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<p align="center"><a name="_DV_M0"></a>SECURITIES AND EXCHANGE
COMMISSION</p>

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

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

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

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

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<p align="center"><a name="_DV_M2"></a>FORM 8&#8209;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"><a name="_DV_M6"></a>Date of Report: August 19,
2002</p>

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<table border="0" cellspacing="0" cellpadding="0" width="644">
<tr>
<td colspan="4" valign="top"></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>

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<td valign="top"></td>
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</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 align="center"><br />
<a name="_DV_M7"></a><a name="_DV_M8"></a><a name="_DV_M9"></a><a
name="_DV_M10"></a><a name="_DV_M11"></a><a name="_DV_M12"></a><a
name="_DV_M13"></a></p>

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<div align="center"><a name="_DV_M14"></a><a name="_DV_M15"></a><a
name="_DV_M16"></a><a name="_DV_M17"></a><a name="_DV_M18"></a><a
name="_DV_M19"></a><a name="_DV_M20"></a><a name="_DV_M21"></a><a
name="_DV_M22"></a>

<hr size="2" width="100%" align="center" />
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<p><a name="_DV_M23"></a></p>

<h5>Item 5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Events</h5>

<h5><a name="_DV_M24"></a></h5>

<h5>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PG&amp;E Corporation Credit
Agreement Waiver Extension</h5>

<h5><a name=
"_DV_M67"></a>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
previously disclosed, General Electric Capital Corporation and
certain other lenders (collectively, the GE Lenders) under PG&amp;E
Corporation's $1.02 billion Amended and Restated Credit Agreement
dated as of June 25, 2002 (Credit Agreement) waived, until August
16, 2002, the requirement that PG&amp;E Corporation's subsidiary,
PG&amp;E National Energy Group, Inc. (PG&amp;E NEG), continue to
maintain investment grade ratings with either Standard &amp; Poor's
(S&amp;P) or Moody's Investor Services, Inc. (Moody's).&nbsp; On
August 16, 2002, the GE Lenders extended the waiver through October
21, 2002, subject to earlier termination if, among other events,
PG&amp;E NEG fails to maintain certain levels of availability under
its $1.25 billion credit agreement dated August 22, 2001 (PG&amp;E
NEG Credit Agreement).&nbsp; The PG&amp;E NEG Credit Agreement
currently consists of a Tranche A facility for $500 million which
expires on August 22, 2003 and a Tranche B facility for $750
million which expires on August 22, 2002.&nbsp; The Tranche A
facility currently supports approximately $270 million of letters
of credit and $432 million is currently outstanding under the
Tranche B facility.&nbsp; The waiver agreement requires that,
during the term of the waiver agreement, at least $400 million
remain available to PG&amp;E NEG under the Tranche A facility and
that at least $432 million remain available to PG&amp;E NEG under
the Tranche B facility.&nbsp; In addition to requiring the
maintenance of certain levels of availability under the PG&amp;E
NEG Credit Agreement, the GE Lenders may also terminate the waiver
if (1) the holders of indebtedness of PG&amp;E NEG under the
PG&amp;E NEG Credit Agreement become entitled to accelerate the
repayment of such indebtedness before its stated maturity date, or
(2) PG&amp;E Corporation fails to perform any term or covenant of
the waiver agreement.&nbsp; A copy of the waiver agreement is filed
as Exhibit 99.1 hereto.</h5>

<h5></h5>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, during the term of the 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
$15 million, except as may be required under applicable law or by
conditions established by the California Public Utilities
Commission (CPUC) in decisions approving the formation of PG&amp;E
Corporation to hold the stock of Pacific Gas and Electric Company
(Utility).&nbsp; The terms of the waiver also require PG&amp;E
Corporation to maintain cash held in two interest reserve accounts
under the Credit Agreement sufficient to cover interest payable on
the $1.02 billion in term loans outstanding under the Credit
Agreement for a two-year period, increased from a one-year period;
provided, however, that the aggregate amount required to be held in
the interest reserve accounts shall not exceed 15 percent of the
then outstanding principal amount of the loans.&nbsp; The waiver
agreement also provides that, during the term of the waiver,
proceeds that PG&amp;E NEG receives from certain PG&amp;E NEG
transactions may only be reinvested in specified projects.</p>

