ML022660034
| ML022660034 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 09/13/2002 |
| From: | Hirsch S Keker & Van Nest, LLP, 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: ML022660034 (13) | |
Text
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9 10 11 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 KEKER &VAN NEST, L.L.P.'S FOURTH INTERIM FEE APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES FOR THE PERIOD APRIL 1, 2002 TO JULY 31, 2002 Date:
Time:
Place:
October 29, 2002 1:30 p.m.
235 Pine Street San Francisco, CA Judge: HON. DENNIS MONTALI KEKER & VAN NEST, L.L.P.
ROBERT A. VAN NEST (SBN 84065)
S-0 -0A JAMES M. EMERY (SBN 153630)
STEVEN A. HIRSCH (SBN 171825)
G. WHITNEY LEIGH (SBN 153457)
ROY L. AUSTIN (SBN 211491)
CLEMENT S. ROBERTS (SBN 209203) 710 Sansome Street San Francisco, CA 94111-1704 Telephone: (415) 391-5400 Facsimile: (415) 397-7188 Special Counsel to Debtor in Possession PACIFIC GAS AND ELECTRIC COMPANY UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASENO 0130923 DM
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9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Name of Applicant Keker & Van Nest, L.L.P.
Authorized to Provides Professional Services Pacific Gas and Electric Company, debtor and to:
debtor in possession Date of Retention Order:
June 11, 2001 Period for Which Compensation and April 1, 2002 through July 31, 2002 Reimbursement is Sought:
Amount of Compensation Sought as Actual,
$339,264.26 Reasonable and Necessary:
Amount of Expense Reimbursement Sought as
$42,760.78 Actual, Reasonable and Necessary:
This is an:
X Interim Final application Prior Application: Third Interim Application for the period December 1, 2001 through March 31, 2002 filed May 15, 2002.
1 Keker & Van Nest, L.L.P. ("KVN") submits this application under 11 U.S.C. § 330 and Fed. R. Bankr. P. 2016 for compensation for the services that it performed as special co-nsel to Pacific Gas and Electric Company, debtor and debtor in possession in this case ("PG&E" or the "Debtor"), from April 1, 2002 through July 31, 2002 (the "Application Period"), and for reimbursement of its charges and disbursements during that period. KVN submits this Application for (a) allowance of reasonable compensation for professional services rendered by KVN and (b) reimbursement of actual and necessary charges and disbursements incurred by KVN in rendering professional services on behalf of Debtor.
SUMMARY
SHEET FOR KEKER & VAN NEST, L.L.P.'S FOURTH INTERIM FEE APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES FOR THE PERIOD APRIL 1, 2001 THROUGH JULY 31, 2002 297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASE NO. 01 30923 DM
POWER GENERA TOR MA TTER 1
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10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Year of Admission 1978 1994 Name1 Partners:
Robert A. Van Nest Steven A. Hirsch Total Partners Associates:
G. Whitney Leigh Clement S. Roberts Total Associates Paraprofessionals:
Brian D. Loper Case Assistants Total Paraprofessionals GRAND TOTAL N/A N/A Rate
$550.00
$300.00
$280.00
$215.00
$125.00
$ 60.00 Hours 7.625 9.875 17.500 87.600 11.875 99.475 19.625
-23.500 43.125 183.600 Amount
$4,193.75
$2,962.50
$ 7,156.25
$24,528.00
$ 2,553.13
$27,081.13
$2,453.13
$1,410.00
$ 3,863.13
$38,100.51 1 The resume for each attorney is attached as Exhibit 1 to this Applicatibn. (This exhibit is not attached to the service copies of this document. Copies of this exhibit may be obtained through the Keker & Van Nest website at www.kvn.com.
2 1991 2000 297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASE NO. 01 30923 DM
SIERRA PA CIFIC INDUSTRIES. v. PG&E ("SPI Matter")
Name2 Year of Admission 1
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10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Paraprofessionals:
Brian D. Loper Josh D. Maremont Jesahel X. Alacorn Aaron L. Madfes Paula F. Lichtenberg Case Assistants Total Paraprofessionals GRAND TOTAL Rate
$600.00
$500.00
$350.00 Partners:
Robert A. Van Nest 1978 Jon B. Streeter 1981 Steven A. Hirsch 1994 Less Reduction Per Jon Streeter Total Partners Associates:
Daniel E. Purcell Robert A. Bonta Total Associates N/A N/A N/A N/A N/A N/A Hours 67.500 332.500 1.125 401.125 199.375 105.025 304.625 68.000 14.500 4.000 7.750 0.125 29.875 114.250 Amount
$ 40,500.00
$166,250.00 393.75 825.00
$206,318.75
$ 53,831.25
$ 26,312.50
$ 80,143.75
$ 9,520.06
$ 2,320.00
$ 360.00
$ 697.50 11.25
$ 1,792.50
$ 14,701.25
$301,163.75 2 The resume for each attorney is attached as Exhibit 1 to this Application. (This exhibit is not attached to the service copies of this document. Copies of this exhibit may be obtained through the Keker & Van Nest website at www.kvn.com.
