ML030660519
| ML030660519 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 02/28/2003 |
| 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 DM, 94-0742640 | |
| Download: ML030660519 (7) | |
Text
1 Mark A. Edmunds Deloitte & Touche LLP 2
50 Fremont Street San Francisco, CA 94121 3
Telephone: (415) 783-4000 Facsimile: (415) 783-4708 4
Independent Auditor, Accountant, 5
Tax Advisor and Consultant to Debtor and Debtor in Possession 6
Pacific Gas and Electric Company 7
w UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA, SAN FRANCISCO DIVISION 10 In re 11 PACIFIC GAS AND ELECTRIC COMPANY, a California Corporation, 12 Debtor.
13 Federal I.D. No. 94-0742640 14 15 16 Case No. 01-30923 DM Chapter 11 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JANUARY 1, 2003, TO JANUARY 31, 2003)
[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 January 1, 2003, to January 31, 2003 ("Application Period"). In support of the Application, the Firm respectfully represents as follows:
- 1. The Firm 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 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 28DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION4 FOR 28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JANUARY 1, 2003, TO JANUARY 31, 2003) 8 9
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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 $343,873.50 in hourly fees ("Hourly Fees"), representing 1,396.5 5
hours expended, during the Application Period, and the Firm incurred $341.30 in expenses 6
("Expenses") during the Application Period. These Hourly Fees and Expenses are shown as 7
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follows:
Period Fees Expenses Total 1/1/03 to 1/31/03
$343,873.501
$341.30
$344,214.80 10 The Firm seeks payment of a total of $292,633.78 at this time.2 This is the sum of (i) 11 85% of the Hourly Fees for services rendered from January 1, 2003, through January 31, 2003, 12 and (i) 100 % of the Expenses incurred from January 1, 2003, through January 31, 2003.
13 For the post-petition period, the Firm has been paid to date as follows:
14 15 16 17 18 19 20 21 1 In addition to fees for Supplemental Services, the amount requested includes $8,485.00 for time expended in preparing fee applications and $1,575.00 in fees for responding to a request from the Office 22 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.
23 2 Payment of this amount would result in a fees "holdback" of $51,581.03.
24 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.
25 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, 26 reducing the amount paid for the first application period to $39,987A0.
27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 2
28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JANUARY 1, 2003, TO JANUARY 31, 2003)
Application Period Amount Applied For Description Amount Paid 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, 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
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9 10 11 12 13 14 15 16 17 18 19 20 21 22 5 The Application Periods for the Firm's first two "cover sheet" applications overlapped because the 23 Firm did not seek compensation for any of the Supplemental Services until after the court's April 11, 24 2002, "nunc pro tunc" order specifically authorizing that work.
6The relevant cover sheet application requested a total of $130,353.50 in fees, but the Firm and Debtor 25 later agreed that the amount would be reduced by $2,517.50.
26 27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JANUARY 1, 2003, TO JANUARY 31, 2003)
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 Eighth (9/1/02 to 85% of $127,836 in
$108,660.60 9/30/02)
$127,836.006 hourly fees Ninth (10/1/02 to
$426,408.75 85% of $426,408.75 in
$362,447.44 10/31/02) hourly fees Tenth (1 1/1/02 to
$183,805.19 85% of $170,783.25 in
$158,187.70 11/30/02) hourly fees and 100 % of
$13,021.94 in expenses requested by the Firm's tenth "cover sheet" application filed on December 20,2002 3
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DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JANUARY 1, 2003, TO JANUARY 31,2003)
The Firm has also received (1) $855,000 as the Firm's base fee for auditing and reporting on Debtor's consolidated financial statements and reviewing interim financial information for the 2001 fiscal year and (2) $1,040,000 of the base fee for auditing and reporting on Debtor's consolidated financial statements and reviewing interim financial information for the 2002 fiscal year. The July 10, 2001, order approving the Firm's employment, together with the November 5, 2002, order approving the 2002 base audit fee, authorized Debtor to pay these fees upon receipt 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 $4,956,417.89.
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
$19,175.40 15% of holdback of fees 9/30/02) requested (after agreed
$2,517.50 reduction-see footnote 6) by the Firm's 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 (1 1/1/02 to
$25,617.49 15% of holdback of fees 11/30/02) requested by the Firm's tenth "cover sheet" application filed on December 20, 2002 Eleventh (12/1/02 to
$91,393.03 Fees and expenses requested by 12/31/02) the Firm's eleventh "cover sheet" application filed on 4
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DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JANUARY 1, 2003, TO JANUARY 31, 2003)
January 24, 2003 Total Owed to the
$223,618.487 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 (i) 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.
- 7. The Firm has served a copy of this Application on each person shown on the Special Notice List for this case. (Only the parties referred to in paragraph 6 received Exhibits 1 and 2; the copies served on other parties did not include the exhibits.)
- 8. Pursuant to this Court's Second Amended Order Establishing Interim Fee Application and Expense Reimbursement Procedure, filed on March 18, 2002, the Debtor will be authorized to make the payment requested herein without further hearing or order unless an objection to this Application is filed with the court by the Debtor, the Committee, or the United States Trustee and served by the fifteenth day of the month following the service of this Application. If such an objection is filed, Debtor will be authorized to pay the amounts, if any, not subject to the objection. The Firm is informed and believes that this Application was mailed to all persons shown on the Special Notice List by first class mail, postage prepaid, on February 28, 2003.
- 9. The interim compensation and reimbursement sought by this Application is on account and not final. At the conclusion of this case, the Firm will seek fees and reimbursement of expenses incurred for the totality of its employment in this case. Any interim fees or reimbursement of expenses approved by the court and received by the Firm (along with any 7 The $223,618.48 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.
1 retainer paid to the Firm) will be credited against such final fees and expenses as may be allowed 2
by the court.
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- 10. The Firm represents and warrants that its billing practices comply with all Northern 4
District of California Bankruptcy Local Rules and Compensation Guidelines and the Guidelines 5
of the Office of the United States Trustee. Neither the Firm nor any member of the Firm has any 6
agreement or understanding of any kind or nature to divide, pay over or share any portion of the 7
fees or expenses awarded to the Finn with any other person or entity other than members and/or 8
associates of the Firm.
9 WHEREFORE, the Firm respectfully requests that Debtor pay compensation to the Firm 10 as requested herein pursuant to and in accordance with the terms of the Second Amended Order 11 Establishing Interim Fee Application and Expense Reimbursement Procedure.
12 Dated: Februaiy 28, 2003 1DELOITT & TOUCHE LLP 13 14 By___
15 Mark A. Edmunds, Partner Independent Auditor, Accountant, Tax 16 Advisor and Consultant to Debtor Pacific Gas and Electric Company 17 18 19 20 21 22 23 24 25 26 27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 6
28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JANUARY 1, 2003, TO JANUARY 31, 2003)
1 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 February 28, 2003, I 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 JANUARY 1, 2003, TO JANUARY 31, 2003) by (1) depositing true and 6
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 attached list 7
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 addresseess:
8 James L. Lopes Stephen Johnson 9
Howard, Rice, Nemerovski,Canady, Falk & Rabkin Office of the U.S. Trustee Three Embarcadero Center, 7 th 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: February 28, 2003.
17 18 Lydia Lee 19 20 21 22 8 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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