ML020920555

Deloitte & Touche Llp'S Cover Sheet Application for Allowance and Payment of Interim Compensation and Reimbursement of Expenses (April 7, 2001 to February 28, 2002)

ML020920555
Person / Time
Site:	Diablo Canyon
Issue date:	03/22/2002
From:	Edmunds M Deloitte & Touche, 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: ML020920555 (4)

Text

Mark A. Edmunds 1 Deloitte & Touche LLP 50 Fremont Street 2 San Francisco, CA 94121 Telephone: (415) 783-4000 3 Facsimile: (415) 783-4708 4 Independent Auditor, Accountant, Tax Advisor and Consultant to 5 Debtor and Debtor in Possession Pacific Gas and Electric Company 6

7 8

UNITED STATES BANKRUPTCY COURT 9

NORTHERN DISTRICT OF CALIFORNIA 10 SAN FRANCISCO DIVISION 11 In re No. 01-30923 DM 12 PACIFIC GAS AND ElLECTRIC Chapter 11 Case 13 COMPANY, a Californ ia Corporation, DELOITTE & TOUCHE LLP'S COVER Debtor. SHEET APPLICATION FOR 14 ALLOWANCE AND PAYMENT OF 15 Federal I.D. No. 94-074r2640 INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES 16 (APRIL 7,2001 TO FEBRUARY 28, 2002) 17

[No Hearing Scheduled]

18 19 Deloitte & Touche LLP (the "Firm") submits this Cover Sheet Application for Allowance 20 and Payment of Interim Compensation and Reimbursement of Expenses ("Application") for the 21 period from April 7, 2001, to February 28, 2002 ("Application Period"). In support of the 22 Application, the Firm respectfully represents as follows:

23 1. The Firm is Independent Auditor, Accountant, Tax Advisor, and Consultant to Debtor 24 Pacific Gas & Electric Company ("Debtor"). On July 10, 2001, the Firm's retention in this 25 capacity was approved nunc pro tunc, effective April 6, 2001. The Firm hereby applies to the 26 Court for allowance and payment of interim compensation for services rendered and for 27 reimbursement of expenses incurred during the Application Period. 0 I04 )

28 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION 1 FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (APRIL 7, 2001 TO FEBRUARY 28, 2002)

1 2. The Firm billed $62,503.50 in hourly fees (representing 309.8 hours9.259259e-5 days <br />0.00222 hours <br />1.322751e-5 weeks <br />3.044e-6 months <br /> expended) 2 (hereinafter "Hourly Fees") and $70.40 in expenses (hereinafter "Expenses") during the 3 Application Period. (These sums do not include (a) $735,000 billed during the Application 4 Period as the earned portion of the Firm's $855,000 base fee for auditing and reporting on 5 Debtor's consolidated financial statements and reviewing interim financial information for the 6 2001 fiscal year ["Base Audit Fee"] or (b) charges for the Firm's work during the Application 7 Period in auditing financial statements being prepared for the four entities-ETrans LLC, 8 GTrans LLC, Electric Generation LLC, and Reorganized Debtor-that would succeed to 9 Debtor's business assets upon confirmation of Debtor's proposed reorganization plan. I The July 10 10, 2001, order approving the Firm's employment authorized Debtor to pay the earned portion of 11 the Base Audit Fee upon receipt of monthly invoices from the Firm, and a portion of the Base 12 Audit Fee has previously been paid to the Firm in accordance with that order.) The Hourly Fees 13 and Expenses which are the subject of this Application are shown as follows:

14 15 Period Hourly Fees Expenses Total 16 4/7/01 to 2/28/02 $62,503.502 $70.40 $62,573.90 17 3. The Firm seeks payment of a total of $54,331.45 at this time. This is the sum of(i) 18 $20,395.35, which is 90 % of the Hourly Fees billed for services rendered through July 31, 2001 19 3), (ii) $33,865.70, which is 85 % of the Hourly Fees billed for services rendered from August 1, 20 2001, through February 28, 2002 ($4) and (iii)$70.40, which is 100 % of the Expenses.

21 1These charges will be the subject of a future compensation application.

