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Contract Type:

CONTRACT OPPORTUNITY ANNOUNCEMENT

X X

Professional Service Contract Construction Contract Service Contract Material Requirement Other

Opportunity Summary:

Contract Opportunity Title: Envelope Inserter Equipment and HW/SW Maintenance Services

Request For: Proposal

Estimated Contract Value: $1,000,000 to $5,000,000 USD

Work Location: Printing & Bill Presentment - West Sacramento, CA

Response Due Date: Respond with your interest no later than October 9, 2020.

Opportunity Description: Background:

Based in San Francisco through 2022, and Oakland beginning in 2022, Pacific Gas and Electric Company (www.pge.com), a subsidiary of PG&E Corporation, is one of the largest combined natural gas and electric energy companies in the United States. Based in San Francisco with more than 23,000 employees, the company is the primary natural gas and electric service provider for Northern and Central California. The company’s 70,000-square-mile service area stretches from Eureka to the north to Bakersfield in the south and from the Pacific Ocean in the west to the Sierra Nevada in the east. PG&E delivers some of the nation’s cleanest energy to 16 million people. The company is a subsidiary of PG&E Corporation. (NYSE Symbol: PCG).

The Printing & Bill Presentment (PBP) operation is located at the West Sacramento, California, PG&E Facility.

PG&E PBP Mission Statement:

To be the preferred supplier of printing and mailing services by providing quality services at competitive prices, and to ensure that our customers and internal clients receive their energy statements, letters, checks and reports on a timely and accurate manner.

Contract Opportunity Description:

PG&E COA General Information

Printing & Bill Presentment Equipment

Looking to replace/upgrade 3 high volume inserters and 2 smaller/medium range inserters. Looking to have ability to meter in line on two medium volume inserters and potentially 1 in line on the high-volume inserter. Also, looking to replace table-top inserter for smaller cut sheet job, checks, etc. Current table-top inserts have 4 feeders and ability to combine multi-sheet document into envelope. All the table-top work is non-barcoded.

Current Equipment:

• Quantity of 3 each Pitney Bowes Mailstream Service (MPS) Inserters – End of Life • Quantity of 1 each Pitney Bowes Mailstream Evolution (MSE) Dual Input Inserter- End of Life • Quantity of 1 each Rival Modular Inserting System – End of Life

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Mail Piece Volumes & Sheet Counts

• Mail Pieces Daily Average =213,500 to 214,000 • Sheets: 512,700 day; 10,767,000-month, 129,204,000 Year • 91% of the work is Bills and Credit Notices (Manifest and Metered Mail)

o 89% of the Bills and Credit notices are Manifested Mail. o Tri-fold bills are 1-5 sheets, 2.47 sheet average, credit notices are 1 sheet o Half-fold bills are 6-10 sheets, average 6.4 pages o Flats bills are 11+ sheets, 20 sheet average

• 9 % of Tri-Fold, half fold or flat envelope non-barcoded work. (Mostly permit mail) • Some 1-up barcoded work for special projects (special letters?) • Reprints are some times processed as cut sheet by hand or DI950 (table top inserter) • Bills & large letter volumes are roll to roll

Shop Floor Controls

• “End of Day” manifest/postal reporting • Production Intelligence from print through insertion • Accountability and integrity through mail piece level tracking technology • SLA management technology • Statistical reporting and analysis

o This include operator level statistics and productivity • Print quality confirmations • Automated reprint methodology (currently Open Loop) possible close loop solution. • Ability to repurpose incoming files to apply barcodes, text and images. • Window dashboard into what is happening on the production floor via web-based technology • Customized Reporting for critical data

Continuous 2-up material is printed foot first A-Z.

Continuous 1-up and 2-up Welcome Letters (2D barcode) are printed headfirst Z-A, same processing as 2-up applications.

Last USPS pick up is at 7 pm each night M-F.

SW/HW On-Site Maintenance Services

• Requesting on site coverage of 3 techs throughout day with overlap to handle maintenance issues as they arise and have overlap between technicians to complete preventive maintenance.

