(San Francisco, CA ) - Moody's Investors Service announced today that it lowered the credit ratings of PG&E Corporation's subsidiary PG&E National Energy Group (PG&E NEG) and several of the unit's wholly owned subsidiaries.

Ratings downgraded and under review for further downgrade include:

• PG&E National Energy Group, Inc. - Senior Unsecured Debt, Issuer Rating, and Syndicated Bank Credit Facility to B3 from B1.

• PG&E National Energy Group, Inc. - Senior Implied Rating to B2 from Ba3.

• PG&E Gas Transmission, Northwest Corporation - Senior Unsecured Debt to Ba1 from Baa3.

• USGen New England, Inc. - Pass-Thru Certificates and Syndicated Bank Credit Facility to B2 from Ba3.

• Attala Generating Company, LLC - Senior Secured Debt to B2 from Ba3.

PG&E Corporation is continuing to explore options for the PG&E NEG including sales of assets and businesses, debt restructuring, and reorganization of existing operations.