ML040160596

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Leprino Food Company'S Notice of Hearing and Motion for Determination of Ordinary Course Liability, or in the Alternative, Allowance and Payment of Pre-Confirmation Administrative Claim
ML040160596
Person / Time
Site: Diablo Canyon  Pacific Gas & Electric icon.png
Issue date: 01/09/2004
From: Dahl W
Dahl & Dahl, Leprino Foods Co
To:
Office of Nuclear Reactor Regulation, US Federal Judiciary, Bankruptcy Court, Northern District of California
References
01-30923 DM, 94-0742640
Download: ML040160596 (3)


Text

I 9, WalterR. Dahl, BarNo. 102186 Company, a Calionria corporation ("DebO) is an "Ordinafy Course Liability" pursuant to the CandyDahl.BarNo. 186031 2 DAsL &DAL 2 Confirmation Order uind Exhibit "A" entered in Debtor's cas on December 22, 2003 or in the ATnomiKYS AT LAW 3 2304 'NW Strect 3 alternative, for allowance of a pre-confirmation adminirative claim against Debtor.

Sacramento, CA 95816-5716

4 4 In support of he motion, Leprino represents as follows

Telephone: (916) 446-8800 S Telecopier. (916)446-1634 5 1. Debtor filed its petition under Chapter 11 of the Bankruptcy Code (ll U.S.C. §101 et seq.)

10 6 Attoreys for Leprino Foods Company 6 on April 6, 2001.

7 7 2. On or abo August 31, 2001, Leptino entered into an Electricity Sale and Purchase 8 50 `313 8 Agreement with Sempra Energy Solutions for Leprino's cheese manufacturing facilities in Lemoore, 9 UNITED STATES BAN5U1UPTCY COURT 9 California, which permitted Leprino to take advantage of direct access electrical utility service at such 10 NORTHERN DISTRICT OF CALIFORNIA 10 facility (-the Direct Acceas Agreement")

I1 SAN FRANCISCO DIVISION 11 3. DecisionNo. 02-03-055 isuedMarch2l,2002bytheCalifomniaPublicUtilities Commission 12 12 ("the PUC") provides that direct access agreements signed priorto September 20.2001 re enforceable.

13 In Re' Case No.: 01-30923 DM 13 4. To date, 9ebtor has refused to honor Leprino's rights under the Direct Access Agreement, 14 Pacific Gas and Electric Company, a Chapter I I 14 as more fully set forb in the June 4, 2003 letter of Thomas S. Knox, Leprino's state court counsel, to California corporation 15 Dale: Febmtary 9,2004 15 Debtor, a true and correct copy of which is attached as Exhibit "A".

TMN;940742640 Time: 1:30 p.m.

16 CtRm: 22 16 5. Absent 1ebtoe's Chapter 11 case and Banuptcy Code §362(a), Leprino would have Debtor(s). Judge: Dennis Montali  ;

17 Pl=c: 235 Pine Street 17 commenced an actioin aCifomliaSuperiorCourtagainatDebtorthe PUC, andpoiblyotherparties, San Francisco CA 94104 is Is secking injunctive reieftoprecludeinterferencewithperformanceofthe Direct Access Agreemen4 and 19 19 seeking monetary relief for the damages uffered by Leprino as a consequence of not being allowed to LEPRINO FOODWCOMPANY'S 20 obtain the benefits of the Direct Access Agreement.

20 NOTICE OF UEAIUNG AND MOTION FOR DETERMINATION OF ORDINARY COURSE LIABILITY, 21 6. It remains Lepnno's preference to initiate and prosecute such litigation, and Leprino believes 21 ORP IN THE ALTERNATIVE, ALLOWANCE AND PAYMENT OF PRElCONPIRlATION ADMINISTRATIVE CLAIM 22 that a California Superior Court is a more appropriate formm for adjudicating the rights of Debtor and 22 23 Please take notice that ahearingon the Motion for Determination of Ordinary Course Liability, 23 the various nondebtor parties. particulay as rerds the injunctve reliefiwsus  ;

