ML023380370

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

ML023380370
Person / Time
Site:	Diablo Canyon
Issue date:	11/26/2002
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: ML023380370 (7)

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, Tax Advisor and Consultant to 5 Debtor and Debtor in Possession Pacific Gas and Electric Company 6

7 8

UNITED STATES BANKRUPTCY COURT 9

NORTHERN DISTRICT OF CALIFORNIA 10 SAN FRANCISCO DIVISION 11 In re No. 01-30923 DM 12 PACIFIC GAS AND ELECTRIC Chapter 11 Case 13 COMPANY, a Californ Lia Corporation, DELOITTE & TOUCHE LLP'S COVER Debtor. SHEET APPLICATION FOR 14 ALLOWANCE AND PAYMENT OF 15 Federal I.D. No. 94-07472640 INTERIM COMPENSATION (FOR SERVICES RENDERED FROM OCTOBER 16 1, 2002, TO OCTOBER 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 October 1, 2002, to October 31, 2002 ("Application Period"). In support of the 22 Application, the Firm respectfully represents as follows:

23 1. The Finn 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 nunc pro 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 27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION 1 FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM 28 OCTOBER 1, 2002, TO OCTOBER 31, 2002)

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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 $426,408.75 in hourly fees ("Hourly Fees"), representing 1481.5 6 hours expended, during the Application Period. These Hourly Fees are shown as follows:

7 8 Period Hourly Fees Total 9 10/1/02 to 10/31/02 $426,408.75 $426,408.75' 10 Although the Firm incurred expenses during the Application Period, the Finn is not 11 requesting reimbursement of any portion of those expenses at this time but intends to 12 request such reimbursement in a subsequent application.

13 3. The Firm seeks payment of a total of $362,447.44 at this time. This is 85 % of the 14 Hourly Fees for services rendered from October 1, 2002, through October 31, 2002.2 15 4. For the post-petition period, the Firm has been paid to date as follows:

16 17 Application Period Amount Applied For Description Amount Paid 18 First (4/7/01 to $62,263.50 in hourly fees $39,987.404 2/28/02) $62,333.903 and $70.40 in expenses, 19 less $22,346.50, which was withdrawn from the 20 Firm's request in its June 25, 2002, reply to the 21 United State's Trustee's objection to the Firm's 22 First Interim Application 23 I In addition to fees for Supplemental Services, the amount requested includes $9,000.00 for time expended in preparing fee applications.

24 2 Payment of this amount would result in a "holdbacek" of $63,961.31.

25 3 The relevant cover sheet application requested a total of $62,573.90 in fees and costs, but the Firm later reduced the amount requested to $62,333.90 due to a $240 error in the initial billing.

26 27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM 2

COMPENSATION (FOR SERVICES RENDERED FROM 28 OCTOBER 1, 2002, TO OCTOBER 31, 2002)

1 Second (10/1/01 to $1,643,315.50 in hourly 3/31/02)5 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) $232,523.00 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 Fifth (6/1/02 to 85% of$115,006 in $97,755.10 7 6/30/02) $115,006.00 hourly fees 8 Sixth (7/1/02 to 85% of $128,834.50 in $109,509.33 7/31/02) $128,834.50 hourly fees 9 Seventh (8/1/02 to 85% of $156,475 in $133,003.75 8/31/02) $156,475.00 hourly fees 10 The Firm has also received (1) $855,000 as the Firm's base fee for auditing and 11 reporting on Debtor's consolidated financial statements and reviewing interim financial 12 information for the 2001 fiscal year and (2) $840,000 of the base fee for auditing and 13 reporting on Debtor's consolidated financial statements and reviewing interim financial 14 information for the 2002 fiscal year. The July 10, 2001, order approving the Firm's 15 employment, together with the November 5, 2002, order approving the 2002 base audit 16 fee, authorized Debtor to pay these fees upon receipt of invoices from the Firm.

17 Including the 2001 and 2002 Base Audit Fees, the total paid to the Firm to date is 18

$4,036,679.66.

19

5. To date, the Firm is owed as follows (excluding amounts owed pursuant to this 20 Application):

21 (FootnoteContinuedfromPrevious Page.)

22 4 Debtor initially paid the Firm $54,331.45 on account of its first cover sheet application, but the $240 23 and $22,346.50 reductions, discussed above, were later netted against other amounts owing to the Firm, reducing the amount paid for the first application period to $39,987.40.

24 5The Application Periods for the Firm's first two "cover sheet" applications overlapped because the Firm did not seek compensation for any of the Supplemental Services until after the court's April 11, 25 2002, "nunc pro tunc" order specifically authorizing that work.

