<html>
<head>
<title></title>
</head>
<body>
<div>
<p align="center">SECURITIES AND EXCHANGE COMMISSION</p>

<p align="center"><a name="_DV_M1"></a>Washington, D.C.&nbsp;
20549</p>

<p align="center"><a name="_DV_M2"></a>FORM 8-K</p>

<p align="center"><a name="_DV_M3"></a>CURRENT REPORT</p>

<p align="center"><a name="_DV_M4"></a>PURSUANT TO SECTION 13 OR
15(d) OF THE</p>

<p align="center"><a name="_DV_M5"></a>SECURITIES EXCHANGE ACT OF
1934</p>

<p align="center"><a name="_DV_M6"></a>Date of Report: October 10,
2002</p>

<p align="center"><a name="_DV_M7"></a>PG&amp;E Corporation</p>

<p align="center"><a name=
"_DV_M8"></a>-----------------------------------------------------</p>

<p align="center"><a name="_DV_M9"></a>(Exact Name of Registrant as
Specified in its Charter)</p>

<p align="center"><a name=
"_DV_M10"></a>California&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1-12609&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
94-3234914</p>

<p align="center"><a name=
"_DV_M11"></a>---------------------------------------------------------------------</p>

<p align="center"><a name="_DV_M12"></a>(State or other
Jurisdiction&nbsp;&nbsp;
(Commission&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (IRS Employer</p>

<p align="center"><a name="_DV_M13"></a>of
Incorporation)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
File Number)&nbsp;&nbsp;&nbsp;&nbsp; Identification No.)</p>

<p align="center"><a name="_DV_M14"></a>PG&amp;E Corporation</p>

<p align="center"><a name="_DV_M15"></a>One Market, Spear Tower,
Suite 2400</p>

<p align="center"><a name="_DV_M16"></a>San Francisco, California
94105</p>

<p align="center"><a name=
"_DV_M17"></a>--------------------------------------------------</p>

<p align="center"><a name="_DV_M18"></a>(Address of principal
executive offices) (Zip Code)</p>

<p align="center"><a name="_DV_M19"></a>(415) 267-7000</p>

<p align="center"><a name=
"_DV_M20"></a>---------------------------------------------------</p>

<p align="center"><a name="_DV_M21"></a>(Registrant's telephone
number, including area code)</p>

<div align="center"><a name="_DV_M22"></a>

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

<p><a name="_DV_M23"></a><br>
Item 5. Other Events</p>

<h5>PG&amp;E National Energy Group, Inc. credit ratings
downgrades</h5>

<p>On October 8, 2002, Moody's Investors Service, Inc. (Moody's)
announced its decision to downgrade the senior unsecured debt
rating, issuer rating, and syndicated bank credit facilities of
PG&amp;E National Energy Group, Inc. (PG&amp;E NEG), a subsidiary
of PG&amp;E Corporation, to B1 from Ba2.&nbsp; Moody&rsquo;s also
announced that PG&amp;E NEG&rsquo;s ratings are under review for
possible further downgrade.&nbsp;&nbsp; In addition, Moody&rsquo;s
announced that the senior debt of each of PG&amp;E Gas
Transmission, Northwest Corporation (PG&amp;E GTN), USGen New
England, Inc., Attala Generating Company, LLC, Indiantown
Cogeneration, L.P. and Selkirk Cogen Funding Corp., all PG&amp;E
NEG subsidiaries, are under review for possible downgrade.</p>

<p>Moody&rsquo;s stated that this rating action and review for
possible downgrade reflects PG&amp;E NEG&rsquo;s &ldquo;weak
operating performance, low operating cash flow relative to its
debt, and tight liquidity.&rdquo; Moody&rsquo;s expressed
particular concern over PG&amp;E NEG&rsquo;s ability to extend its
revolving credit facility that expires on October 21, 2002. <a
name="_DV_M24"></a></p>