• Multi-year pre-payment benefit options • Software should be made available electronically, via website or download • Minimal turnover time with machines between different material used, preferable done electronically through

machines based on stored job data.

Attachments:

1. Attachment A: PG&E Performance & Service Level Management Terms 2. Attachment B: PG&E Service Level Requirements

Supply Chain Responsibility Considerations: The selected supplier is encouraged to align with PG&E’s Supply Chain Responsibility policies and procedures. The supplier will be asked to provide a detailed description of their internal, specific supply chain responsibility program and practices related to supplier diversity, environmental sustainability and ethical business conduct.

Conduct Requirements:Suppliers, as well as their employees, subcontractors and sub-suppliers, must adhere to the principles and standards outlined in our Supplier Code of Conduct as they provide goods and services to PG&E. Review Code and understand its obligations here: http://www.pgecorp.com/corp/about-us/compliance-ethics/program/third-party-code-conduct.page

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Qualifications: Contractor’s Services shall include all Work to be performed and, unless expressly excluded, all labor, materials, supervision, products, equipment, required hardware, software, design, … and any other Work and requirements not specified or indicated but which are necessary to provide the Goods and Services and to complete the Work in a quick-turn-around, proper, timely, substantial and workmanlike manner.

How to Respond:

All interested companies with the expertise, experience and capability of manufacturing high quality equipment and providing maintenance services for above-mentioned equipment must send their Marketing Materials, Specification Sheets, SLA proposal, and Term & Conditions to:

Martin Garcia Senior Category Leader M9gu@pge.com

PARTICIPATION IN ANY SUBSEQUENT BIDDING PROCESS OR NEGOTIATION, INCLUDING ANY REQUEST FOR PROPOSAL, FOR THESE PRODUCTS AND SERVICES WILL BE BY INVITATION ONLY.

Page 4 of 11ATTACHMENT A 1. PERFORMANCE AND SERVICE LEVEL MANAGEMENT

1.1 General: PG&E values operational excellence and vendor partnerships that demonstrate commitment and contribution to on-going excellence and improvement. This Contract covers a wide scope of performance and continuous improvement related categories and requirements. The scope and categories can vary depending on the Good(s) or Service(s) to be delivered to PG&E and the associated quality standards and expectations. In addition to requirements specified herein, more detailed and specific requirements may be required and found within related CWA/SOW or POs. Such requirements shall not be unreasonably withheld. Contractor shall work with PG&E to develop processes to effectively manage and mutually improve Good or Service performance, PG&E need or demand management, or other production and operational efficiencies. Contractor shall, upon request provide PG&E a plan or program to describe actions that shall be taken to support PG&E’s efforts to control and reduce its ongoing costs while optimizing performance and service level management. Contractor’s plan shall include, but not be limited to, areas for example that address good or material quality, service management, inventory management, usage management and analysis, logistics, invoicing, etc.

1.2 Account Management and Organization: Prior to MSA and related CWA/SOW or PO execution with PG&E, Contractor shall designate and specify Contractor’s PG&E account lead and executive, contract manager, and the delivery manager with full responsibility for Contractor performance on applicable contracted Good or Service delivery to PG&E. PG&E reserves the right to request alternate or replacement Contractor personnel. Such requests shall not be unreasonably withheld or denied. Contractor shall maintain and provide a complete organizational chart, specifying the organizational relationships, titles and functional roles of each key member of the Contractor team, and additionally shall supply an associated contact information list (name, title, role, address, e-mail, office and mobile phone numbers). Contractor shall promptly notify PG&E of key changes to the organization chart and provide an updated chart and contact list upon a key change. PG&E and Contractor agree to work together to define and align appropriate working leads and counterparts.

