PCG PG&E Corporation

Item 1.01. Entry into a Material Definitive Agreement

On February 23, 2018, Pacific Gas and Electric Company (the “Utility”) obtained a $250 million unsecured term loan (the “Term Loan”) under a loan agreement (the “Term Loan Agreement”) with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”) and U.S. Bank National Association, as lenders (in such capacity, “Lenders”), joint lead arrangers and joint bookrunners and BTMU, as administrative agent (in such capacity, the “Administrative Agent” ). The Utility plans to use the loan proceeds for general corporate purposes.

The Term Loan matures on February 22, 2019. The Term Loan will bear interest based, at the Utility’s election, on (1) LIBOR plus an applicable margin or (2) ABR plus an applicable margin. ABR will equal the highest of the following: the Administrative Agent’s announced base rate, 0.5% above the overnight federal funds rate, and the one-month LIBOR plus an applicable margin. The applicable margin for LIBOR loans is 0.60%. The applicable margin for ABR loans is the greater of (1) zero and (2) 1% less than the applicable margin for LIBOR loans.

The Term Loan Agreement includes usual and customary covenants for loan agreements of this type, including covenants limiting: (1) liens to those permitted under the Utility’s senior bond indenture, (2) mergers, (3) sales of all or substantially all of the Utility’s assets, and (4) other fundamental changes. In addition, the Term Loan Agreement requires that the Utility maintain a ratio of total consolidated debt to total consolidated capitalization of not more than 0.65 to 1.00 as of the end of each fiscal quarter.

In the event of a default by the Utility under the Term Loan Agreement, including cross-defaults relating to specified other debt of the Utility or any of its significant subsidiaries in excess of $200 million, the Administrative Agent may, with the consent of the required Lenders (or upon the request of the required Lenders, shall), declare the amounts outstanding under the Term Loan Agreement, including all accrued interest, payable immediately. For events of default relating to insolvency, bankruptcy or receivership, the amounts outstanding under the Term Loan Agreement become payable immediately.

The foregoing description of the Term Loan Agreement is qualified in its entirety by reference to the full text of the Term Loan Agreement, which is attached as Exhibit 10.1 hereto and incorporated by reference herein.

The Lenders and/or their affiliates have in the past provided, and may in the future provide, investment banking, underwriting, lending, commercial banking and other advisory services to the Utility. The Lenders have received, and may in the future receive, customary compensation from the Utility for such services.