ML032410271
| ML032410271 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 08/21/2003 |
| From: | Phillips D 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 D M, 94-0742640 | |
| Download: ML032410271 (3) | |
Text
1 2
3 4
5 6
7 JAMES L. LOPES (No. 63678)
JANET A. NEXON (No. 104747)
BARBARA GORDON (No. 52424)
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 ISO -7 !5, wa; "5' 8
9 10 11 12 HOmRD 13 RI CeAN 14 EBUK eRAWN 15 16 17 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 Case Date:
September 10, 2003 Time:
9:30 a.m.
Place:
235 Pine Street, 22nd Floor San Francisco, California Judge: Hon. Dennis Montali 18 19 20 21 22 23 24 25 26 27 28 DECLARATION OF DAVID W. PHILLIPS IN SUPPORT OF DEBTOR'S MOTION FOR ORDER AUTHORIZING PAYMENT OF NON-ENERGY BILLING ADJUSTMENTS t@ \\~~)Y DECL. OF DAVID PHILLIPS ISO D'S MOT. FOR ORD. AUTHOR. PAYMENT OF NEB ADJUSTMENTS
AUG. 21.20'03 10:09AM P. G. &E.
NO. 445 P. 3 1
I, David W. Phillips, declare as follows:
2
- 1. I am employed as a Senior Program Manager in the New Business Department for 3
Pacific Gas and Electric Company ("PG&E" or the "Debtore), a position that I have held 4
since May, 2000.
Prior to this position I was an Industrial Power Engineer, with 5
responsibility for large commercial project management I make this declaration based upon 6
my personal knowledge of PG&E's operations, and upon my review of PG&E's records 7
concerning the matters stated herein. If called as a witness, I could and would testify 8
competently to the facts stated herein.
9
- 2.
I make this declaration in support of the PG&E's Motion for Order Authorizing 10 Payment of Certain Non-Energy Billing Adjustments.
11
- 3.
PG&E performs construction and engineering work for its customers that is 12 generally related to the overall provision of gas and electric service. For example, PG&E 13 may relocate a PG&E-owned gas meter for the convenience of the customer, convert mCNER"m 14 facilities for temporary services, or perform construction or engineering services related to 1
15 distribution or transmission projects. Because of its expertise and specialized equipment, 16 PG&E is often the first, if not the only, choice for this work.
17
- 4.
Typically the customer requests that PG&E perform certain work-PG&E designs 18 the job and provides a contract with a stated amount to be charged for the work. The 19 contract is signed and the money is collected in advance of performance of the construction 20 or engineering work The funds are deposited into the non-energy billing system ("NEBS").
21
- 5.
Certain such contracts were entered into prior to the filing of the Chapter 11 case 22 and, as a result thereof, funds were deposited into NEBS. After the filing and during the 23 Chapter 11 case, certain customers cancelled or modified the construction projects or the 24 engineering work resulting in a partial or total reduction of the contract cost. Since the work 25 had been paid for in fill pre-petition, the funds remain in NEBS. Prior to the Chapter 11 26 case, PG&E would in such situations make the appropriate adjustment to NEBS and pay the 27 fill or unused portion of the contract amount from NEB to the customer. The typical 28 cancellation or modification adjustment amount is estimated to be $10,000 or less.
DECL DAVID PHLLIPS ISO D'S MOT. FOR ORD. AUTHOR. IU;FU CERTAIN PROJECT DEPOSITS
AUG. 21. 2003 10: 10AM P. G.K&.
NO. 445 P. 4 1
- 6.
A similar situation exists under "Actual Cost Contracts" entered into prior to the 2
Chapter 11 case for services generally related to transmission projects. Again, the customer 3
contacted PG&E to perform construction or engineering or design work relating to the 4
building of higher voltage projects. PG&E and the customer entered into an Actual Cost 5
Contract. PG&E then designed the job, billed the customer and finds were collected and 6
deposited into NEBS. The terms of the Actual Cost Contracts provide for a reconciliation at 7
the time of completion of the project between the actual cost of the project and the billed and 8
collected amount Prior to the Chapter 11 case, in such situations, PG&E reconciled the 9
Actual Cost Contract amount with the actual project cost When the adjustment was a credit 10 balance, the amount was paid to the customer. Since the filing of the Chapter I I case, these 11 funds have been held in NEBS.
12
- 7.
PG&E currently holds approximately 164 outstanding pre-petition credit 13 adjustments relating to such cancellations or modifications, totaling approximately $2.25 14 million. Of the 164 credit adjustments, 131 credits are under $10,000. Since substantially 15 higher amounts are involved in transmission projects, the cancellation or modification of 16 transmission projects result in significantly higher credit adjustments averaging 17 approximately $28,000.
18
- 8.
PG&E also estimates that a small percentage of additional NEB credit 19 adjustments for Actual Cost Contracts or cancellations or modifications as described above 20 are likely to accrae in NEBS during the remaining pendency of the Chapter II case.
21 22 I declare under penalty of perjury under the laws of the United States of America that 23 the foregoing is true and correct. Executed this 7-/ day of August, 2003, at San Rafael, 24 California.
25
'-DAV1ID W. PHLILLIEPS 26 WD 071503/1-1419903/10S993SA1 27 28 DECL OF DAVTB PHUMPS ISO D'S MOT. FOR ORD. AUTHOR. REFUND CERTAIN PROJECT DEPOSIS