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.
COMMENTS ON DOWNGRADE OF PG&E NATIONAL ENERGY GROUP BY STANDARD
(San Francisco, CA) -- Standard
and Poor's announced today that it lowered the credit rating of
PG&E Corporation's subsidiary PG&E National Energy Group (PG&E NEG)
In addition S&P lowered
the credit ratings of the following PG&E NEG units:
PG&E Gas Transmission,
Northwest Corporation to BB-
USGen New England, Inc.
PG&E Generating Company,
LLC to B-
PG&E Energy Trading
Holdings Corporation to B-
GenHoldings I, LLC to
PG&E Corporation noted
that S&P lowered the rating on PG&E Gas Transmission, Northwest
Corporation to reflect S&P's requirement that an operating unit
may not be rated more than three notches higher than its parent
company, among other reasons. Thus, under its ratings guidelines,
lowering PG&E NEG's rating to B- required S&P to lower the rating
of PG&E Gas Transmission, Northwest Corporation.
PG&E Corporation previously
has disclosed that it continues to explore options for PG&E NEG
including sales of assets and businesses, debt restructuring, and
reorganization of existing operations.