<html>
<head>
<title>neg corp 8k 4-2-03</title>
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<body link="blue" vlink="purple">
<div>
<table border="0" cellspacing="0" cellpadding="0" width="644">
<tr>
<td colspan="6" valign="top">
<p align="center">SECURITIES AND EXCHANGE COMMISSION</p>
</td>
</tr>

<tr>
<td colspan="6" valign="top">
<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td colspan="6" valign="top">
<p align="center">Washington, D.C.&nbsp; 20549</p>
</td>
</tr>

<tr>
<td colspan="6" valign="top">
<p align="center"><br />
<br />
 </p>
</td>
</tr>

<tr>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td colspan="6" valign="top">
<p align="center">FORM 8-K</p>
</td>
</tr>

<tr>
<td colspan="6" valign="top">
<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td colspan="6" valign="top">
<p align="center">CURRENT REPORT</p>
</td>
</tr>

<tr>
<td colspan="6" valign="top">
<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td colspan="6" 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="6" valign="top">
<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td colspan="6" valign="top">
<p align="center">Date of Report: April 2, 2003</p>
</td>
</tr>

<tr>
<td colspan="6" valign="top">
<p align="center"><br />
 </p>
</td>
</tr>

<tr>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td valign="top">
<p align="center"><br />
 Commission<br />
 File<br />
 Number</p>
</td>
<td colspan="2" 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 colspan="2" 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 colspan="2" valign="top">
<p align="center">_____________</p>
</td>
<td valign="top">
<p align="center">_____________</p>
</td>
<td colspan="2" valign="top">
<p align="center">_____________</p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center">1-12609</p>
</td>
<td colspan="2" valign="top">
<p align="center">PG&amp;E Corporation</p>
</td>
<td valign="top">
<p align="center">California</p>
</td>
<td colspan="2" valign="top">
<p align="center">94-3234914</p>

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

<tr>
<td valign="top">
<p align="center">333-66032</p>
</td>
<td colspan="2" valign="top">
<p align="center">PG&amp;E National Energy Group, Inc.</p>
</td>
<td valign="top">
<p align="center">Delaware</p>
</td>
<td colspan="2" valign="top">
<p align="center">94-3316236</p>
</td>
</tr>

<tr>
<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>
<td colspan="3" valign="top">
<p align="center">PG&amp;E National Energy Group, Inc.<br />
 7600 Wisconsin Avenue<br />
 Bethesda, Maryland</p>
</td>
<td>
<p>&nbsp;</p>
</td>
</tr>

<tr>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td colspan="6" 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 colspan="2" valign="top"></td>
<td valign="top"></td>
<td colspan="2" valign="top"></td>
</tr>

<tr>
<td colspan="3" valign="top">
<p align="center">PG&amp;E Corporation<br />
 (415) 267-7000</p>
</td>
<td colspan="3" valign="top">
<p align="center">PG&amp;E National Energy Group, Inc.<br />
 (301) 280-6800</p>
</td>
</tr>

<tr>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td colspan="6" valign="top">
<p align="center">(Registrant's telephone number, including area
code)</p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td colspan="2" valign="top"></td>
<td valign="top"></td>
<td colspan="2" valign="top"></td>
</tr>
</table>

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

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

<p>A. GenHoldings I, LLC&nbsp;</p>

<p>As previously disclosed, GenHoldings I, LLC (GenHoldings), an
indirect subsidiary of PG&amp;E National Energy Group, Inc.
(PG&amp;E NEG), failed to make equity contributions to fund
construction of the Harquahala, Covert, and Athens generating
projects as required by the GenHoldings credit agreement (the
Equity Default).&nbsp; In November and December 2002,
GenHoldings&rsquo; lenders executed waivers and amendments to the
credit agreement under which they agreed to continue to waive
GenHoldings&rsquo; Equity Default until March 31, 2003.</p>

<p>In connection with the lenders&rsquo; waiver of this and other
defaults and additional funding commitments, PG&amp;E NEG has
agreed to cooperate with any reasonable proposal by the lenders
regarding disposition of the equity in or assets of any or all of
the PG&amp;E NEG subsidiaries holding the Athens, Covert,
Harquahala, and Millennium projects (the Projects).</p>

<p>As of March 21, 2003, the lenders executed a waiver letter
extending to June 30, 2003, the waiver of GenHoldings&rsquo; Equity
Default.&nbsp; In addition, the waiver letter also waives other
existing defaults in order to permit the continued availability of
loan facilities to fund construction and operation of the Projects
until such time as a transfer of the Projects to the GenHoldings
lenders may be completed.&nbsp; <a name="_DV_C3">Further waivers
will be necessary, however, to allow payments to be made to The
Shaw Group, Inc. (Shaw) under the Covert and Harquahala
engineering, procurement and construction contracts and to certain
other contractors.&nbsp;</a> (As previously reported, Shaw has
provided a notice of termination of these contracts. The lenders,
PG&amp;E NEG and the project subsidiaries have contested Shaw's
purported notice of termination.)&nbsp;&nbsp;</p>

