ML020730109

Heller Ehrman White & Mcauliffe Llp'S Cover Sheet Application for Allowance and Payment of Interim Compensation and Reimbursement of Expenses for the Period January 1, 2002, Through January 31, 2002

ML020730109
Person / Time
Site:	Diablo Canyon
Issue date:	03/04/2002
From:	Cole A Heller Ehrman White & McAuliffe, LLP, Pacific Gas & Electric Co
To:	Office of Nuclear Reactor Regulation, US Federal Judiciary, Bankruptcy Court, Northern District of California
References
01-30923 DM, 94-0742640
Download: ML020730109 (7)

Text

1 MARIE L. FIALA (No. 79676)

PETER J. BENVENUTTI (No. 60566) 2 ADAM M. COLE (No. 145344)

HELLER EHRMAN WHITE & McAULIFFE LLP 3 333 Bush Street

,San Francisco, California 94104-2878 4 Telephone: (415) 772-6000 Facsimile: (415) 772-6268 5

Special Counsel for Debtor in Possession 6 PACIFIC GAS AND ELECTRIC COMPANY 7

8 UNITED STATES BANKRUPTCY COURT 9 NORTHERN DISTRICT OF CALIFORNIA 10 11 In re Case No.: 01-30923 DM 12 PACIFIC GAS AND ELECTRIC 13 COMPANY, a California corporation, Chapter 11 Case 14 Debtor.

[No Hearing Scheduled]

15 Federal I.D. No. 94-0742640 16 17 HELLER EHRMAN WHITE & McAULIFFE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM 18 COMPENSATION AND REIMBURSEMENT OF EXPENSES FOR THE PERIOD JANUARY 1, 2002, THROUGH JANUARY 31, 2002 19 20 Heller Ehrman White & McAuliffe LLP (the "Firm" or "Heller Ehrman") submits its 21 Cover Sheet Application (the "Application") for Allowance and Payment of Interim 22 Compensation and Reimbursement of Expenses for the Period January 1, 2002, through 23 January 31, 2002 (the "Application Period"). In support of the Application, the Firm 24 respectfully represents as follows:

25 1. The Firm is Special Counsel to Pacific Gas and Electric Company, debtor and 26 debtor-in-possession in the above-referenced bankruptcy case (the "Debtor"). The Firm 27 hereby applies to the Court -for allowance and payment of interim compensation for services Heller 28 rendered and reimbursement of expenses incurred during the Application Period.

Ehrman White & HELLER EHRMAN'S COVER SHEET APPLICATION FOR PERIOD JAN. 1, 2002, THROUGH JAN. 31, 2002 McAuliffe LLP CASE NO.: 01-30923DM

1 2. The Firm billed a total of $598,370.62 in fees' and expenses during the 2 Application Period. The total fees represent 1,914.2 hours2.314815e-5 days <br />5.555556e-4 hours <br />3.306878e-6 weeks <br />7.61e-7 months <br /> expended during the Application 3 Period. These fees and expenses break down as follows:

4 Period Fees Expenses Total 5 01/01/02 - 01/31/02 $563,719.20 $34,547.42 $598,266.62 6 3. Accordingly, the Firm seeks allowance of interim compensation in the total 7 amount of $513,708.74 at this time. This total comprises the following: $479,161.32 (85%

8 of the fees incurred during the Application Period)2 plus $34,547.42 (100% of the expenses 9 incurred).

