ML030310227
| ML030310227 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 01/24/2003 |
| 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, 94-0742640 | |
| Download: ML030310227 (7) | |
Text
Mark A. Edmunds Deloitte & Touche LLP 50 Fremont Street San Francisco, CA 94121 Telephone: (415) 783-4000 Facsimile: (415) 783-4708 Independent Auditor, Accountant, Tax Advisor and Consultant to Debtor and Debtor in Possession Pacific Gas and Electric Company S
UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA, SAN FRANCISCO DIVISION Case No. 01-30923 DM GAS AND ELECTRIC Chapter 11 tNY, a California Corporation, DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR
)tor.
ALLOWANCE AND PAYMENT OF
[.D. No. 94-0742640 INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (DECEMBER 1, 2002, TO DECEMBER 31, 2002)
[No Hearing Scheduled]
Deloitte & Touche LLP (the "Firm") submits this Cover Sheet Application for Allowance and Payment of Interim Compensation and Reimbursement of Expenses ("Application") for December 1, 2002, to December 31, 2002 ("Application Period"). In support of the Application, the Firm respectfully represents as follows:
- 1. The Finn is Independent Auditor, Accountant, Tax Advisor, and Consultant to Debtor Pacific Gas & Electric Company ("Debtor"). On July 10, 2001, the Firm's retention in this capacity was approved nunc pro tunc, effective April 6, 2001. On April 11, 2002, the Firm's employment to audit financial statements being prepared for four entities that would succeed to Debtor's business assets upon confirmation of Debtor's proposed reorganization plan
("Supplemental Services") was approved nuncpro tunc, effective October 1, 2001. By this DELOITIE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (DECEMBER 1, 2002, TO DECEMBER 31, 2002)
In re PACIFI(
COMPA Det Federal 1
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1 Application, the Firm is applying to the Court for allowance and payment of (a) interim 2
compensation for services rendered during the Application Period and (b) reimbursement of 3
expenses incurred during the Application Period.
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- 2. The Firm logged $91,221.00 in hourly fees ("Hourly Fees"), representing 306.5 hours5.787037e-5 days <br />0.00139 hours <br />8.267196e-6 weeks <br />1.9025e-6 months <br /> 5
expended, during the Application Period, and the Firm incurred $172.03 in expenses 6
("Expenses") during the Application Period. These Hourly Fees and Expenses are shown as 7
follows:
8 Period Hourly Fees Expenses Total 12/1/02 to 12/31/02
$91,221.001
$172.03
$91,393.03
- 3. The Firm seeks payment of a total of $77,709.88 at this time.2 This is the sum of (i) 85% of the Hourly Fees for services rendered from December 1, 2002, through December 31, 2002, and (ii) 100 % of the Expenses incurred from December 1, 2002, through December 31, 2002.
For the post-petition period, the Finn has been paid to date as follows:
Application Period Amount Applied For Description Amount Paid First (4/7/01 to
$62,263.50 in hourly fees
$39,987.40V 2/28/02)
$62,333.903 and $70.40 in expenses, less $22,346.50, which was withdrawn from the Firm's request in its June 25, 2002, reply to the United State's Trustee's objection to the Firm's First Interim Application 9
10 11 12 13 14 15 16 17 is 19 20 21 22 23 24 25 26 21 2E 1 In addition to fees for Supplemental Services, the amount requested includes $12,731.00 for time expended in preparing fee applications and $7,205.00 in fees for responding to a request from the Office of Rate Payer Advocate of the California Public Utilities Commission to review working papers related to the Firm's audits of Debtor's consolidated financial statements for the years 2000 and 2001.
2 Payment of this amount would result in a fees "holdback" of $13,683.15.
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.
DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 2
ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (DECEMBER 1, 2002, TO DECEMBER 31, 2002)
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9 10 11 12 13 14 15 16 17 18 on Debtor's consolidated financial statements and reviewing interim financial information for the 19 2001 fiscal year and (2) $940,000 of the base fee for auditing and reporting on Debtor's 20 consolidated financial statements and reviewing interim financial information for the 2002 fiscal 21 year. The July 10, 2001, order approving the Firm's employment, together with the November 5, 22 2002, order approving the 2002 base audit fee, authorized Debtor to pay these fees upon receipt 23 (Footnote Continued from Previous Page.)
24 4 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, 25 reducing the amount paid for the first application period to $39,987.40.
5 The Application Periods for the Firm's first two "cover sheet" applications overlapped because the 26 Firm did not seek compensation for any of the Supplemental Services until after the court's April 11, 2002, "nunc pro tunc" order specifically authorizing that work.
27 DELOrrTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (DECEMBER 1, 2002, TO DECEMBER 31, 2002)
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 disallowed by the court at the July 2, 2002, hearing on the Firm's First Interim Application Third (4/1/02 to
$232,523 in hourly fees 4/30/02)
$232,523.00
$232,523.00 Fourth (5/1/02 to
$147,016.50 in hourly
$147,016.50 5/31/02)
$147,016.50 fees Fifth (6/1/02 to
$115,006 in hourly fees
$115,006.00 6/30/02)
$115,006.00 Sixth (7/1/02 to
$128,834.50 in hourly
$125,770.00 7/31/02)
$128,834.50 fees less $3,064.50, which was withdrawn from the Firm's request in its November 22, 2002 Memorandum re Supplemental Time Diaries Supporting Second Interim Application for Compensation by Deloitte & Touche LLP Seventh (8/1/02 to 85% of $156,475 in
$133,003.75 8/31/02)
$156,475.00 hourly fees Ninth (10/1/02 to
$426,408.75 85% of $426,408.75 in
$362,447.44 10/31/02) 1 hourly fees The Firm has also received (1) $855,000 as the Firm's base fee for auditing and reporting
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9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (DECEMBER 1, 2002, TO DECEMBER 31, 2002) of invoices from the Firm. Including the 2001 Base Audit Fee and the paid portion of the 2002 Base Audit Fee, the total paid to the Firm to date is $4,589,569.59.
