<html>
<head>
</head>
<body>
<div>
<table border="0" cellspacing="0" cellpadding="0" width="644">
<tr>
<td colspan="4" valign="top">
<p align="center">SECURITIES AND EXCHANGE COMMISSION</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">Washington, D.C.&nbsp; 20549</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><br />
<br />
 </p>
</td>
</tr>

<tr>
<td colspan="4" valign="top"></td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">FORM 8-K</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">CURRENT REPORT</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">Date of Report: October 2, 2002</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td colspan="4" valign="top"></td>
</tr>

<tr>
<td valign="top">
<p align="center"><br />
 Commission<br />
 File<br />
 Number</p>
</td>
<td valign="top">
<p align="center">Exact Name of<br />
 Registrant<br />
 as specified in<br />
 its charter</p>
</td>
<td valign="top">
<p align="center"><br />
 State or other<br />
 Jurisdiction of<br />
 Incorporation</p>
</td>
<td valign="top">
<p align="center"><br />
 IRS Employer<br />
 &nbsp; Identification<br />
 Number</p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">_____________</p>
</td>
<td valign="top">
<p align="center">_____________</p>
</td>
<td valign="top">
<p align="center">_____________</p>
</td>
<td valign="top">
<p align="center">_____________</p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">1-12609</p>

<p align="center">1-2348</p>
</td>
<td valign="top">
<p align="center">PG&amp;E Corporation</p>

<p align="center">Pacific Gas and<br />
 Electric Company</p>
</td>
<td valign="top">
<p align="center">California</p>

<p align="center">California</p>
</td>
<td valign="top">
<p align="center">94-3234914</p>

<p align="center">94-0742640</p>

<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td colspan="2" valign="top">
<p align="center">Pacific Gas and Electric Company<br />
 77 Beale Street, P. O. Box 770000<br />
 San Francisco, California&nbsp;&nbsp;94177</p>
</td>
<td colspan="2" valign="top">
<p align="center">PG&amp;E Corporation<br />
 One Market, Spear Tower, Suite 2400<br />
 San Francisco, California&nbsp;&nbsp;94105</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top"></td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">(Address of principal executive offices) (Zip
Code)</p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><br />
 </p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td colspan="2" valign="top">
<p align="center">Pacific Gas and Electric Company<br />
 (415) 973-7000</p>
</td>
<td colspan="2" valign="top">
<p align="center">PG&amp;E Corporation<br />
 (415) 267-7000</p>
</td>
</tr>

<tr>
<td colspan="4" valign="top"></td>
</tr>

<tr>
<td colspan="4" valign="top">
<p align="center">(Registrant's telephone number, including area
code)</p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>
</table>

<p><br />
</p>

<div align="center">
<hr size="2" width="100%" align="center" />
</div>

<p>Item 5. Other Events</p>

<p>A.&nbsp; PG&amp;E Corporation - New waiver extension&nbsp;</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October 1, 2002, PG&amp;E Corporation and the lenders under its
Amended and Restated Credit Agreement dated June 25, 2002 (Credit
Agreement), entered into an Amendment to Second Amended and
Restated Waiver and Amendment Agreement that extends the existing
waiver of the Credit Agreement&lsquo;s requirement that PG&amp;E
National Energy Group, Inc., (PG&amp;E NEG) continue to maintain
investment grade ratings with either Standard &amp; Poor&rsquo;s or
Moody's Investor Services, Inc., from October 4, 2002, when the
waiver would otherwise expire, until October 18, 2002.&nbsp; During
the term of the amended waiver, PG&amp;E Corporation may not make
any investment, capital expenditure, or other payment to any of its
subsidiaries, in an amount that in the aggregate exceeds $5 million
(without deduction for amounts paid by subsidiaries to PG&amp;E
Corporation) except as may be required under applicable law or by
conditions established by the California Public Utilities
Commission in decisions approving the formation of PG&amp;E
Corporation to hold the stock of its subsidiary, Pacific Gas and
Electric Company.&nbsp; The prior waiver permitted PG&amp;E
Corporation to make investments, capital expenditures, or other
payments to any of its subsidiaries, in an aggregate amount up to
$10 million after deducting amounts paid by subsidiaries to
PG&amp;E Corporation.&nbsp; Also, while the prior waiver required
that PG&amp;E Corporation pay a fee of 5% of the amount of any
principal repaid on or before October 21, 2002, the amended waiver
extends this date to November 5, 2002.&nbsp; All other terms of the
waiver, as previously disclosed, remain in full force and
effect.&nbsp; A copy of the Amendment to Second Amended and
Restated Waiver and Amendment Agreement is filed as Exhibit 99.1
hereto.</p>

<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the extended term of the waiver, PG&amp;E Corporation intends to
negotiate with its lenders for the elimination of the credit rating
maintenance covenant from the Credit Agreement or for such other
amendments as may be needed; however, PG&amp;E Corporation cannot
predict whether, or to what extent, it would be successful in such
efforts.&nbsp;</p>

