ML031570312
| ML031570312 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 05/30/2003 |
| 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: ML031570312 (7) | |
Text
Mark A. Edmunds Deloitte & Touche LLP 50 Fremont Street San Francisco, CA 94121 Telephone: (415) 783-4000 Facsimile: (415) 7834708 Independent Auditor, Accountant, Tax Advisor and Consultant to Debtor and Debtor in Possession Pacific Gas and Electric Company UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA, SAN FRANCISCO DIVISION In re PACIFIC GAS AND ELECTRIC COMPANY, a California Corporation, Debtor.
Federal I.D. No. 94-0742640 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 (APRIL 1, 2003, TO APRIL 30, 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 April 1, 2003, to April 30, 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. Subsequent orders, dated April I, 2002 and February 10, 2003, approved 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"). By this Application, the Firm is applying to the Court for allowance and payment of (a) interim 2° DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (APRIL 1, 2003, TO APRIL 30, 2003) 1 2
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1 compensation for services rendered during the Application Period, and (b) reimbursement of 2
expenses incurred during the Application Period.
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- 2. The Firm (a) logged $305,721.50 in hourly fees representing 1425.1 hours1.157407e-5 days <br />2.777778e-4 hours <br />1.653439e-6 weeks <br />3.805e-7 months <br /> expended 4
during the Application Period and (b) incurred $3,966.82 in expenses ("Expenses") during the 5
Application Period. These hourly fees and Expenses are shown as follows:
6 7
Period.
Fees Expenses Totals 4/1/03 to 4/30/03
$305,721.501
$3,966.82
$309,688.32 8
The Firm seeks payment of a total of $263,830.10 at this time.2 This is the sum of (i) 9 85% of the hourly fees for services rendered from April 1, 2003, through April 30, 2003 and (ii) 10 100 % of the Expenses incurred from April 1, 2003, through April 30, 2003.
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- 4. For the post-petition period, the Firm has been paid to date as follows:
1 In addition to fees for Supplemental Services, the amount requested includes $19,640.00 for time 23 expended in preparing fee applications during the Application Period.
2 Payment of this amount would result in a fees "holdback" of $45,858.23.
24 3 The relevant cover sheet application requested a total of $62,573.90 in fees and costs, but the Firm 25 later reduced the amount requested to $62,333.90 due to a $240 error in the initial billing.
4 Debtor initially paid the Firm $54,331.45 on account of its first cover sheet application, but the $240 26 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 $39,987A0.
27 DELOITTIE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (APRIL 1, 2003, TO APRIL 30,2003)
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 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 I'
2
1 2
4 6
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10 11 12 13 14 15 16 17 18 19 20 21 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 Firn's request in its November 22, 2002 Memorandum re Supplemental Time
.__ _ _ Diaries, Etc.
Seventh (8/1/02 to
$156,475 in hourly fees
$156,475.00 8/31/02)
$156,475.00 Eighth (9/1/02 to
$127,836 in hourly fees
$127,836.00 9/30/02)
$127,836.006 Ninth (10/1/02 to
$426,408.75
$426,408.75 in hourly
$426,408.75 10/31/02) fees Tenth (1 1/1/02 to
$183,805.19
$170,783.25 in hourly
$183,805.19 11/30/02) fees and $13,021.94 in expenses Eleventh (12/1/02 to
$91,393.03 85% of $91,221.00 in
$77,709.88 12/31/02),
hourly fees and 100 % of
$172.03 in expenses Twelfth (1/1/03 to
$344,214.80 85% of $343,873.50 in
$292,633.78 1/31/03) hourly fees and 100% of
$341.30 in expenses Thirteenth (2/1/03 to
$103,782.58 85% of $103,442.00 in
$88,266.28 2/28/03) hourly fees and 100% of
$340.58 in expenses Fourteenth (3/1/03 to
$162,406.16 85% of $141,608.50 in
$121,437.897 3/31/03) hourly fees and 100% of
__ _____ _____ _____ $1070.66 in expenses I _ _ _ _ _ _ _ _
(Footnote Continued from Previous Page.)
22 23 5 The 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, 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.
7 The relevant cover sheet application requested a total of $161,335.50 in fees, but no payment has 26 been received related to $19,727.00 for time expended between March 2002 and February 2003 for the review of energy procurement contracts for potential derivatives and consultations about implementation 27 of Statement of Financial Accounting Standard No. 143.
IVQ (Footnote Continued on Next Page.)
-° DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (APRIL 1, 2003, TO APRIL 30, 2003) 3
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) $1,132,000 as 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 and 2002 Base Audit Fees, the total paid to the Firm to date is $5,760,691.17.