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$270.00
$250.00
$140.00
$160.00
$ 90.00
$ 90.00
$90.00
$ 60.00 297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASE NO. 01 30923 DM
DISBURSEMENTS PO W)ER GENERA TOR MA TTER 1
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10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Computer Legal Reaisearch Copying Charges Courier/Express/Postage Books and Publications Business Travel, Lodging, Meals, Parking Professional Fees (Infotreive, Inc., Boalt Express, Integral Solutions, video conferencing)
Conference calls P'clerks CLIENT TOTAL Computer Legal Reasearch Copying Charges Courier/Express/Postage Books and Publications Business Travel, Lodging, Meals, Parking Professional Fees (Infotreive, Inc., Boalt Express, Integral Solutions, video conferencing)
Conference calls/phone Pclerks Less Credit for May 2002 photocopies CLIENT TOTAL
'PI MATTER
$9,114.37
$ 4,596.90
$ 2,049.74
$ 4,654.03
$17,717.44
$ 3,126.84
$41,259.32 917.80
$40,341.52 4
$1.89
$1,168.19
$1,041.67
$64.75
$142.76
$2,419.26 297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASE NO. 01 30923 DM
1 INTRODUCTION 2
PG&E is a utility providing gas and electric services to more than 4.5 million customers 3
in Central and Northern California, serving a populatiofi of approximately 13 million. The 4
Debtor employs over 19,000 people and has in excess of 30,000 trade creditors. On April 6, 5
2001 (the "Petition Date"), PG&E filed its Chapter 11 petition. PG&E continues to operate its 6
business in the ordinary course of a debtor in possession under Sections 1107(a) and 1008 of the 7
Bankruptcy Code.
8 A.
Retention of KYN in the Power Generator Matter 9
PG&E applied to retain KVN to act as its special counsel in this Chapter 11 case, in 10 accordance with section 327(e) of the Bankruptcy Code (the "Retention Application") to 11 represent the Debtor with respect to a task on which KVN had been retained by the Debtor prior 12 to commencement of this case. That task ("the Power Generator Matter") requires KVN to 13 consider and analyze potential litigation between PG&E and other parties concerning excessive 14 charges for electric power in the California electric-power market. On June 11, 2001, the Court 15 entered its Order approving PG&E's retention of KVN in the Power Generator Matter. Since 16 that time, KVN's representation in the Power Generator Matter has come to include assisting 17 PG&E in responding to subpoenas and inquiries from government officials and entities that are 18 investigating excessive charges for electric power in the California market.
19 Because no action has been filed and all'communications regarding the Power Generator 20 Matter are privileged, PG&E and KVN cannot publicly disclose any additional information 21 about the Power Generator Matter. If the Court believes that it needs additional information, 22 KVN can submit that information to the Court, under seal, pursuant to Federal Rule of 23 Bankruptcy Procedure 9018.
24 B.
Retention of KVN in the SPI Matter 25 KVN represented PG&E in a breach-of-contract, antitrust, and business-tort suit brought 26 by Sierra Pacific Industries ("SPI") against PG&E and the California Independent System 27 Operator Corporation ("ISO"). SPI's suit arose out of PG&E's inability to pay fully for power 28 delivered by SPI during the energy crisis of early 2001. SPI alleged that PG&E had breached its 5
297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASE NO. 01 30923 DM
1 power-purchasing agre'ements with SPI by failing to make payments, and further alleged that 2
PG&E and the ISO had conspired to exclude SPI from the California energy market. SPI sought 3
over $1 billion in compensatory and punitive damages. On May 31, 2002, the Court entered its 4
Order approving PG&E's retention of KVN as special counsel in the SPI Matter, nuncpro tunc 5
to March 28, 2002. Beginning in April 2002, KVN assumed the role of lead counsel in the case, 6
eventually participating in a June 3, 2002 mediation that resulted in the provisional settlement of 7
the case. On July 22, 2002, the parties finalized and executed the formal settlement agreement 8
and, on August 6, 2002, PG&E submitted that agreement for approval to this Court and to the 9
California Public Utilities Commission. PG&E's applications for approval are currently pending.