22 2 The Firm's attached time diaries show time value of $99,620.50, which is $37,117 more than the

$62,503.50 Hourly Fees billed. This reflects a $37,117 voluntary discount or "write-down" which is 23 reflected on the attached summary sheet. As shown on the summary sheet, $15,000 of the $37,117 discount was credited to "engagement planning and retention" charges, $19,117 was credited to 24 "corporate accounting consulting review" services, and $3,000 was credited to "transition property 25 procedures."

3 Payment of this amount would result in a "holdback" of $2,266.15.

26 4 Payment of this amount would result in a "holdback" of $5,976.30.

27 28 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION 2 FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (APRIL 7, 2001 TO FEBRUARY 28, 2002)

1 4. The Firm has not previously applied for any payment or allowance for its postpetition 2 services or expenses in this case, and except for the portion of the Base Audit Fee which has been 3 previously earned and paid, the Firm has not yet received any payment for its postpetition 4 services nor any expense reimbursement 5 5. This is the first application for allowance of interim compensation filed by the Firm, 6 so no amount (apart from any billed but as yet unpaid portion of the Base Audit Fee) is currently 7 owing to the Firm ).

8 6. Attached as Exhibits 1 and 2, respectively, to the copies of this Application served on 9 counsel for the Official Committee of Unsecured Creditors, counsel for Debtor, and the Office of 10 the United States Trustee are (i) a list of the names and hourly billing rates of each professional 11 who performed services for which compensation is sought by this Application and (ii) detailed 12 time and expense statements for the Application period that comply with all Northern District of 13 California Bankruptcy Local Rules and Compensation Guidelines and the Guidelines of the 14 Office of the United States Trustee.

15 7. The Firm has served a copy of this Application on each person shown on the Special 16 Notice List for this case. (Only the parties referred to in paragraph 6 received Exhibits 1 and 2; 17 the copies served on other parties did not include the exhibits.)

18 8. Pursuant to this Court's Amended Order Establishing Interim Fee Application and 19 Expense Reimbursement Procedure, entered on November 8, 2001, the Debtor will be authorized 20 to make the payment requested herein without further hearing or order unless an objection to this 21 Application is filed with the court by the Debtor, the Committee, or the United States Trustee 22 and served by the fifteenth day of the month following the service of this Application. If such an 23 objection is filed, Debtor will be authorized to pay the amounts, if any, not subject to the 24 objection. The Firm is informed and believes that this Application was mailed to all persons 25 shown on the Special Notice List by first class mail, postage prepaid, on March 22, 2002.

26 9. The compensation and reimbursement sought by this Application is on account and 27 not final. At the conclusion of this case, the Firm will seek fees and reimbursement of expenses 28 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION 3 FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (APRIL 7, 2001 TO FEBRUARY 28, 2002)

1 incurred for the totality of its employment in this case. Any interim fees or reimbursement of 2 expenses approved by the court and received by the Firm (along with any retainer paid to the 3 Firm) will be credited against such final fees and expenses as may be allowed by the court.

4 10. The Firm represents and warrants that its billing practices comply with all Northern 5 District of California Bankruptcy Local Rules and Compensation Guidelines and the Guidelines 6 of the Office of the United States Trustee. Neither the Firm nor any member of the Firm has any 7 agreement or understanding of any kind or nature to divide, pay over or share any portion of the 8 fees or expenses awarded to the Firm with any other person or entity other than members and 9 associates of the Firm.

10 WHEREFORE, the Firm respectfully requests that Debtor pay compensation to the Firm 11 as requested herein pursuant to and in accordance with the terms of the Amended Order 12 Establishing Interim Fee Application and Expense Reimbursement Procedure.

13 Dated: March 22, 2002 14 DELOITTE & TOUCHE LLP 15 B_

16 Mark Edmunds, Partner Independent Auditor, Accountant, Tax 17 Advisor and Consultant to Debtor Pacific Gas and Electric Company 18 19 20 21 22 23 24 25 26 27 28 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION 4 FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (APRIL 7, 2001 TO FEBRUARY 28, 2002)