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: June 16, 2003
Date of Report: June 27, 2003
Commission File Number	Exact Name of Registrant as specified in its charter	State or other Jurisdiction of Incorporation	~~State~~IRS orEmployer ~~other~~Identification ~~Jurisdiction of Incorporation~~Number	~~IRS Employer Identification Number~~
_____________	_____________	_____________	_____________	~~_____________~~
1-12609	PG&E Corporation		California	94-3234914
1-12609 333-66032	PG&E Corporation PG&E National Energy Group, Inc.	California Delaware	94-3234914 94-3316236
333-66032	PG&E National Energy Group, Inc.		Delaware	94-3316236
PG&E Corporation One Market, Spear Tower, Suite 2400 San Francisco, California 94105		PG&E National Energy Group, Inc. 7600 Wisconsin Avenue Bethesda, Maryland 20814
PG&E Corporation One Market, Spear Tower, Suite 2400 San Francisco, California 94105		PG&E National Energy Group, Inc. 7600 Wisconsin Avenue Bethesda, Maryland 20814
(Address of principal executive offices) (Zip Code)
(Address of principal executive offices) (Zip Code)
PG&E Corporation (415) 267-7000		PG&E National Energy Group, Inc. (301) 280-6800
PG&E Corporation (415) 267-7000			PG&E National Energy Group, Inc. (301) 280-6800
(Registrant's telephone number, including area code)
(Registrant's telephone number, including area code)

Item 5. Other Events As previously disclosed, in 2002 PG&E National Energy Group, Inc. (PG&E NEG), a subsidiary of PG&E Corporation, reclassified the operations of its subsidiary, USGen New England, Inc., to discontinued operations. Subsequent to the issuance of PG&E NEG's 2002 consolidated financial statements, management discovered a misclassification of certain offsetting revenues and expenses between discontinued operations and continuing operations of PG&E NEG. PG&E NEG will revise its 2002 Form 10-K/A to reclassify certain offsetting revenues and expenses, which net to zero. The revision is strictly a reclassification of approximately $470 million of revenues and expenses from discontinued operations to continuing operations. The reclassification will result in no change in PG&E NEG's operating income, net income, balance sheet or cash flow. The only impact of the reclassification is an increase in operating revenues offset by an equal increase in operating expenses in its consolidated statements of operations. In addition, PG&E Corporation will similarly revise its 2002 Form 10-K/A to reflect these changes in revenues and expenses, which will result in no change in operating income, net income, balance sheet or cash flow.

As of June 8, 2003, certain subsidiaries of PG&E Corporation’s subsidiary, PG&E National Energy Group, Inc. (PG&E NEG) entered into amendments to existing agreements with the lenders for each of the Lake Road and La Paloma generating projects under which the lenders agreed to extend the date by which each of the projects were required to be transferred to the lenders or their designees from June 9, 2003 to September 30, 2003.



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:	BRUCE R. WORTHINGTON __________________________________________
		BRUCE R. WORTHINGTON Senior Vice President and General Counsel

	PG&E NATIONAL ENERGY GROUP, INC.
	By:	THOMAS E. LEGRO __________________________________________
		THOMAS E. LEGRO Vice President and Chief Accounting Officer

AsDated: previously disclosed, these existing agreements, entered into as of December 4, 2002, provided, among other things, that it was a default under the agreements if PG&E NEG and certain of its subsidiaries did not transfer the right, title and interest in, to and under the Lake Road and La Paloma projects to their lenders or the lenders’ designees on or before June 927, 2003.

Additionally, in consideration of the lenders’ waiver of various defaults and additional funding of the La Paloma project, PG&E NEG previously had agreed to cooperate, and to cause its subsidiaries to cooperate, with any reasonable proposal regarding disposition of the ownership interests in and/or assets of the La Paloma project, on terms and conditions satisfactory to the lenders in their sole discretion.

The failure to transfer the Lake Road and La Paloma facilities by September 30, 2003 would result in a default, giving the lenders the ability to foreclose on the facilities. Also, as previously disclosed, PG&E NEG has guaranteed the repayment of a portion of the Lake Road and La Paloma project subsidiary debt in the approximate amounts of $230 million for Lake Road and $375 million for La Paloma, which amounts represent the subsidiaries’ equity contributions in the projects. The requirement to pay these equity contributions will remain an obligation of PG&E NEG that would survive the transfer of the projects.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PG&E CORPORATION By: CHRISTOPHER P. JOHNS CHRISTOPHER P. JOHNS Senior Vice President and Controller PG&E NATIONAL ENERGY GROUP, INC. By: THOMAS E. LEGRO THOMAS E. LEGRO Vice President, Controller and Chief Accounting Officer

Date: June 16, 2003

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