ML032471520
| ML032471520 | |
| Person / Time | |
|---|---|
| Site: | Diablo Canyon  |
| Issue date: | 08/28/2003 |
| 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: ML032471520 (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 6 -0
- ,- 15, 7
8 9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 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 (JULY 1, 2003, TO JULY 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 July 1, 2003, to July 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. Subsequent orders, dated April 11, 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 first proposed reorganization plan ("Supplemental Services"). By this Application, the Firm is applying to the Court for allowance and payment of(a) interim I
LoDELOrIrE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JULY 1, 2003, TO JULY 31,2003) 1 rr-,
601ju
1 compensation for services rendered during the Application Period, and (b) reimbursement of 2
expenses incurred during the Application Period.
3
- 2. The Firm (a) logged $91,571 (net of a voluntary discount of $18,161) in hourly fees 4
representing 312.9 hours1.041667e-4 days <br />0.0025 hours <br />1.488095e-5 weeks <br />3.4245e-6 months <br /> expended during the Application Period and () incurred $36.20 in 5
expenses ("Expenses") during the Application Period. These hourly fees and Expenses are 6
shown as follows:
7 I Period Fees I
Expenses Totals 81 7/1/03 to 7/31/03 1
$91,571.001 1
$36.20 I
$91,607.20 9
- 3. The Firm seeks payment of a total of $77,871.55 at this time.2 This is the sum of (i) 10 85% of the hourly fees for services rendered from July 1, 2003, through July 31, 2003 and (ii) 11 100 % of the Expenses incurred from July 1, 2003, through July 31, 2003.
12
- 4. For the nost-netition Deriod. the Firm has been paid to date as follows:
13 14 15 16 17 18 Application Period Amount Applied For Description Amount Paid First (4/7101 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 Finn's request in its June 25, 2002, reply to the United State's Trustee's objection to the Firm's First Interim Application 19 l In addition to fees for Supplemental Services, the amount requested includes $10,191.00 for time 20 expended in preparing fee applications and $72,644.00 (net of a voluntary discount of $18,161.00) for time expended perforning additional procedures related to non-recurring journal entries recorded by the 21 Debtor in June 2003.
Fees requested for Supplemental Services are $8,736.00. As a result of the June 19, 2003 settlement 22 agreement reached between the Debtor and the California Public Utilities Commission, the Debtor suspended the planned disaggregation of its historic businesses as proposed in the original plan of 23 reorganization. As such, the historic audits of the proposed successor companies were suspended. The fees requested subsequent to the settlement agreement relate to time expended in preparation and 24 archiving of the workpapers.
2 Payment of this amount would result in a fees "holdback" of $13,735.65.
25 3 The relevant cover sheet application requested a total of $62,573.90 in fees and costs, but the Firm 26 later reduced the amount requested to $62,333.90 due to a $240 error in the initial billing.
27 28 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 2
ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JULY 1, 2003, TO JULY 31,2003)
1 2
3 4
5 6
7 8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 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
$232,523.00
$232,523 in hourly fees
$232,523.00 4/30/02)
Fourth (5/1/02 to
$147,016.50
$147,016.50 in hourly
$147,016.50 5/31/02) fees Fifth (6/1/02 to
$115,006.00
$115,006 in hourly fees
$115,006.00 6/30/02)
Sixth (7/1/02 to
$128,834.50
$128,834.50 in hourly
$125,770.00 7/31/02) fees less $3,064.50, which was withdrawn from the Firm's request in its November 22, 2002 Memorandum re Supplemental Time Diaries, Etc.
Seventh (8/1/02 to
$156,475.00
$156,475 in hourly fees
$156,475.00 8/31/02)
Eighth (9/1/02 to
$127,836.006
$127,836 in hourly fees
$127,836.00 9/30/02)
Ninth (10/1/02 to
$426,408.75
$426,408.75 in hourly
$426,408.75 10/31/02) fees Tenth (111/02 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
$91,221.00 in hourly fees
$91,393.03 12/31/02) and $172.03 in expenses Twelfth (1/1/03 to
$344,214.80
$343,873.50 in hourly
$344,214.80 1/31/03) fees and $341.30 in expenses Thirteenth (2/1/03 to
$103,782.58
$103,442.00 in hourly
$103,782.58 2/28/03) fees and $340.58 in 23 (Footnote Continuedfrom Previous Page.)
4 Debtor initially paid the Firm $54,331 A5 on account of its first cover sheet application, but the $240 24 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.
