ML030500303
| ML030500303 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 02/07/2003 |
| From: | Maggard S 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: ML030500303 (5) | |
Text
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&RABIaN 15 16 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 Date:
Time:
Place:
February 27, 2003 1:30 p.m.
235 Pine Street, 22nd Floor San Francisco, California DECLARATION OF STEPHANIE MAGGARD IN SUPPORT OF FOURTH MOTION FOR AUTHORITY TO INCUR MISCELLANEOUS IMPLEMENTATION EXPENSES DECLARATION OF STEPHANIE MAGGARD JAMES L. LOPES (No. 63678)
JULIE B. LANDAU (No. 162038)
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HOWARD, RICE, NEMEROVSKI, CANADY, FALK & RABKIN A Professional Corporation Three Embarcadero Center, 7th Floor San Francisco, California 94111-4065 Telephone:
415/434-1600 Facsimile:
415/217-5910 Attorneys for Debtor and Debtor in Possession PACIFIC GAS AND ELECTRIC COMPANY UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION 2
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.. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I, Stephanie Maggard, declare:
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I am a director in PG&E Corporation's finance department, and am currently on assignment to Pacific Gas and Electric Company ("PG&E") in connection with the implementation of PG&E's proposed Plan of Reorganization (the "Plan"). I was employed by PG&E from 1989 to 2000 and transferred to PG&E Corporation in 2000. I held a number of positions at PG&E, primarily in the areas of regulation and ratemaking, and business and financial planning. In my current assignment, I am a project manager for PG&E's implementation of the Plan. In this position, I manage the business aspects of Plan implementation, including resolution of business issues, forecasting and tracking of implementation costs, and obtaining any necessary management and Court approval for implementation projects.
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This declaration is submitted in support of PG&E's Fourth Motion for Authority to Incur Miscellaneous Implementation Expenses (the "Motion"). Defined terms used herein shall have the meanings set forth in the Motion. I make this declaration based on personal knowledge, except where otherwise indicated, and if called as a witness, could and would testify competently to the matters set forth herein.
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PG&E has previously filed and obtained orders approving various motions seeking authority to incur costs related to implementation of the Plan. The present Motion seeks approval for approximately $3.8 million in additional implementation-related expenses. PG&E has made substantial progress in completing previously-approved implementation projects and anticipates that, for the majority of these projects, its spending will be within or below the approved amounts. However, for certain projects, as better information became available during the course of work, PG&E has identified new required tasks or the need to increase the scope of previously identified tasks. Therefore, many of the expenses described in the Motion involve additional costs related to specific projects that have been the subject of previous implementation expense motions approved by the Court.
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PG&E previously filed a Motion for Authority to Incur Additional Miscellaneous Implementation Expenses on September 12, 2002, which was approved by DECLARATION OF STEPHANIE MAGGARD 1
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&*RAMNN 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Order entered on October 2, 2002. The motion included expenses of $1.5 million to be incurred by PG&E in connection with PricewaterhouseCoopers' ("PWC") development of accounting processes and procedures for the New Entities. PG&E now anticipates that this project will require approximately $800,000 in additional expenses. As described in the previous motion, by the Effective Date under the Plan ("Plan Effective Date"), the New Entities will require accounting systems and applications that are fully implemented and operational in order to commence business operations, including the maintenance of books and records. These accounting systems and applications require associated processes and procedures to capture, record and validate all transactions.
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Since October 2002, PWC has been assisting PG&E in reviewing its existing accounting processes and procedures and in the development of new processes and procedures for use by the New Entities. While the project has not changed since the previous motion was filed, it has become better defined and quantifiable as a result of the work that has been performed by PWC for the last four months. There are over 82 individual accounting processes to be reviewed and adapted for use by the New Entities.
Initially, PG&E identified approximately 70 individual accounting processes that needed to be reviewed and adapted for use by the New Entities. Also, PG&E now understands that many of these processes are more complex to document than originally anticipated, or require more substantial modification for use by the New Entities than previously anticipated. As a result, PWC will incur additional fees completing the services. PG&E therefore requests authority to incur approximately $800,000 in additional costs for this project.
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On May 24, 2002, PG&E filed its Motion for Authorization to Incur Data Management Expenses, which was approved by Order entered on June 20, 2002. One portion of this Motion concerned data management services related to existing records, maps and drawings ("RMD") that will be needed by the New Entities, such as engineering and construction records, customer records, facility maps and drawings, and financial records.
PG&E explained that it required the services of ZIA Information Analysis Group, Inc.
DECLARATION OF STEPHANIE MAGGARD 1
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("ZIA") in order to identify and compile the anticipated millions of RMD documents, and to develop and maintain a database with the RMD data. Total costs of approximately $436,000 were approved for this project.
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ZIA and PG&E have been engaged in the RMD work for many months and it is now evident that the work will require more time than previously estimated. The work is more complex and time-consuming than PG&E or ZIA originally anticipated, particularly due to the tasks of determining the type and level of information required by the New Entities as well as the review of the various RMD documents for accuracy and completeness. PG&E estimates that it will incur approximately $115,000 more than the amount originally authorized so that ZIA can complete this project.
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In addition to ZIA's work on this project, an individual consultant who is a former PG&E employee, Fred Holmes, is assisting PG&E and ZIA in reviewing and analyzing RMD documents. Based on his past experience working for PG&E, Mr. Holmes is knowledgeable about RMD documents and approximately $15,000 of the additional
$115,000 may be incurred in connection with Mr. Holmes' services.
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For each of the consultants described above, PG&E's standard contractual provisions in place (or to be included in any 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 performed to the date of termination plus costs reasonably incurred by the consultant in terminating any work in progress.
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10 11 12 HOVZA 13 mAW" 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 February 3 2003.
WD 020503/1-1419905/105421 IMI DECLARATION OF STEPHANIE MAGGARD