EDITORS: Please do not use
"Pacific Gas and Electric" or "PG&E" when
referring to PG&E Corporation or its National Energy Group.
The PG&E National Energy Group is not the same company as Pacific
Gas and Electric Company, the utility, and is not regulated by the
California Public Utilities Commission. Customers of Pacific Gas
and Electric Company do not have to buy products or services from
the National Energy Group in order to continue to receive quality
regulated services from Pacific Gas and Electric Company.
OBTAINS EXTENSION OF WAIVER OF KEY RATINGS TRIGGER
SAN FRANCISCO - Lenders
under PG&E Corporation's (NYSE:PCG) aggregate $1.02 billion term-loan
agreement have agreed to continue to waive through October 21, 2002,
subject to earlier termination under certain circumstances, the
agreement's requirement that PG&E National Energy Group (PG&E NEG)
maintain an investment grade credit rating by either Standard &
Poor's or Moody's Investors Service.
Discussions with PG&E NEG's
lenders are currently underway. PG&E Corporation said that it is
continuing its discussions with its lenders, General Electric Capital
Corporation, Lehman Brothers, and certain other lenders, to develop
long-term modifications to its credit agreement.