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.

PG&E NATIONAL ENERGY GROUP RECEIVES EXTENSION FOR RENEWAL OF CREDIT FACILITY

BETHESDA, Md. - PG&E National Energy Group, a unit of PG&E Corporation (NYSE: PCG), today announced that a syndicate of 16 lenders extended the maturity date of a revolving credit facility from Aug. 22 to Oct. 21, 2002.

Terms and conditions include reducing the size of the facility to $500 million and freezing the facility at its current outstanding levels of debt, which is $431 million. The agreement also limits another $500 million two-year facility to its current outstanding debt level of $279 million

"We're pleased with the lenders' agreement to extend the renewal date so that we can continue working together to renew the credit facility for the long term," said John Cooper, PG&E National Energy Group's senior vice president of finance. "We look forward to making progress in the weeks ahead."

The period between now and Oct. 21, 2002, will be spent pursuing the debt restructuring effort now underway at PG&E National Energy Group. Options include, but are not limited to, sales of assets and businesses, debt restructuring and reorganization of existing operations.

The administrative agent for the 16-bank syndicate is JP Morgan Chase Bank.

Headquartered in Bethesda, Md., PG&E National Energy Group develops, builds, owns and operates electric generating and natural gas pipeline facilities and provides energy trading, marketing and risk-management services.