PG&E Corporation 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 remains unchanged.

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.


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