10 4. For the post-petition period, the Firm has been paid to date as follows:,3 11 12 1 Under the Court's December 12, 2001, Memorandum Decision Regarding Applications for Interim 13 Compensation of Professionals ("December 12, 2001, Order"), compensation for all services by Heller Ehrman paralegals Nneka Nwosu and Brett Stone was limited to $40 per hour. The Court's February 27, 14 2002, Order approving Heller Ehrman's Second Interim Fee Application amended the December 12, 2001, Order to permit Heller:Ehrman to be compensated- at Ms. Nwosu and Mr- Stone's full billing, rates charged to 15 PG&E for tasks 6ther than file management and article routing. (Ms. Nwosti and Mr. Stone's hourly rates are $113 and $104, respectively.) The accompanying bills were prepar'ed before entry of the Court's 16 February 27, 2002, Order and reflect a reduced rate of $40 per hour for all tasks performed by Mr. Stone (no time is recorded by Ms. Nwosu for January 2002). Mr. Stone recorded 40.90 hours0.00104 days <br />0.025 hours <br />1.488095e-4 weeks <br />3.4245e-5 months <br /> during January 2002 on 17 tasks other than file management and article routing. Accordingly, Heller Ehrman seeks $2,617.60 in addition to what appears on the bills. That amount is derived as follows: 40.90 hours0.00104 days <br />0.025 hours <br />1.488095e-4 weeks <br />3.4245e-5 months <br /> x $104 (= $4,253.60),

18 less 40.90 hours0.00104 days <br />0.025 hours <br />1.488095e-4 weeks <br />3.4245e-5 months <br /> x $40 (= $1,636.00) = $2,617.60. The bills attached as Exhibit I have been annotated (with handwritten boxes) to identify the entries for Mr. Stone to'be billed at $104 per hour, rather than $40 per 19 hour.

20 Pursuant to the Court's December 12, 2001, Order, as clarified by the Court at the February 2 6, 2002, hearing on Heller Ehrman's Second Interim Fee Application, Heller Ehrman is entitled to 21 compensation for file management services by each of its paralegals at $40 per hour or the actual direct cost 22 of each paralegal to Heller Ehrman, whichever is greater. Heller Ehrman has not yet recalculated paralegal fees for January 2002 for file management tasks based on the direct cost of each paralegal to Heller Ehrman.

23 Accordingly, this Cover Sheet Application reflects a paralegal rate of $40 per hour for all file management tasks. Heller Ehrman will recalculate charges for such services based on direct costs of its paralegals and 24 adjust its January fees accordingly, to be reflected in Heller Ehrman's next Interim Fee Application. In future Cover Sheet Applications, Heller Ehrman will seek compensation for file management services at the 25 greater of $40 per hour or the actual direct cost to Heller Ehrman of each paralegal performing such services.

26 2 Payment of this amount would result in a "holdback" of $84,557.88, equal to 15% of the Firm's fees for services rendered during the Application Period.

27 3 On December 19, 2000, PG&E paid a retainer to Heller Ehrman in the amount of $350,000.

Heller 28 Pursuant to written agreement between the parties dated December 19, 2000, the retainer is not to apply to Ehrman (Footnote continued)

White & HELLER EHRMAN'S COVER SHEET APPLICATION FOR PERIOD McAuliffe LLP JAN. 1, 2002, THROUGH JAN. 31,2002 Case No.: 01-30923 DM 1 Application Period Amount Applied For Description Amount Paid 7/31/01 (first $2,264,794.01 100% of fees and $2,246,327.814 2 4/6/01 -

post-petition interim 100% of expenses 3 e application period) 4 8/1/01 - 8/31/01.(Aug. $ 507,687.35. 85% of fees and $ 507,687.35 CSA period) 100% of expenses 5 9/1/01 - 9/30/01 (Sept. $ 398,784.91 85% of fees and $ 398,814.515

• CSA period) 100% of expenses 6

10/1/01 - 10/31/01 $ 527,472.52 85% of fees and $ 542,494.906 7 (Oct. CSAperi'od) 100% of expenses 8 11/1/01-:11/30/01 $ 514,542.897. i85%offeesand $ 514,185.92 (Nov. CSA period) 100% of expenses 9