10 C.
Compliance With Guidelines 11 The Firm represents and warrants that its billing practices comply with all 12 Northern District of California Bankruptcy Local Rules and Compensation Guidelines and 13 the Guidelines of the Office of the United States Trustee, with the following exception:
.14 KVN's computer system is not set up to bill in tenths of an hour. Instead, the KVN is required to 15 bill in eighths of an hour. This does not result in the rounding up of total time billed to the 16 Debtor.
17 KVN's billing practices and hourly rates are identical for bankruptcy and non-bankruptcy 18 clients (of which PG&E is the only one). The costs charged to PG&E are either identical to or 19 less than the costs charged to non-bankruptcy clients.
20 D.
2016 Compensation Statement 21 Neither the Firm nor any member of the Firm has any agreement or understanding 22 of any kind or nature to divide, pay over, or share any portion of the fees or expenses to be 23 awarded to the Firm with any other person or attorney except as among the members and 24 associates of the Firm.
25 E.
Summary of Services 26
- 1. Power Generator Matter
- 27.
The events encompassing the Debtor's bankruptcy case are set out in the application of 28 the Debtor's general bankruptcy counsel, Howard, Rice, Nemerovski, Canady, Falk & Rabkin 6
297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASE NO 01 30923 DM
1
("Howard Rice"). During the Application Period, KVN has considered and analyzed potential 2
litigation between PG&E and other parties concerning excessive charges for electric power in the 3
California electric-power market. As part of that task, KVN has worked with experts and with 4
other counsel to PG&E who are pursuing other remedies for the excessive charges. KVN also 5
has assisted PG&E in responding to subpoenas and inquiries from government officials and 6
entities that are investigating excessive charges for electric power in the California electric 7
power market.
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- 2.
-SPI Matter 9
KVN represented PG&E in a breach-of-contract, antitrust, and business-tort suit brought 10 by SPI against PG&E and the California Independent System Operator Corporation ("ISO").
11 SPI's suit arose out of PG&E's inability to pay fully for power delivered by SPI during the energy 12 crisis of early 2001. SPI alleged that PG&E had breached its power-purchasing agreements with 13 SPI by failing to make payments, and further alleged that PG&E and the ISO had conspired to 14 exclude SPI from the California energy market. SPI sought over $1 billion in compensatory and 15 punitive damages. Beginning in April 2002, KVN assumed the role of lead counsel in the case, 16 eventually participating in a June 3, 2002 mediation that resulted in the provisional settlement of 17 the case. On July 22, 2002, the parties finalized and executed the formal settlement agreement 18 and, on August 6, 2002, PG&E submitted that agreement for approval to this Court and the 19 California Public Utilities Commission. PG&E's applications for approval are currently pending.
20 F.
Compensation Requested 21 KVN's fees for its services rendered during the Application Period with regard to the 22 Power Generator Matter are $38,100.51. In addition, KVN seeks reimbursement of $2,419.26 in 23 charges and disbursements actually incurred during the Application Period, for a total of 24
$40,519.77. The firm does not hold a prepetition retainer.
25 KVN's fees for its services rendered during the Application Period with regard to the SPI 26 Matter are $301,163.75 In addition, KVN seeks reimburserfient of $40,341.52 in charges and 27 disbursements actually incurred during the Application Period, for a total of $341,505.27. The 28 firm does not hold a prepetition retainer.
7 297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASE NO. 01 30923 DM
I KVN requests that the Court (i) approve this Application in full and (ii) authorize and 2
direct the Debtor to pay KVN all amounts requested in this Application.
3 I.
-4 INFORMATION REQUIRED BY BANKRUPTCY RULES AND GUIDELINES 5
A.
Brief History of Present Posture of the Case and Significant Events During 6
Application Period 7
On April 6, 2001, PG&E filed its Chapter 11 petition. The significant events occurring 8
during the Application Period are set out in Howard Rice's fee application.
9 KVN has worked with PG&E in connection with considering and analyzing potential 10 litigation between PG&E and other parties concerning excessive charges for electric power in the 11 California electric-power market. As part of that task, KVN also has worked with experts and 12 with other counsel to PG&E who are pursuing other remedies for the excessive charges. KVN 13 also has assisted PG&E in responding to subpoenas and inquiries from government officials and 14 entities that are investigating excessive charges for electric power in the California electric 15 power market.