1.3 Business and Performance Reviews: Contractor’s business activity and performance shall be periodically reviewed together with PG&E at mutually-agreed-upon time(s) and location(s). An enterprise review of Contractor’s firm wide PG&E activity and performance across all its Good and Services delivered to PG&E may be performed semi-annually, and no more frequently than quarterly. Contractor agrees to periodically meet with PG&E and include Contractor leadership appropriate for such a business review and shall prepare an activity summary for PG&E’s review (Ref. Exhibit XX). Contractor further agrees to periodic business partner and performance reviews performed quarterly or more frequently as deemed necessary and appropriate by PG&E for specific contracted Good and Service, specified as necessary under applicable CWA/SOW or PO.

1.4 Ongoing Performance Measures: In order to foster quality partnering and maintain Contractor Service at an optimal level, PG&E reserves the right to measure and evaluate Contractor’s performance in areas which include, but are not limited to: the quality and completeness, accuracy and timeliness of Goods and Services delivery, the cost of Goods and Services, Contractor responsiveness and delivery to PG&E satisfaction, and any other such measure or metric deemed essential to helping maintain or develop the highest possible quality Contractor Goods and Services. Other measures may include supplier safety, sustainability and diversity, innovation, and risk. Contractor agrees to actively support this process and where required or requested, demonstrate and report out on Contractor performance. Contractor shall work closely with PG&E to review Contractor performance, proactively mitigate Contractor performance issues or problems, and promptly resolve and remediate issues or problems as they may arise.

1.4.1 Service Level Agreement Matrix: Unless otherwise specified in writing by PG&E, for all Work planned for one (1) year or more, or upon request by PG&E, Contractor shall within two (2) weeks of starting Work, develop and maintain a PG&E approved Service Level Agreement Matrix. The Service Level Agreement Matrix shall include, but not be limited to: service level category, description, minimum service level, response times for case/incident acknowledgement, resolution, status updates, as well as escalation procedures and contacts for each service category. Contractor’s performance against Service Level Agreement Matrix (es) shall be measured by Contractor and reported to PG&E quarterly at minimum, or monthly upon PG&E’s request. Contractor shall provide to PG&E, as part of Contractor’s performance reporting, a set of soft-copy e-reports (and hard copy upon PG&E request), in a PG&E approved format, to verify Contractor’s performance against and compliance with applicable Service Level Agreement Matrix measures. Contractor shall provide PG&E with sufficient metric detail including those originating from Subcontractor(s) to validate measures and provide transparency to underlying computational data.

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Page 5 of 111.4.2 Scorecarding: PG&E reserves the right to implement a scorecard process (“scorecarding”), reflecting vendor performance and service delivery results against expectations. If required by PG&E, Contractor agrees to constructively participate in scorecarding and work to maintain acceptable Contractor results and where necessary work towards demonstrated improved results over the prior scorecard period results. Scorecarding may be required of Contractor at an enterprise level, specific MSA level for all related Goods and Services, or for a specific Good and/or Service as may be included in a CWA/SOW or PO. Contractor shall perform the Services in a manner that meets or exceeds the levels of performance indicated for each scorecard performance measure category. Should Contractor performance not meet PG&E expectations and fail to promptly improve to a satisfactory level(s), appropriate remediation may be requested by PG&E and recourse may be exercised up to and including without limitation applicable CWA/SOW, PO or MSA terminationin accordance with the Termination section of the Contract or CWA/SOW. The scorecard process may integrate relevant Service Level Agreement Matrix data.

1.5 Continuous Improvement: Both PG&E and Contractor agree to the concept of continuous improvement. To accomplish this, service levels, key measurements and performance categories may be modified, added or substituted by PG&E during the term of this Contract, in order to achieve a fair, accurate and consistent measurement of Contractor’s performance of the Work. Contractor agrees to seek and demonstrate continuous improvement of its Goods and Services. Contractor will keep a detailed list of all substantive Continuous Improvements to be made available to PG&E upon request and examined at periodic Business and Performance Reviews or other performance meetings with PG&E.