24 Or, in the Alternative. Allowance and Payment of Pre-confirnation Administrative Claim filed by 24 7. Leprino asserta that its claims agaist Debtor relating to the Direct Access Agreement fall 25 Leprino Foods Company, a Colorado corporation ("Leptino") shall be heard before the Honorable 25 within the definitioa of "Ordinary Course Liability" contained in Debtor's Plan and are accordingly 26 Deniss Montali, BankruptcyJudge, in Courtroom 22, United States BankruptcyCourt, 235 Pine Street, 26 excluded from the dischare of Bankruptcy Code § 141(dXI), nd thus that Lepino ray now initiate
  • ~~~27 San Francisco, CA 94104 on February 9,2004 at 1:30 p.M.

27 and proecute the litigation referenced above.

28 28 8. In the alternative, Leprino is entitled to allowance and p of preconfirmation Bythis motion, Leprino seeks anorderdetennining that its claim against Pacific Gas and Electic

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administrative claim against Debtor. Lepdno seeks, as an administrative non-monctauy claim, a eecou'ea.

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  • ATTOeeJEYSMAW I R"i U. KaL 5r.

permanent injunction against Debtorprecluding interference with recognition ofand enforcementof the U-Low J. AOOhky (IN a, .

I n-aa Direct Access Agreement. In addition, Leprino seeks allowance and payment of an administrative Mor,whtepeI UrWwUM"t54U.WtI mnonetary claim for the damages suffered by Leprino as a consequence of not being allowed to obtain MW~x L 5-M PAMd"01s06MI . So" MM MaeSW.5u'R IAhbMA. CMKMuf the benefits of the Direct Access Agreement, an amount which is estimated through December10. 2003 atapproximatelySI,510,040. The amount ofthis monearyclaim will continue to incrase until Leprino June 4. 2a3 is afforded direct access under the Direct Access A, ement. In the event this court is unable or Mr. Calvin Yee I unwillingto gntLrino permanentijunctive relief. theamountofLeprino'sadministrativemonctary ESP Relations Corporate Account Manager Pacfic Gas &Elecric claim by reason ofbeing permanently precluded from direct access will be substantially greater, and P.O. Box 770000 Mail Code B 19C .

must be determined by this court afler eideniy hearings. San Francisco. Caiomia 9177

9. Lepno reserves tbe right to present additional evidence in support ofthis motion. particularly Re: Lps Fee Company's DirsdAcws Cea tr in the event its claims against Debtor are found not to be within the definition of 'Ordinary Course

Dear Mr. Yea:

Liability".

This office represats Lepnno Foods CompanY Mlpw"). Lepnno owns and operates WHEREFORE, Leprino prays: a cheee processing plat ted 351 Belle Haven Dnvc LnMoore, Calif*liM and crmmoay referred to as the "Lemoort Wes faility."

1. For an order determining Lepdino's claim against Debtor relating to the Direct Access I am witing Paific Gas & Electic ?&En) refises to honor an agreement Agreement ae "Ondinary Course Liability" or, in the ultenative; beraseen Lepro and Sem xa Energy Solutions (SeMp ) that would allow Lcpdno n operat
2. For an order allowing Leprino's claims t the Debtor relating to the Direct Access its pemoore West faclity on direct access service. PG&E's refisl to hor the sareem" Ls conrrary to the law and cmten reuA&tiotL Agrement as pre-confirmation administrative claims, with appropriate injunctive relief and monctary In the Electricity Sale and Purchse Agreement ('Areeent by ad between Lepiro relief according to prooP, and Serpra, Leprino agreed to puchae all of its electricity qufcaudiectly fiont Sn
3. For such other and ftrther relief as the court dems just. effective August 31, 2001. Ibis direct acs service AVe en included L4prino's Luoee West lkaility. While Lentoore Wee was under cnstruction LqID operated under fiur utility umeter which provided I)0% of its electricity requirmmntsb Meter No 93R773. 87M0 ,

Dateda6W~~4~f DAHL &DAHL ](20083 and X200U4. Each of these meers qualified for dired acces sarvice put to thu ATTORNEYS AT LAW Agreement.