<p></p>

<p>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
previously disclosed, subject to their respective rights as set
forth in the Intercreditor and Subordination Agreement, dated as of
June 25, 2002, by and between the GE Lenders and certain other
parties thereto, the GE Lenders would, upon expiration of the
waiver, have the right to declare all amounts outstanding under the
Credit Agreement to be immediately due and payable.&nbsp; The
failure of PG&amp;E Corporation to repay this accelerated
indebtedness would entitle the GE Lenders, subject to the
Intercreditor Agreement, to exercise certain remedies, including
their rights as secured parties with respect to their collateral,
i.e., the pledged interests of PG&amp;E Corporation in PG&amp;E
National Energy Group, LLC (NEG, LLC), NEG LLC's pledged interests
in PG&amp;E NEG, and a pledged interest in an interest reserve
account, which will increase from approximately $65 million to $153
million as a result of the waiver agreement.&nbsp;</p>

<h5></h5>

<h5>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
previously disclosed, with respect to the $280 million aggregate
principal amount of 7.5% Convertible Subordinated Notes issued by
PG&amp;E Corporation pursuant to an Indenture dated as of June 25,
2002 by and between PG&amp;E Corporation and U.S. Bank, N.A., as
trustee (Notes), if the obligations under the Credit Agreement were
accelerated and PG&amp;E Corporation failed to pay such accelerated
obligations as described above and such failure continues for 30
days after receipt of written notice from the trustee or holders of
at least 25 percent of the aggregate principal amount of
outstanding Notes, the Notes would also be in default.&nbsp;
Thereupon, and subject to the subordination provisions of the
Indenture, the trustee or the Note holders would have the right to
accelerate the Notes.&nbsp; A similar cross-default situation could
develop if creditors of PG&amp;E Corporation's significant
subsidiaries, including PG&amp;E NEG, accelerated $150 million or
more in aggregate principal amount of indebtedness.&nbsp;</h5>

<h5>PG&amp;E NEG is currently negotiating with its lenders for an
extension of the PG&amp;E NEG Credit Agreement as required by the
waiver.&nbsp; Neither PG&amp;E Corporation nor PG&amp;E NEG can
predict whether such an extension will be granted.</h5>

<h5></h5>

<h5>During the term of the waiver by the GE Lenders, PG&amp;E
Corporation intends to negotiate with the GE Lenders for the
elimination of the credit rating maintenance covenant from the
Credit Agreement or for such other amendments as may be needed to
avoid a default of these obligations; however, PG&amp;E Corporation
cannot predict whether, or to what extent, it would be successful
in such efforts.&nbsp; Current PG&amp;E Corporation cash balances
are insufficient to repay the full amount of its outstanding
debt.</h5>

<h5></h5>

<h5>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pacific Gas and Electric
Company&nbsp;</h5>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
previously disclosed, in March 2001, the CPUC adopted a decision
which retroactively restated the way in which the Utility&rsquo;s
generation&ndash;related transition costs are deemed
recovered.&nbsp; This retroactive change had the effect of
extending the statutory electric retail rate freeze and reducing
the amount of past wholesale power costs that could be eligible for
recovery from customers.&nbsp; The CPUC denied the Utility's
application for rehearing of this retroactive accounting
change.&nbsp; The Utility&rsquo;s petition for a writ of review
filed with the California Court of Appeal also was denied.&nbsp; On
August 14, 2002, the California Supreme Court denied the
Utility&rsquo;s petition to review the appellate court
action.&nbsp;</p>

<p>Although the California Supreme Court&rsquo;s action had the
effect of denying the Utility&rsquo;s state law arguments
challenging the CPUC&rsquo;s accounting order, the action by the
California Supreme Court has no effect on the Utility&rsquo;s
federal claims raised in the Utility&rsquo;s &ldquo;filed rate
case&rdquo; pending in the U.S. District Court for the Northern
District of California.&nbsp; In the filed rate case, filed in
November 2000 and refiled in August 2001, the Utility is asking the
court to declare that, under federal preemption principles, the
federally tariffed wholesale power and transmission costs that the
Utility has incurred to serve its customers are recoverable in
retail rates.&nbsp;&nbsp; The case also asserts several
constitutional claims.&nbsp; The filed rate case has been deemed a
related case to the Utility's pending appeal of the Bankruptcy
Court's denial of the Utility's request for injunctive and
declaratory relief against the CPUC&rsquo;s retroactive accounting
order.&nbsp; Both matters are pending before the same District
Court judge, who has ruled that the filed rate case will proceed
before the bankruptcy appeal will be heard.</p>

<p>A case management conference was held on August 16, 2002, at
which <b></b>the court set a new trial date in this matter of June
9, 2003.&nbsp; Neither PG&amp;E Corporation nor the Utility can
predict what the outcome of the filed rate case will be.</p>

<h5>Item 7. Financial Statements, Pro Forma Financial Information,
and Exhibits</h5>

<p>Exhibit No.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Description of Exhibit</p>

<p>99.1&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Waiver and Amendment Agreement, dated August 16, 2002, by and among
PG&amp;E Corporation, PG&amp;E National Energy Group, LLC, Lehman
Commercial Paper Inc., as administrative agent, and the lenders
party to the Amended and Restated Credit Agreement dated as of June
25, 2002</p>