1.6 Root Cause Analysis: For all critical Good or Service failures, incidents/problems or otherwise at the request of PG&E, Contractor shall produce a Root Cause Analysis report of the Good or Service issue. A PG&E approved Root Cause Analysis report shall be completed by Contractor (Ref. Exhibit XX), documenting the issue within five (5) business days. The Root Cause Analysis shall include sufficient incident(s) detail, target resolution date and remediation (action plan), and updated as needed. Unless otherwise agreed to in writing by PG&E, Root Cause Analysis shall be tracked in an applicable Service Level Matrix and reflect opportunity for Contractor improvement, as applicable.

1.7 Supplier Corrective Action Report: For any PG&E rejected non-conforming or failed Good supplied by the Contractor, at PG&E’s request and initiation, Contractor shall complete a Supplier Corrective Action Report (SCAR) specifying Contractor’s actions and response to the rejected Good. Contactor agrees to complete the Supplier Corrective Action Report by the due date specified in the request including the requisite information, including but not limited to, issue/problem containment, short/long term action, root cause, validation of corrective action effectiveness, preventative action, and implementation timeline.

1.8 Affordability: Contractor shall be proactive with regard to cost containment by working to reduce prices when possible, recommending less expensive Good or Service that is of equal or greater value to PG&E and ensuring Subcontractors maintain the same commitments to which Contractor has agreed. Contractor shall extend at all times, most favored nations pricing to PG&E and upon PG&E request, Contractor shall affirm such pricing status to PG&E. All Contractor pricing and costs to PG&E shall be reasonable, prudent and necessary. PG&E is interested in bottom line savings and reducing internal expenditures through various methods, including the best possible prices, discounts, payment terms and other creative means. Contractor shall offer direct and indirect cost savings considerations, including innovative thinking and solution offerings that help optimizes PG&E’s Total Cost of Ownership and soft savings.

1.9 Product and Service Standardization: Contractor shall provide ideas designed to standardize Goods or Services in order to reduce PG&E’s Total Cost of Ownership and to address standardization issues and improvements such as analyzing usage and service patterns, suggesting viable alternatives and reducing the overall number of redundant material codes.

1.10 Data: Unless otherwise agreed to in writing by PG&E, Contractor shall provide detailed supporting information for its performance reports to PG&E in machine-readable form suitable for consumption and use on a standard personal computer. Contractor agrees to continuous improvement of data processing, including streamlined and automated data processing and transfers between Contractor and PG&E. The data and detailed supporting information shall be considered PG&E data, and PG&E may access such information online and in real time, where feasible, at any time during the term of this Contract.

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Page 6 of 111.11 Service Delivery Partners: The achievement of the Service Levels by Contractor may require the coordinated, collaborative effort of its Subcontractor(s). Contractor shall provide a single point of contact for the prompt resolution of all Service Level Defaults and all failures to provide high quality Goods and Services to PG&E, regardless of whether the reason for such Service Level Defaults or failure to provide high quality Goods and Services to PG&E, was caused by Contractor or its Subcontractor. Unless otherwise specified and agreed to in writing by PG&E, Contractor shall manage, bear full responsibility for, and present any and all performance reports or related data and analysis that may be prepared with the support of a Subcontractor(s), just as if it were Contractors own.

1.12 Contractor Development: Should problems in performance of the Work be identified, Contractor shall at PG&E’s request draft a development or “Continuous Improvement Plan” to rectify those problems. Contractor’s Continuous Improvement Plan must be resolved to PG&E’s complete satisfaction within two (2) calendar weeks of problem identification. Contractor’s Continuous Improvement Plan shall specify the resources and time required to make all necessary improvements. Contractor shall implement the Continuous Improvement Plan and make best efforts to complete improvements to PG&E’s full satisfaction as soon as possible, and no later than two (2) calendar weeks or the mutually agreed-to date specified in the Continuous Improvement Plan. If Contractor fails to perform in accordance with the Improvement Plan, PG&E may cancel this Contract in accordance with Termination section of the Contract. Contractor shall promptly implement such plan once it has been approved by PG&E.

