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

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

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

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

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

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

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

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

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

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

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

<p align="center"><a name="_DV_M6"></a>Date of Report: November 18,
2002</p>

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

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

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

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

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

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

<p align="center"></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;&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"></p>

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

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

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

<p align="center"></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>

<br clear="all" />


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

<p>The section of this current report on Form 8-K discussing recent
defaults by PG&amp;E National Energy Group, Inc. includes
forward-looking statements with respect to potential charges
against earnings that are necessarily subject to various risks and
uncertainties.&nbsp; These statements are based on current
expectations and assumptions which management believes are
reasonable and on information currently available to
management.&nbsp; Actual results could differ materially from those
contemplated by the forward-looking statements.&nbsp; These
statements should be read in conjunction with the forward-looking
statement factors set forth in the "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in
PG&amp;E Corporation's most recent Quarterly Report on Form 10-Q
for the quarter ended September 30, 2002.</p>

<p>A.&nbsp; PG&amp;E National Energy Group, Inc. Defaults</p>

<p>On November 14, 2002, PG&amp;E Corporation&rsquo;s wholly owned
subsidiary, PG&amp;E National Energy Group, Inc. (PG&amp;E NEG)
announced that a default occurred under PG&amp;E NEG&rsquo;s
revolving credit facility upon PG&amp;E NEG&rsquo;s failure to pay
$431&nbsp;million due on November 14, 2002, under the 364-day
tranche of the revolving credit facility.&nbsp; The amount
outstanding under the two-year tranche of the revolving credit
facility is $273 million, the majority of which supports
outstanding letters of credit.&nbsp; The default under the
revolving credit facility also constitutes a default under (1)
PG&amp;E NEG&rsquo;s senior unsecured notes due in 2011 (Senior
Notes) ($1 billion outstanding), (2) PG&amp;E NEG&rsquo;s guarantee
of the turbine and equipment credit facilities ($205 million
outstanding), and (3) PG&amp;E NEG&rsquo;s equity commitment
guarantees for the GenHoldings I, LLC credit facility ($355 million
outstanding), for the La Paloma construction facility ($375 million
outstanding), and for the Lake Road construction facility ($230
million).&nbsp; In addition, on November 15, 2002, PG&amp;E NEG
failed to pay a $52 million interest payment due under the Senior
Notes.</p>

<p></p>

<p>Notwithstanding the defaults, PG&amp;E NEG believes that the
lenders will continue to negotiate a global restructuring of these
commitments.&nbsp; This global restructuring would require PG&amp;E
NEG to abandon, sell, or transfer certain of PG&amp;E NEG&rsquo;s
merchant assets and reduce energy trading operations.&nbsp; If
agreed to by PG&amp;E NEG&rsquo;s lenders and implemented by
PG&amp;E NEG, these various asset transfers, sales, and
abandonments would cause substantial charges to earnings in either
the fourth quarter of 2002 or in 2003.&nbsp; As previously
reported, if the lenders exercise their default remedies or if a
restructuring is not achieved, PG&amp;E NEG and certain of its
subsidiaries may be compelled to seek protection under or be forced
into Chapter 11 of the U.S. Bankruptcy Code.</p>

<p></p>

<p>Notwithstanding these restructuring efforts, if PG&amp;E NEG
abandons, sells, or transfers assets in an effort to meet current
liquidity needs or other strategic efforts, PG&amp;E NEG would
incur substantial charges to earnings either in the fourth quarter
of 2002 or in 2003.</p>

<p></p>

<p>In addition, PG&amp;E NEG&rsquo;s default will cause
cross-defaults to occur under certain master trading agreements
entered into between various of PG&amp;E NEG&rsquo;s energy trading
subsidiaries and their respective counterparties.&nbsp; PG&amp;E
NEG has guaranteed the energy trading subsidiaries&rsquo;
obligations under these contracts.</p>

<p>B.&nbsp; PG&amp;E National Energy Group, Inc. Credit Ratings</p>

<p></p>

<p>On November 13, 2002, Moody&rsquo;s Investors Service
(Moody&rsquo;s) announced its decision to downgrade the credit
ratings of PG&amp;E NEG&rsquo;s senior unsecured debt, issuer
rating, and unsecured bank credit facility, to Ca from B3.&nbsp; In
addition, Moody&rsquo;s announced that it was downgrading the
credit rating of each of the following</p>

