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 WAIVER OF KEY RATINGS TRIGGER
Company Comments on Moody's
Investor Services Downgrade of PG&E National Energy Group Credit
FRANCISCO, CA) PG&E Corporation today issued the following statement
following Moody's Investors Service credit rating downgrade for
the Corporation's PG&E National Energy Group (PG&E NEG) and the
PG&E NEG's primary operating subsidiaries:
lenders in the Corporation's credit agreement with General Electric
Capital Corporation, Lehman Commercial Paper Inc, and certain other
lenders have provided a waiver through August 16, 2002, of the requirement
that the PG&E National Energy Group maintain an investment grade
credit rating by either Standard & Poor's or Moody's Investor Services.
are now working with these lenders to discuss long-term modifications
to this lending agreement, as our team has done successfully in
the past. We look forward to reaching an agreement soon.
the action by Moody's is a disappointment, we continue to believe
the fundamentals in our national energy business and its operating
units are solid. As emphasized in the Corporation's conference call
last week with the financial community, the PG&E NEG is continuing
to implement aggressive measures aimed at reducing expenses and
financing needs going forward.
action by Moody's does not result in substantial incremental impacts
at the PG&E NEG beyond those associated with last week's credit
action by Standard and Poor's.
PG&E NEG has reviewed its estimated sources and uses of cash over
the next 12 months, and we believe that the company's liquidity
is sufficient to meet the anticipated cash requirements, including
those associated with the rating agencies' actions, including Moody's
action today. The PG&E NEG's liquidity analysis appears in its 10Q
filed Friday with the U.S. Securities and Exchange Commission."