<p>B. Pacific Gas and Electric Company Bankruptcy</p>

<p>Monthly Operating Report</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
September 30, 2002, Pacific Gas and Electric Company (Utility)
filed its monthly operating report for the month ended August 31,
2002 with the U.S. Bankruptcy Court for the Northern District of
California.&nbsp; The Utility's monthly operating report includes
an unaudited income statement for the month and an unaudited
balance sheet dated as of the end of the month.&nbsp; These
unaudited financial statements are attached as Exhibit 99.2 to this
report. Although not included in Exhibit 99.2, the monthly
operating report also includes a statement of receipts and
disbursements, as well as other information.&nbsp; The preliminary
financial statements were prepared using certain assumptions and
estimates that are subject to revision.&nbsp; Any adjustments for
these estimates (based upon changes in facts and circumstances,
further analysis, and other factors) will be reflected in the
financial statements in the period during which such adjustments
are made.&nbsp; These adjustments could have a material impact on
reported results in the future.</p>

<p>Item 7. Financial Statements, Pro Forma Financial Information,
and Exhibits</p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p>Exhibit No.</p>
</td>
<td valign="top">
<p>Description of Exhibit</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p>99.1</p>
</td>
<td valign="top">
<p>Amendment to Second Amended and Restated Waiver and Amendment
Agreement, dated October 1, 2002, by and among PG&amp;E
Corporation, PG&amp;E National Energy Group, LLC, Lehman Commercial
Paper Inc. as administrative agent, and certain of the lenders
party to the Amended and Restated Credit Agreement dated as of June
25, 2002</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p>99.2</p>
</td>
<td valign="top">
<p>Pacific Gas and Electric Company Income Statement for the month
ended August 31, 2002, and Balance Sheet dated August 31, 2002.</p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
</tr>
</table>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p align="left">SIGNATURE</p>
</td>
</tr>
</table>

<p>Pursuant to the requirements of the Securities Exchange Act of
1934, the registrants have duly caused this report to be signed on
their behalf by the undersigned thereunto duly authorized.</p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>PG&amp;E CORPORATION<br />
 </p>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>By:&nbsp; /s/ CHRISTOPHER P.JOHNS</p>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CHRISTOPHER P.
JOHNS<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President
and Controller<br />
<br />
 </p>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>PACIFIC GAS AND ELECTRIC COMPANY<br />
 </p>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>By:&nbsp;&nbsp;/s/ DINYAR B. MISTRY</p>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp; &nbsp; <u>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
</td>
</tr>

<tr>
<td valign="top">
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DINYAR B. MISTRY<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and Controller</p>
</td>
</tr>
</table>