<p>PG&amp;E NEG subsidiaries: PG&amp;E Gas Transmission, Northwest
Corporation (PG&amp;E GTN) (senior unsecured debt downgraded to B1
from Ba1); USGen New England, Inc. (USGenNE) (pass-through
certificates and bank credit facility downgraded to Caa1 from B2);
and Attala Generating Company, LLC (Attala) (senior secured debt
downgraded to Caa2 from B2).&nbsp; The ratings on each of these
companies remain negative and PG&amp;E GTN remains under review for
possible downgrade.</p>

<p></p>

<p>Moody&rsquo;s stated that its rating action reflects PG&amp;E
NEG&rsquo;s disclosures that it would not make certain interest and
principal payments under its revolving credit facilities or its
Senior Notes.&nbsp; Moody&rsquo;s stated that its outlook for these
companies reflects the uncertainty associated with the outcome of
PG&amp;E NEG&rsquo;s debt restructuring efforts, including the
possibility of a bankruptcy filing by PG&amp;E NEG.</p>

<p></p>

<p>On November 14, 2002, Standard &amp; Poor's (S&amp;P) announced
it had downgraded the corporate credit rating of PG&amp;E NEG to D
from B- and removed the rating from CreditWatch.&nbsp; In addition,
S&amp;P announced that it was downgrading the corporate credit
rating of each of the following PG&amp;E NEG subsidiaries: PG&amp;E
GTN (downgraded to CCC from BB-); USGenNE (downgraded to C from
B-); PG&amp;E Energy Trading Holdings Corporation (PG&amp;E ET)
(downgraded to C from B-); and Attala (downgraded to C from
B-).&nbsp;&nbsp; The ratings on each of these subsidiaries remain
on CreditWatch with negative implications. S&amp;P withdrew its
rating of PG&amp;E Generating Company, LLC.</p>

<p></p>

<p>S&amp;P stated that its rating action reflects the possibility
that PG&amp;E NEG may not be successful in resolving its financial
difficulties outside of bankruptcy.&nbsp; S&amp;P lowered PG&amp;E
GTN's rating to below investment grade to reflect S&amp;P's maximum
three-notch differential between the rating of a ring-fenced entity
and its ultimate parent.&nbsp; S&amp;P noted that PG&amp;E
GTN&rsquo;s stand-alone credit quality remains considerably
stronger than the current rating would indicate.&nbsp;</p>

<p></p>

<br clear="all" />


<p></p>

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

<tr>
<td valign="top">
<p>&nbsp; Dated:&nbsp; November 18, 2002</p>
</td>
<td valign="top"></td>
</tr>
</table>

