ML021220424

Declaration of Terry Morford in Support of Motion for Order Authorizing Expenditures Related to Permits and Franchises

ML021220424
Person / Time
Site:	Diablo Canyon
Issue date:	04/19/2002
From:	Morford T 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: ML021220424 (4)

Text

JAMES L. LOPES (No. 63678)

JANET A. NEXON (No. 104747)

JULIE B. LANDAU (No. 162038)

HOWARD, RICE, NEMEROVSKI, CANADY, FALK.& RABKIN A.Professional Corporation Three Embarcadero Center, 7th Floor San Francisco, California 94111-4065 Telephone:

415/434-1600 Facsimile:

415/217-5910 1

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10 11 12 HOWARD 13 RKIE c_'Et 14

&RAHGN Aiod, 15 16 In re PACIFIC GAS AND ELECTRIC COMPANY, a California corporation, Debtor.

Federal LD. No. 94-0742640 Case No. 0 1-30923 DM Chapter 11 Case Date:

Time:

Place:

May 9, 2002 1:30 p.m.

235 Pine Street, 22nd Floor San Francisco, California DECLARATION OF TERRY MORFORD IN SUPPORT OF MOTION FOR ORDER AUTHORIZING EXPENDITURES RELATED TO PERMITS AND FRANCHISES 40 DECLARATION OF TERRY MORFORD Attorneys for Debtor and Debtor in Possession PACIFIC GAS AND ELECTRIC COMPANY UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION s

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1 I, Terry Morford, declare:

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1.

I am the Director of Project Management for Pacific Gas and Electric 3

Company ("PG&E"), the debtor and debtor-in-possession in this Chapter 11 case. I am the 4

project manager for the. work related to the transfer of permits and acquisition of franchises 5

in connection with the implementation of PG&E's proposed plan of reorganization (as 6

amended from time to time, the "Plan"). This declaration is submitted in support of PG&E's 7

Motion for Order Authorizing Expenditures related.to Permits and Franchises.(the 8

"Motion"). Defined terms used herein shall have the meanings set forth in the Motion. I 9

make this declaration from personal knowledge and if called as a witness, could and would 10 testify competently to the matters set forth herein.

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2.

The contractors described below will assist PG&E with the process of 12 transferring Permits and acquiring Franchises for the New Entities (the "Permit and HOWARD 13 Franchise Work"). While-PG&E has in-house expertise inthis area, the volume of Permit RIE 14 and Franchise Work'and time period for completion of the work requires substantial outside BAtI(

&fRA.HON 15 assistance. The contractors described below will perform their portion of the Permit and 16 Franchise Work at the direction of and under the supervision of PG&E.

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Transcon Infrastructure, Inc. Transcon is experienced with managing and 18 coordinating permitting, licensing and siting efforts on a broad range of utility infrastructure 19 projects, including coordination efforts with local, state and federal agencies. Transcon will 20 perform the following types of services with respect to the Permit and Franchise. Work:

21 (i) project management; (ii) planning and training assistance for all PG&E team members 22 including the Entitlement Agents described below; (iii) assistance with the transfer of the 23 Permits and the acquisition of Franchises, including documentation; and (iv) evaluation of 24 the procedural requirements underlying PG&E's existing permits and licenses.

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The total estimated expenditure for Transcon's work described above is 26 approximately $9504000, -for the period beginning in February 2002 and continuing to the 27 Effective Date (as defined, in the Plan) or such earlier date on.which the Permit and 28 Franchise Work has been completed. Transcon began limited work in February 2002 to "DECLARATION OF-TERRY MORFORD 1

assist PG&E in determining the scope and timing of the work to be completed and project 2

staffing needs. PG&E would pay Transcon on a monthly basis as work is completed, based 3

on monthly billings by Transcon.

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Entitlement Agents. -PG&E will also be utilizing 11 individuals who are 5

employed by Corestaff Services, Inc., a staffing agency, for assistance with the Permit and 6

Franchise Work (the "Entitlement Agents"). The Entitlement Agents will be responsible for 7

the acquisition of Franchises and assisting with.the transfer of Permits, including (i) 8 developing a strategy and plan for the timely acquisition of Franchises; (ii) conducting 9

negotiations with the cities, counties and districts as necessary; and (iii) working with the 10 cities, counties and districts in transferring the Permits. In connection with the Permit work, 11 the Entitlement Agents will assist with the portion of the Permits to be transferred by local 12 government (including cities, counties and districts), which comprise the majority of the 13 issuing agencies. Each Entitlement Agent will be.ssignedto a group -of 10 to 20 cities, HOWARD RKE N

14 counties and districts within a given geographical.1ocation.. PG&E is choosing the YRAMIN

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Entitlement Agents based on their ability to work

,effegtivey with local governments; some 16 have experience working in regulated industries and others have experience working in 17

-technical marketing.

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The total estimated expenditure for the Entitlement Agents' work described 19 above is approximately $3 million, for the period beginning April 2002 and continuing to the 20 Effective Date (as: defined in the Plan) or such earlier date on which the Permit and 21 Franchise Work has been completed, PG&E would pay the Entitlement Agents through 22 Corestaff Services, Inc. on a monthly basis as work is completed.-, based on monthly billings 23 by the Entitlement Agents.

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7. - The Permit and Franchise Work. is essential to the implementation of the 25 Plan. Although the Plan is not yet confirmed, PG&E estimates-that it could take up to 12 26 months to complete the Permit and Franchise Work necessaryto enable the New Entities to 27 operate their respective businesses. In some instances, the timing may vary due to factors 28 over which PG&E has no control, such as electoral approval required for a Franchise

. DECLARATION OF-TERRY MORFORD 1

ordinance, or exercise of an agency's discretion in processing a Permit transfer application.

2 Therefore, given the volume of work and the time required, for completion, the Permit and 3

Franchise Work must be accelerated well in advance of confirmation of the Plan in order to 4

assure a timely Plan consummation.

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Some government agencies will be receiving an influx of Permit and/or 6

Franchise applications, which may stretch agency resources. Thus, in assessing the need to 7

complete the Permit and Franchise Work, PG&E is assuming that typical time periods for 8

processing applications may be extended, particularly for agencies receiving multiple 9

applications.

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PG&E's standard contractual provisions in place with Transcon and the 11 Entitlement Agents (through Corestaff Services, Inc.) do not guarantee future work or any 12 minimum amount of revenue. PG&E also maintains the right to terminate the contracts at 13 any time without cause, in which case PG&E is liable only for work performed to the date of WRD m

14 termination plus costs reasonably incurred by the contractor in terminating any work in Mf(

15 progress.

16 I declare under penalty of perjury of the laws of the United States that the 17 foregoing is true and correct, and that this declaration was executed at San Francisco, 18 California on April 19, 2002.

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TEIk MORFOR 20 WD 041802/1-1419905/988992/vl 21 22 23 24 25 26 27 28 DECLARATION OF TERRY MORFORD