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 NEW WAIVER EXTENSION, REPAYS LOAN TO GENERAL ELECTRIC CAPITAL
(San Francisco) -- PG&E
Corporation (NYSE: PCG) and lenders under the $420 million Tranche
B of the Corporation’s $1.02 billion term loan agreement today reached
an agreement that, among other things, extends through October 4,
2002, the waiver of the requirement that PG&E National Energy Group
maintain an investment grade credit rating from either Standard
and Poor’s or Moody’s Investors Service. The terms and conditions
of the new waiver agreement will be detailed in an 8-K which the
Corporation intends to file later today with the U.S. Securities
and Exchange Commission.
Also today, the Corporation
fully repaid the principal and interest on Tranche A of the loan
to General Electric Capital Corporation, totaling $606 million.
The Corporation anticipates its cash balance at the end of the third
quarter of 2002 will be approximately $200 million including certain
reserves required under the terms of the loan agreement. The Corporation’s
cash balance remains sufficient to fund its ongoing operations.
This press release contains
forward-looking statements regarding PG&E Corporation’s projected
cash balance at September 30, 2002, which statements are based on
current expectations and assumptions which management believes are
reasonable and on information currently available to management.
These statements are necessarily subject to various risks and uncertainties
and actual results could differ materially from those contemplated
by the forward-looking statements. Some of the factors that could
cause actual results to differ include: increases in legal fees
associated with the bankruptcy of PG&E Corporation’s subsidiary,
Pacific Gas and Electric Company (Utility); increases in operating
costs at PG&E Corporation; increases in interest rates; the amount
of fees that may be associated with potential new financings; and
increases in taxes associated with operations.