<p></p>
</div>
</body>
</html>
[{"type": "8-K", "sequence": "1", "filename": "fina1118.htm", "description": "FORM 8-K", "secsgml_size_bytes": 10614}]
{"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": "02831307"}, "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
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: November 18,
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
The section of this current report on Form 8-K discussing recent
defaults by PG&E National Energy Group, Inc. includes
forward-looking statements with respect to potential charges
against earnings that are necessarily subject to various risks and
uncertainties.  These statements are based on current
expectations and assumptions which management believes are
reasonable and on information currently available to
management.  Actual results could differ materially from those
contemplated by the forward-looking statements.  These
statements should be read in conjunction with the forward-looking
statement factors set forth in the "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in
PG&E Corporation's most recent Quarterly Report on Form 10-Q
for the quarter ended September 30, 2002.
A.  PG&E National Energy Group, Inc. Defaults
On November 14, 2002, PG&E Corporation's wholly owned
subsidiary, PG&E National Energy Group, Inc. (PG&E NEG)
announced that a default occurred under PG&E NEG's
revolving credit facility upon PG&E NEG's failure to pay
$431 million due on November 14, 2002, under the 364-day
tranche of the revolving credit facility.  The amount
outstanding under the two-year tranche of the revolving credit
facility is $273 million, the majority of which supports
outstanding letters of credit.  The default under the
revolving credit facility also constitutes a default under (1)
PG&E NEG's senior unsecured notes due in 2011 (Senior
Notes) ($1 billion outstanding), (2) PG&E NEG's guarantee
of the turbine and equipment credit facilities ($205 million
outstanding), and (3) PG&E NEG's equity commitment
guarantees for the GenHoldings I, LLC credit facility ($355 million
outstanding), for the La Paloma construction facility ($375 million
outstanding), and for the Lake Road construction facility ($230
million).  In addition, on November 15, 2002, PG&E NEG
failed to pay a $52 million interest payment due under the Senior
Notes.
Notwithstanding the defaults, PG&E NEG believes that the
lenders will continue to negotiate a global restructuring of these
commitments.  This global restructuring would require PG&E
NEG to abandon, sell, or transfer certain of PG&E NEG's
merchant assets and reduce energy trading operations.  If
agreed to by PG&E NEG's lenders and implemented by
PG&E NEG, these various asset transfers, sales, and
abandonments would cause substantial charges to earnings in either
the fourth quarter of 2002 or in 2003.  As previously
reported, if the lenders exercise their default remedies or if a
restructuring is not achieved, PG&E NEG and certain of its
subsidiaries may be compelled to seek protection under or be forced
into Chapter 11 of the U.S. Bankruptcy Code.
Notwithstanding these restructuring efforts, if PG&E NEG
abandons, sells, or transfers assets in an effort to meet current
liquidity needs or other strategic efforts, PG&E NEG would
incur substantial charges to earnings either in the fourth quarter
of 2002 or in 2003.
In addition, PG&E NEG's default will cause
cross-defaults to occur under certain master trading agreements
entered into between various of PG&E NEG's energy trading
subsidiaries and their respective counterparties.  PG&E
NEG has guaranteed the energy trading subsidiaries'
obligations under these contracts.
B.  PG&E National Energy Group, Inc. Credit Ratings
On November 13, 2002, Moody's Investors Service
(Moody's) announced its decision to downgrade the credit
ratings of PG&E NEG's senior unsecured debt, issuer
rating, and unsecured bank credit facility, to Ca from B3.  In
addition, Moody's announced that it was downgrading the
credit rating of each of the following
PG&E NEG subsidiaries: PG&E Gas Transmission, Northwest
Corporation (PG&E GTN) (senior unsecured debt downgraded to B1
from Ba1); USGen New England, Inc. (USGenNE) (pass-through
certificates and bank credit facility downgraded to Caa1 from B2);
and Attala Generating Company, LLC (Attala) (senior secured debt
downgraded to Caa2 from B2).  The ratings on each of these
companies remain negative and PG&E GTN remains under review for
possible downgrade.
Moody's stated that its rating action reflects PG&E
NEG's disclosures that it would not make certain interest and
principal payments under its revolving credit facilities or its
Senior Notes.  Moody's stated that its outlook for these
companies reflects the uncertainty associated with the outcome of
PG&E NEG's debt restructuring efforts, including the
possibility of a bankruptcy filing by PG&E NEG.
On November 14, 2002, Standard & Poor's (S&P) announced
it had downgraded the corporate credit rating of PG&E NEG to D
from B- and removed the rating from CreditWatch.  In addition,
S&P announced that it was downgrading the corporate credit
rating of each of the following PG&E NEG subsidiaries: PG&E
GTN (downgraded to CCC from BB-); USGenNE (downgraded to C from
B-); PG&E Energy Trading Holdings Corporation (PG&E ET)
(downgraded to C from B-); and Attala (downgraded to C from
B-).   The ratings on each of these subsidiaries remain
on CreditWatch with negative implications. S&P withdrew its
rating of PG&E Generating Company, LLC.
S&P stated that its rating action reflects the possibility
that PG&E NEG may not be successful in resolving its financial
difficulties outside of bankruptcy.  S&P lowered PG&E
GTN's rating to below investment grade to reflect S&P's maximum
three-notch differential between the rating of a ring-fenced entity
and its ultimate parent.  S&P noted that PG&E
GTN's stand-alone credit quality remains considerably
stronger than the current rating would indicate.
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:  /s/ LINDA Y.H. CHENG
LINDA Y.H. CHENG
Corporate Secretary
Dated:  November 18, 2002