2009 OFFICER SHORT-TERM INCENTIVE PLAN

Exhibit 10.26

2009 OFFICER SHORT-TERM INCENTIVE PLAN

On February 17, 2009, the Compensation Committee of the PG&E Corporation Board of Directors (“Committee”) approved the specific performance targets for each component of the 2009 Short-Term Incentive Plan (“STIP”).  The Committee previously approved the STIP structure and the weighting of each component in December 2008.  Officers of PG&E Corporation and the Utility are eligible to receive cash incentives under the STIP based on the extent to which the adopted 2009 performance targets are met.  The Committee will continue to retain full discretion as to the determination of final officer STIP payments.

The corporate financial performance target, with a weighting of 50%, is based on PG&E Corporation’s budgeted earnings from operations that were previously approved by the Board of Directors, consistent with the basis for reporting and guidance to the financial community.  As with previous earnings performance scales, unbudgeted items impacting comparability such as changes in accounting methods, workforce restructuring, and one-time occurrences will be excluded.

The Committee also approved the 2009 performance targets for each of the four other measures set forth in the table below.  The 2008 performance results for each of these measures are included for comparative purposes.

2009 STIP Operational Performance Targets ⁽¹⁾