PACIFIC GAS & ELECTRIC CO
EXHIBIT 10.11
<DOCUMENT>
<TYPE>EX-10.11
<SEQUENCE>11
<FILENAME>a2104540zex-10_11.htm
<DESCRIPTION>EXHIBIT 10.11
<TEXT>
<HTML>
<HEAD>

</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#03SFO1159_10">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><A
NAME="li1143_exhibit_10.11"> </A>
<A NAME="toc_li1143_1"> </A>
<BR></FONT><FONT SIZE=2><B>Exhibit 10.11    <BR>  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>ACKNOWLEDGMENT AND AMENDMENT AGREEMENT<BR>  </B></FONT><FONT SIZE=2>(Amendment No.&nbsp;3) </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
ACKNOWLEDGMENT AND AMENDMENT AGREEMENT (this "</FONT><FONT SIZE=2><I>Agreement</I></FONT><FONT SIZE=2>") is dated as of April&nbsp;5, 2002, is by and among PG&amp;E NATIONAL ENERGY
GROUP,&nbsp;INC. ("</FONT><FONT SIZE=2><I>NEG</I></FONT><FONT SIZE=2>"), GENHOLDINGS I, LLC ("</FONT><FONT SIZE=2><I>Borrower</I></FONT><FONT SIZE=2>"), SOCIETE GENERALE, as Administrative Agent,
and THE BANKS AND LENDER GROUPS PARTY HERETO, and relates to (1)&nbsp;the Amended and Restated Credit Agreement, dated as of March&nbsp;15, 2002 (the "</FONT><FONT SIZE=2><I>Credit
Agreement</I></FONT><FONT SIZE=2>"), by and among Borrower, Soci&eacute;t&eacute; G&eacute;n&eacute;rale, as Administrative Agent and a Lead Arranger, Citibank, N.A.,
as Syndication Agent and a Lead Arranger, the other agents and arrangers listed on the signature pages thereto, JPMorgan Chase Bank, as issuer of the Letters of Credit thereunder, the financial
institutions party thereto from time to time as Banks, the persons party thereto from time to time as CP Conduits, the financial institutions party thereto from time to time as Related Banks and the
persons party thereto from time to time as Lender Group Agents; and (2)&nbsp;the Amended and Restated Guarantee and Agreement (GenHoldings I, LLC), dated as of March&nbsp;15, 2002 (the
"</FONT><FONT SIZE=2><I>NEG Equity Guaranty</I></FONT><FONT SIZE=2>"), by NEG in favor of Soci&eacute;t&eacute; G&eacute;n&eacute;rale, as Administrative Agent.
Capitalized terms used but not defined in this Agreement shall have the meanings given to such terms in the Credit Agreement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>RECITALS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the parties hereto wish to acknowledge certain events that have occurred under, and make certain amendments to, the Credit Agreement and the NEG Equity
Guaranty; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the foregoing and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>AGREEMENT  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Acknowledgments.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto acknowledge the following as of the date hereof and before
giving effect to the amendments set forth in </FONT><FONT SIZE=2><I>Section&nbsp;2</I></FONT><FONT SIZE=2> hereof: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;&nbsp;The
aggregate amount of Incremental Commitments is equal to $385,000,000 (the "</FONT><FONT SIZE=2><I>Current Incremental Commitments</I></FONT><FONT SIZE=2>"). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;The
Initial Committed Dollar Amounts are being increased by the Current Incremental Commitments as follows: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;The
Initial Committed Construction Loan Dollar Amount is being increased to $1,290,232,558.13; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;The
Initial Committed Working Capital/Project LC Loan Dollar Amount is being increased to $108,651,162.78; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;The
Initial Committed DSR LC Dollar Amount is being increased to $61,116,279.09. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;&nbsp;$117,142,376
