<SUBMISSION>
<ACCESSION-NUMBER>0001004980-02-000079
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20021010
<ITEMS>5
<FILING-DATE>20021010
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>PG&E CORP
<CIK>0001004980
<ASSIGNED-SIC>4931
<IRS-NUMBER>943234914
<STATE-OF-INCORPORATION>CA
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-12609
<FILM-NUMBER>02786642
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ONE MARKET SPEAR TOWER
<STREET2>SUITE 2400
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94105
<PHONE>4152677000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE MARKET SPEAR TOWER
<STREET2>SUITE 2400
<CITY>SAN FRANCISCO
<STATE>CA
<ZIP>94105
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>PG&E PARENT CO INC
<DATE-CHANGED>19951214
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>final1010.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<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>
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