PG&E Corporation and PG&E National Energy Group, Inc.

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 27, 2003



Commission
File
Number

Exact Name of
Registrant
as specified in
its charter


State or other
Jurisdiction of
Incorporation


IRS Employer
  Identification
Number

_____________

_____________

_____________

_____________

1-12609

333-66032

PG&E Corporation

PG&E National Energy Group, Inc.

California

Delaware

94-3234914

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

(Address of principal executive offices) (Zip Code)


PG&E Corporation
(415) 267-7000

PG&E National Energy Group, Inc.
(301) 280-6800

(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.

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


Dated: 

June 27, 2003