As youIrow, t Calioia Public Utility CoMims ('CPUCe") in Dead" 023-055. suspended direct acawss aervtce inresponse to te eme cy elect& crisi in CalfOni

.WaterR. ah Assembly Bill IX and CPUC Decision 014060 oweve, in Decisiob 02. 55. the CPUC Attorneys for Leprino Foods Company ruled that existin ti di ac t h the CPUC refsed to allow now or additional accoun to direct access vc PG&E is rured to peoces dire accssrce agements relating to pee-epteber 20, 2001 direct access contracts. Or a rments. New or Addiona accounts that rquire i ll af additil aeter or require a new s service _ag ra rt we penmlited.

aclst t service or to replace or an now m 'A' I I EXyIBIT'A' 3

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S*aW283 12:53 1S155-107 OGWGaI28e 82:53 151655U1ql7a PAGE 84 it. C4LVi YOM ' wCaaviyao AuM 4, 2003  %'-S JuR04, 2003 Pap 2 pW3 Plea fee Aft to cal to dus &ny quonwu mmay hat. Thank you for your Oa Deembe 2.2002. Da Z w. the Wa R i Couoller t Leno w attention to this a-te. i yu trquesg that PG&E upgrads an anius mw and plus it an direct access srce at the Lmoof Wat facility. LxPrio povided PO&E poof of it elibility as a dir accss customer Las ccdance wth CPUC De-isi 02-03455. AU fiwr mte listed above wmre acitiv on Septemba 20. 2001. Thn of the fur l man w co solidated iato Met No.

X46043 on Apdl 21,2002. Wr. Zaiuow requested that she b metr, MeteNo. 93R773, be c bolide in Met No. X46043 and that M e No. X46043 be plaed al doct access sevice madiaely in acodance with the Agreement &ndth UC's? Decisu e Cc B0ad Olas In yor Jmary 2E.2003 ail reso to ML s December 2,2002 liner, you t3ected Leptio's pest and demned based on your inpradon of CPUC Dcison 02-03-055. tat Me No. X46043 was not eligible r dirctlacccs service. Specifically, you concluded that Mew No. X46043 wasa "W accoune Ti pmeibis not sWppoted by CPUC Decision 02-03.055. I 1The euls you cot fom CPUC Dcisi 023-0355. Section M. Number 6 regarding tde general sandstill pricple iscoect. However n the sn Deion, the Commison consaued the tre,adoputin an eei tht al Lepin to CO wilh direct s vice. The Commision saedA.

Rule should not ha consnued to preent, a Spmmber 20, 2001, the I~~~~~

itauallaon of me rs ma reedig equipmt Asnpcary to nitiatc dire p

accas evie (r eligible cusme orthe I ea t upgrade of e mes fOr exmn direct access cusomes."

(Section IL Rule 6 otDecislon 02-3455.)

Lepdo as an esting eligible directaccess cum requested that the Iour mee that provided 100% of the electrcty to Lemoo Wri be con ded into one mew that would provide 100% of the electricity to Lenooe WesL Lpno'soLUooe Wesn facty account was on the L of eligible accous provied so s CPUC aid PG&E Thaefore consolidation of the

&r mdst t Metw No. X46043 is mPly a replacenent qf eisi direct acc meters at an ei4ast dect acce" locaIum Wbethe PG&E chooe to claw& each mer as a s*parate accout o as a Usg account, the ret is te ame M4r No. X46403 must ha piaced on dirct ac sevice since it b maely a "replace>met ... of xisting meters fat an] existing dki access (cust eJ.'" Lepo has nm added ot rqird a "nw Acc as you sgest; itissmply upgrading and rplacin eis nm eter

  • 1 Acrdi.y, Lp o rquet that Mer No. 93RT73 be csolida mb Metr No.

X46403 ud that PG&E allow Lepen to operate Mer N X46403 on direct aeservice n ccordan wth its Agmeent and the CPUC Decidw I

If Pacific Gas ad Eletic fals to abide by the CPOCs dcision and allow Lepdmo, an eligie direct ASu1 csom operae the Lemoate West facilty an direct acces SerVA pWs to it contract with Semp. Lpino will be ft with o choice but to pursue all of au available ega remedies EXHIBIT ' EXHIBIT A'

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