12/1/01-12/31/01 $ 385,123.93 85%of fees and $ 0

.(Dec. CSA period), . 100% of expenses 10 Total $4,598,405.618 $4,209,510.49 11 12 13 current billings in the ordinary course, but instead is to apply to Heller Ehrman's unpaid fees and expenses in the event that PG&E fails to make payment in the ordinary course. By written agreement dated April 5, 14 2001, the parties modified that arrangement to authorize Heller Ehrman to apply the retainer to payment of unpaid pre-petition fees and expenses on matters.that are subject togan hourly billing arrangement. The 15 foregoing arrangement was approved by this Court in its June 4, 2001, Order. Authorizing Debtor to Employ Heller Ehrman as Special Counsel (Apr. 17, 2001); see also PG&E's Application to Employ Heller Ehrman 16 as Special Counsel ¶¶ 9-10 (Apr. 17, 2001); Declaration of Marie L. Fiala in Support of Application ¶ 9 (Apr. 8, 2001).. As of the date of submission of this Cover Sheet Application, Heller Ehrman has applied 17 $153,148.07 of the retainer to a portion of its unpaid pre-petition fees and expenses on' hourly rate engagements, -Heller Ehrman continues to hold a retainer balance of $196,851.93.

The amount paid reflects a disallowance of$18,466.20 in fees. See Order Approving Heller 19 Ehrman White & McAuliffe LLP's First Interim Fee Application for Allowance and Payment of :

Compensation and Reimbursement of Expenses for the Period April 6, 2001, Through July 31, 2001 20 (Nov. 21, 2001); Decembef 12, 2001 Order at pp. 16-17.

21 5 The September Cover Sheet Application inadvertently understated the request for compensation by

$29.60, which PG&E paid.

22 its October Cover Sheet Application, the.Firm inadvertently did not include a request for 23 payment of fees and expenses incurred in Matter No, ,13779-0083 (Wayne Roberts v. PG&E), although the 24 bill for that matter was attached to the October Cover Sheet Application. For Matter No. 13779-0083, the fees were $17,359.80 and the expenses were $266.52, for a total of $17,626.32. Accordingly, the Firm's 25 October Cover Sheet Application should have included a request for payment of an additional $15,023.35 (85% of $17,359.80 + 100% of $266.52). PG&E has paid that additional amount.

26 7 After Heller Ehrman filed its November Cover Sheet Application, Heller Ehrman agreed with 27 PG&E to reduce its November fees for Matter No. 13779-0077 by $420. The revised November 2001 amount applied for therefore is $514,542.89 - (85% x $420) = $514,185.92, which is the amount paid by Heller 28 PG&E.

Ehrman White & HELLER EHRMAN'S COVER SHEET APPLICATION FOR PERIOD JAN. 1, 2002, THROUGH JAN. 31,2002 McAuliffe LLP CaseNo.: 01-30923 DM 1 5. To date, the Firm is owed as follows (excluding amounts owed pursuant to 2 11this Application):

3 Application Period Amount, . Description 4 First post-petition interim $ 0 fee application period 5 (4/6/01-7/31/01)

Second post-petition $ 268,569.08 15% monthly fee holdbacks, less 6 interim fee application' disallowance in Court's February 27, 2002, period (8/1/01-11/30/01) Order for certain paralegal fees ($19,921.40),

7 less additional reductions by Heller Ehrman reflected in the bills attached to Heller 8 Ehrman's Second Interim Fee Application

($31,625.80) 9 December cover sheet $ 446,804.33 100% of fees and 100% of expenses 10 application period (12/1/01-12731/01) 11 Total Owed to Firm to Date $ 715,374.13 12 13 6. With regard to the copies of this Application served on counsel for the 14 Committee, counsel for the Debtor and the Office of the United States Trustee, attached as 15 Exhibit 1 hereto .is the name of each professional who performed services in connection with 16 this case during the period covered by this Application and the hourly rate for each such 17 professional; and (b) attached as Exhibit 2 are the detailed time and expense statements for 18 the Application Period that comply with all Northern District of California Bankruptcy 19 Local Rules and Compensation Guidelines and the Guidelines of the Office of the United 20 States Trustee.