25 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, 26 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 27 later agreed that the amount would be reduced by $2,517.50.
ii la so DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JULY 1, 2003, TO JULY 31,2003) 3
1 2
3 4
5 6
7 8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 expenses Fourteenth (3/1/03 to
$162,406.16
$141,60830 in hourly
$142,679.16 3/31/03) fees7 and $1070.66 in expenses Fifteenth (4/1/03 to
$309,688.32 85% of $305,721.50 in
$263,830.10 4/30/03) hourly fees and 100% of
$3,966.82 in expenses Sixteenth (5/1/03 to
$260,644.24 85% of $258,002.00 in
$221,943.94 5/31/03) hourly fees and 100% of
$2,642.24 in expenses 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 $6,348,486.95.
S. To date, the Firm is owed as follows (excluding amounts owed pursuant to this Application):
Application Period Amount Description Fourteenth (3/1/03 to
$19,727.00 Fees requested for time 3/31/03) expended between March 2002 and February 2003 for reviewing energy procurement contracts for potential derivatives and consulting about implementation of Statement of Financial Accounting Standard No. 143.
Fifteenth (4/1/03 to
$45,858.22 15% holdback of fees requested 4/30/03) by the Firm's fifteenth "cover 7 The relevant cover sheet application requested a total of $161,335.50 in hourly fees, but no payment has been received for $19,727.00 of the total, consisting of fees for reviewing energy procurement contracts for potential derivatives and consultations about implementation of Statement of Financial Accounting Standard No. 143.
DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JULY 1, 2003, TO JULY 31, 2003) 4
I I
I I
I I
I I
I 1
2 2
2 2
2 2
2 2
2 I
2 3
4 5
6 7
sheet" application filed on May 30 2003 Sixteenth (5/1/03 to
$38,700.30 15% holdback of fees requested 5/31/03) by the Firm's sixteenth "cover sheet" application filed on June 27,2003 Seventeenth (6/1/03 to
$123,909.00 Fees and expenses requested by 6/30/03) the Firm's seventeenth "cover sheet" application filed on July 31, 2003 Total Owed to the
$228,194.528 F i m to D a te_
- 6. Attached as Exhibits I and 2, respectively, to the copies of this Application served on 9
counsel for the Official Committee of Unsecured Creditors, counsel for Debtor, and the Office of L.
the United States Trustee are (i) a list of the names and hourly billing rates of each professional
.1 who performed services for which compensation is sought by this Application and (ii) detailed 12 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
.4 Office of the United States Trustee.
.5
- 7. The Firm has served a copy of this Application on each person shown on the Special 16 Notice List for this case. (Only the parties referred to in paragraph 6 received Exhibits 1 and 2; 17 the copies served on other parties did not include the exhibits.)
.8
- 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 10 to make the payment requested herein without firther hearing or order unless an objection to this cl 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 c4 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 August 28, 2003.
8 The $228,194.52 does not include any fees incurred but not yet paid for the Firm's 2003 audit of t7 Debtor's consolidated financial statements and review of interim financial information.
DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR 5
ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JULY 1, 2003, TO JULY 31,2003)
1
- 9. The interim compensation and reimbursement sou 2
account and not final. At the conclusion of this case, the Fin 3
of expenses incurred for the totality of its employment in this 4
reimbursement of expenses approved by the court and receive 5
retainer paid to the Firm) will be credited against such final f 6
by the court.
7
- 10. The Finn represents and warrants that to the best 8
practices comply with all Northern District of California Ban 9
Compensation Guidelines and the Guidelines of the Office o0 10 Firm has no agreement to share any portion of the fees or exi 11 engagement with any non-affiliated person or entity.
12 WHEREFORE, the Firm respectfully requests that I 13 as requested herein pursuant to and in accordance with the tei 14 Establishing Interim Fee Application and Expense Reimbursi 15 Dated: August 28, 2003 16
. DEI 17 By 18 Mark Independeni 19 Advisor and Cc and 20 21 22 23 24 25 26 27 28 DELOITE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES (JULY 1, 2003, TO JULY 31,2003) ght by this Application is on n will seek fees and reimbursement case. Any interim fees or ed by the Firm (along with any ees and expenses as may be allowed of its knowledge its billing kruptcy Local Rules and rthe United States Trustee. The penses awarded to the Firm for this
)ebtor pay compensation to the Firm rms of the Second Amended Order Dment Procedure.
,OITfE & TOUCHE LLP A. Edmunds, Partner t Auditor, Accountant, Tax insultant to Debtor Pacific Gas Electric Company 6
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 August 28,2003, served the foregoing DELOIITE & TOUCHIE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM 5
COMPENSATION AND REIMBURSEMENT OF EXPENSES (JULY 1, 2003, TO JULY 31, 2003) by (1) depositing true and correct copies thereof in the United States Mail at San 6
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 8
following three addressees9:
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: August 28, 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 committee of unsecured creditors included Exhibits 1 and 25 2; the copies served on other parties did not include the exhibits.
26 27 28