UNITED STATES

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: ~~August~~September 2211, 2003

COMMISSION FILE NO. 0-25842

PG&E Gas Transmission, Northwest Corporation

(Exact name of registrant as specified in its charter)

California

94-1512922

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

1400 SW Fifth Avenue, Suite 900,

Portland, OR

97201

(Address of principal executive offices)

(Zip code)

Registrant’s telephone number, including area code: (503) 833-4000

Item 5.

Other Events

~~Guarantee~~Legal inProceedings—On ~~Support~~September of11, ~~Tolling~~2003, ~~Agreement—~~Liberty Electric Power, LLC (Liberty) filed two lawsuits against PG&E Gas Transmission, Northwest Corporation (PG&E GTN) ~~provided~~ ain ~~secondary~~Federal ~~guarantee~~District toCourt ~~Liberty~~seeking ~~Electric~~recovery ~~Power,~~of ~~LLC~~$140.0 ~~(Liberty)~~million ~~which~~and ~~guaranteed~~$5.4 ~~certain~~million, ~~obligations~~respectively, ofrelated ~~PG&E~~to ~~Energy~~a ~~Trading—Power,~~guarantee LPissued ~~(PGET),~~by aPGE ~~subsidiary~~GTN in support of PG&E Energy Trading-Power, ~~Holdings~~LP’s ~~Corporation,~~(PGET) ~~related~~obligations tounder a ~~tolling~~ tolling agreement ~~(the~~with Liberty ~~Toll)~~(Tolling ~~between PGET and Liberty~~Agreement). The current face amount of the guarantee isissued ~~$140~~by ~~million,~~PG&E ~~declining~~GTN byis $10 140.0 million ~~annually each April~~. AsPGET is a ~~result~~debtor ofin ~~PG&E~~chapter ~~National~~11 ~~Energy~~proceedings ~~Group’s~~pending ~~filing~~in ~~for bankruptcy, PG&E GTN has become~~ the ~~primary~~United ~~guarantor~~States ofBankruptcy ~~PGET’s~~Court ~~obligation~~for ~~under~~ the ~~Liberty~~District ~~Toll.~~of Maryland ~~Liberty~~(Bankruptcy ~~issued a $4~~Court).4 ~~million payment demand to~~ PG&E GTN ~~under~~understands that the ~~guarantee,~~scope ~~ostensibly~~and ~~for~~extent aof ~~capacity~~liability ~~payment~~by ~~due from~~ PGET to Liberty ~~arising~~under ~~prior~~the ~~to PGET’s~~Tolling ~~filing~~Agreement ~~for~~is ~~bankruptcy~~disputed ~~protection.~~by ~~On August 6~~PGET, ~~2003,~~and ~~the~~that ~~Bankruptcy~~it ~~Court~~is ~~approved~~ PGET’s ~~motion~~position tothat ~~reject~~ the ~~Liberty~~determination ~~Toll,~~of ~~and~~whether ~~that~~any ~~agreement~~obligation is owed ~~now~~by ~~terminated.~~PGET ~~PG&E~~under ~~GTN~~the ~~has~~Tolling ~~now~~Agreement ~~been~~should ~~informed~~be ~~that~~made ~~Liberty~~by ~~has~~the ~~presented~~Bankruptcy ~~an invoice for a termination payment of $176~~Court.8 ~~million to PGET.~~

~~Whether and to the extent either Liberty or PGET may be found liable for termination payments under the Liberty Toll is subject to dispute.~~ If liability is established and PGET is held responsible for ~~termination~~ payments to Liberty, PG&E GTN will be the primary guarantor for any amounts due to Liberty up to the face amount of the guarantee. PG&E GTN will then have a claim against PGET for any amounts paid by PG&E GTN to Liberty under the guarantee. If PG&E GTN becomes directly liable under the guarantee for substantial termination payments under the Liberty Toll, such liability could have a material adverse effect on its financial condition, results of operations, or cash flows.

If PG&E GTN becomes directly liable under the guarantee for substantial payments under the Tolling Agreement, such liability could have a material adverse effect on its financial condition, results of operations, or cash flows.

SIGNATURE

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 thereto duly authorized.

	PG&E GAS TRANSMISSION, NORTHWEST CORPORATION	~~PG&E GAS TRANSMISSION, NORTHWEST CORPORATION~~
August 25, 2003		By:	/s/ THOMAS E. LEGRO
September 17, 2003	By:	/s/ THOMAS E. LEGRO
			Thomas E. Legro Vice President and Controller
		Thomas E. Legro
		Vice President and Controller

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