<h5></h5>

<br clear="all" />


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<td valign="top"><br clear="all" />


<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 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;&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;&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</p>

<p>&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;/s/ 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;</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;LINDA Y.H. CHENG<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate Secretary</p>
</td>
</tr>
</table>

<table border="0" cellspacing="0" cellpadding="0" width="649">
<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; August 19, 2002</p>

<br clear="all" />


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

<p>Exhibit
No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Description of Exhibit</p>

<p>
99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Waiver and
Amendment Agreement, dated August 16, 2002, by and among PG&amp;E
Corporation, PG&amp;E National Energy Group, LLC, Lehman Commercial
Paper Inc., as administrative agent, and the lenders party to the
Amended and Restated Credit Agreement dated as of June 25, 2002</p>

<p></p>
</div>
</body>
</html>
[{"type": "8-K", "sequence": "1", "filename": "final819.htm", "description": "FORM 8-K", "secsgml_size_bytes": 19504}]
{"company-data": {"conformed-name": "PACIFIC GAS & ELECTRIC CO", "cik": "0000075488", "assigned-sic": "4931", "irs-number": "940742640", "state-of-incorporation": "CA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-02348", "film-number": "02742146"}, "business-address": {"street1": "77 BEALE ST", "street2": "P O BOX 770000", "city": "SAN FRANCISCO", "state": "CA", "zip": "94177", "phone": "4152677000"}, "mail-address": {"street1": "77 BEALE STREET", "street2": "P O BOX 770000", "city": "SAN FRANCISCO", "state": "CA", "zip": "94177"}}
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: August 19,
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
PG&E Corporation Credit
Agreement Waiver Extension
As
previously disclosed, General Electric Capital Corporation and
certain other lenders (collectively, the GE Lenders) under PG&E
Corporation's $1.02 billion Amended and Restated Credit Agreement
dated as of June 25, 2002 (Credit Agreement) waived, until August
16, 2002, the requirement that PG&E Corporation's subsidiary,
PG&E National Energy Group, Inc. (PG&E NEG), continue to
maintain investment grade ratings with either Standard & Poor's
(S&P) or Moody's Investor Services, Inc. (Moody's).  On
August 16, 2002, the GE Lenders extended the waiver through October
21, 2002, subject to earlier termination if, among other events,
PG&E NEG fails to maintain certain levels of availability under
its $1.25 billion credit agreement dated August 22, 2001 (PG&E
NEG Credit Agreement).  The PG&E NEG Credit Agreement
currently consists of a Tranche A facility for $500 million which
expires on August 22, 2003 and a Tranche B facility for $750
million which expires on August 22, 2002.  The Tranche A
facility currently supports approximately $270 million of letters
of credit and $432 million is currently outstanding under the
Tranche B facility.  The waiver agreement requires that,
during the term of the waiver agreement, at least $400 million
remain available to PG&E NEG under the Tranche A facility and
that at least $432 million remain available to PG&E NEG under
the Tranche B facility.  In addition to requiring the
maintenance of certain levels of availability under the PG&E
NEG Credit Agreement, the GE Lenders may also terminate the waiver
if (1) the holders of indebtedness of PG&E NEG under the
PG&E NEG Credit Agreement become entitled to accelerate the
repayment of such indebtedness before its stated maturity date, or
(2) PG&E Corporation fails to perform any term or covenant of
the waiver agreement.  A copy of the waiver agreement is filed
as Exhibit 99.1 hereto.
In
addition, during the term of the 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
$15 million, except as may be required under applicable law or by
conditions established by the California Public Utilities
Commission (CPUC) in decisions approving the formation of PG&E
Corporation to hold the stock of Pacific Gas and Electric Company
(Utility).  The terms of the waiver also require PG&E
Corporation to maintain cash held in two interest reserve accounts
under the Credit Agreement sufficient to cover interest payable on
the $1.02 billion in term loans outstanding under the Credit
Agreement for a two-year period, increased from a one-year period;
provided, however, that the aggregate amount required to be held in
the interest reserve accounts shall not exceed 15 percent of the
then outstanding principal amount of the loans.  The waiver
agreement also provides that, during the term of the waiver,
proceeds that PG&E NEG receives from certain PG&E NEG
transactions may only be reinvested in specified projects.
As
previously disclosed, subject to their respective rights as set
forth in the Intercreditor and Subordination Agreement, dated as of
June 25, 2002, by and between the GE Lenders and certain other
parties thereto, the GE Lenders would, upon expiration of the