21 22 8 On January 14, 2002, Heller Ehrman filed and served its Second Interim Fee Application 23 requesting compensation for 100% of its fees and 100% of its expenses incurred during the period August 1, 24 2001, to November 30, 2001. The amount of fees and expenses requested therein equals the sum of: (i) the amounts applied for in each of the Cover Sheet Applications for the period August 1, 2001, to November 30, 25 2001, as reflected in the "Amount Applied For" column above; (ii) the 15% holdback amounts for those months; and (iii) reductions for certain categories of paralegal time and for other matters as explained in the 26 Fee Application. The total amount of compensation requested in the Fee Application for the period August 1, 2001, to November 30, 2001, was $2,251,673.88 ($2,142,087.50 in fees + $109,586.38 in 27 expenses). The Court approved Heller Ehrman's Fee Application, except for $19,921.40 in fees based on certain paralegal charges, authorizing compensation to Heller Ehrman of $2,231,752.48 ($2,122,166.10 in Heller 28 fees + $109,586.38 in expenses).

Ehrman White & HELLER EHRMAN'S COVER SHEET APPLICATION FOR PERIOD McAuliffe LLP JAN. 1, 2002, THROUGH JAN. 31, 2002 Case No.: 01-30923 DM 1 7. The Firm has served a copy of this Application (without Exhibits) on the 2 Special Notice List in this case.

3 -8. Pursuant to this Court's "ORDER ESTABLISHING INTERIM FEE 4 APPLICATION AND EXPENSE REIMBURSEMENT PROCEDURE" which was entered 5 on or about July 26, 2001, the Debtor is authorized to make the payment requested herein 6 without a further hearing or.order of this Court unless an objection to this Application is 7 filed withthe Court by the Debto.r, the Committee or the Unites States Trustee and served 8 by the fifteenthday of the month following the service of this Application. If such an 9 objection is filed, Debtor is authorized to pay the amounts, if any, not subject to the 10 objection. The Firm is informed and believes that this Cover Sheet Application was mailed 11 by first class mail, postage prepaid, on or about March 4, 2002.

12 9. The interim compensation and reimbursement of expenses sought in this 13 Application is on account and is not final. Upon the conclusion of this case, the Firm will 14 seek fees and reimbursement of the expenses incurred for the totality of the services 15 '"tendered ithe cash'. Aiiy interiini fees- of reimb~irsement of expenses approved by this 16 Court and received by the Firm (along with the Firm's Retainer) will be credited against 17 such final fees and expenses as may be allowed by this Court.

18 10. The Fii-mrepresents and warrants that its billing practices comply with all 19 Northern District of California Bankruptcy Local Rules and Compensation Guidelines and 20 the Guidelines of the Office of the United States Trustee. Neither the Firm nor any 21 members of the Firm has any agreement or understanding of any kind or nature to divide, 22 pay over or share any portion of the fees or expenses to be awarded to the Firm with any 23 other person or attorney except as among the members and associates of the Firm.

24 25 26 27 Heller 28 Ehrman White & HELLER EHRMAN'S COVER SHEET APPLICATION FOR PERIOD McAuliffe LLP JAN. 1,2002, THROUGH JAN. 31, 2002 Case No.: 01-30923 DM 1 WHEREFORE, the Firm respectfully requests that the Debtor pay compensation to 2 the Firm as requested herein pursuant to and in accordance with the terms of the "ORDER "3 ESTABLISHING INTERIM FEE APPLICATION AND EXPENSE REIMBURSEMENT 4 PROCEDURE."

5 6 Dated: March 4, 2002 HELLER EHRMAN WHITE & McAULIFFE LLP 7

8 By : .......

Adam M. Cole 9

Special Counsel for Debtor in Possession 10 PACIFIC GAS AND ELECTRIC COMPANY 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Heller 28 Ehrman White & HELLER EHRMAN'S COVER SHEET APPLICATION FOR PERIOD McAuliffe LLP JAN. 1, 2002, THROUGH JAN. 31, 2002 Case No.: 01-30923 DM Ann Whitehead PG&E 2/02 HellerEhrman A T T O R N E Y S SPM "

MAR,-

Heller Ehrman White & McAuliffe LLP 333 Bush Street San Francisco, CA 94104-2878 METER U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555-0001