1.13 Contractor Reporting: All Contractor performance based reporting shall be of quality suitable for leadership and executive presentation and generally free of errors and omissions, with appropriate references, source citations and footnotes. Unless otherwise agreed to by PG&E in writing, all Contractor reports shall be in a PG&E approved format and made available to PG&E for leadership presentation within fifteen (15) calendar days of each reporting period end, including five (5) business day pre-read draft period. Contractor agrees to report upon relevant comparative historical performance data, trends and other analysis suitable for PG&E management decision making, and include where applicable, Contractor’s industry insights and commentary. Contractor agrees to provide as appropriate and relevant to Good or Service provided PG&E, periodic operational reports, including but not limited to for example: Ordering Trends, Volumes and Goods Ordered Report, Delivery Report, Product/Service Usage Report, Product/Service Incident Failure, Product/Service Information Ad-Hoc Reports, etc..

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Page 7 of 11ATTACHMENT B

PG&E Service Level Requirements

PG&E and contractor agree to periodically review and adjust measures as necessary.

SERVICE LEVEL AGREEMENT NUMBER 1 Title: Uptime availability – Large

Volume Inserters Effective date: Upon HSMA signature

Service Description: Vendor will ensure the MPS Inserters will be fully functional and available for inserting during the shift hours of 6am to 10:30pm PT M-F (PST). This measurement excludes preventative maintenance time and other agreed upon exclusions. Scorecard Category: Quality Service rating:

1 2 3 4 - Target 5

Measurement: <=79.9% Between 80%-84.9%

Between 85%-94.5%

Between 94.5 and 95.4%

>=95.4%

Service Rating Calculation: Percentage of uptime hours /total shift hours in a month. This percentage will be calculated on each machine. Service Rating Exceptions: Excludes preventative maintenance (PM) and other agreed upon exclusions. PM should be scheduled in advanced and agreed to. Service Measurement Source: Vendor (primary) / PG&E (Secondary) Response Procedure for Unsatisfactory Rating: Vendor will provide within 5 business days after the close of the month, a root cause analysis report that contains the reason for a rating of 1 or 2 for uptime availability and the plan/actions for prevention of recurrence and upon request for a rating of 3.

Vendor shall discount monthly pro rata of the applicable service invoice by proportional to service rating on the fixed maintenance costs for uptime availability lower than 95% for the equipment that were not available for production. Discount shall increase by 2 for each successive uptime availability failure in future months.

Service Rating Discount Percentage 3 2.5% 2 5% 1 7.5%

PG&E reserves the right to cancel the contract for cause in accordance with the termination section of the contract, if uptime availability failure happens 4 times within a rolling 6 month period.

Any early termination will request refund of any applicable pre-paid balance within 30 days of breach.

SERVICE LEVEL AGREEMENT NUMBER 2 Title: Uptime availability – Mid

Volume Insert Effective date: Upon HSMA signature

Service Description: Vendor will ensure the MSE Inserter will be fully functional and available for use during the shift hours of 6 am to 10:30 pm M-F (PST). This measurement excludes preventative maintenance time. This measure includes the Print Messenger attached to the machine. Scorecard Category: Quality

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Service rating:

1 2 3 4 - Target 5

Measurement: <=79.9% Between 80%-84.9%

Between 85%-94.4%

Between 94.5-95.4%

>=95.5%

Service Rating Calculation: Percentage of uptime hours /total shift hours in a month. Service Rating Exceptions: Excludes preventative maintenance hours. Service Measurement Source: Vendor (primary) / PG&E (Secondary) Response Procedure for Unsatisfactory Rating: Vendor will provide within 5 business days after the close of the month, a root cause analysis report that contains the reason for a rating of 1 or 2 for uptime availability and the plan/actions for prevention of recurrence and upon request for a rating of 3.

Vendor shall discount monthly pro rata of the applicable service invoice by proportional to service rating on the fixed maintenance costs for uptime availability lower than 95% for the equipment that were not available for production. Discount shall increase by 2 for each successive uptime availability failure in future months.

Service Rating Discount Percentage 3 2.5% 2 5% 1 7.5%

PG&E reserves the right to cancel the contract for cause in accordance with the termination section of the contract, if uptime availability failure happens 4 times within a rolling 6 month period.

