ML031260638
| ML031260638 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 04/30/2003 |
| 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: ML031260638 (8) | |
Text
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1 Mark A. Edmunds Deloitte & Touche LLP 2 50 Fremont Street San Francisco, CA 94121 3 Telephone: (415) 783-4000 Facsimile: (415) 7834708 4
Independent Auditor, Accountant, 5 Tax Advisor and Consultant to Debtor and Debtor in Possession 6 Pacific Gas and Electric Company 7
8 UNITED STATES BANKRUPTCY COURT 9 NORTHERN DISTRICT OF CALIFORNIA, SAN FRANCISCO DIVISION 10 In re Case No. 0 1-30923 DM Chapter 11 11 PACIFIC GAS AND ELECTRIC COMPANY, a California Corporation, DELOITTE & TOUCHE LLP'S COVER 12 SHEET APPLICATION FOR Debtor. ALLOWANCE AND PAYMENT OF 13 INTERIM COMPENSATION AND Federal I.D. No. 94-0742640 14 REIMBURSEMENT OF EXPENSES (MARCH 1, 2003, TO MARCH 31, 2003) 15 16 [No Hearing Scheduled]
17 Deloitte & Touche LLP (the "Firm") submits this Cover Sheet Application for Allowance 18 and Payment of Interim Compensation and Reimbursement of Expenses ("Application") for 19 March 1, 2003, to March 31, 2003 ("Application Period"). In support of the Application, the 20 Firm respectfully represents as follows:
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- 1. The Firm is Independent Auditor, Accountant, Tax Advisor, and Consultant to Debtor 22 Pacific Gas & Electric Company ("Debtor"). On July 10, 2001, the Firm's retention in this 23 capacity was approved nuncpro tunc, effective April 6, 2001. On April 11, 2002, the Firm's 24 employment to audit financial statements being prepared for four entities that would succeed to 25 Debtor's business assets upon confirmation of Debtor's proposed reorganization plan 26
("Supplemental Services") was approved nuncpro tunc, effective October 1, 20011.By this 27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (MARCH 1,2003, TO MARCH 31, 1W5 g!>po) 2003)
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, (b) interim compensation for 3 certain services provided from March 2002 through February 2003 but not billed in the Firm's 4 previous compensation applications, and (c) reimbursement of expenses incurred during the 5 Application Period.
6 2. The Firm (a) logged $141,608.50 in hourly fees representing 588.2 hours2.314815e-5 days <br />5.555556e-4 hours <br />3.306878e-6 weeks <br />7.61e-7 months <br /> expended 7 during the Application Period, (b) logged $19,727.00 in hourly fees (net of a voluntary discount 8 of $3,283.00), not requested in the Firm's previous applications, representing 68.5 hours5.787037e-5 days <br />0.00139 hours <br />8.267196e-6 weeks <br />1.9025e-6 months <br /> 9 expended between March 2002 and February 2003, and (c) incurred $1,070.66 in expenses 10 ("Expenses") during the Application Period. These hourly fees and Expenses are shown as 11 follows:
12 13 Period Fees Expenses Totals 14 3/1/03 to 3/31/03 $141,608.50 $1,070.66 $142,679.16 15 3/2002 to 2/2003 $19,727.00 0 $19,727.00 16 Totals for this $161,335.501 $1,070.66 $162,406.16 A pplication _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
17 2 The Firm seeks payment of a total of $138,205.84 at this time. This is the sum of (i) 18 85% of the hourly fees for services rendered from March 1, 2003, through March 31, 2003, (ii) 19 85 % of the hourly fees for services rendered between March 2002 and February 2003 but not 20 previously requested, and (ii) 100 % of the Expenses incurred from March 1, 2003, through 21 March 31, 2003.
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- 4. For the post-petition period, the Firm has been paid to date as follows:
23 1In addition to fees for Supplemental Services, the amount requested includes (a) $15,499.00 for time 24 expended in preparing fee applications during the Application Period and (b) $19,727.00 for time expended between March 2002 and February 2003 relating to the review of energy procurement contracts 25 for potential derivatives and consultations about implementation of Statement of Financial Accounting Standard No. 143.
26 2 Payment of this amount would result in a fees "holdback" of $24,200.33.
27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 2 28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (MARCH 1, 2003, TO MARCH 31, 2003)
1 2 Application Period Amount Applied For Description Amount Paid 3 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, 4 less $22,346.50, which was withdrawn from the 5 Firm's request in its June 25, 2002, reply to the 6 United State's Trustee's objection to the Firm's 7 First Interim Application Second (10/1/01 to $1,643,315.50 in hourly 8 3/31/02)5 1,643,315.50 fees, less $4,500 $1,638,815.50 disallowed by the court at 9 the July 2, 2002, hearing on the Firm's First 10 Interim Application 11 Third (4/1/02 to $232,523 in hourly fees 4/30/02) $232,523.00 $232,523.00 12 Fourth (5/1/02 to $147,016.50 in hourly $147,016.50 5/31/02) $147,016.50 fees 13 Fifth (6/1/02 to $115,006 in hourly fees $115,006.00 14 6/30/02) $115,006.00 Sixth (7/1/02 to $128,834.50 in hourly $125,770.00 15 $128,834.50 fees less $3,064.50, 7/31/02) which was withdrawn 16 from the Firm's request in its November 22, 2002 17 Memorandum re Supplemental Time 18 Diaries Supporting Second Interim 19 Application for Compensation by 20 Deloitte & Touche LLP 21 Seventh (8/1/02 to $156,475.00 8/31/02) $156,475.00 22 23 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.
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 tune" order specifically authorizing that work.
DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 3 28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (MARCH 1,2003, TO MARCH 31, 2003)
2 9/30t02) $127,836.005 $127,836 in hourly fees $127,836.00 Ninth (10/1/02 to $426,408.75 $426,408.75 in hourly $426,408.75 3 10/31/02) fees _________
4 Tenth (11/1/02 to $183,805.19 $170,783.25 in hourly $183,805.19 11/30/02) fees and 100 % of 5 $13,021.94 in expenses requested by the Firm's 6 tenth "cover sheet" application filed on 7 December 20, 2002 Eleventh (12/1/02 to $91,393.03 85% of $91,221.00 in $77,709.88 8 12/31/02) hourly fees and 100 % of
$172.03 in expenses 9 requested by the Firm's eleventh "cover sheet" 10 application filed on
_ _ _ _ January 24, 2003 Twelfth (1/1/03 to $344,214.80 85% of $343,873.50 in $292,633.78 12 1/31/03) hourly fees and 100% of
$341.30 in expenses 13 requested by the Firm's twelfth "cover sheet" 14 application filed on February 28, 2003 15 Thirteenth (2/1/03 to $103,782.58 85% of $103,442.00 in $88,266:28 16 2/28/03) hourly fees and 100% of
$340.58 in expenses requested by the Firm's 17 thirteenth "cover sheet" 18 application filed on 18_ March 27, 2003 19 The Firm has also received (1) $855,000 as the Firm's base fee for auditing and reporting 20 on Debtor's consolidated financial statements and reviewing interim financial information for the 21 2001 fiscal year and (2) $1,132,000 as the base fee for auditing and reporting on Debtor's 22 consolidated financial statements and reviewing interim financial information for the 2002 fiscal 23 year. (The July 10, 2001, order approving the Firm's employment, together with the November 24 5, 2002, order approving the 2002 base audit fee, authorized Debtor to pay these fees upon 25 6 The relevant cover sheet application requested a total of $130,353.50 in fees, but the Firm and Debtor 26 later agreed that the amount would be reduced by $2,517.50.
27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 4 28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (MARCH 1, 2003, TO MARCH 31, 2003)
1 receipt of invoices from the Firm.) Including the 2001 Base Audit Fee and the paid portion of 2 the 2002 Base Audit Fee, the total paid to the Firm to date is $5,639,253.28.
3 5. To date, the Firm is owed as follows (excluding amounts owed pursuant to this 4 Application):
5 6 Application Period Amount Description 7 Eleventh (12/1/02 to $13,683.15 15% holdback of fees and 12/31/02) expenses requested by the 8 Firm's eleventh "cover sheet" application filed on January 24, 9 2003 Twelfth (1/1/03 to $51,581.02 15% holdback of fees and 10 1/31/03) expenses requested by the Firm's twelfth "cover sheet" 11 application filed on February 28,2003 12 Thirteenth (2/1/03 to $15,516.30 15% holdback of fees and 13 2/28/03) expenses requested by the Firm's thirteenth "cover sheet" 14 application filed on March 27, 2003 15 $80,780.477 Total Owed to the Firm to Date 16
- 6. Attached as Exhibits 1 and 2, respectively, to the copies of this Application served on 17 counsel for the Official Committee of Unsecured Creditors, counsel for Debtor, and the Office of 18 the United States Trustee are (i) a list of the names and hourly billing rates of each professional 19 who performed services for which compensation is sought by this Application and (ii) detailed 20 time and expense statements for the Application Period that comply with all Northern District of 21 California Bankruptcy Local Rules and Compensation Guidelines and the Guidelines of the 22 Office of the United States Trustee.
23 24 7 The $80,780.47 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.
25 26 27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 5 28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (MARCH 1,2003, TO MARCH 31, 2003)
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 paragraph 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 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 April 30, 2003.
12 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.
18 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 Firm 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 DELOIl-E & TOUCHE LLP'S COVER SHEET APPLICATION FOR 6 28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (MARCH 1,2003, TO MARCH 31, 2003)
1 Dated: April 30,2003 DELOITJlE & TOUCHE LLP 2
3 4
By 5 Mark A. Edmunds, Partner 6 Independent Auditor, Accountant, Tax Advisor and Consultant to Debtor Pacific Gas 7 and Electric Company 8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 7 28 ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (MARCH 1, 2003, TO MARCH 31, 2003)
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 April 30,2003, I served the foregoing DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM 5 COMPENSATION AND REIMBURSEMENT OF EXPENSES (MARCH 1, 2003, TO MARCH 31, 2003) by (1) depositing true and correct copies thereof in the United States Mail at 6 San Francisco, California, in sealed envelopes with first class postage thereon fully prepaid, addressed to each party shown on the attached list and (2) by sending true and correct copies via 7 United Parcel Service, for overnight delivery, with charges fully prepaid, to each of the following three addressees 8 :
8 James L. Lopes Stephen Johnson 9 Howard, Rice, Nemerovski,Canady, Falk & Rabkin Office of the U.S. Trustee Three Embarcadero Center, 7th Floor 250 Montgomery Street, Suite 1000 10 San Francisco, CA 94111 San Francisco, CA 94104-3401 11 [Counsel for Pacific Gas and Electric Company] [United States Trustee]
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: April 30, 2003.
17 18 Karl Contreras 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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