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 UNITS BY MOODY'S
(San Francisco, CA ) - Moody's
Investors Service announced today that it lowered the credit rating
of several units of PG&E Corporation's subsidiary PG&E National
Energy Group (PG&E NEG).
Today's action by Moody's
lowered the ratings of the following wholly owned PG&E NEG units:
PG&E Gas Transmission,
Northwest Corporation to Baa3 from Baa2
USGen New England, Inc.
to Ba3 from Baa3
Attala Generating Company,
LLC to Ba3 from Baa3
Moody's left in place
its current rating of B1 for PG&E NEG. The ratings agency indicated,
however, that it continues to review the current credit ratings
of PG&E NEG and its units for possible future downgrade.
PG&E Corporation noted that
Moody's revised rating on PG&E Gas Transmission, Northwest Corporation
to Baa3, still kept the unit at an investment grade credit level,
although Standard & Poor's October 11, 2002 downgrade of PG&E Gas
Transmission, Northwest Corporation (downgraded to BB- from BBB+)
fell below investment grade.
PG&E Corporation said it
is continuing to explore options for the PG&E NEG including sales
of assets and businesses, debt restructuring, and reorganization
of existing operations.