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
(San Francisco, CA.)--The
lenders under PG&E Corporation’s (NYSE:PCG) term loan agreement
have agreed to extend through October 18, 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 waiver was otherwise due to run through October 4,
2002. The extension includes no additional financial consideration
for the lenders. The full terms and conditions of the new waiver
extension are detailed in an 8-K filed with the U.S. Securities
and Exchange Commission.
During the extended term
of the waiver, PG&E Corporation intends to continue negotiating
with its lenders for the elimination of the PG&E NEG credit rating
requirement from the term loan agreement or for such other amendments
as may be needed.
On August 30, 2002, the
Corporation fully repaid the principal and interest on Tranche A
of the term loan to General Electric Capital Corporation, totaling
$606 million. The remaining Tranche B is for $420 million.