- 5. To date, the Firm is owed as follows (excluding amounts owed pursuant to this Application):
(Footnote Continuedfrom Previous Page.)
DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (APRIL 1, 2003, TO APRIL 30, 2003) 4 1
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10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28-Application Period Amount Description Eleventh (12/1/02 to
$13,683.15 15% holdback of fees requested 12/31/02) by the Firm's eleventh "cover sheet" application filed on January 24, 2003 Twelfth (1/1/03 to
$51,581.02 15% holdback of fees requested 1/31/03) by the Firm's twelfth "cover sheet" application filed on February 28, 2003 Thirteenth (2/1/03 to
$15,516.30 15% holdback of fees requested 2/28/03) by the Firm's thirteenth "cover sheet" application filed on March 27,2003 Fourteenth (3/1/03 to
$40,968.27 15% of the March, 2003 fees 3/31/03) related to the successor company audits, and 100% of the fees requested ($19,727.00) for time expended between March 2002 and February 2003 for consultations regarding the review of energy procurement contracts for potential derivatives and consultations regarding the implementation of Statement of Financial
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- 6. Attached as Exhibits 1 and 2, respectively, to the copies of this Application served on 6
counsel for the Official Committee of Unsecured Creditors, counsel for Debtor, and the Office of 7
the United States Trustee are (i) a list of the names and hourly billing rates of each professional 8
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 10 California Bankruptcy Local Rules and Compensation Guidelines and the Guidelines of the 11 Office of the United States Trustee.
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- 7. The Firm has served a copy of this Application on each person shown on the Special 13 Notice List for this case. (Only the parties referred to in paragraph 6 received Exhibits 1 and 2; 14 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 16 and Expense Reimbursement Procedure, filed on March 18, 2002, the Debtor will be authorized 17 to make the payment requested herein without further hearing or order unless an objection to this 18 Application is filed with the court by the Debtor, the Committee, or the United States Trustee 19 and served by the fifteenth day of the month following the service of this Application. If such an 20 objection is filed, Debtor will be authorized to pay the amounts, if any, not subject to the 21 objection. The Firm is informed and believes that this Application was mailed to all persons 22 shown on the Special Notice List by first class mail, postage prepaid, on May 30, 2003.
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- 9. The interim compensation and reimbursement sought by this Application is on 24 account and not final. At the conclusion of this case, the Firm will seek fees and reimbursement 25 of expenses incurred for the totality of its employment in this case. Any interim fees or 26 8 The $121,748.74 does not include any fees incurred but not yet paid for the Firm's 2003 audit of 27 Debtor's consolidated financial statements and review of interim financial inforrnation.
28 DELOITITE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 5
ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (APRIL 1, 2003, TO APRIL 30,2003)
Accounting Standard No. 143.
Amounts were requested in the Firm's fourteenth "cover sheet" application filed on April 30, 2003.
Total Owed to the
$121,748.748 Firm to Date
1 reimbursement of expenses approved by the court and received by the Firm (along with any 2
retainer paid to the Firm) will be credited against such final fees and expenses as may be allowed 3
by the court.
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- 10. The Firm represents and warrants that its billing practices comply with all Northern 5
District of California Bankruptcy Local Rules and Compensation Guidelines and the Guidelines 6
of the Office of the United States Trustee. Neither the Firm nor any member of the Firm has any 7
agreement or understanding of any kind or nature to divide, pay over or share any portion of the 8
fees or expenses awarded to the Firm with any other person or entity other than members and/or 9
associates of the Firm.
10 WHEREFORE, the Firrn respectfully requests that Debtor pay compensation to the Firm 11 as requested herein pursuant to and in accordance with the terms of the Second Amended Order 12 Establishing Interim Fee Application and Expense Reimbursement Procedure.
13 Dated: May 30, 2003 14 DELOIT
& TOUCHE LLP 15 By____________
16 Mark A. Edmunds, Partner Independent Auditor, Accountant, Tax 17 Advisor and Consultant to Debtor Pacific Gas 18 and Electric Company 19 20 21 22 23 24 25 26 27 28 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 6
ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (APRIL 1, 2003, TO APRIL 30, 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 May 30, 2003, I served the foregoing DELOITE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM 5
COMPENSATION AND REIMBURSEMENT OF EXPENSES (APRIL 1, 2003, TO APRIL 30, 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 addressees9:
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: May 30, 2003.
17 18 Signature 19 20
[Print Name]
21 22 23 9 Only the copies served on the Office of the United States Trustee, counsel for debtor Pacific Gas and 24 Electric Company, and counsel for the official conmittee of unsecured creditors included Exhibits 1 and 25 2; the copies served on other parties did not include the exhibits.
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