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.
REVISES GE LOAN TERM WAIVER AGREEMENT
(San Francisco, CA) - PG&E
Corporation (NYSE:PCG) today filed an 8-K with the Securities and
Exchange Commission reporting on further revision to the Corporation's
loan-term agreement with General Electric Capital Corporation and
certain other lenders under PG&E Corporation's $1.02 billion Amended
and Restated Credit Agreement dated as of June 25, 2002.
The parties to this agreement
have waived, until August 30, 2002, the requirement that PG&E Corporation's
subsidiary, PG&E National Energy Group, Inc. (PG&E NEG), continue
to maintain investment grade ratings with either Standard & Poor's
or Moody's Investors Service.
This waiver, which previously
had been extended until October 21, 2002, was revised as the result
of amendments made to the PG&E NEG's multi-tranche $1.25 billion
credit facility, dated August 22, 2001. The amendments extended
the maturity date on one tranche from August 22, 2002 to October
21, 2002. The maturity date of August 22, 2003 on the second tranche
The amendments also lowered
the size of the tranche from $750 million to $500 million, and lowered
its immediate availability to $431 million. The availability of
the second tranche was also lowered from $500 million to $279 million.
The lowered availability on the second tranche resulted in early
termination of the previously agreed to waiver of the GE loan agreement.
PG&E Corporation's August
23, 2002 8-K filing also contains: a discussion of the extension
of the expiration date for the PG&E NEG's revolving credit facility
from August 22, 2002 to October 21, 2002; a revised summary of the
PG&E NEG sources and uses of cash; and an update on Pacific Gas
and Electric Company's bankruptcy proceeding.
PG&E Corporation's 8-K provides
greater detail of these issues and investors are encouraged to review
the 8-K for additional information.