<p>Dated:&nbsp; October 2, 2002</p>

<br clear="all" />


<p align="center">EXHIBIT INDEX</p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p>Exhibit No.</p>
</td>
<td valign="top">
<p>Description of Exhibit</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p>99.1</p>
</td>
<td valign="top">
<p>Amendment to Second Amended and Restated Waiver and Amendment
Agreement, dated October 1, 2002, by and among PG&amp;E
Corporation, PG&amp;E National Energy Group, LLC, Lehman Commercial
Paper Inc. as administrative agent, and certain of the lenders
party to the Amended and Restated Credit Agreement dated as of June
25, 2002</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p>99.2</p>
</td>
<td valign="top">
<p>Pacific Gas and Electric Company Income Statement for the month
ended August 31, 2002, and Balance Sheet dated August 31, 2002.</p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
</tr>
</table>
</div>
</body>
</html>
[{"type": "8-K", "sequence": "1", "filename": "final1002.htm", "description": "FORM 8-K", "secsgml_size_bytes": 15005}]
{"company-data": {"conformed-name": "PG&E CORP", "cik": "0001004980", "assigned-sic": "4931", "irs-number": "943234914", "state-of-incorporation": "CA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-12609", "film-number": "02780193"}, "business-address": {"street1": "ONE MARKET SPEAR TOWER", "street2": "SUITE 2400", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105", "phone": "4152677000"}, "mail-address": {"street1": "ONE MARKET SPEAR TOWER", "street2": "SUITE 2400", "city": "SAN FRANCISCO", "state": "CA", "zip": "94105"}, "former-company": {"former-conformed-name": "PG&E PARENT CO INC", "date-changed": "19951214"}}
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report: October 2, 2002
Commission
File
Number
Exact Name of
Registrant
as specified in
its charter
State or other
Jurisdiction of
Incorporation
IRS Employer
Identification
Number
_____________
_____________
_____________
_____________
1-12609
1-2348
PG&E Corporation
Pacific Gas and
Electric Company
California
California
94-3234914
94-0742640
Pacific Gas and Electric Company
77 Beale Street, P. O. Box 770000
San Francisco, California  94177
PG&E Corporation
One Market, Spear Tower, Suite 2400
San Francisco, California  94105
(Address of principal executive offices) (Zip
Code)
Pacific Gas and Electric Company
(415) 973-7000
PG&E Corporation
(415) 267-7000
(Registrant's telephone number, including area
code)
Item 5. Other Events
A.  PG&E Corporation - New waiver extension
On
October 1, 2002, PG&E Corporation and the lenders under its
Amended and Restated Credit Agreement dated June 25, 2002 (Credit
Agreement), entered into an Amendment to Second Amended and
Restated Waiver and Amendment Agreement that extends the existing
waiver of the Credit Agreement's requirement that PG&E
National Energy Group, Inc., (PG&E NEG) continue to maintain
investment grade ratings with either Standard & Poor's or
Moody's Investor Services, Inc., from October 4, 2002, when the
waiver would otherwise expire, until October 18, 2002.  During
the term of the amended waiver, PG&E Corporation may not make
any investment, capital expenditure, or other payment to any of its
subsidiaries, in an amount that in the aggregate exceeds $5 million
(without deduction for amounts paid by subsidiaries to PG&E
Corporation) except as may be required under applicable law or by
conditions established by the California Public Utilities
Commission in decisions approving the formation of PG&E
Corporation to hold the stock of its subsidiary, Pacific Gas and
Electric Company.  The prior waiver permitted PG&E
Corporation to make investments, capital expenditures, or other
payments to any of its subsidiaries, in an aggregate amount up to
$10 million after deducting amounts paid by subsidiaries to
PG&E Corporation.  Also, while the prior waiver required
that PG&E Corporation pay a fee of 5% of the amount of any
principal repaid on or before October 21, 2002, the amended waiver
extends this date to November 5, 2002.  All other terms of the
waiver, as previously disclosed, remain in full force and
effect.  A copy of the Amendment to Second Amended and
Restated Waiver and Amendment Agreement is filed as Exhibit 99.1
hereto.
During
the extended term of the waiver, PG&E Corporation intends to
negotiate with its lenders for the elimination of the credit rating
maintenance covenant from the Credit Agreement or for such other
amendments as may be needed; however, PG&E Corporation cannot
predict whether, or to what extent, it would be successful in such
efforts.
B. Pacific Gas and Electric Company Bankruptcy
Monthly Operating Report
On
September 30, 2002, Pacific Gas and Electric Company (Utility)
filed its monthly operating report for the month ended August 31,
2002 with the U.S. Bankruptcy Court for the Northern District of
California.  The Utility's monthly operating report includes
an unaudited income statement for the month and an unaudited
balance sheet dated as of the end of the month.  These
unaudited financial statements are attached as Exhibit 99.2 to this
report. Although not included in Exhibit 99.2, the monthly
operating report also includes a statement of receipts and
disbursements, as well as other information.  The preliminary
financial statements were prepared using certain assumptions and
estimates that are subject to revision.  Any adjustments for
these estimates (based upon changes in facts and circumstances,
further analysis, and other factors) will be reflected in the
financial statements in the period during which such adjustments
are made.  These adjustments could have a material impact on
reported results in the future.
Item 7. Financial Statements, Pro Forma Financial Information,
and Exhibits
Exhibit No.
Description of Exhibit
99.1
Amendment to Second Amended and Restated Waiver and Amendment
Agreement, dated October 1, 2002, by and among PG&E
Corporation, PG&E National Energy Group, LLC, Lehman Commercial
Paper Inc. as administrative agent, and certain of the lenders
party to the Amended and Restated Credit Agreement dated as of June
25, 2002
99.2
Pacific Gas and Electric Company Income Statement for the month
ended August 31, 2002, and Balance Sheet dated August 31, 2002.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrants have duly caused this report to be signed on
their behalf by the undersigned thereunto duly authorized.
PG&E CORPORATION
By:  /s/ CHRISTOPHER P.JOHNS
CHRISTOPHER P.
JOHNS
Senior Vice President
and Controller
PACIFIC GAS AND ELECTRIC COMPANY
By:  /s/ DINYAR B. MISTRY
DINYAR B. MISTRY
Vice President and Controller
Dated:  October 2, 2002
EXHIBIT INDEX
Exhibit No.
Description of Exhibit
99.1
Amendment to Second Amended and Restated Waiver and Amendment
Agreement, dated October 1, 2002, by and among PG&E
Corporation, PG&E National Energy Group, LLC, Lehman Commercial
Paper Inc. as administrative agent, and certain of the lenders
party to the Amended and Restated Credit Agreement dated as of June
25, 2002
99.2
Pacific Gas and Electric Company Income Statement for the month
ended August 31, 2002, and Balance Sheet dated August 31, 2002.