<p>The waiver letter also extends the deadline for the transfer to
June 30, 2003.&nbsp; An event of default will occur if such
transfer is not accomplished by such deadline.&nbsp; Such a default
would trigger lender remedies, including the right to foreclose on
the Projects.</p>

<p>Under the executed waiver, PG&amp;E NEG has re-affirmed its
guarantee of GenHoldings&rsquo; obligation to make remaining equity
contributions of approximately $355 million to the Harquahala,
Covert, and Athens projects.&nbsp; Neither PG&amp;E NEG nor
GenHoldings currently expects to have sufficient funds to make this
payment.&nbsp; The requirement to pay $355 million remains an
obligation of PG&amp;E NEG that would survive the transfer of the
Projects.</p>

<p>B. Options to Purchase Shares of PG&amp;E NEG</p>

<p>PG&amp;E Corporation and PG&amp;E NEG have previously disclosed
that certain lenders of PG&amp;E Corporation had received an option
to purchase up to 3 percent of the shares of PG&amp;E NEG in
connection with PG&amp;E Corporation&rsquo;s credit agreement dated
March 1, 2001, and that on February 25, 2003, General Electric
Capital Corporation, or GECC, exercised the options it held,
representing 1.8 percent of the common stock of PG&amp;E NEG.&nbsp;
In PG&amp;E NEG'S and PG&amp;E Corporation's Annual Reports on Form
10-K (including the portions of PG&amp;E Corporation&rsquo;s Annual
Report to Shareholders that were incorporated by reference into
PG&amp;E Corporation&rsquo;s Annual Report on Form 10-K), PG&amp;E
NEG and PG&amp;E Corporation disclosed that the remaining options
held by the other lenders under the March 1, 2001 credit agreement,
representing 1.2 percent of the common stock of PG&amp;E NEG, were
required to be exercised by March 1, 2003 and that such options had
therefore expired. After reconsideration of the operative
documents, it has been determined that the additional options did
not expire.&nbsp; On March 27 and March 28, 2003, the other lenders
timely exercised their options.&nbsp; Thus, 3 percent of the equity
of PG&amp;E NEG is now owned by GECC, Lehman Brothers, Inc. and the
other lenders under the March 1, 2001 PG&amp;E Corporation credit
agreement.</p>

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

<p>Exhibit 99.1 - Waiver Letter dated as of March 21, 2003, among
GenHoldings I, LLC, various lenders identified as the GenHoldings
Lenders, the Administrative Agent, and acknowledged and agreed to
by PG&amp;E National Energy Group, Inc.</p>

<br clear="all" />


<p><br />
</p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p>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" width="649">
<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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>By:&nbsp; LINDA Y.H. CHENG</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;&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;&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;LINDA Y.H. CHENG<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate
Secretary<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top"></td>
</tr>
</table>

<table border="0" cellspacing="0" cellpadding="0" width="649">
<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>PG&amp;E NATIONAL ENERGY GROUP, INC.<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p>By:&nbsp;&nbsp; THOMAS B. KING</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;&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;&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;THOMAS B. KING</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President</p>

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

<p>Date:&nbsp; April 2, 2003</p>

<br clear="all" />


<p align="center">EXHIBIT
INDEX&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br />

 </p>

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

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

<tr>
<td valign="top">
<p>99.1</p>
</td>
<td valign="top">
<p>Waiver Letter dated as of March 21, 2003, among GenHoldings I,
LLC, various lenders identified as the GenHoldings Lenders, the
Administrative Agent, and acknowledged and agreed to by PG&amp;E
National Energy Group, Inc.</p>
</td>
</tr>
</table>

