The parties have recently discussed the formation of Pacific Generation LLC (Pacific Generation), the proposed transfer of substantially all of the Company’s non-nuclear generation assets to this newly created public utility subsidiary, and the subsequent sale to investors of up to 49.9% of the equity interest in Pacific Generation. Under the proposal, although non-nuclear generation assets will be transferred to Pacific Generation, all power generation employees will remain with Pacific Gas and Electric Company (PG&E or the Company) subject to existing labor agreements. The Company plans to maintain majority control of Pacific Generation, which in turn would own generation assets, and PG&E anticipates no impacts to IBEW Local 1245 represented employees as a result of this transaction.