PROVIDE LIMITED FUNDING FOR PG&E NATIONAL ENERGY GROUP’S
CONSTRUCTION PROJECTS TO PROCEED
BETHESDA, Md. – PG&E National Energy Group, Inc. today
announced that the company and a syndicate of lenders have reached
agreement to provide limited funding for the company’s subsidiary,
GenHoldings I, LLC, allowing construction to continue at power plants
in Arizona, Michigan and New York. PG&E National Energy Group
is a wholly owned subsidiary of PG&E Corporation (NYSE: PCG).
The agreement, in effect until Nov. 14, 2002, is a transitional
step while the lenders look at a more permanent resolution.
Earlier this month, PG&E National Energy Group disclosed in
a report filed with the U.S. Securities and Exchange Commission
that it “notified the lenders under GenHoldings’ credit
facility that it does not intend to make further equity contributions
and is in negotiations for the lenders to fund completion of these
PG&E National Energy Group guarantees the obligation of its
subsidiary, GenHoldings I, LLC, to make equity contributions under
GenHolding’s credit facility to fund construction of the Harquahala
power plant in Tonopah, Ariz., the Covert plant in Covert, Mich.
and the Athens Generating plant in Athens, N.Y. This credit facility
is secured by these projects in addition to the Millennium power
plant in Charlton, Mass. In August and September 2002, PG&E
National Energy Group funded approximately $150 million of Gen Holding’s
equity commitment. GenHolding’s remaining equity commitment
is $355 million.
Last week, a syndicate of 16 lenders extended the maturity date
of a separate PG&E National Energy Group revolving credit facility
from Oct. 21, 2002 to Nov. 14, 2002.
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