ML021330469

Deloitte & Touche Llp'S Cover Sheet Application for Allowance & Payment of Interim Compensation (for Services Rendered Pursuant to Supplemental Unemployment Application from 10/01/2001 to 03/31/2001)

ML021330469
Person / Time
Site:	Diablo Canyon
Issue date:	04/26/2002
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: ML021330469 (7)

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 6 Pacific Gas and Electric Company 7

8 9 UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA 10 SAN FRANCISCO DIVISION In re No. 01-30923 DM 12 PACIFIC GAS AND ELECTRIC Chapter 11 Case 13 COMPANY, a California Corporation, DELOITTE & TOUCHE LLP'S COVER 14 Debtor. SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR 15 Federal I.D. No. 94-0742640 SERVICES RENDERED PURSUANT TO 16 SUPPLEMENTAL EMPLOYMENT APPLICATION FROM OCTOBER 1. 2001, 17 TO MARCH 31, 2002) 18 1 [No Hearing Scheduled]

19 for Allowance 20 Deloitte & Touche LLP (the "Firm") submits this Cover Sheet Application provided during the period 21 and Payment of Interim Compensation ("Application") for services In support of the Application, 22 from October 1, 2001, to March 31, 2002 ("Application Period").

23 the Firm respectfully represents as follows:

and Consultant to Debtor 24 1. The Firm is Independent Auditor, Accountant, Tax Advisor, 2001, the Firm's retention in this 25 Pacific Gas & Electric Company ("Debtor"). On July 10, On April 11, 2002, the firm's 26 capacity was approved nunc pro tunc, effective April 6, 2001.

for four entities that would succeed to 27 employment to audit financial statements being prepared 28 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION

./

FOR ALLOWANCE AND PAYMENT OF INTERIM ol*0*-

ef "e COMPENSATION (FOR SERVICES RENDERED PURSUANT TO SUPPLEMENTAL EMPLOYMENT APPLICATION FROM OCTOBER i. 2001, TO MARCH 31. 2002)

1 Debtor's business assets upon confirmation of Debtor's proposed reorganization plan

,effective October 1, 2001.' By this 2 ("Supplemental Services") was approved nunc pro tunc ance and payment of interim 3 Application, the Firm is applying to the Court for allow Services rendered dun ng the Application Period.2 .

4 compensation for Supplemental irm's previous "cover sheet" application 5 2. Net of $62,503.50 in fees requested via the F 0 in hourly fees (representing 7075.7 6 for interim compensation, the Firm billed $1,643,315.5' Application Period. (These sums do not 7 hours expended) (hereinafter "Hourly Fees") during the as the Firm's base fee for auditing and 8 include $855,000 billed during the Application Period and reviewing interim financial 9 reporting on Debtor's consolidatedfinancial statement,

]. The July 10, 2001, order approving the 10 information for the 2001 fiscal year ["Base Audit Fee"]

d portion of the Base Audit Fee upon 11 Firm's employment authorized Debtor to pay the earne e Audit Fee has previously been paid to 12 receipt of monthly invoices from the Firm, and the Bas ees which are the subject of this 13 the Firm in accordance with that order.) The Hourly F wn as follows:

14 Application are for Supplemental Services and are sho' 15 Total 16 Period Hourly Fees

$1,643,315.50 $1,643,315.50 17 10/1/01 to 3/31/02 This is 85 % of the 18 3. The Firm seeks payment of a total of $1,39( ,818.18 at this time.

through March 31, 19 Hourly Fees billed for Supplemental Services renderecI from October 1, 2001, 20 2002.3 21 4. For the post-petition period, the Firm has b een paid to date as follows:

22 23 1A copy of the April 11, 2002, order approving the Firn I's employment to provide the Supplemental 24 Services is attached as Exhibit 1. compensation and 2 As explained in the Firm's only previous cover sheet application for interim ication did not include any of the Firm's 25 reimbursement of expenses, filed in March 2002. that appl charges related to the Supplemental Services.

26 3 Payment of this amount would result in a "holdback" ()f S246.497.33.

27 28 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED PURSUANT TO SUPPLEMENTAL EMPLOYMENT APPLICATION FROM OCTOBER 1, 2001, TO MARCH 31, 2002)

1 Application Period Amount Applied For Description Amount Paid 2 4/7/01 to 2/28/02 $62,573.90 90% (85% after July $54,331.45 3 31) of $62,503.50 in 4 hourly fees and 100%

5 of $70.40 in expenses, 6 5. To date, the Firm is owed as follows (excluding amounts owed pursuant to this 7 Application).

