities issued by t
The PG&E Corporation Retirement Savings Plan for Union-Represented Employees document contains details of the provisions of the Plan. If a conflict exists between this Summary Plan Description and the Plan document, the Plan document governs. Unless specified otherwise in the Plan document, the provisions of the Plan, as amended and restated, are
