TERMINATION OF INTERIM SETTLEMENT AGREEMENT

The Parties agree that should this Interim Settlement Agreement not be approved by a ruling of the Presiding Administrative Law Judge or the Assigned Commissioner prior to September 28, 2001, either party shall have the right to terminate the Agreement, vacate the stay of litigation and request that the Commission schedule a further prehearing conference in Docket C. 01-08-013 to set a schedule for the Commission to resolve remaining issues..

Pacific Gas and Electric Company Kenneth A. Adelman

BY: Peter Ouborg By: Edward W. O'Neill