ML022610315
| ML022610315 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 09/11/2002 |
| From: | Meko M 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: ML022610315 (4) | |
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&?PAWUN
- 15 16 17 18 19 20 21 22 23 24 25 26 27 28 JAMES L. LOPES 368(NO.-
JANET A. NEXON (No.-104747).
JULIE B. LANDAU (No.1 620 3 8)
HOWARD, RICE, NEMEROVSKI, CANADY, FALK & RABKIN-A Professional Corporation Three Embarcadero Center, 7th Floor San Francisco, California.94111-4065.
Telephone:
415/434-1600 Facsimile:, 415/217r5910,.
Attorneys for Debtor and Debtor in Possession PACIFIC GAS AND ELECTRIC COMPANY UNITED STATES BANKRUPTCY COURT
. NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION In re Case No. 01-30923 DM PACIFICGAS AND ELECTRIC Chapter 11 Case COMPANY, a California corporation, Date:
October 2, 2002 Debtor.'
-Time: 9:30 a.m.'
Place:
235 Pine Street, 22nd Floor
- "San Francisco, California:-
Federal I.D.N o. 94-0742640 S r ancisco, C..: o. ia:.
"DECLARATION OF MICHAEL MEKO IN SUPPORT OF.MOTION FOR:
"AUTHORITY TO INCUR ADDITIONAL MISCELLANEOUS IMPLEMENTATION EXPENSES.
I, Mi"h"i
'el Meko, herebydeclare:
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I have been emplo'yed by Pacific Gas and Electric Company ("PG&E")
since 1986. My"responsibilities have included the management of outages and maintenance at the Diablo Canfiy6ofPower Plant. in 2001, I-be&ime the procurement manager at Diablo Canyon. Sinice May 2002, 1 have beefi resp6nisible f6r rhanigifig the~development'of:
procuremeit processes forithe New Entities in connection with the -implementation of PG&E's proposed Plan of Reorganizatifi (the "Plan").
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This declaration is submnitted in support of PG&E's Motion for Authority to "Incur Additional Miscellaiiniieus Implementation Expenses (the "Motion"). iDefined terms DECLARATION OF MICHAEL MEKO
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I used herein shall have the meanings set forth in the Motion. I make this declaration based 2
on personal knowledge, except where otherwise indicated, and if 6alled as a witness, could 3
and would testify competently to the matters set forth herein'.
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Procuring goods and services for a large compa-r' such' as PG&E is, a' 5
substantial arid complex task. Although the New Entities "ilt riotbe as large as present day 6
PG&E, it is estimated that the New Entities collectively wills'pend'approximately $200 7
million per year on materials (including supplies arid eq6uiprhent) and $300 million per year 8
on services (including consulting services and technical assistance). In order for the New 9
Entities to be prepared to commence business operations by the Effective Date, it is'critical 10 to implement certain procurement processes in advance of the Effective Date. Without an 11 established system in place for the day-to-day management of procurement, the New Entities 12 will not be able to operate efficiently, and would face substantial confusion and delay in the 13 completion of important business tasks. For example, tleý" follw;ing key procufement RKE 14 functions will be needed by, e New Entities: materials planning and forecasting; 15-puichasing; contract negotiation and administration; warehousing; and distribution of 16 equipment and materials.
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The process of creating, testing and implementing new procurement 18 procedures for the New Efntities may take up io six months., Therefore, PG&E believes that 19 the work must begin promptly. Significant portions of this project will be handled by PG&E 20 without the assistance of outside resources, including, for example, the configuration of the 21 new Materials Management System to be utilized by the New Entities. However, PG&E 22-will require the assistance of the following consultants in connection with this project and 23 also anticipates incurring certain printing costs as described below:
24 a.,,
Project Management., Russell Harris of Source California Energyý Services 25 will provide project management services for this project, including the preparation of work 26 plans, tracking project status, preparing reports, and otherwise facilitating and managing the 27 lf6ject. PG&E estimates that the cost for these services will be approximately $135,000.
28 Mr. Harris has performed preliminary services on this project beginning in July 2002. In DECLARATION OF MICHAEL MEKO 2
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'fdditid~n, Stan Miyamoto of Stan Miyamoto Consulting will provide project management support as well as oversee the coordination of this project with the related materials distribution center project, which was previously approved pursuant to the Motion for Authority to Incur Miscellaneous Implementation Expenses., PG&E estimates that the'cost for Mr. Miyamoto's services will be approximately $25,000.
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Consultants with Procurement Expertise. Three outside consultants will be needed to provide expertise and recommendations in the areas of warehouse managenent, paperless procurement and e-commerce technology. PG&E has not yet selected the consultants but estimates a total cost of approximately $75,000 for these services, ba.sed on its past experience with similar consultants 'and preliminary discussions to date with, potential consultants.
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Printing of Materials. PG&E estimates that it will incur approximately
$35,000 for printing of training manuals, policies and procedures manuals, and other:
materials related to procurement procedures for use by the New Entities. PG&E intends to' incur these costs immediately after Plan confirmation.
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The cost estimates set forth above are based on PG&E's initial scoping of the 'project requirements and negotiations with the consultants who have been selected to perform the work (or preliminary discussions with the potential consultants). For each of the consulting firms described above, PG&E's standard contractual provisions in place with these firms (or to be included in contracts to be executed hereafter) do not guarantee future work or any minimum amount of revenue. PG&E will also maintain the right to terminate the work at any time without cause, in which case PG&E is liable only for work perfoi-med to the date of termination plus costs reasonably incurred by the consultant in terminating any work in progress.
I declare under penalty of perjury of the laws of the United States that the foregoing is true and correct, and that this declaration was executed at San Francisco, California on September 11, 2002.
DECLARATION OF MICHAEL MEKO
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