Any early termination will request refund of any applicable pre-paid balance within 30 days of breach.

SERVICE LEVEL AGREEMENT NUMBER 3 Title: Uptime availability –

Desktop/Flats Effective date: Upon HSMA signature

Service Description: Vendor will ensure the Rival Inserter will be fully functional and available for printing during the hours of 6 am to 10:30 pm M-F (PST). This measurement excludes preventative maintenance time. Scorecard Category: Quality Service rating:

1 2 3 4 - Target 5

Measurement: <=79.9% Between 80%-84.9%

Between 85%-94.4%

Between 94.5-95.4%

>=95.5%

Service Rating Calculation: Percentage of uptime hours /total shift hours in a month. Service Rating Exceptions: Excludes preventative maintenance hours. Service Measurement Source: Vendor (primary) / PG&E (Secondary) Response Procedure for Unsatisfactory Rating Vendor will provide within 5 business days after the close of the month, a root cause analysis report that contains the reason for a rating of 1 or 2 for uptime availability and the plan/actions for prevention of recurrence and upon request for a rating of 3.

Vendor shall discount monthly pro rata of the applicable service invoice by proportional to service rating on the fixed maintenance costs for uptime availability lower than 95% for the equipment that were not available for production. Discount shall increase by 2 for each successive uptime availability failure in future months.

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Service Rating Discount Percentage 3 2.5% 2 5% 1 7.5%

PG&E reserves the right to cancel the contract for cause in accordance with the termination section of the contract, if uptime availability failure happens 4 times within a rolling 6 month period.

Any early termination will request refund of any applicable pre-paid balance within 30 days of breach.

SERVICE LEVEL AGREEMENT NUMBER 4 Title: Service Delivery – Service Call-

Back Response for software for high or critical errors

Effective date: Upon HSMA signature

Service Description: Vendor will respond within or equal to two hours for service calls related issues for with critical or high severity levels for the Vendor software. Scorecard Category: Delivery Service rating:

1 2 3 4 - Target 5

Measurement: Critical

>= 90 minutes Between 60 and 90 minutes

Between 30 and 60 minutes

Between 15 and 30 minutes

<= 15 minutes

High >= 8 hours Between 6 and 8 hours

Between 4 and 6 hours

Between 1 and 4 hours

<= 1 hour

Service Rating Calculation: The number of minutes it takes for Vendor to return a service call from the time a ticket is open to the time the PG&E operator received a call back on severities critical or high for the Output Manager software issues during the hours of 8am-5pm PT, M-F Service Rating Exceptions: No exceptions. Service Measurement Source: PG&E operator tracking log Response Procedure for Unsatisfactory Rating: Vendor will provide within 5 business days after the resolution of the incident the reason for unsatisfactory service and the plan/actions for prevention of recurrence.

PG&E reserves the right to cancel the contract for cause in accordance with the termination section of the contract, if service delivery failure happens 4 times within a rolling 6-month period.

SERVICE LEVEL AGREEMENT NUMBER 5 Title: Service Delivery – Preventive

maintenance schedule completed Effective date: Upon HSMA signature

Service Description: All preventive maintenance will be completed for the MPS, MSE, and Rival inserters each month based on volumes. Scorecard Category: Delivery

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Service rating:

1 2 3 4 - Target 5

Measurement :

<50% of PM schedule

completed in the month

50-74% of PM schedule

completed in the month

75-99% of PM schedule

completed in the month

Scheduled PM(s)

completed in the month

TBD

Service Rating Calculation: A standard maintenance checklist for each inserter will be given to PG&E monthly to determine percent of tasks complete. Service Rating Exceptions: PG&E reserves the right to grant exceptional service level acknowledgement at a level 5. Service Measurement Source: Vendor provided monthly standard maintenance checklist Response Procedure for Unsatisfactory Rating: Vendor will provide within 5 business days after the close of the month the reason for unsatisfactory service and the plan/actions for prevention of recurrence.

