EDITORS: Please do not use
"Pacific Gas and Electric" or "PG&E" when
referring to PG&E Corporation or its National Energy Group.
The PG&E National Energy Group is not the same company as Pacific
Gas and Electric Company, the utility, and is not regulated by the
California Public Utilities Commission. Customers of Pacific Gas
and Electric Company do not have to buy products or services from
the National Energy Group in order to continue to receive quality
regulated services from Pacific Gas and Electric Company.
LIMITED FUNDING FOR PG&E NATIONAL ENERGY GROUP'S CONSTRUCTION PROJECTS
BETHESDA, Md. PG&E National
Energy Group, Inc. today announced that the company and a syndicate
of lenders have reached agreement to provide limited funding for
the company's subsidiary, GenHoldings I, LLC, allowing construction
to continue at power plants in Arizona, Michigan and New York. PG&E
National Energy Group is a wholly owned subsidiary of PG&E Corporation
The agreement, in effect
until Nov. 14, 2002, is a transitional step while the lenders look
at a more permanent resolution.
Earlier this month, PG&E
National Energy Group disclosed in a report filed with the U.S.
Securities and Exchange Commission that it notified the lenders
under GenHolding'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.
PG&E National Energy Group
guarantees the obligation of its subsidiary, GenHoldings I, LLC,
to make equity contributions under GenHolding's credit facility
to fund construction of the Harquahala power plant in Tonopah, Ariz.,
the Covert plant in Covert, Mich. and the Athens Generating plant
in Athens, N.Y. This credit facility is secured by these projects
in addition to the Millennium power plant in Charlton, Mass. In
August and September 2002, PG&E National Energy Group funded approximately
$150 million of Gen Holding's equity commitment. GenHolding's remaining
equity commitment is $355 million.
Last week, a syndicate of
16 lenders extended the maturity date of a separate PG&E National
Energy Group revolving credit facility from Oct. 21, 2002 to Nov.
Headquartered in Bethesda,
Md., PG&E National Energy Group develops, builds, owns and operates
electric generating and natural gas pipeline facilities and provides
energy trading, marketing and risk-management services.