ML021690163

Declaration of Lessly Ann Wikle in Support of Motion of Pacific Gas and Electric Company for Clarification of Order Authorizing Debtor to Pay Certain Categories of Pre-Petition Claims; Memorandum of Points and Authorities in Support Thereof

ML021690163
Person / Time
Site:	Diablo Canyon
Issue date:	06/06/2002
From:	Wikle L 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: ML021690163 (4)

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15 16 17 18 In re PACIFIC GAS AND ELECTRIC COMPANY, a California corporation, Debtor.

Federal I.D. No. 94-0742640 Case No. 01 30923 DM Chapter 11 Case Date:

Time:

Place:

June 27, 2002 1:30 p.m.

235 Pine Street, 22nd Floor San Francisco, California DECLARATION OF LESSLY ANN WIKLE IN SUPPORT OF MOTION OF PACIFIC GAS AND ELECTRIC COMPANY FOR CLARIFICATION OF ORDER AUTHORIZING DEBTOR TO PAY CERTAIN CATEGORIES OF PRE-PETITION CLAIMS; MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT THEREOF

[NOTICE OF MOTION AND MEMORANDUM OF POINTS AND AUTHORITIES FILED CONCURRENTLY HEREWITH]

WIKLE DECL. ISO MOT. FOR CLARIFICATION OF ORDER RE PRE-PETITION CLAIMS

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el-,/140 W*e JAMES L. LOPES (No. 63678)

JANET A. NEXON (No. 104747)

CEIDE ZAPPARONI (No. 200708)

HOWARD, RICE, NEMEROVSKI, CANADY, 5 "0-FALK & RABKIN A Professional Corporation Three Embarcadero Center, 7th Floor San Francisco, California 94111-4065 Telephone:

415/434-1600 Facsimile:

415/217-5910 Attorneys for Debtor and Debtor in Possession PACIFIC GAS AND ELECTRIC COMPANY UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION 19 20 21 22 23 24 25 26 27 28

1 I, Lessly Ann Wikle, declare as follows:

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I am a Principal Project Manager employed by Pacific Gas and Electric 3

Company ("PG&E"). As such, my responsibilities include management of the claims 4

resolution process, and other projects related to PG&E's reorganization. I make this 5

Declaration based upon my personal knowledge of PG&E's general operations, upon my 6

review of PG&E's records concerning the matters stated herein, and upon information 7

provided to me by consultants employed by PG&E to assist in the examination of proofs of 8

claim filed in this case. If called as a witness, I could and would testify competently to the 9

facts stated herein.

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I make this Declaration in support of PG&E's Motion for an Order 11 clarifying this Court's Order entered March 29, 2002 authorizing the Debtor to pay certain 12 pre-petition claims, including allowed claims of $5,000 or less upon terms set forth in 13 PG&E's motion filed March 2, 2002 herein (the "Original Motion") (the "Motion").

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Over 13,000 proofs of claim have been filed in this case. In order to

&RANoN 15 facilitate the efficient administration of the estate, PG&E sought and obtained the Court's 16 authorization to pay certain categories of pre-petition claims in advance of plan confirmation 17 and consummation by its Original Motion. On March 29, 2002, the Court entered its order 18 granting PG&E's Original Motion seeking leave to pay certain pre-petition claims, and 19 authorizing PG&E to pay undisputed claims of $5,000 or less, among other claims, on an 20 expedited basis (the "March 29 Order"). However, the Original Motion inadvertently failed 21 to provide that claims of $5,000 or less in Class 8 (Environmental, Fire Suppression, 22 Pending Litigation and Tort claims) and Class 12 (Workers' Compensation Claims) under 23 the Plan of Reorganization Under Chapter 11 of the Bankruptcy Code for Pacific Gas and 24 Electric Company, dated April 19, 2002 (the "Plan") would not be paid on such an expedited 25 basis until they were resolved in an appropriate forum.1 The Plan provides that such classes 26 27 1Capitalized terms not defined herein shall have the meaning ascribed to them in the 28Plan.

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of claims will "pass through" PG&E's bankruptcy and be liquidated and paid as if PG&E's 2

bankruptcy case had not been commenced.

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While the Court has authorized PG&E to pay all claims of $5,000 or less 4

regardless of their classification under the Plan, PG&E now seeks that the Court's March 29 5

Order be clarified to specify that such ruling does not extend to claims in Class 8 or Class 12 6

of $5,000 or less, except to the extent that PG&E has already settled (or will settle in the 7

future) such claims for an amount of $5,000 or less. This approach will enable relatively 8

small claims in Class 8 and Class 12 to be treated consistently with all other similarly 9

situated claims in such classes-that is, that they will pass through PG&E's bankruptcy 10 unaffected thereby and be satisfied as they are resolved in an appropriate forum. PG&E 11 submits that this practical and efficient approach will provide consistency in the treatment of 12 Class 8 and Class 12 claims, while not detracting from the overall efficiency promoted by HCWA 13 the Court's March 29 Order allowing early payment generally of certain claims.

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Moreover, the proposed relief will obviate the need for PG&E to file BýLK 15 objections to approximately 600 claims. In the Original Motion, PG&E sought to pay all 16 "undisputed claims" of $5,000 or less-i.e., those that were not subject to a pending 17 objection-and did not distinguish between claims of $5000 or less in Class 8 and/or Class 18 12 under the Plan and claims of $5,000 or less classified in all other classes, which are not 19 "pass through" claims. PG&E's claims analysis shows that there are 577 Class 8 claims that 20 are $5,000 or under, and there are 27 such claims in Class 12. To the extent that the March 21 29 Order is not clarified, PG&E faces the prospect of being required to file objections to 22 those Class 8 and Class 12 claims that PG&E believes are invalid, even though the Plan 23 contemplates that any disputes with respect to such claims will be determined in the 24 appropriate non-bankruptcy forum. The relief PG&E seeks will save the estate and the 25 claimants the needless effort and expense that would be incurred if objections were required, 26 as well as avoiding the unnecessary consumption of scarce judicial resources. PG&E 27 requests, however, that the Court's order on this Motion not affect PG&E's authority to pay 28 WIKLE DECL. ISO MOT. FOR CLARIFICATION OF ORDER RE PRE-PETITION CLAIMS 1

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such claims to the extent that they are resolved prior to the Effective Date.

I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed this _dday of June, 2002, at San Francisco, California.

By:

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LE SLY ANN WIKLE WD 060502/1-1419913/cec/999310/V1 2PG&E proposes that the Court's Order amending the March 29 Order provide as follows: "PG&E is authorized to pay allowed pre-petition claims of $5,000 or less (or which are voluntarily reduced by the claimant to $5,000), undisputed mechanics' lien claims, and undisputed reclamation claims, on or before July 31, 2002,,on and subject to the terms set forth im the Motions filed March 5. 2002 and June 7 2002." (amended language emphasized)

WlKLE DECL. ISO MOT. FOR CLARIFICATION OF ORDER RE PRE-PETITION CLAIMS 25 26 27 28