26 27 FOR DELOITTE ANDLLP'S

& TOUCHE ALLOWANCE COVER SHEET APPLICATION PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM 28 OCTOBER 1, 2002, TO OCTOBER 31, 2002)

I 2 Application Period Amount Description 3 Third (4/1/02 to $34,878.45 15% holdback of fees requested 4/30/02) by the Firm's third "cover 4 sheet" application filed May 29, 2002 5 Fourth (5/1/02 to $22,052.47 15% holdback of fees requested 5/31/02) by the Firm's fourth "cover 6 sheet" application filed June 27, 2002 7

Fifth (6/1/02 to $17,250.90 15% holdback of fees requested 8 6/30/02) by the Firm's fifth "cover sheet" application filed July 23, 2002 9 and amended on August 5, 2002 Sixth (7/1/02 to $19,325.17 15% holdback of fees requested 10 7/31/02) by the Firm's sixth "cover sheet" application filed August 11 22,2002 12 Seventh (8/1/02 to $23,471.25 15% of holdback of fees 8/31/02) requested by the Firm's seventh 13 "cover sheet" application filed September 27, 2002 14 Eighth (9/1/02 to $130,353.50 Fees requested by the Firm's 9/30/02) eighth "cover sheet" application 15 filed on October 31, 2002 16 Total Owed to the $247,331.746 Firm to Date 17

6. Attached as Exhibits 1 and 2, respectively, to the copies of this Application served on 18 counsel for the Official Committee of Unsecured Creditors, counsel for Debtor, and the Office of 19 the United States Trustee are (i) a list of the names and hourly billing rates of each professional 20 who performed services for which compensation is sought by this Application and (ii) detailed 21 time statements for the Application Period that comply with all Northern District of California 22 Bankruptcy Local Rules and Compensation Guidelines and the Guidelines of the Office of the 23 United States Trustee.

24 6 The $247,331.74 does not include any fees incurred but not yet paid for the Firm's 2002 audit of 25 Debtor's consolidated financial statements and review of interim financial information.

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

1 7. The Firm has served a copy of this Application on each person shown on the Special 2 Notice List for this case. (Only the parties referred to in paragriiph 6 received Exhibits 1 and 2; 3 the copies served on other parties did not include the exhibits.)

4 8. Pursuant to this Court's Second Amended Order Establishing Interim Fee Application 5 and Expense Reimbursement Procedure, filed on March 18, 2002, the Debtor will be authorized 6 to make the payment requested herein without further hearing or order unless an objection to this 7 Application is filed with the court by the Debtor, the Committee, or the United States Trustee and 8 served by the fifteenth day of the month following the service of this Application. If such an 9 objection is filed, Debtor will be authorized to pay the amounts, if any, not subject to the 10 objection. The Firm is informed and believes that this Application was mailed to all persons 11 shown on the Special Notice List by first class mail, postage prepaid, on November 26, 2002.

12 9. The interim compensation sought by this Application is on account and not final. At 13 the conclusion of this case, the Firm will seek fees and reimbursement of expenses incurred for 14 the totality of its employment in this case. Any interim fees or reimbursement of expenses 15 approved by the court and received by the Firm (along with any retainer paid to the Firm) will be 16 credited against such final fees and expenses as may be allowed by the court.

17 10. The Firm represents and warrants that its billing practices comply with all Northern 18 District of California Bankruptcy Local Rules and Compensation Guidelines and the Guidelines 19 of the Office of the United States Trustee. Neither the Firm nor any member of the Firm has any 20 agreement or understanding of any kind or nature to divide, pay over or share any portion of the 21 fees or expenses awarded to the Firm with any other person or entity other than members and/or 22 associates of the Firm.

23 WHEREFORE, the Firm respectfully requests that Debtor pay compensation to the Firm 24 as requested herein pursuant to and in accordance with the terms of the Second Amended Order 25 Establishing Interim Fee Application and Expense Reimbursement Procedure.

26 27 FOR DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION ALLOWANCE AND PAYMENT OF INTERIM 5 COMPENSATION (FOR SERVICES RENDERED FROM 28 OCTOBER 1, 2002, TO OCTOBER 31, 2002)

Dated: November 26, 2002 1 DELOITTE & TOUCHE LLP 2

3 By Mark A. Edmunds, Partner 4 Independent Auditor, Accountant, Tax Advisor and Consultant to Debtor Pacific 5 Gas and Electric Company 6

7 8

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 DELOI-TE & TOUCHE LLP'S COVER SHEET APPLICATION 6 FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM 28 OCTOBER 1, 2002, TO OCTOBER 31, 2002)

1 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 November 26, 2002, 1 served the foregoing DELOITTE & TOUCHE LLP'S 4 COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM OCTOBER 1, 2002, TO 5 OCTOBER 31, 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, for overnight delivery, with charges fully prepaid, to each of the following 7 three addressees 6 :

8 James L. Lopes Stephen Johnson Howard, Rice, Nemerovski,Canady, Falk & Rabkin Office of the U.S. Trustee 9 Three Embarcadero Center, 7th 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

[Counsel for Official Committee of Unsecured Creditors]

14 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: November 26, 2002.

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

21 22 23 24 25 26 27 28 DOCSSF1.591882.1