of the Current Incremental Commitments is being used to decrease the Supplemental Equity Commitments as contemplated by </FONT> <FONT SIZE=2><I>Section&nbsp;3.15.4(d)</I></FONT><FONT SIZE=2> of the Credit Agreement and, after giving effect to such
reduction, the amount of the Supplemental Equity Commitments is equal
to zero. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4&nbsp;&nbsp;&nbsp;&nbsp;The
Fourth Project Funding Equity Commitments contemplated by the amendments set forth in </FONT><FONT SIZE=2><I>Section&nbsp;2</I></FONT><FONT SIZE=2> hereof
constitute Permitted Additional Equity as described in clause&nbsp;(a) of the definition thereof and, after giving effect to such Permitted Additional Equity and the Current Incremental Commitments,
Borrower will have satisfied the condition precedent set forth in </FONT><FONT SIZE=2><I>Section&nbsp;3.2.11</I></FONT><FONT SIZE=2> of the Credit Agreement, notwithstanding that the total of such
Permitted Additional Equity and the Current Incremental Commitments is $577,097,642 instead of $625,000,000. </FONT></P>

</UL>
<HR NOSHADE>
<!-- ZEQ.=1,SEQ=1,EFW="2104540",CP="PACIFIC GAS AND ELECTRIC COMPANY",DN="10",CHK=504458,FOLIO='blank',FILE='DISK025:[03SFO3.03SFO1143]LI1143A.;7',USER='RHOOKER',CD='24-FEB-2003;11:50' -->
<A NAME="page_li1143_1_2"> </A>
<UL>
<BR>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Amendments.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Credit Agreement Amendments.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The parties hereto agree that the Credit Agreement is hereby amended as
follows: </FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Section&nbsp;2.3.6(b)(iii)</I></FONT><FONT SIZE=2> of the Credit Agreement is deleted in its entirety. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;The
following </FONT><FONT SIZE=2><I>Section&nbsp;3.3.12</I></FONT><FONT SIZE=2> is added to the Credit Agreement after </FONT> <FONT SIZE=2><I>Section&nbsp;3.3.11</I></FONT><FONT SIZE=2>thereof: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"3.3.12 </FONT> <FONT SIZE=2><I>Debt to Capitalization Ratio</I></FONT><FONT SIZE=2>. After giving effect to such Credit Event and any Equity Contributions made on the Credit Event Date,
the Debt to Capitalization Ratio shall not exceed (a)&nbsp;at any time prior to December&nbsp;31, 2002, the Maximum Debt to Capitalization Ratio, and (b)&nbsp;at any time on or after
December&nbsp;31, 2002, (i)&nbsp;if no Pre-Last Completion Date Project Release has occurred, the Adjusted Maximum Debt to Capitalization Ratio, or (ii)&nbsp;if a
Pre-Last Completion Date Project Release has occurred, the Maximum Debt to Capitalization Ratio." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;The
phrase ", plus any Permitted Additional Equity that Borrower has elected in its sole discretion to provide pursuant to </FONT> <FONT SIZE=2><I>Section&nbsp;3.2.11</I></FONT><FONT SIZE=2>" is deleted from </FONT><FONT SIZE=2><I>Sections
3.15.1(a)</I></FONT><FONT SIZE=2> and </FONT> <FONT SIZE=2><I>3.15.3(a)</I></FONT><FONT SIZE=2> of the Credit Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;The
following sentence is added to the end of </FONT><FONT SIZE=2><I>Section&nbsp;3.10.4</I></FONT><FONT SIZE=2> of the Credit Agreement: </FONT></P>

<P><FONT SIZE=2>"Any
Equity Contribution True-Up Reimbursement made on the date of a Pre-Last Completion Date Project Release in respect of (x)&nbsp;Equity Contributions made or caused to be
made by Borrower pursuant to the proviso contained in </FONT><FONT SIZE=2><I>Section&nbsp;3.15.1(a)(i)</I></FONT><FONT SIZE=2> and/or (y)&nbsp;Equity Contributions made by NEG pursuant to </FONT> <FONT SIZE=2><I>Section&nbsp;2.01(c)</I></FONT><FONT
SIZE=2> of the NEG Equity Guaranty shall not exceed (x)&nbsp;the aggregate of all Equity
Contributions made on or prior to such date (less all In Kind Equity Payments) less (y)&nbsp;the Total Equity Commitment after giving effect to the reduction therein on such date pursuant to </FONT> <FONT SIZE=2><I>Section&nbsp;3.15.3(c)
