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LETTER AGREEMENTNO. R1·12·08·PGE B·::;;,:;·.:.""'·~,

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...•--~PACIFIC GAS AND ELECTRIC COMPANYLABOR RELATIONS AND HUMAN RESOURCES DEPARTMENTMAIL CODE N2ZP.O. BOX 770000SAN FRANCISCO, CALIFORNIA 94177(415) 973-4310

INTERNATIONAL BROTHERHOOD OFELECTRICAL WORKERS. AFL-CIO

LOCAL UNION 1245, LB.EW.P.O. BOX 2547

VACAVILLE, CALIFORNIA 95696(707) 452-2700

STEPHEN RAYBURNDIRECTOR AND CHIEF NEGOTIATOR

TOM DALZELLBUSINESS MANAGER

February 10, 2012

Mr. Tom Dalzell, Business ManagerLocal Union No. 1245International Brotherhood ofElectrical Workers, AFL-CIO

P.O. Box 2547Vacaville, CA 95696

Dear Mr. Dalzell:

As the result of discussions between the parties, the Company proposes to extend the commercialdriver's license wage increase to employees beyond the groups identified in the proposed Physical LaborAgreement settlement if the proposed Physical and Benefits Agreements are ratified on the first vote.The proposal is for the $600 COLA premium to be converted to an hourly rate.

All employees with a CDL currently in physical bargaining unit classifications that require a commercialdriver's license as part of the job definition, eligible or required by letter of agreement, or based upon theCompany and Union's current understanding that employees utilize a commercial driver's license for theconvenience of the Company, would have the $600 premium added to the base wage rate uponratification of the Physical and Benefits Agreement.

Attached is a list of the impacted classifications.

Incumbent employees in the Gas and Electric T&D Departments or General Construction Line or GasDepartments who promote or bid/transfer into the Title 200 Gas and Electric T&D Departments or Title300 Line or Gas Departments in the future will be eligible for the commercial driver's license premium ifthe position requires a CDL by job definition or a CDL to meet the 150% ratio or the local headquartersdesires an additional CDL for operating flexibility.

Incumbent employees in the Title 200 and 300 Fleet Department shall be treated the same as above.The Company and Union will address other departments, if needed, consistent with this agreement.

The Company is meeting with SAP/Payroll to determine how to include the CDL premium into the basewage rate. The Company will discuss alternatives with the Union and reach agreement on the processused.

This agreement is contingent upon the ratification of the Company's last, best, and final Physical LaborAgreement and Benefit Agreement offers and effective upon SAP implementation or no later thanJune 1, 2012. The parties agree to retroactively include the CDL base wage rate for retirementcalculation purposes for covered employees who retire on or after March 1, 2012.

Mr. Tom Dalzell -2- February 10, 2012UA R1-12-08-PGE

If you are in accord with the foregoing and agree thereto, please so indicate in the space providedbelow and return one executed copy of this letter to the Company.

Very truly yours,

PACIFIC GAS & ELECTRIC COMPANY

By: ~~ _Stephen A a burnDirector a lef Negotiator

The Union is in accord with the foregoing and agrees thereto as of the date hereof.

__ 2._-_\0_- , 2012

LOCAL UNION NO. 1245, INTERNATIONALBROTHERHOOD OF ELECTRICAL WORKERS, AFL-CIO

4~By: 'l_~r~__~_~~~----------

Tom DalzellBusiness Manag

Title 200 & 300 Classifications currently holding CDL required by Job Definition, LA (93-39) orTitle 200 Classifications eligible for CDLA Premium per LA 90-113,92-28 (PLO) or 90-228 (Fleet).

Note: Bolded Lines reflect T200 Classifications currently receiving CDL per LA

PSTypeT2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2

Job Code5001037650010155500101685001024550010260500103755001031750010191500101935001019450010242500101495001027350010276500103205001014750010161500101675001017050010186500104275001017550010174500102835001032250010144500102445001024150010298500103785001024350010324500103235001029450010148500103805001015650010170500102465007295850010361500101885001018950010234500102355001027150010272

Job TitleApprentice Cable SplicerApprentice Electrician-Electric & HydroApprentice FitterApprentice LinemanApprentice Lineman TransmissionCable SplicerCrane OperatorElectric Crew ForemanElectric Crew Foreman - TransmissionElectric Maintenance Crew LeaderElectric Transm & Dsbn AssistantElectrician - Electric & HydroEquipment MechanicEquipment Mechanic - DCPPEquipment Operator - GasField Clerk - Electric Transm & DsbnFieldpersonFitterFitter - ArcGarage SubforemanGas Control Technician - CGTGas Crew Leader Non-WeldingGas Crew Leader WeldingGas MechanicHeavy Equipment OperatorLead DriverLinemanLineman - TransmissionMechanic - Welder - CGTNight Cable SplicerNight Electric Transm & Dsbn AssistantTransm & Dsbn Equipment Opr - TransmTransmission & Distribution Equip OprTransmission Mechanic - CGTTruck Driver Heavy - GasUnassigned Cable SplicerUnassigned Electrician - Elec & HydroUnassigned FitterUnassigned LinemanUnassiqned Transmission Mechanic - CGTUnassigned Water System RepairpersonUnderground Constr Crew Frmn - ElectricUnderground Constr Crew Frmn - GasUnderground Constr Journeyman - ElecUnderground Constr Journeyman - GasUtility Equipment Mechanic - AuberryUtility Equipment Mechanic - Helms