8 9 Application Period Amount Description 10 10/1/01 to 2/28/02 $8,242.45 10% (15% after July 31) 11 holdback of fees requested by 12 the Firm's first "cover sheet" 13 application 14 15 6. Attached as Exhibits 2 and 3, respectively, to the copies of this Application served on 16 counsel for the Official Committee of Unsecured CredLitors, counsel for Debtor, and the Office of 17 the United States Trustee are (i) a list of the names an i hourly billing rates of each professional 18 who performed services for which compensation is so ught by this Application and (ii) detailed 19 time statements for the Application period that compl: ywith all Northern District of California 20 Bankruptcy Local Rules and Compensation Guideline s and the Guidelines of the Office of the 21 United States Trustee.

22 7. The Firm has served a copy of this Applicaition on each person shown on the Special 23 Notice List for this case. (Only the parties referred to in paragraph 6 received Exhibits 2 and 3; 24 the copies served on other parties did not include thos e exhibits.)

25 8. Pursuant to this Court's Amended Order Es;tablishing Interim Fee Application and 26 Expense Reimbursement Procedure, entered on Noveimber 8. 2001, the Debtor will be authorized 27 to make the payment requested herein without further hearing or order unless an objection to this 28 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM CONIPENSATION (FOR SERVICES RENDERED PURSUANT TO SUPPLEMENTAL EMPLOYMENT APPLICATION FROM OCTOBER 1. 2001. TO MARCH 31. 2002)

1 Application is filed with the court by the Debtor, the Committee, or the United States Trustee and 2 served by the fifteenth day of the month following the service of this Application. If such an 3 objection is filed. Debtor will be authorized to pay the amounts, if any, not subject to the 4 objection. The Firm is informed and believes that this Application was mailed to all persons 5 shown on the Special Notice List by first class mail, postage prepaid, on April 25, 2002.

6 9. The compensation sought by this Application is on account and not final. At the 7 conclusion of this case, the Firm will seek fees and reimbursement of expenses incurred for the 8 totality of its employment in this case. Any interim fees or reimbursement of expenses approved 9 by the court and received by the Firm (along with any retainer paid to the Firm) will be credited 10 against such final fees and expenses as may be allowed by the court.

11 10. The Firm represents and warrants that its billing practices comply with all Northern 12 District of California Bankruptcy Local Rules and Compensation Guidelines and the Guidelines 13 of the Office of the United States Trustee. Neither the Firm nor any member of the Firm has any 14 agreement or understanding of any kind or nature to divide, pay over or share any portion of the 15 fees or expenses awarded to the Firm with any other person or entity other than members and 16 associates of the Firm.

17 WHEREFORE, the Firm respectfully requests that Debtor pay compensation to the Firm 18 as requested herein pursuant to and in accordance with the terms of the Amended Order 19 Establishing Interim Fee Application and Expense Reimbursement Procedure.

20 Dated: April 26, 2002 DELOITTE & TOUCHE LLP 22 23 Mark Edmunds, Partner Independent Auditor, Accountant, Tax 24 Advisor and Consultant to Debtor Pacific Gas and Electric Company 25 26 27 4

28 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED PURSUANT TO SUPPLEMENTAL EMPLOYMENT APPLICATION FROM OCTOBER 1, 2001, TO MARCH 31, 2002)

1 PROOF OF SERVICE 2 I am over the age of 18, and I am employed at the offices of Deloitte & Touche LLP, located at 50 Fremont Street, San Francisco, California.

3 On April 26, 2002, 1 served the foregoing DELOITTE & TOUCHE LLP'S COVER 4 SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED PURSUANT TO SUPPLEMENTAL 5 EMPLOYMENT APPLICATION FROM OCTOBER 1, 2001, TO MARCH 31, 2002) by (1) depositing true and correct copies thereof in the United States Mail at San Francisco, 6 California, in sealed envelopes with first class postage thereon fully prepaid. addressed to each party shown on the attached list and (2) by sending true and correct copies via Federal Express, 4 7 for overnight delivery, with charges fully prepaid, to each of the following three addressees :

8 James L. Lopes Howard, Rick, Nemerovski,Canady, Falk & Rabkin 9 Three Embarcadero Center, 7t" Floor San Francisco, CA 94111 10 [Counsel for Pacific Gas and Electric Company]

11 Stephen Johnson Office of the U.S. Trustee 12 250 Montgomery Street, Suite 1000 San Francisco, CA 94104-3401 13 [United States Trustee]

Robert J. Moore 14 Paul S. Aronzon Milbank, Tweed, Hadley & McCloy LLP 15 601 South Figueroa Street Los Angeles, CA 90017 16 [Counsel for Official Committee of Unsecured Creditors]

17 I declare under penalty of perjury under the laws of the State of California and the United States of America that the foregoing is true and correct.