KVN expects that it will continue to assist the Debtor in connection with the 16 Power Generator Matter.
17 KVN also represented PG&E in a breach-of-contract, antitrust, and business-tort suit 18 brought by SPI against PG&E and the ISO. SPI's suit arose out of PG&E's inability to pay fully 19 for power delivered by SPI during the energy crisis of early 2001. SPI alleged that PG&E had 20 breached its power-purchasing agreements with SPI by failing to make payments, and further 21 alleged that PG&E and the ISO had conspired to exclude SPI from the California energy market.
22 SPI sought over $1 billion in compensatory and punitive damages. Beginning in April 2002, 23 KVN assumed the role of lead counsel in the case, eventually participating in a June 3, 2002 24 mediation that resulted in the provisional settlement of the case. On July 22, 2002, the parties 25 finalized and executed the formal settlement agreement and, on August 6, 2002, PG&E 26 submitted that agreement for approval to this Court and the California Public Utilities 27 Commission. PG&E's applications for approval are currently pending.
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297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASE NO 01 30923 DM
1 B.
Listing of Amount of Fees and Expenses Previously Requested, Approved, and Received 2
- 1.
The Court's Order Approving KYN's Retention 3
This Court granted PG&E's application for authorization to retain KVN as its special 4
counsel in the Power Generator Matter on June 11, 2001. The firm's services began on August 5
30, 2000.
6 This Court granted PG&E's application for authorization to retain KVN as its special 7
counsel in the SPI Matter on May 31, 2002. The Court's order appointed KVN effective nunc 8
pro tunc to March 28, 2002, when KVN began performing services in the SPI Matter.
9
- 2.
Court's Approval of Compensation for First Interim Period 10 On November 6, 2001, this Court approved Keker & Van Nest's entire request for 11 compensation for the First Interim Period (April 6, 2001 through July 31, 2001). The Court 12 approved $218,413.46 in fees and $11,844.84 in costs.
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- 3.
Court's Approval of Compensation for Second Interim Period 14 On February 26, 2002, this Court approved Keker & Van Nest's entire request, less a 15 small amount reflecting travel time, for compensation for the Second Interim Period (August 1, 16 2001 through November 30, 2001). The Court approved $95,531.05 in fees and $10,294.50 in 17 costs.
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- 4.
Court's Approval of Compensation for Third Interim Period 19 On July 15, 2002, this Court approved Keker & Van Nest's entire request for 20 compensation for the Amended Third Interim Period (December 1, 2001 through March 31, 21 2002). The Court approved $30,958.56 in fees and $857.87 in costs.
22
- 5.
The Request for Compensation for the Fourth Interim Period 23 By this Application, KVN seeks approval of compensation and reimbursement of 24 expenses in the total amount of $308,326.28 for the period April 1, 2002 through July 31, 2002, 25 which consists of $38,100.51 in fees and $2,419.26 in costs and disbursements, with regard to 26 the Power General Matter, and $301,563.75 in fees and $40,341.52 in costs and disbursements, 27 with regard to the SPI Matter.
28 9
297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASE NO 0130923 DM
1 C.
Major Activity Codes Used 2
KVN has billed time to the Power Generator Matter ("Power") and to the SPI Matter 3
("SPr"). These were tlhe only activity codes that KVN need or employed.
4 D.
Time Records 5
KVN has filed separately the detailed time records in support of this Application. KVN's 6
time records consist of chronological time records showing individual professional's services on 7
a particular date, the time devoted to those services, and month summaries.
8 E.
Client Review of Billing Statements 9
KVN delivered the text of this Application to PG&E's management before the filing.
10 PG&E has previously received and reviewed monthly invoices for the period covered by this 11 Application and did not object to the amounts set forth in those invoices. Attached to the Court's 12 copy as Exhibit 2 is a photocopy of the transmittal letter required by Guideline 7 of the Court's 13 Guidelines for Compensation and Expense Reimbursement of Professionals and Trustees.
14 II.
15 NARRATIVE STATEMENT OF SERVICES RENDERED AND TIME EXPENDED FOR EACH CATEGORY 16 17 During the Application Period, in the Power Generator Matter, KVN considered and 18 analyzed potential litigation between PG&E and other parties concerning excessive charges for 19 electric power in the California electric-power market. As part of that task, KVN worked with 20 experts and with other counsel to PG&E who are pursuing other remedies for the excessive 21 charges. KVN also has assisted PG&E in responding to subpoenas and inquiries from 22 government officials and entities that are investigating excessive charges for electric power in 23 the California electric power market.
