ML022480231

Deloitte & Touche Llp'S Cover Sheet Application for Allowance and Payment of Interim Compensation (for Services Rendered from July 1, 2002, to July 31, 2002

ML022480231
Person / Time
Site:	Diablo Canyon
Issue date:	08/22/2002
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: ML022480231 (6)

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, 60`3ý2q5 Tax Advisor and Consultant to 5 Debtor and Debtor in Possession 6 Pacific Gas and Electric Company 7

8 UNITED STATES BANKRUPTCY COURT 9

NORTHERN DISTRICT OF CALIFORNIA 10 SAN FRANCISCO DIVISION 11 In re No. 01-30923 DM 12 Chapter 11 Case PACIFIC GAS AND E]LECTRIC 13 COMPANY, a California Corporation, DELOITTE & TOUCHE LLP'S COVER Debtor. SHEET APPLICATION FOR 14 ALLOWANCE AND PAYMENT OF 15 Federal I.D. No.94-074 .2640 INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JULY 1, 16 2002, TO JULY 31, 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 ("Application") for services provided during the period 21 from July 1, 2002, to July 31, 2002 ("Application Period"). In support of the Application, the 22 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 nuncpro tunc, effective April 6, 2001. On April 11, 2002, the Firm's 26 employment to audit financial statements being prepared for four entities that would succeed to DELOITITE & TOUCHE LLP'S COVER SHEET APPLICATION 27 FOR 1 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JULY 1, 28 2002, TO JULY 31, 2002) \0 6W

1 Debtor's business assets upon confirmation of Debtor's proposed reorganization plan 2 ("Supplemental Services") was approved nuncpro tunc, effective October 1, 2001. By this 3 Application, the Firm is applying to the Court for allowance and payment of interim 4 compensation for services rendered during the Application Period.

5 2. The Firm billed $128,834.50 in hourly fees ("Hourly Fees"), representing 394.1 hours1.157407e-5 days <br />2.777778e-4 hours <br />1.653439e-6 weeks <br />3.805e-7 months <br /> 6 expended, during the Application Period.1 These Hourly Fees are shown as follows:

7 8 Period Hourly Fees Total 9 7/1/02 to 7/31/02 $128,834.50 $128,834.502 10 The Firm is not seeking any expense reimbursement for the Application Period.

11 3. The Firm seeks payment of a total of $109,509.32 at this time. This is 85 % of the 12 Hourly Fees for services rendered from July 1, 2002, through July 31, 2002.3 13 4. For the post-petition period, the Firm has been paid to date as follows:

14 15 Application Period Amount Applied For Description Amount Paid 16 First (4/7/01 to $62,263.50 in hourly fees $39,987.405 2/28/02) $62,333.904 and $70.40 in expenses, 17 less $22,346.50, which was withdrawn from the 18 Firm's request in its June 25, 2002, reply to the 19 United State's Trustee's objection to the Firm's 20 First Interim Application 21 I During the Application Period, the Firm also provided services in connection with its audit of Debtor's consolidated financial statements and review of interim financial information for the 2002 fiscal 22 year ("Base Fee Audit"). (The July 10, 2001, order approving the Firm's employment authorized Debtor to pay a "base fee" to Deloitte upon receipt of monthly invoices from the Firm for Base Fee Audit 23 services.) No amounts have yet been billed or received for Base Fee Audit services for fiscal year 2002.

24 2 In addition to fees for Supplemental Services, the amount requested includes $12,774 for time expended in preparing fee applications.

25 3Payment of this amount would result in a "holdback" of $19,325.18.

4The relevant cover sheet application requested a total of $62,573.90 in fees and costs, but the Firm 26 (Footnote Continuedon Next Page.)

& TOUCHE LLP'S COVER SHEET APPLICATION 2 27 DELOITTE FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JULY 1, 28 2002, TO JULY 31, 2002)

1 Second (10/1/01 to $1,643,315.50 in hourly 3/31/02)6 1,643,315.50 fees, less $4,500 $1,638,815.50 2 disallowed by the court at the July 2, 2002, hearing 3 on the Firm's First Interim Application 4 Third (4/1/02 to 85% of $232,523 in 4/30/02) $232,523 hourly fees $197,644.55 5

Fourth (5/1/02 to 85% of $147,016.50 in $124,964.03 6 5/31/02) $147,016.50 hourly fees 7 The Firm has also received $855,000 as the Firm's base fee for auditing and 8 reporting on Debtor's consolidated financial statements and reviewing interim financial 9 information for the 2001 fiscal year ("Base Audit Fee"). Including the 2001 Base Audit 10 Fee, the total paid to the Firm to date is $2,856,411.48.

11 5. To date, the Firm is owed as follows (excluding amounts owed pursuant to this 12 Application):

13 14 15 Application Period Amount Description Third (4/1/02 to $34,878.45 15% holdback of fees requested 16 4/30/02) by the Firm's third "cover sheet" application filed May 29, 17 2002 18 Fourth (5/1/02 to $22,052.47 15% holdback of fees requested 5/31/02) by the Firm's fourth "cover 19 sheet" application filed June 27, 12002 20 Fifth (6/1/02 to $115,006.007 Fees requested by the Firm's 21 6/30/02) 1 fifth "cover sheet" application (Footnote Continuedfrom Previous Page) 22 later reduced the amount requested to $62,333.90 due to a $240 error in the initial billing.