SERVICE LEVEL AGREEMENT NUMBER 6 Title: Overall Customer Satisfaction

Scores - Monthly Effective date: Upon HSMA signature

Service Description: Monthly customer satisfaction surveys completed by all key PG&E staff that interact with Vendor, including operators. Examples of questions on the survey are as follows: Overall customer satisfaction, Knowledge and skill set of employees to resolve problems, provide guidance, and or support new efforts, and following through on commitments made to PG&E by Vendor employees. Scorecard Category: Customer Satisfaction Service rating:

1 2 3 4 - Target 5

Measurement: N/A Less than 5 6-7 8-9 10 Service Rating Calculation: An average of all customer satisfaction surveys submitted for each quarter. Service Rating Exceptions: No exceptions. Service Measurement Source: Customer satisfaction survey Response Procedure for Unsatisfactory Rating: Vendor will provide within 5 business days after the close of the month the reason for unsatisfactory service and the plan/actions for prevention of recurrence.

SERVICE LEVEL AGREEMENT NUMBER 7 Title: Invoicing: Timely and accurate Effective date: Upon HSMA signature Service Description: Periodic billing (invoicing) for Service and Goods (including applicable, credit, discount or refund), will be prepared and submitted by Contractor timely and free of errors. Contractor shall post corresponding invoices in Taulia as an Invoice Receipt (IR) only after email approval is provided post receipt of draft billing to ensure it initiates the payment process smoothly. If Contractor posts through Taulia before charges are approved, it will be rejected.

• Service Invoicing: Receive an accurate service invoicing from Contractor by the 10th of the month following the close of the billing period, unless otherwise mutually agreed-to in writing.

• Consumable Invoicing: PG&E’s expectation is to receive from Contractor accurate and timely invoicing for all consumable orders (or other applicable Goods). Once the order is

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confirmed as properly received in the warehouse as complete, we expect to be invoiced within 10 business days following the close of the billing period (no less frequently than monthly)

Scorecard Category: Cost Service rating:

1 2 3 4 - Target 5

Service Received any Received by Received by Received by Received Invoicing time beyond the the 12th of the the 11th of the the 10th of the before the Measurement: 12th of the

month, free of errors.

month, free of errors.

month, free of errors.

month, free of errors.

10th of the month, free of errors.

Consumable Beyond the 12th Received on Received on Received on Received Invoicing business day the 12th the 11th the 10th before the Measurement after the order

was received, free of errors.

business day after the order was received, free of errors.

business day after the order was received, free of errors.

business day after the

order was received, free

of errors.

10th business day after the

order was received, free

of errors. Service Rating Calculation: Invoicing for PG&E approval, i.e. in Taulia, applied to rating scale. Draft or advance pre-read billings prepared for PG&E review which are determined to contain material, egregious or arrant errors shall be applied to rating scale, regardless of invoice receipt timing.

• Service Invoicing: Date the invoice was received, free of errors. If the 10th falls on a weekend, the invoice must be received before the 10th to be on target. The payment terms clock starts only after the approved IR is posted.

• Consumable Invoicing: Date the invoice was received, free of errors. Service Rating Exceptions: When necessary and applicable, calculation will be derived based on the average of the two measurement scores Service Measurement Source: PG&E to track and determine invoice receipt and accuracy. Response Procedure for Unsatisfactory Rating: Contractor will provide within 5 business days after the close of the month the reason for unsatisfactory service and the plan/actions for prevention of recurrence.

Invoices containing errors are subject to immediate rejection, and upon request of PG&E, immediate reversal and replacement of errored invoiced by Contractor posted to Taulia. For repeated errors or lateness to the same subject billing, PG&E shall be entitled to a discount credit equally no less than 10% of total amount of late or errored billing. This discount shall increase by 10% for each successive late or errored billing and shall not be unreasonably withheld.

Contractor and PG&E agree to periodically review procedures and work in good faith, up to and including revised responses, service discounts and other corrective or remediation measures. Opportunities include, without limitation billings that contain repeat, material, egregious or arrant errors.