</I></FONT><FONT SIZE=2>." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;Clause&nbsp;(i)
of </FONT><FONT SIZE=2><I>Section&nbsp;3.15.3(a)</I></FONT><FONT SIZE=2> of the Credit Agreement is replaced in its entirety with
"(i)&nbsp;$1,000,000,000 plus the aggregate of the Fourth Project Funding Equity Commitments, as the Fourth Project Funding Equity Commitments may be reduced from time to time in accordance with </FONT> <FONT SIZE=2><I>Sections 3.15.4</I></FONT><FONT
SIZE=2> and </FONT><FONT SIZE=2><I>9.17</I></FONT><FONT SIZE=2>, and". </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Section&nbsp;3.15.3(c)</I></FONT><FONT SIZE=2> of the Credit Agreement is replaced in its entirety with the following: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"(c)
In connection with the transfer by Borrower of 100% of its direct and indirect interests in any Approved Project Company in accordance with </FONT> <FONT SIZE=2><I>Section&nbsp;6.4</I></FONT><FONT SIZE=2>, the Total Equity Commitment shall be reduced
by the sum of (i)&nbsp;the unused Allocated Portion of the Total Equity Commitment
for the Approved Project being transferred and (ii)&nbsp;an amount of the Fourth Project Funding Equity Commitments for the other Approved Projects such that, after giving effect to such reduction,
the condition precedent set forth in </FONT><FONT SIZE=2><I>Section&nbsp;6.4(a)(iv)</I></FONT><FONT SIZE=2> is satisfied." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;</FONT><FONT
SIZE=2><I>Section&nbsp;3.15.4(d)</I></FONT><FONT SIZE=2> of the Credit Agreement is replaced in its entirety with the following: </FONT></P>

<P><FONT SIZE=2>"(d)
the portion of the New Incremental Commitments provided on or prior such date and allocated to the Total Construction Loan Commitment less the aggregate increase in the Project Costs for all
Approved Projects resulting from the New Incremental Commitments provided on or prior to such date (up to a maximum of the aggregate of the original Fourth Project Funding Equity Commitments for all
then Approved Projects), </FONT><FONT SIZE=2><I>plus</I></FONT><FONT SIZE=2>". </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=2,EFW="2104540",CP="PACIFIC GAS AND ELECTRIC COMPANY",DN="10",CHK=7349,FOLIO='2',FILE='DISK025:[03SFO3.03SFO1143]LI1143A.;7',USER='RHOOKER',CD='24-FEB-2003;11:50' -->
<A NAME="page_li1143_1_3"> </A>
<UL>
<UL>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;The
last sentence of </FONT><FONT SIZE=2><I>Section&nbsp;9.17</I></FONT><FONT SIZE=2> of the Credit Agreement is replaced in its entirety by the following: </FONT></P>

<P><FONT SIZE=2>"The
portion of any New Incremental Commitments provided pursuant to this </FONT><FONT SIZE=2><I>Section&nbsp;9.17</I></FONT><FONT SIZE=2> and allocated to the Total Construction Loan Commitment
(less the aggregate increase in the Project Costs for all Approved Projects resulted from such New Incremental Commitments) shall first be used to reduce the Available Equity Commitment up to the
aggregate of the original Fourth Project Funding Equity Commitments as contemplated by </FONT><FONT SIZE=2><I>Section&nbsp;3.15.4</I></FONT><FONT SIZE=2>." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;The
term "Supplemental Equity Commitments" in clause&nbsp;(d)(ii)&nbsp;of the definition of Allocated Portion in </FONT> <FONT SIZE=2><I>Exhibit&nbsp;A</I></FONT><FONT SIZE=2> to the Credit Agreement is replaced by the term "Fourth Project Funding Equity
Commitments". </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;Clause&nbsp;(ii)
of the proviso to </FONT><FONT SIZE=2><I>Section&nbsp;5.1.1(a)</I></FONT><FONT SIZE=2> of the Credit Agreement is replaced in its entirety with the
following: </FONT></P>

<P><FONT SIZE=2>"(ii)&nbsp;Borrower