waiver, have the right to declare all amounts outstanding under the
Credit Agreement to be immediately due and payable.  The
failure of PG&E Corporation to repay this accelerated
indebtedness would entitle the GE Lenders, subject to the
Intercreditor Agreement, to exercise certain remedies, including
their rights as secured parties with respect to their collateral,
i.e., the pledged interests of PG&E Corporation in PG&E
National Energy Group, LLC (NEG, LLC), NEG LLC's pledged interests
in PG&E NEG, and a pledged interest in an interest reserve
account, which will increase from approximately $65 million to $153
million as a result of the waiver agreement.
As
previously disclosed, with respect to the $280 million aggregate
principal amount of 7.5% Convertible Subordinated Notes issued by
PG&E Corporation pursuant to an Indenture dated as of June 25,
2002 by and between PG&E Corporation and U.S. Bank, N.A., as
trustee (Notes), if the obligations under the Credit Agreement were
accelerated and PG&E Corporation failed to pay such accelerated
obligations as described above and such failure continues for 30
days after receipt of written notice from the trustee or holders of
at least 25 percent of the aggregate principal amount of
outstanding Notes, the Notes would also be in default. 
Thereupon, and subject to the subordination provisions of the
Indenture, the trustee or the Note holders would have the right to
accelerate the Notes.  A similar cross-default situation could
develop if creditors of PG&E Corporation's significant
subsidiaries, including PG&E NEG, accelerated $150 million or
more in aggregate principal amount of indebtedness.
PG&E NEG is currently negotiating with its lenders for an
extension of the PG&E NEG Credit Agreement as required by the
waiver.  Neither PG&E Corporation nor PG&E NEG can
predict whether such an extension will be granted.
During the term of the waiver by the GE Lenders, PG&E
Corporation intends to negotiate with the GE Lenders for the
elimination of the credit rating maintenance covenant from the
Credit Agreement or for such other amendments as may be needed to
avoid a default of these obligations; however, PG&E Corporation
cannot predict whether, or to what extent, it would be successful
in such efforts.  Current PG&E Corporation cash balances
are insufficient to repay the full amount of its outstanding
debt.
B.        
     Pacific Gas and Electric
Company
As
previously disclosed, in March 2001, the CPUC adopted a decision
which retroactively restated the way in which the Utility's
generation–related transition costs are deemed
recovered.  This retroactive change had the effect of
extending the statutory electric retail rate freeze and reducing
the amount of past wholesale power costs that could be eligible for
recovery from customers.  The CPUC denied the Utility's
application for rehearing of this retroactive accounting
change.  The Utility's petition for a writ of review
filed with the California Court of Appeal also was denied.  On
August 14, 2002, the California Supreme Court denied the
Utility's petition to review the appellate court
action.
Although the California Supreme Court's action had the
effect of denying the Utility's state law arguments
challenging the CPUC's accounting order, the action by the
California Supreme Court has no effect on the Utility's
federal claims raised in the Utility's "filed rate
case" pending in the U.S. District Court for the Northern
District of California.  In the filed rate case, filed in
November 2000 and refiled in August 2001, the Utility is asking the
court to declare that, under federal preemption principles, the
federally tariffed wholesale power and transmission costs that the
Utility has incurred to serve its customers are recoverable in
retail rates.   The case also asserts several
constitutional claims.  The filed rate case has been deemed a
related case to the Utility's pending appeal of the Bankruptcy
Court's denial of the Utility's request for injunctive and
declaratory relief against the CPUC's retroactive accounting
order.  Both matters are pending before the same District
Court judge, who has ruled that the filed rate case will proceed
before the bankruptcy appeal will be heard.
A case management conference was held on August 16, 2002, at
which
the court set a new trial date in this matter of June
9, 2003.  Neither PG&E Corporation nor the Utility can
predict what the outcome of the filed rate case will be.
Item 7. Financial Statements, Pro Forma Financial Information,
and Exhibits
Exhibit No.
           
Description of Exhibit
99.1   
                  
Waiver and Amendment Agreement, dated August 16, 2002, by and among
PG&E Corporation, PG&E National Energy Group, LLC, Lehman
Commercial Paper Inc., as administrative agent, and the lenders
party to the Amended and Restated Credit Agreement dated as of June
25, 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/ LINDA Y.H. CHENG
LINDA Y.H. CHENG
Corporate Secretary
Dated:  August 19, 2002
EXHIBIT INDEX
Exhibit
No.            
Description of Exhibit
99.1             
         Waiver and
Amendment Agreement, dated August 16, 2002, by and among PG&E
Corporation, PG&E National Energy Group, LLC, Lehman Commercial
Paper Inc., as administrative agent, and the lenders party to the
Amended and Restated Credit Agreement dated as of June 25, 2002