<p>As previously disclosed, Standard &amp; Poor&rsquo;s (S&amp;P)
and Moody&rsquo;s downgraded PG&amp;E NEG&rsquo;s credit ratings on
July 31, 2002 and August 5, 2002, respectively. The most recent
downgrade by Moody&rsquo;s does not trigger any incremental
financial obligations at PG&amp;E Corporation or at PG&amp;E NEG
beyond those associated with the prior dual downgrade.&nbsp; As
previously disclosed, the dual downgrade triggered various
contractual, power pool or tariff requirements for PG&amp;E NEG to
post collateral and permitted counterparties under certain
commodity agreements to demand collateral.&nbsp; Since
July&nbsp;31, 2002, PG&amp;E NEG has posted collateral in the form
of cash or letters of credit totaling approximately
$290&nbsp;million at September 30, 2002.&nbsp; As of September 30,
2002, the current exposure related to the energy trading and
marketing business, including that involving its merchant power
plants, is $311 million.&nbsp; This amount varies daily depending
on changes in market prices and net changes in position.&nbsp;
Further, the actual calls on PG&amp;E NEG&rsquo;s liquidity will
depend largely upon counterparties&rsquo; responses to the most
recent ratings downgrade, the continued performance of PG&amp;E NEG
companies under the underlying agreements, and the
counterparties&rsquo; other commercial considerations.&nbsp; In the
past, PG&amp;E NEG has been able to negotiate acceptable
arrangements and reduce its overall exposure to counterparties when
PG&amp;E NEG or its counterparties have faced similar
situations.&nbsp; However, PG&amp;E NEG cannot quantify with any
certainty the actual future calls on its liquidity and there can be
no assurance that PG&amp;E NEG could negotiate acceptable
arrangements in the current circumstances.&nbsp;</p>

<p>As previously disclosed, PG&amp;E NEG has guaranteed the
obligation of its subsidiary, GenHoldings I, LLC (Gen), to make
equity contributions under Gen&rsquo;s credit facility to fund
construction of the Harquahala, Covert, and Athens generating
projects. This credit facility is secured by these projects in
addition to the Millennium generating project.&nbsp; In August and
September 2002, PG&amp;E NEG funded approximately $150 million of
Gen&rsquo;s equity commitment and the remaining equity commitment
is $355 million.&nbsp; PG&amp;E NEG has notified the lenders under
Gen&rsquo;s credit facility that it does not intend to make further
equity contributions and is in negotiations for the lenders to fund
completion of these projects.&nbsp;&nbsp;</p>

<p>As previously reported, the August 21, 2002 due date for the
repayment of $431 million under PG&amp;E NEG&rsquo;s revolving
credit facility was extended to October 21, 2002.&nbsp; PG&amp;E
NEG is continuing to negotiate a further extension of its credit
agreement with its lenders.&nbsp;&nbsp; PG&amp;E NEG is continuing
to explore options to raise cash and reduce PG&amp;E NEG&rsquo;s
indebtedness, ongoing guarantee and working capital
requirements.&nbsp; These options include, but are not limited to,
sales of assets and businesses, debt restructuring, and
reorganization of existing operations.&nbsp; The implementation of
most of these options would be subject to obtaining necessary
lender approvals and would require compliance with PG&amp;E
Corporation&rsquo;s and PG&amp;E NEG&rsquo;s other agreements and
applicable laws and regulations.&nbsp; Neither PG&amp;E Corporation
nor PG&amp;E NEG can predict whether any of these efforts will be
successful.&nbsp;</p>

<b><br clear="all">
</b>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p align="center">SIGNATURE</p>
</td>
</tr>
</table>

<p><a name="_DV_M141"></a>Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its 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;</p>
</td>
<td valign="top">
<p>PG&amp;E CORPORATION<br>
</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&nbsp;</p>
</td>
<td valign="top">
<p>By: &nbsp;&nbsp;&nbsp; LINDA Y.H. CHENG</p>
</td>
</tr>

<tr>
<td valign="top">
<p>&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;</p>
</td>
<td valign="top">
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LINDA Y.H.
CHENG</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate
Secretary<br>
<br>
</p>
</td>
</tr>