23 5 Debtor initially paid the Firm $54,331.45 on account of its first cover sheet application, but the $240 and $22,346.50 reductions, discussed above, were later netted against other amounts owing to the Firm, 24 reducing the amount paid for the first application period to $39,987.40.

6 The Application Periods for the Firm's first two "cover sheet" applications overlapped because the 25 Firm did not seek compensation for any of the Supplemental Services until after the court's April 11, 26 2002, "nunc pro tunc" order specifically authorizing that work.

27 DELOITTE COVER SHEET APPLICATION 33 FOR ALLOWANCE ANDLLP'S

& TOUCHE PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JULY 1, 28 2002, TO JULY 31,2002)

1 amended on August 5, 2002 2 Total Owed to the $171,936.92 Firm to Date

6. Attached as Exhibits 1 and 2, respectively, to the copies of this Application served on 4 counsel for the Official Committee of Unsecured Creditors, counsel for Debtor, and the Office of the United States Trustee are (i) a list of the names and hourly billing rates of each professional 6 who performed services for which compensation is sought by this Application and (ii) detailed 7 time statements for the Application Period that comply with all Northern District of California 8 Bankruptcy Local Rules and Compensation Guidelines and the Guidelines of the Office of the United States Trustee.

10 7. The Firm has served a copy of this Application on each person shown on the Special Notice List for this case. (Only the parties referred to in paragraph 6 received Exhibits 1 and 2;

12 the copies served on other parties did not include the exhibits.)

13 8. Pursuant to this Court's Second Amended Order Establishing Interim Fee Application 14 and Expense Reimbursement Procedure, filed on March 18, 2002, the Debtor will be authorized 15 to make the payment requested herein without further hearing or order unless an objection to this 16 Application is filed with the court by the Debtor, the Committee, or the United States Trustee 17 and served by the fifteenth day of the month following the service of this Application. If such an 18 objection is filed, Debtor will be authorized to pay the amounts, if any, not subject to the 19 objection. The Firm is informed and believes that this Application was mailed to all persons 20 shown on the Special Notice List by first class mail, postage prepaid, on August 22, 2002.

21 9. The interim compensation sought by this Application is on account and not final. At 22 the conclusion of this case, the Firm will seek fees and reimbursement of expenses incurred for 23 (Footnote Continuedfrom Previous Page.)

24 7 The Amendment to Deloitte & Touche LLP's Cover Sheet Application for Allowance and Payment of Interim Compensation (For Services Rendered From June 1, 2002, To June 30, 2002), filed on August 25 5, 2002, at page 2, lines 9 and 13, incorrectly referred to the total amount billed as $115,106. The correct amount is $115,006.

26 27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION 4 FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JULY 1, 28 2002, TO JULY 31, 2002)

I the totality of its employment in this case. Any interim fees or reimbursement of expenses 2 approved by the court and received by the Firm (along with any retainer paid to the Firm) will be 3 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/or 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 Second Amended Order 12 Establishing Interim Fee Application and Expense Reimbursement Procedure.

13 Dated: August 22, 2002 14 ]

DELOITTE. & TOUCHE LLP 15 Bk 16 1 Mark A. 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 SHEET COVEROF APPLICATION 5 27 DELOITrE & TOUCHE FOR ALLOWANCE ANDLLP'S PAYMENT INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JULY 1, 28 2002, TO JULY 31, 2002)

I 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 August 22,2002, 1 served the foregoing DELOITTE & TOUCHE LLP'S COVER 4 SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JULY 1, 2002, TO JULY 31, 5 2002) by (1) depositing true and correct copies thereof in the United States Mail at San Francisco, California, in sealed envelopes with first class postage thereon fully prepaid, 6 addressed to each party shown on the attached list and (2) by sending true and correct copies via United Parcel Service, 6

for overnight delivery, with charges fully prepaid, to each of the following 7 three addressees :

8 James L. Lopes Stephen Johnson Howard, Rice, Nemerovski,Canady, Falk & Rabkin Office of the U.S. Trustee 9 Three Embarcadero Center, 7t' Floor 250 Montgomery Street, Suite 1000 San Francisco, CA 94111 San Francisco, CA 94104-3401 10 [Counsel for Pacific Gas and Electric Company] [United States Trustee]

11 Robert J. Moore Paul S. Aronzon 12 Milbank, Tweed, Hadley & McCloy LLP 601 South Figueroa Street 13 Los Angeles, CA 90017 14 [Counsel for Official Committee of Unsecured Creditors]

I declare under penalty of perjury under the laws of the State of California and the United 15 States of America that the foregoing is true and correct.

16 Dated: August 22, 2002.

17 18 2A0 2- Lydia Lee 19 6 Onlý the copies served on the Office of the United States Trustee, counsel for debtor Pacific Gas and Electric Company, and counsel for the official committee of unsecured creditors included Exhibits I and 20 2; the copies served on other parties did not include the exhibits.

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