To date, the Firm is owed as follows (excluding amounts owed pursuant to this Application):
Application Period Amount Description Seventh (8/1/02 to
$23,471.25 15% of holdback of fees 8/31/02) requested by the Firm's seventh "cover sheet" application filed September 27, 2002 Eighth (9/1/02 to
$130,353.50 Fees requested by the Firm's 9/30/02) eighth "cover sheet" application filed on October 31, 2002 Ninth (10/1/02 to
$63,961.31 15% of holdback of fees 10/31/02) requested by the Firm's ninth "cover sheet" application filed on November 26, 2002 Tenth (11/1/02 to
$183,805.19 Fees and expenses requested by 11/30/02) the Firm's tenth "cover sheet" application filed on December 20,2002 Total Owed to the
$401,591.256 Firm to Date
- 6. Attached as Exhibits 1 and 2, respectively, to the copies of this Application served on 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 who performed services for which compensation is sought by this Application and (ii) detailed time and expense statements for the Application Period that comply with all Northern District of California Bankruptcy Local Rules and Compensation Guidelines and the Guidelines of the Office of the United States Trustee.
6 The $401,591.25 does not include any fees incurred but not yet paid for the Firm's 2002 audit of Debtor's consolidated financial statements and review of interim financial information.
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- 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 paragraph 6 received Exhibits 1 and 2; 3
the copies served on other parties did not include the exhibits.)
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- 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 8
and 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 January 24, 2003.
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- 9. The interim compensation and reimbursement sought by this Application is on 13 account and not final. At the conclusion of this case, the Firm will seek fees and reimbursement 14 of expenses incurred for the totality of its employment in this case. Any interim fees or 15 reimbursement of expenses approved by the court and received by the Firm (along with any 16 retainer paid to the Firm) will be credited against such final fees and expenses as may be allowed 17 by the court.
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- 10. The Firm represents and warrants that its billing practices comply with all Northern 19 District of California Bankruptcy Local Rules and Compensation Guidelines and the Guidelines 20 of the Office of the United States Trustee. Neither the Firm nor any member of the Firm has any 21 agreement or understanding of any kind or nature to divide, pay over or share any portion of the 22 fees or expenses awarded to the Firm with any other person or entity other than members and/or 23 associates of the Firm.
24 WHEREFORE, the Finn respectfully requests that Debtor pay compensation to the Firm 25 as requested herein pursuant to and in accordance with the terms of the Second Amended Order 26 Establishing Interim Fee Application and Expense Reimbursement Procedure.
27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 5
28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (DECEMBER 1, 2002, TO DECEMBER 31,2002)
1 Dated: January 24, 2003 2
3 4
5 DELOITTE & TOUCHE LLP Mark A. Edmunds, Partner Independent Auditor, Accountant, Tax Advisor and Consultant to Debtor Pacific Gas and Electric Company 6
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9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.
.I-DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (DECEMBER 1, 2002, TO DECEMBER 31, 2002) 0
I PROOF OF SERVICE 2
I am over the age of 18, and I am employed at the offices of Deloitte & Touche LLP, 3
located at 50 Fremont Street, San Francisco, California.
4 On January 24,2003, 1 served the foregoing DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM 5
COMPENSATION AND REIMBURSEMENT OF EXPENSES (FOR SERVICES RENDERED FROM DECEMBER 1, 2002, TO DECEMBER 31, 2002) by (1) depositing 6
true and correct copies thereof in the United States Mail at San Francisco, California, in sealed envelopes with first class postage thereon fully prepaid, addressed to each party shown on the 7
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 three addressees6:
8 James L. Lopes Stephen Johnson 9
Howard, Rice, Nemerovski,Canady, Falk & Rabkin Office of the U.S. Trustee Three Embarcadero Center, 7h Floor 250 Montgomery Street, Suite 1000 10 San Francisco, CA 94111 San Francisco, CA 94104-3401
[Counsel for Pacific Gas and Electric Company]
[United States Trustee]
11 Robert J. Moore 12 Paul S. Aronzon Milbank, Tweed, Hadley & McCloy LLP 13 601 South Figueroa Street Los Angeles, CA 90017 14
[Counsel for Official Committee of Unsecured Creditors]
15 I declare under penalty of perjury under the laws of the State of California and the United States of America that the foregoing is true and correct.
16 Dated: January 24, 2003.
17 18 Lydia Lee 19 20 21 22 6 Only the copies served on the Office of the United States Trustee, counsel for debtor Pacific Gas and 23 Electric Company, and counsel for the official committee of unsecured creditors included Exhibits 1 and 2; the copies served on other parties did not include the exhibits.
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