NEWS MEDIA CONTACT:
PG&E Corporation 1-800-743-6397
EDITORS: Please do not use "Pacific Gas
and Electric" or "PG&E" when referring to PG&E
Corporation or its wholly owned subsidiary, PG&E National Energy
Group, Inc. 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
PG&E National Energy Group in order to continue to receive quality
regulated services from Pacific Gas and Electric Company.
CORPORATION COMMENTS ON DOWNGRADE OF PG&E NATIONAL ENERGY GROUP
CREDIT RATING BY S&P
SAN FRANCISCO, Ca. – Credit rating agency Standard and Poor’s
today notified PG&E Corporation and the PG&E National Energy
Group that it has placed the PG&E NEG on Credit Watch Negative
and downgraded the unit’s credit rating from BBB to BB+. Additionally,
S&P has informed PG&E Corporation that it has made credit
ratings and Credit Watch revisions to the following PG&E NEG
operating units. PG&E Energy Trading Holdings LLC has been placed
on Credit Watch Negative and its credit rating revised from BBB+
to BB+. USGen New England, Inc. has been placed on Credit Watch
Negative and its credit rating has been revised from BBB- to BB+.
PG&E Gas Transmission, Northwest Corporation has been placed
on Credit Watch Negative and its credit rating has been revised
from A- to BBB+.
While disappointing, these revisions to the credit ratings and
credit outlook for portions of our business are in keeping with
the credit agency’s larger overall industry review, PG&E
Corporation said. S&P’s notice of the downgrades stated
they were being made in part as a result of adoption of recently
revised “more robust” rating methodologies that are
being applied “across the board to this sector” to evaluate
credit risk. Since January 1, 2002, S&P has revised downward
the credit ratings of 78 energy holding companies and operating
subsidiaries principally reflecting current challenging market conditions
in the energy sector.
PG&E Corporation said that it will discuss further its plans
to address the S&P downgrades during the Corporation’s
previously scheduled second quarter earnings call which will now
take place on Thursday, August 1 at 5:30 a.m. (PDT) 8:30 a.m. (EDT).
The call was originally scheduled to take place at 8:00 a.m. (PDT)
11:00 a.m. (EDT). The call will be available via webcast at www.pgecorp.com.
PG&E National Energy Group and any other company referenced herein which uses the PG&E name or logo are not the same company as Pacific Gas and Electric Company, the California utility. These companies are not regulated by the California Public Utilities Commission, and customers do not have to buy products from these companies in order to continue to receive quality regulated services from the utility.