Pay Scale Group22810481056111011188228015940740074607501096046712551259164504580524056005620730243506410640130016500433110010941440228310981662166014060465228604840563110314142068073707381077107812521253

T2T2T2T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3

500103475001036250368698500103055007080150010318502538775001014050010277500102795001028150010230500101625021015050010326500102315001032150253878503687000502582035001035150253879

CDL Covered ClassificationsUA R1-12-08-PGE

Utility Operator - HydroWater System RepairpersonPre-apprentice LinemanBackhoe Operator - *Gas Req after 1/1/2009Crane Operator - DavisCrane Operator - GC Field - GasCrane Operator - GC Field - Not GasDrillerEquipment Mechanic - GCField Garage Mechanic AField Garage Mechanic CField Mechanic InspectorFieldperson - GC - GasFieldperson - TowerHole Digger OperatorMechanical InspectorMiscellaneous Equipment Operator-GasMiscellaneous Equipment Operator-Not GasPre-apprentice LinemanTapping TechnicianTractor Operator - GasTractor Operator-Not Gas

1824207011141515159615971613040512601270127610060525052516901007164616161115026118401617

February 10, 2012

PS TypeT2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T2T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3T3

CDL List T200 & T300 Utilized for Company Convenience

Job Code500103605001022750010228500707425020259450010210503150435031504250315041500101975001023250010431500102585001037050010432500103715001011250010217500102025001020050010379500101575001024850010438502538765001037750010096500100975001015250073099500102085001017350010247500101715001017950010180500101785001018150010223500104355025388050251365500102055001020650251368502513665025136750253775

Job TitleApprentice Water System RepairpersonCompliance InspectorCompliance Inspector - UndergroundElectrician - SwitchingEngine Analyst - CGTGaragemanM&C Coordinator - ElectricM&C Coordinator - GasM&C Coordinator - TransmissionMaintenance Subforeman - DCPPMeteorologicallnstrumentpersonTransmission TroublemanTraveling Machinist - Diablo CanyonTraveling Mechanic-Rigger - DCPPTroublemanUnassigned Traveling Mech-Rigger - DCPPUtility Field Clerk - BakersfieldUtility Worker - Gas Transm & DsbnWorking ForemanWater System Crew LeaderApprentice Cable SplicerApprentice ElectricianApprentice Lineman - GCApprentice Welder - GC - GasBackhoe Operator-Not GasCable Splicer - GCCarpenter A-GasCarpenter B-GasElectricianField GaragemanGarage Working ForemanLabor Foreman ALineman -GCStreet FitterSubforeman A - OverheadSubforeman A - Station/HydroSubforeman A - UndergroundSubforeman BUtility Worker - GCWelder - GC - GasWelder - GC-Not GasWorking Foreman A - Non-ClimbingWorking Foreman B - ClimbingWorking Foreman C - GasWorking Foreman B - GasWorking Foreman A - GasWorking Foreman B - Non-ClimbingWorking Foreman C-Not Gas

CDL List Company ConvenienceLlA R1-12-08-PGE

Pay Scale Group206709980999049414220880100510041008075510362535114621742540217602420930084508302285048811072628161222820163016404740885085706301106058006500651064906530947261716180105085308540255025701071608

February 10, 2012

Memorandum of UnderstandingCommercial Driver's License

In addition to and consistent with the Company's proposed settlement offer and Letter of AgreementR1-12-08-PGE with respect to the commercial driver's license the Company proposes the following:

The Company and Union will review each classification to determine the future need for a commercialdriver's license.

As noted in the proposed Physical Agreement, upon ratification of the Physical and Benefits Agreements,all new hires, bidders/transfers from outside the lines of progression into the Title 200 Gas and ElectricT&D Departments or Title 300 General Construction Line or Gas Departments will be required to obtainand maintain a CDL without the premium or additional compensation.

For departments such as Fleet, new hires, bidders and transfers shall be treated the same as above.The Company and Union will address other departments if needed, consistent with this agreement.

It is not the intent of either party to omit classifications that utilize a commercial driver's license for theconvenience of the Company, by letter of agreement or required by job definition, therefore, the partiesagree to meet to discuss other classifications which may meet the criteria and were not included in Letterof Agreement R1-12-08-PGE.

There may be situations where the CDL is not required for all employees in a classification; however, dueto operational need, a CDL may be required for individuals in that classification. The parties agree tohandle these on a case-by-case basis via letter of agreement, where applicable.

PACIFIC GAS & ELECTRIC COMPANY

By s:;e:~*"~~-Director and 'Chief Negotiator

The Union is in accord with the foregoing and agrees thereto as of the date hereof.

LOCAL UNION NO. 1245, INTERNATIONALBROTHERHOOD OF ELECTRICAL WORKERS, AFL-CIO

_________ ~ __ ·_I_O_- ,2012 By: