<SUBMISSION>
<ACCESSION-NUMBER>0001004980-02-000091
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20021118
<ITEMS>5
<FILING-DATE>20021118
<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>02831307
</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>fina1118.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<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>


</TEXT>
</DOCUMENT>
</SUBMISSION>
