ML022610551

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Declaration of June C. Ruckman in Support of Motion for Authority to Incur Additional Miscellaneous Implementation Expenses
ML022610551
Person / Time
Site: Diablo Canyon  
Issue date: 09/11/2002
From: Ruckman J
Howard, Rice, Nemerovski, Canady, Falk & Rabkin, 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: ML022610551 (3)


Text

1 JAMES L. LOPES (No. 63678)

JANET A. NEXON (No. 104747)

2.

JULIE B.LANDAU (No.*1 6 20 3 )

A D-

-HOWARD, RICE, NEMEROVSKI, CANADY 3

FALK& RABK

.N "A Professional Corporation 4

Three Embarcadero Center, 7th Floor San Francisco, California 94111-4065 5

Telephone:

415/434-1600

9.

-Facsimile:

415/217-5910 I

"Attorneys for Debtor and Debtor in Possession 7

PACIFIC'GAS AND ELECTRIC COMPANY,,-,

8

':<U"T-R" i h'STATES BANKRUPTCY COURT 9

NORTHERN DISTRICT OF CALIFORNIA

.SAN, FRANCISCO DIVISION' In re

.Case No. 01-30923 DM 12 CTRICChapter I V'ase

-PACIFIC GAS AND ELECTRIC e"

13 COMPANY, a'California corporation,.

I Date: - Octobir 2, 200 2 G:,D( 14 Debtor.'

Time:.9:30 a.m.

-RA(

14Place:

'235 Pine Street, 22nd Flbor

1.

San Francisco, California :'"

-Federal I.D. No..94-0742 64 0 16 17

-DECLARATION OF JUNE C. RUCKMAN IN SUPPORT OF MOTION:

FOR AUTHORITY TO INCUR ADDITIONAL

18 MISCELLANEOUS IMPLEMENTATION EXPENSES, 19 "20' I June Rickman, hereby declare:

21 1:'

I have beenemployed by Pacific Gas and Electric Company ("PG&E!-') for 22 18 years in a variety of positions.,I am currently the project manager for the implementation 23 of PG&Es prop1osed Pldn of Reorganization (as amended from time to time, the "Plan"),

24 wfith1 respect t6 the acquisitioh of new franchise agreements ("Franchises"). I manage a team 25 6f 30PG&E employee-sand contractors whoare responsible for obtaining the Franchises in 26 290 jurisdictions. I have'been involved in developing the strategy for the project as well as 27 managing the day to day, activities. 'I am also responsible for managing the transfer or 28 acquisition of l6cal'permits and licenses ("Permits").

"DECLARATION OF JUNE KA.

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9 10 11 12 HOWARD 13 v 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I,*-

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This declardtion is submitted in support of PG&E's Motion for Authority to Incur Additional MiscellaneoiS Implementation Expenses (the "Motion"). Defined'terms used herein shall have the meanings set forth in the Motiofi.. I, make this declaration based on personal knowledge, eicept where otherwise indicated, 'aidý if called as a witness, could and Would testify competently to the matters set forth herein.',"

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Considerable work has been completed With respect to the process of obtaining Permits and Frarichises' for the New Entities, since PG&E's previous motions relating to Permit and Fi-afichise expenses were approved. PG&E and its consultants have now contacted many of the applicable government entities to begin the lengthy process of arrafging for the Permits arid Franchises to, be in place in advance of the Plan Effective Date. In some cases, applidfions have been submitted. Some government entities are requesting that PG&E submit application fees and/or cost recovery fees to help defray costs in processing the applications (collectively, "Application' Fees."). In addition,'upon issuance of Franchises, PG&E may be required to post a surety or performance bond to secure performance, in the !absence of which PG&E will lose the Franchise altogether (based on discussions to date, PG&E anticipates that most cities and counties will require bonds).

PG&E anticipates that'it will have bonding capacity and will therefore only need to pay bond premiums. At this time, PG&E does not know the exact amount of the Application Fees or bond premiums that will be owed, but PG&E estimates that it could be approximately $3 million. This estimate is based on communications to date with the various'government entities, and the past experience of PG&E employees and consultants in "Working with-govemrnehnt entities on related matters.

"4.-

PG&E requests authority to pay these fees so that the process of obtaining the necessary Permits and Franchises for the New Entities can continue. Since the Application Fees are ordinarily required up front, it is important that PG&E have some flexibility in paying these fees when requested without repeatedly filing motions for Court approval. Similarly, it is important to avoid jeopardizing the issuance of a franchise as a result of not having authority to incur costs for a performance bond. Since PG&E will be DECLARATION OF JUNE C. RUCKMAN

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receiving the fee requests from various government agencies at staggered times, it is neither "feasible to bring a motion now with more precise'information, nor is it feasible to wait and jeopardize the implemrntation of the Plan. Therefore, PG&E requests authority to pay up to

$3 million as the Application Fees and bond requirements arise. PG&E will bring a further motion seeking approval to pay any amounts in excess of $3 million, if this becomes necessary.

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 A, 2002.

WD 091-101.-1419905/10225341vl

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DECLARATION OF JUNE