may use the proceeds of Construction Loans borrowed on the Last Completion Date or, in the case of the following clause&nbsp;(A), on the date on which any Pre-Last
Completion Date Project Release occurs, (A)&nbsp;</FONT><FONT SIZE=2><I>first</I></FONT><FONT SIZE=2>, to make payments to NEG in respect of (x)&nbsp;Equity Contributions made or caused to be
made by Borrower with respect to an Approved Project pursuant to </FONT><FONT SIZE=2><I>Section&nbsp;3.15.1(a)</I></FONT><FONT SIZE=2>and/or (y)&nbsp;Equity Contributions made by NEG pursuant to </FONT> <FONT SIZE=2><I>Section&nbsp;2.01(c)
</I></FONT><FONT SIZE=2> of the NEG Equity Guaranty, and (B)&nbsp;</FONT><FONT SIZE=2><I>thereafter</I></FONT><FONT SIZE=2>, to reimburse NEG for
payments made under the NEG EPC Guaranties to pay Project Costs for Approved Projects, so long as, in each case, the conditions precedent set forth in </FONT> <FONT SIZE=2><I>Section&nbsp;3.10</I></FONT><FONT SIZE=2> are satisfied as of the date on
which such Construction Loans are made". </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;The
reference to "Section&nbsp;3.15.2(b)" in </FONT><FONT SIZE=2><I>Section&nbsp;7.2.4</I></FONT><FONT SIZE=2> of the Credit Agreement is changed to
"Section&nbsp;3.15.1(b)". </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;The
date "April&nbsp;30, 2002" in the third line of </FONT><FONT SIZE=2><I>Section&nbsp;9.17</I></FONT><FONT SIZE=2> of the Credit Agreement is changed to
"December&nbsp;31, 2002". </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;The
following sentence is added to the end of </FONT><FONT SIZE=2><I>Section&nbsp;9.17</I></FONT><FONT SIZE=2>: </FONT></P>

<P><FONT SIZE=2>"Nothing
in this </FONT><FONT SIZE=2><I>Section&nbsp;9.17</I></FONT><FONT SIZE=2> shall limit the ability of any Bank or Lender Group Member to transfer its Commitments and Loans in accordance with </FONT> <FONT SIZE=2><I>Section&nbsp;9.14</I></FONT><FONT
SIZE=2>." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;The
definition of Supplemental Equity Commitments is deleted in its entirety from </FONT><FONT SIZE=2><I>Exhibit&nbsp;A</I></FONT><FONT SIZE=2> to the Credit
Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;The
following definition of Adjusted Maximum Debt to Capitalization Ratio is added to </FONT><FONT SIZE=2><I>Exhibit&nbsp;A</I></FONT><FONT SIZE=2> to the Credit
Agreement in the appropriate alphabetical order: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Adjusted
Maximum Debt to Capitalization Ratio" means the lowest of (a)&nbsp;the Debt to Capitalization Ratio shown in the calculations most recently delivered pursuant to </FONT> <FONT SIZE=2><I>Section&nbsp;3.1.12</I></FONT><FONT SIZE=2> or </FONT><FONT
SIZE=2><I>3.2.20</I></FONT><FONT SIZE=2> of this
Agreement, (b)&nbsp;0.60 to 1.0 and (c)&nbsp;the quotient of (x)&nbsp;the Total Construction Loan Commitment divided by (y)&nbsp;the Total Construction Loan Commitment plus the Total Equity
Commitment." </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;The
following definition of Fourth Project Funding Equity Commitment is added to </FONT><FONT SIZE=2><I>Exhibit&nbsp;A</I></FONT><FONT SIZE=2> to the Credit Agreement
in the appropriate alphabetical order: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Fourth
Project Funding Equity Commitment" means, (i)&nbsp;with respect to the Millennium Project, $19,209,764.20, (ii)&nbsp;with respect to the Athens Project, $55,708,316.18,
(iii)&nbsp;with respect to the Covert Project, $57,629,292.60, (iv)&nbsp;with respect to the Harquahala Project, $59,550,269.02, and (v)&nbsp;with respect to any Substitute Project, the Fourth
Project Funding Equity Commitment for the Initial Project replaced by such Substitute Project. </FONT></P>