<p align="center"></p>
</div>
</body>
</html>
[{"type": "8-K", "sequence": "1", "filename": "finalcorpneg040203.htm", "description": "FORM 8-K", "secsgml_size_bytes": 15711}]
[{"company-data": {"conformed-name": "PG&E NATIONAL ENERGY GROUP INC", "cik": "0001129989", "assigned-sic": "4911", "irs-number": "943316236", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-66032", "film-number": "03637446"}, "business-address": {"street1": "7500 OLD GEORGETOWN RD", "city": "BETHESDA", "state": "MD", "zip": "20814", "phone": "3012806800"}, "mail-address": {"street1": "7500 OLD GEORGETOWN RD", "city": "BETHESDA", "state": "MD", "zip": "20814"}}, {"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": "03637447"}, "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"}}]
neg corp 8k 4-2-03
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: April 2, 2003
Commission
File
Number
Exact Name of
Registrant
as specified in
its charter
State or other
Jurisdiction of
Incorporation
IRS Employer
Identification
Number
_____________
_____________
_____________
_____________
1-12609
PG&E Corporation
California
94-3234914
333-66032
PG&E National Energy Group, Inc.
Delaware
94-3316236
PG&E Corporation
One Market, Spear Tower, Suite 2400
San Francisco, California  94105
PG&E National Energy Group, Inc.
7600 Wisconsin Avenue
Bethesda, Maryland
(Address of principal executive offices) (Zip
Code)
PG&E Corporation
(415) 267-7000
PG&E National Energy Group, Inc.
(301) 280-6800
(Registrant's telephone number, including area
code)
Item 5. Other Events
A. GenHoldings I, LLC
As previously disclosed, GenHoldings I, LLC (GenHoldings), an
indirect subsidiary of PG&E National Energy Group, Inc.
(PG&E NEG), failed to make equity contributions to fund
construction of the Harquahala, Covert, and Athens generating
projects as required by the GenHoldings credit agreement (the
Equity Default).  In November and December 2002,
GenHoldings' lenders executed waivers and amendments to the
credit agreement under which they agreed to continue to waive
GenHoldings' Equity Default until March 31, 2003.
In connection with the lenders' waiver of this and other
defaults and additional funding commitments, PG&E NEG has
agreed to cooperate with any reasonable proposal by the lenders
regarding disposition of the equity in or assets of any or all of
the PG&E NEG subsidiaries holding the Athens, Covert,
Harquahala, and Millennium projects (the Projects).
As of March 21, 2003, the lenders executed a waiver letter
extending to June 30, 2003, the waiver of GenHoldings' Equity
Default.  In addition, the waiver letter also waives other
existing defaults in order to permit the continued availability of
loan facilities to fund construction and operation of the Projects
until such time as a transfer of the Projects to the GenHoldings
lenders may be completed.
Further waivers
will be necessary, however, to allow payments to be made to The
Shaw Group, Inc. (Shaw) under the Covert and Harquahala
engineering, procurement and construction contracts and to certain
other contractors.
(As previously reported, Shaw has
provided a notice of termination of these contracts. The lenders,
PG&E NEG and the project subsidiaries have contested Shaw's
purported notice of termination.)
The waiver letter also extends the deadline for the transfer to
June 30, 2003.  An event of default will occur if such
transfer is not accomplished by such deadline.  Such a default
would trigger lender remedies, including the right to foreclose on
the Projects.
Under the executed waiver, PG&E NEG has re-affirmed its
guarantee of GenHoldings' obligation to make remaining equity
contributions of approximately $355 million to the Harquahala,
Covert, and Athens projects.  Neither PG&E NEG nor
GenHoldings currently expects to have sufficient funds to make this
payment.  The requirement to pay $355 million remains an
obligation of PG&E NEG that would survive the transfer of the
Projects.
B. Options to Purchase Shares of PG&E NEG
PG&E Corporation and PG&E NEG have previously disclosed
that certain lenders of PG&E Corporation had received an option
to purchase up to 3 percent of the shares of PG&E NEG in
connection with PG&E Corporation's credit agreement dated
March 1, 2001, and that on February 25, 2003, General Electric
Capital Corporation, or GECC, exercised the options it held,
representing 1.8 percent of the common stock of PG&E NEG. 
In PG&E NEG'S and PG&E Corporation's Annual Reports on Form
10-K (including the portions of PG&E Corporation's Annual
Report to Shareholders that were incorporated by reference into
PG&E Corporation's Annual Report on Form 10-K), PG&E
NEG and PG&E Corporation disclosed that the remaining options
held by the other lenders under the March 1, 2001 credit agreement,
representing 1.2 percent of the common stock of PG&E NEG, were
required to be exercised by March 1, 2003 and that such options had
therefore expired. After reconsideration of the operative
documents, it has been determined that the additional options did
not expire.  On March 27 and March 28, 2003, the other lenders
timely exercised their options.  Thus, 3 percent of the equity
of PG&E NEG is now owned by GECC, Lehman Brothers, Inc. and the
other lenders under the March 1, 2001 PG&E Corporation credit
agreement.
Item 7. Financial Statements, Pro Forma Financial Information,
and Exhibits
Exhibit 99.1 - Waiver Letter dated as of March 21, 2003, among
GenHoldings I, LLC, various lenders identified as the GenHoldings
Lenders, the Administrative Agent, and acknowledged and agreed to
by PG&E National Energy Group, Inc.
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:  LINDA Y.H. CHENG
LINDA Y.H. CHENG
Corporate
Secretary
PG&E NATIONAL ENERGY GROUP, INC.
By:   THOMAS B. KING
THOMAS B. KING
President
Date:  April 2, 2003
EXHIBIT
INDEX
Exhibit No.
Description of Document
99.1
Waiver Letter dated as of March 21, 2003, among GenHoldings I,
LLC, various lenders identified as the GenHoldings Lenders, the
Administrative Agent, and acknowledged and agreed to by PG&E
National Energy Group, Inc.