ML021220421

Declaration of Richard L. Meiss in Support of Motion for Order Authorizing Expenditures Related to Permits and Franchises

ML021220421
Person / Time
Site:	Diablo Canyon
Issue date:	04/19/2002
From:	Meiss R 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: ML021220421 (4)

Text

1 JAMES L. LOPES (No. 63678)

JANET A. NEXON (No. 104747) 2 JULIE B. LANDAU (No. 162038)

HOWARD, RICE, NEMEROVSKI, CANADY, 3 FALK & RABKIN AProfessional Corporation 4 Three Embarcadero Center, 7th Floor . / '

.San Francisco, California 94111-4065 5 Telephone: 415/434-1600 Facsimile: 415/217-5910 6

Attorneys for Debtor and Debtor in Possession 7 PACIFIC GAS AND ELECTRIC COMPANY 8

9 UNITED STATES BANKRUPTCY COURT 10 NORTHERN DISTRICT OF CALIFORNIA 11 SAN FRANCISCO DIVISION 12 In re Case No. 01-30923 DM 13 PACIFIC GAS AND ELECTRIC Chapter 11 Case HOWARD RIME COMPANY, a California corporation, Date: May 9, 2002

• aNd PJK 14 Time.': 1.30 p.m.

Debtor.

Place: 235 Pine Street, 22nd Floor 15 San Francisco, California Federal I.D. No. 94-0742640 16 17 DECLARATION OF RICHARD L. MEISS IN SUPPORT OF 18 MOTION FOR ORDER AUTHORIZING EXPENDITURES RELATED TO PERMITS AND FRANCHISES 19 20 21 22 23 24 25 26 27 .

28 40J 1 /46/1 1/j

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DECLARATION OF RICHARD L. MEISS

1 I, Richard L. Meiss, declare.:

2 1. I amf an attorney at law licensed to practice in this state and admitted to 3 practice before this Court. I have been an employee of the Law Department of Pacific Gas 4 and Electric Company ("PG&E")' for 27 years. This declaration is submitted in support of 5 PG&E's Motion for Order Authorizing Expenditures related to Permits and Franchises (the 6 "Motion"). Defined terms- used herein shall have the meanings set forth in the Motion. I 7 make this declaration from personal knowledge and if called as a witness, could and would 8 testify competently to the matters set forth herein.

9 2. I am informed and believe that PG&E holds tens of thousands of operating 10 and land occupancy permits, licenses and related governmental entitlements (collectively, 11 "Permits") from local, state and federal goverriment agencies. I am informed and believe 12 that apjproximately 12,000 of these Permits must be transferred or reissued to the New 13 Entities in order for the New Entities to conduct business operations in accordance with the RICE cNq,-j 14 law. The New Entities could begin operations, however, without a small portion of these

&RABN~a APg,,*, 15 Permits, which involve non-essential activities.

16 3. The Plan contemplates that PG&E will follow established application 17 procedures for the transfer or reissuance of Permits under applicable local, state or federal 18 law. Before the application process can begin, however, PG&E must complete its permits 19 inventory and database development, which is currently in progress, along with the training 20 of personnel who will work on the project. Many Permit transfers or reissuances will 21 involve only ministerial review by the government agency, whichtypically takes several 22 weeks to process. Other Permit transfers or reissuances will involve discretionary review 23 and approval by the government agency, which typically takes from one to several months to 24 process. Some Permit applications may also trigger environmental review, in which. case the 25 application process will be more complex and likely take additional time.

26 4. PG&E. is a party to over 520 franchise agreements with various cities and 27 counties, which allow PG&E to install, operate and maintain its electric, gas, oil and water 28 facilities in the public streets and roads owned by local governments. In exchange for the DECLARATION OF RICHARD L. MEISS

1 right to use public streets and roads, PG&E pays an annual fee to the cities and counties 2 under the franchises. Franchise fees are computed according to statute or city charter 3 depending on which law the particular franchise was granted under: the Broughton Act, the 4 Franchise Act of 1937 (the "Franchise Act") or city charter. The 38 "charter cities" can and

• 5 some have set a fee rate of their own determination.

6 5. Under the Plan, PG&E will retain the existing franchises, with two 7 exceptions: PG&E's gas franchises with Modoc County and San Bernardino County will be 8 assumed and assigned to GTrans LLC because PG&E does not have any distribution 9 facilities within either county and therefore does not need to retain these two franchises. The 10 New Entities will enter into new franchises where such franchises are necessary. For 11 example, since ETrans LLC will be taking over PG&E's electric.transmission business, 12 Electric Generation LLC. will be taking over the electric transmission ties from the Howam 13 hydroelectric powerhouses to the transmission grid, and GTrans L.LC will be taking over Muy 14 PG&E's gas transmission business, the New Entities will require franchises in order to AL.K

&RABION 15 operate where the applicable electric or gas transmission facilities are located within. public 16 streets and roads. PG&E estimates that approximately 500 nfew franchises will be needed.

17 6. Pursuant to either the Franchise Act or applicable charter, city provisions, 18 local governments grant public utility franchises as ordinances upon the filing and 19 consideration of an application. -Pursuant to the Franchise Act, the California Government 20 Code and, in some cases, charter city procedures, there are minimum timetables between the 21 filing of the application and the .adoption of the franchise ordinance. Local government must 22 hold public hearings before it may grant a franchise ordinance. The California Constitution 23 :requires that all franchise ordinances be subject to a voters' referendum, and, in some cases, 24 charter cities may only -grant franchises by popular vote at a citywide election. While the 25 timing varies depending, on whether the general law or more specific charter city provisions 26 govern, it can exceed-6 months from the time an application is submitted to the granting of 27 the franchise ordinance.

28 I declare under penalty of perjury, of the laws of the United States that the DECLARATION OF RICHARD L. MEISS 1 foregoing is true and correct, and that this declaration was executed at San Francisco; 2 California on April _4, 2002.

3 U " RICHA L. MEIS:S 4

5 WD 041802/1-1419905/988984/vl 6

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9 10 11 12 HOWARD 13 RKE "CAMIk'14

&RAN4V A*o,.,m- 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DECLARATION OF RICHARD L. MEISS