</UL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=3,EFW="2104540",CP="PACIFIC GAS AND ELECTRIC COMPANY",DN="10",CHK=607511,FOLIO='3',FILE='DISK025:[03SFO3.03SFO1143]LI1143A.;7',USER='RHOOKER',CD='24-FEB-2003;11:50' -->
<A NAME="page_li1143_1_4"> </A>
<UL>
<UL>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;The
following definition of New Incremental Commitments is added to </FONT><FONT SIZE=2><I>Exhibit&nbsp;A</I></FONT><FONT SIZE=2> to the Credit Agreement in the
appropriate alphabetical order: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"New
Incremental Commitments" means all Incremental Commitments provided after April&nbsp;5, 2002. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;The
following definition of Pre-Last Completion Date Project Release is added to </FONT><FONT SIZE=2><I>Exhibit&nbsp;A</I></FONT><FONT SIZE=2> to the
Credit Agreement in the appropriate alphabetical order: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Pre-Last
Completion Date Project Release" means any transfer by Borrower of 100% of its direct and indirect interests in any Approved Project Company in accordance with </FONT> <FONT SIZE=2><I>Section&nbsp;6.4</I></FONT><FONT SIZE=2> of this Agreement that
occurs prior to the Last Completion Date. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;NEG Confirmation.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;NEG hereby confirms that the Available Equity Commitment under the NEG Equity Guaranty
includes the Fourth Project Funding Equity Commitments, as the Fourth Project Funding Equity Commitments may be reduced from time to time in accordance with </FONT><FONT SIZE=2><I>Sections
3.15.4</I></FONT><FONT SIZE=2> and </FONT><FONT SIZE=2><I>9.17</I></FONT><FONT SIZE=2> of the Credit Agreement. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Effectiveness.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall become effective when signed by NEG, Borrower and the Majority Banks. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Amendments Limited Precisely as Written.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The amendments set forth herein are limited precisely as written
and shall not be deemed to be amendments of, or consents or waivers to, any other term or condition in the Credit Agreement or any of the documents referred to herein or therein. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Confirmation.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as expressly amended by this Agreement, all terms and conditions contained in the
Credit Agreement are hereby ratified and shall be and remain in full force and effect. Reference to the Credit Agreement in any Credit Document, or in any certificate or other instrument delivered
thereunder, shall mean the Credit Agreement as amended by this Agreement. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Counterparts.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5</FONT><FONT
SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;Governing Law.</I></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be governed by, and construed under, the laws of the State of New York,
without reference to conflicts of laws (other than Section&nbsp;5-1401 of the New York General Obligations Law). </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>SIGNATURE
PAGES OMITTED </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=4,EFW="2104540",CP="PACIFIC GAS AND ELECTRIC COMPANY",DN="10",CHK=380285,FOLIO='4',FILE='DISK025:[03SFO3.03SFO1143]LI1143A.;7',USER='RHOOKER',CD='24-FEB-2003;11:50' -->
<!-- THIS IS THE END OF A COMPOSITION COMPONENT -->
<BR>
<P><br><A NAME="03SFO1159_10">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_li1143_1">Exhibit 10.11</A></FONT><BR>
</UL>
<!-- SEQ=,FILE='QUICKLINK',USER=CSTCLAI,SEQ=,EFW="2104540",CP="PACIFIC GAS AND ELECTRIC COMPANY",DN="10" -->
<!-- TOCEXISTFLAG -->
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