18 Dated: April 26, 2002.

19 20 Lydia Lee 21 4 Only the copies served on the Office of the United States Trustee, counsel for debtor Pacific Gas and 22 Electric Company, and counsel for the official committee of unsecured creditors included Exhibits 2 and exhibits.

23 3; the copies served on other parties did not include these 24 25 26 27 28 DL()(Ss, 1:591,82. t

APR-16-02 10:30AM FRO-HOWARD.RIcEET AL (415*21T-S910 0 +14! 52!

w T-104 P.-3/04 F-T35 1 J.-AMES L. LOPES (No. 63678) 2 JEFFREY L. SC ER (No. 91404) C2?.0 JANET A. N.XON (No. 104747)

WILLLAIM J. LAFFERTY (No. 120814) US.

3 HOWARD, RICE, NEMEROVSKI, CANADY, , 1.'&"R)4PT COURT 0 hI', . OF s "'f :,o*'SCO, CA.

FJAK & RABK1N CA.

4 A Professional Corporation Three Embarcadero Center, 7th Floor 5 San Francisco, California 94111-4065 Tcelphone; 415/434-1600 6 Fachtaile: 415/217-5910

'7 Counsel for Debtor =6 Debtor in Possession Pacific Gas aind Electric Company 8 UNITED STATES BANKRUPTCY COURT 9 NORTHER1N DISTRICT OF CALIFORNIA 10 SAN FRA-NCISCO DIVISION 11 In re No. 01-30923 DM 12 ?ACTFIC GAS AND ELECTRIC Chapter I1 Case 13 COMPANY, a California Corporation,

[PROPOSEDJ ORDER APPROVING Debtor. DEBTOR PACIFIC GAS AND ELECTRIC 14 COMPANY'S SUPPLEMENTAL Federal I.D. No. 94-0742640 APPLICATION FOR APPROVAL OF 15 1MPLOYMENT OF DEL01rrE &

16 TOBCHE LLP No Hearing Requested 17 18 The court has reviewed Deblor Pacific Gas and. Electric Company's Supplemetal 19 Application for Approval of Employment of Deloitre & Touche LLP ("'Supplemental 20 Application"). The court is satisfied that (a) Deloitte & Touche LLP ("Deloitte) represents no 21 interest adverse to the estate of Pacific Gas and Electc Company ("Debtor") respecting the 22 matters as ro which Deloitte is proposed to be engaged; (b) Deloitte and its professional 23 personnel are disintere*d persons under Ban~kmp*-y Code 14 101(14) and 1I07(b); (c) 24 Deloifte's employment for the purposes and on the terms described in the Supplemental 25 Applicarzon is in the best intermst of th. estatc; aud (d) requisite notice of the Supplemental 26 Application has been given. Accordingly, and good cause appearing, 27 IL iS HEREBY ORDERED that:

28 (PROPOSED) ORPDP APPROVL-NG DEBTOR FACIM!C GAS AND ELECTRtC COMPANY'S SLPPLEUMUN ",PLICATION FOR APPROVAL OF *EMK- 'VMLT I OF DELOMr* & TOUCIHE L-.

APR-I3-02 10:30AM FRO-HOWARD,RICE,T AL. 4151214-3910 +14152175910 T-Ia4 P.4/14 F-735 1 (1) The Supplemental Application is approved nuncpro tune, effective October I, 2001; 2 (Z) Detbtor PNi.ilk Gas aadElccuti Company ("ebtor') is 6t4nzodz to retain Deloitte 3 to provide the audit services de*cn'Id in the Supplemeral ApPliecation on the terms staed in the 4 Supplmental Applicadon;

$ (3) The engagement letter between Debtor and Deloitte, a copy of which. is incorporated 6 into the Supplemental Application, C gagemnent Lettexr) is approved; 1 (4) Deloitte will be required to submit applications for conp~emafion, in compliance with S all applicable stamrwes, rules, and orders, for all compensation payable under the te=ms ofthe 9 Engagement Letter, provided that Debtor will be authrized zo pay Deloitnes monthly semes 10 before such approval to the same extent as Debtor may be auftorized frm time to time to make i inierim payments to other profesionals employed under Bankruptcy Code § 327(a).

12 13 Dated:

14 DENNIS MOTALI 15 IN= STATES BANKRUPTCY JUDGE 16 17 The court's Gujdeines WfoE CoM 18 and_-Exjen0§P-RamWusMont Will MefL2ion -apply.

19 A copy may be orakd m the clerks 20 21 22 23 24 25 26 287

[PROPOSED] ORDER APPROVING DEBTOR PACfl1C OAS AND ELECTRIC COMPANY'S SUPPLEMENTAL APPLICATION FOR APPROVAL Or EMLOY MENT OF DBLOITTE & TOUCrE T"