24 KVN is assisting the Debtor in dealing with ongoing, highly sensitive and confidential 25 matters. As a consequence, Applicant is unable to specify in great detail the services it is 26 providing to the Debtor, as doing so could seriously compromise Debtor's future business and 27 legal strategy. Applicant would be pleased to provide the Court with additional details of the 28 services its is providing to the Debtor in camera or by some other mechanism that will ensure the 10 297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASE NO. 01 30923 DM i
1 maintenance of Debtor's confidential information.
2 KVN represented PG&E in a breach-of-contract, antitrust, and business-tort suit brought 3
by SPI against PG&E a-nd the ISO. SPI's suit arose out bfPG&E's inability to pay fully for 4
power delivered by SPI during the energy crisis of early 2001. SPI alleged that PG&E had 5
breached its power-purchasing agreements with SPI by failing to make payments, and further 6
alleged that PG&E and the ISO had conspired to exclude SPI from the California energy market.
7 SPI sought over $1 billion in compensatory and punitive damages. Beginning in April 2002, 8
KVN assumed the role of lead counsel in the case, eventually participating in a June 3, 2002 9
mediation that resulted in the provisional settlement of the case. On July 22, 2002, the parties 10 finalized and executed the formal settlement agreement and, on August 6, 2002, PG&E 11 submitted that agreement for approval to this Court and the California Public Utilities 12 Commission. PG&E's applications for approval are currently pending.
13 I11.
14 EXPENSES 15 KVN charges clients $0.10 per page for copying and no charge for incoming facsimiles.
16 For outgoing facsimiles, KVN charges its actual telephone charges, as reflected in its phone bill.
17 KVN bills each client's telephone and postage charges at cost. For computer-assisted research, 18 the firm takes the total flat rate that it pays every month, discounts that amount to reflect pro 19 bono and other nonbillable usage, and then allocates the remainder to each client based on its 20 percentage of the remaining usage for that month.
21 Dated: September 13, 2002 KEKER & VAN NEST, L.L.P.
22 23 By:
STEVEN A. HIRSCH 24 Special Counsel to Debtor in Possession PACIFIC GAS AND ELECTRIC 25 COMPANY 26 27
[ATTORNEY CERTIFICATION ATTACHED]
28 CERTIFICATION 11 297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASE NO 01 30923 DM
{
1 1, Steven A. Hirsch, declare:
2 (a)
That I am a member of Keker & Van Nest LLP ("KVN") and of the bar of the 3
States of California, New York, and Connecticut, and'of the bar of the District of Columbia.
4 (b)
That I am familiar with and have read the above Fourth Interim Fee Application 5
and that the facts therein are true to my knowledge and belief. The copies of the billing 6
statements submitted herewith are true and correct copies of the billing statements of Pacific Gas 7
and Electric Company ("the Debtor") for the matters in which KVN is currently retained by the 8
Debtor ("the Matters").
9 (c)
That KVN has not been paid or promised any compensation from any other 10 source for services rendered in connection with the Matters.
11 (d)
That KVN has not entered into any agreement or understanding with any other 12 entity for the sharing of compensation received or to be received for services rendered and/or to 13 be rendered in connection with the Matters.
14 (e)
That to the best of my knowledge, information, and belief, the compensation and 15 expense reimbursement sought herein is in conformity with the Guidelines for Compensation 16 and Expense Reimbursement of Professionals and Trustees for the United States Bankruptcy 17 Court for the Northern District of California, except for the following: KVN's computer system 18 is not set up to bill in tenths of an hour. Instead, KVN is required to bill in eighths of an hour.
19 This does not result in the rounding up of total time billed to the Debtor.
20 (f)
That the compensation and expenses sought herein were billed at rates no less 21 favorable than those customarily billed by KVN and generally accepted by the KVN's clients.
22 I declare under penalty of perjury that the foregoing is true and correct and that this 23 certification was executed this 13th day of September, 2002 at San Francisco, California.
24 KEKR & VAN NEST, L.L.P.
25By STEVEN A. HIRSCH 26 Special Counsel to Debtor in Possession PACIFIC GAS AND ELECTRIC 27 COMPANY 28 12 297960.01 Keker & Van Nest's Fourth Interim Fee Application for the Period April 1, 2002 through July 31, 2002 CASE NO 01 30923 DM