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

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

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

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

<p><a name="_DV_M142"></a>Dated:&nbsp; October 10, 2002</p>
</div>
</body>
</html>
[{"type": "8-K", "sequence": "1", "filename": "final1010.htm", "description": "FORM 8-K", "secsgml_size_bytes": 8811}]
{"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": "02786642"}, "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 10,
2002
PG&E Corporation
-----------------------------------------------------
(Exact Name of Registrant as
Specified in its Charter)
California               
1-12609         
94-3234914
---------------------------------------------------------------------
(State or other
Jurisdiction  
(Commission       (IRS Employer
of
Incorporation)             
File Number)     Identification No.)
PG&E Corporation
One Market, Spear Tower,
Suite 2400
San Francisco, California
94105
--------------------------------------------------
(Address of principal
executive offices) (Zip Code)
(415) 267-7000
---------------------------------------------------
(Registrant's telephone
number, including area code)
Item 5. Other Events
PG&E National Energy Group, Inc. credit ratings
downgrades
On October 8, 2002, Moody's Investors Service, Inc. (Moody's)
announced its decision to downgrade the senior unsecured debt
rating, issuer rating, and syndicated bank credit facilities of
PG&E National Energy Group, Inc. (PG&E NEG), a subsidiary
of PG&E Corporation, to B1 from Ba2.  Moody's also
announced that PG&E NEG's ratings are under review for
possible further downgrade.   In addition, Moody's
announced that the senior debt of each of PG&E Gas
Transmission, Northwest Corporation (PG&E GTN), USGen New
England, Inc., Attala Generating Company, LLC, Indiantown
Cogeneration, L.P. and Selkirk Cogen Funding Corp., all PG&E
NEG subsidiaries, are under review for possible downgrade.
Moody's stated that this rating action and review for
possible downgrade reflects PG&E NEG's "weak
operating performance, low operating cash flow relative to its
debt, and tight liquidity." Moody's expressed
particular concern over PG&E NEG's ability to extend its
revolving credit facility that expires on October 21, 2002.
As previously disclosed, Standard & Poor's (S&P)
and Moody's downgraded PG&E NEG's credit ratings on
July 31, 2002 and August 5, 2002, respectively. The most recent
downgrade by Moody's does not trigger any incremental
financial obligations at PG&E Corporation or at PG&E NEG
beyond those associated with the prior dual downgrade.  As
previously disclosed, the dual downgrade triggered various
contractual, power pool or tariff requirements for PG&E NEG to
post collateral and permitted counterparties under certain
commodity agreements to demand collateral.  Since
July 31, 2002, PG&E NEG has posted collateral in the form
of cash or letters of credit totaling approximately
$290 million at September 30, 2002.  As of September 30,
2002, the current exposure related to the energy trading and
marketing business, including that involving its merchant power
plants, is $311 million.  This amount varies daily depending
on changes in market prices and net changes in position. 
Further, the actual calls on PG&E NEG's liquidity will
depend largely upon counterparties' responses to the most
recent ratings downgrade, the continued performance of PG&E NEG
companies under the underlying agreements, and the
counterparties' other commercial considerations.  In the
past, PG&E NEG has been able to negotiate acceptable
arrangements and reduce its overall exposure to counterparties when
PG&E NEG or its counterparties have faced similar
situations.  However, PG&E NEG cannot quantify with any
certainty the actual future calls on its liquidity and there can be
no assurance that PG&E NEG could negotiate acceptable
arrangements in the current circumstances.
As previously disclosed, PG&E NEG has guaranteed the
obligation of its subsidiary, GenHoldings I, LLC (Gen), to make
equity contributions under Gen's credit facility to fund
construction of the Harquahala, Covert, and Athens generating
projects. This credit facility is secured by these projects in
addition to the Millennium generating project.  In August and
September 2002, PG&E NEG funded approximately $150 million of
Gen's equity commitment and the remaining equity commitment
is $355 million.  PG&E NEG has notified the lenders under
Gen's credit facility that it does not intend to make further
equity contributions and is in negotiations for the lenders to fund
completion of these projects.
As previously reported, the August 21, 2002 due date for the
repayment of $431 million under PG&E NEG's revolving
credit facility was extended to October 21, 2002.  PG&E
NEG is continuing to negotiate a further extension of its credit
agreement with its lenders.   PG&E NEG is continuing
to explore options to raise cash and reduce PG&E NEG's
indebtedness, ongoing guarantee and working capital
requirements.  These options include, but are not limited to,
sales of assets and businesses, debt restructuring, and
reorganization of existing operations.  The implementation of
most of these options would be subject to obtaining necessary
lender approvals and would require compliance with PG&E
Corporation's and PG&E NEG's other agreements and
applicable laws and regulations.  Neither PG&E Corporation
nor PG&E NEG can predict whether any of these efforts will be
successful.
SIGNATURE
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto
duly authorized.
PG&E CORPORATION
By:     LINDA Y.H. CHENG
LINDA Y.H.
CHENG
Corporate
Secretary
Dated:  October 10, 2002