ML022120253

Deloitte & Touche Llps Cover Sheet Application for Allowance and Payment of Interim Compensation (for Services Rendered from June 1, 2002, to June 30, 2002)

ML022120253
Person / Time
Site:	Diablo Canyon
Issue date:	07/23/2002
From:	Adams J 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: ML022120253 (7)

Text

James T. Adams Deloitte & Touche LLP 50 Fremont Street San Francisco, CA 94121 Telephone: (415) 783-4000 Facsimile: (415) 783-4708 Independent Auditor, Accountant, Tax Advisor and Consultant to Debtor and Debtor in Possession Pacific Gas and Electric Company In re PACIFIC GAS AND E COMPANY, a Californ Debtor.

Federal I.D. No.94-074 UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION No. 01-30923 DM LECTRIC Chapter 11 Case ia Corporation, DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF 12640 INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JUNE 1, 2002, TO JUNE 30, 2002)

[No Hearing Scheduled]

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9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JUNE 1, 2002, TO JUNE 30, 2002) 4

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6 Deloitte & Touche LLP (the "Firm") submits this Cover Sheet Application for Allowance and Payment of Interim Compensation ("Application") for services provided during the period from June 1, 2002, to June 30, 2002 ("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. On April 11, 2002, the firm's employment to audit financial statements being prepared for four entities that would succeed to 1

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1 Debtor's business assets upon confirmation of Debtor's proposed reorganization plan 2

("Supplemental Services") was approved nunc pro tunc, effective October 1, 2001. By this 3

Application, the Firm is applying to the Court for allowance and payment of interim 4

compensation for services rendered during the Application Period.

2. The Firm billed $135,317 in hourly fees ("Hourly Fees"), representing 479.7 hours8.101852e-5 days <br />0.00194 hours <br />1.157407e-5 weeks <br />2.6635e-6 months <br /> 6

expended, during the Application Period.' These Hourly Fees are shown as follows:

Period Hourly Fees Total 6/1/02 to 6/30/02

$135,317

$135,3172 The Firm is not seeking any expense reimbursement for the Application Period.

3. The Firm seeks payment of a total of $115,019.45 at this time. This is 85 % of the Hourly Fees for services rendered from June 1, 2002, through June 30, 2002.3

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I During the Application Period, the Firm also provided services in connection with its audit of 20 Debtor's consolidated financial statements and review of interim financial information for the 2002 fiscal year ("Base Fee Audit"). (The July 10, 2001, order approving the Firm's employment authorized Debtor 21 to pay a "base fee" to Deloitte upon receipt of monthly invoices from the Firm for Base Fee Audit services.) No amounts have yet been billed or received for Base Fee Audit services for fiscal year 2002.

22 2 In addition to fees for Supplemental Services, the amount requested includes $7,227 for time expended in preparing fee applications and $20,311 for fees related to an audit of the Nuclear Facilities 23 Non-Qualified CPUC Decommissioning Master Trust, Nuclear Facilities Qualified CPUC 24 Decommissioning Master Trust and Nuclear Facilities Qualified FERC Decommissioning Master Trusts of Pacific Gas and Electric Company.

25 3 Payment of this amount would result in a "holdback" of $20,297.55.

26 27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION 2

FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JUNE 1, 28 2002, TO JUNE 30, 2002) 5 7

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4. For the post-petition period, the Firm has been paid to date as follows:

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10 11 12 13 14 The Firm has also received $855,000 as the Firm's base fee for auditing and 15 reporting on Debtor's consolidated financial statements and reviewing interim financial 16 information for the 2001 fiscal year ("Base Audit Fee"). Including the 2001 Base Audit 17 Fee, the total paid to the Firm to date is $2,628,758.21.

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5. To date, the Firm is owed as follows (excluding amounts owed pursuant to this 19 Application):

20 21 4 This amount is $240 less than the amount shown in the relevant application (Deloitte's first "cover 22 sheet" application). Four hours of services included in that application were erroneously billed at a rate that was $60 per hour too high. To remedy this mistake, Deloitte reduced the fees requested in the First 23 Interim Application for Compensation and Reimbursement of Expenses by Deloitte & Touche LLP

("First Interim Application"), filed on May 14, 2002, to $240 less than the amount requested for the 24 corresponding services in Deloitte's first "cover sheet" application.

5 The Application Periods for Deloitte's first two "cover sheet" applications overlapped because Deloitte did not seek compensation for any of the Supplemental Services until after the court's April 11, 16 2002, "nunc pro tunc" order specifically authorizing that work.

27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JUNE 1, 28 2002, TO JUNE 30, 2002)

Application Period Amount Applied For Description Amount Paid First (4/7/01 to

$62,333.90 90% (85% after July

$54,331.45 2/28/02)

31) of $62,503.504 in hourly fees and 100%

of $70.40 in expenses Second (10/1/01 to 1,643,315.50 85% of $1,643,315.50

$1,396,818.18 3/31/02)5 in hourly fees Third (4/1/02 to

$232,523 85% of $232,523 in

$197,644.55 4/30/02) hourly fees Fourth (5/1/02 to

$147,016.50 85% of $147,016.50

$124,964.03 5/31/02) in hourly fees 3

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6. Attached as Exhibits 1 and 2, respectively, to the copies of this Application served on 21 counsel for the Official Committee of Unsecured Creditors, counsel for Debtor, and the Office of 22 6 This figure is net of (a) the $240 downward adjustment explained in footnote 4 and (b) a $22,346.50 23 fee request that was withdrawn after an objection by the Office of the United States Trustee, as described in Deloitte & Touche LLP's Reply to United State's Trustee's Objection to First Interim Application for 24 Compensation and Reimbursement of Expenses, filed June 25, 2002.

7 This figure reflects a $4,500 reduction from the amount requested by Deloitte's second cover sheet 25 application because the court ruled, at the July 2, 2002, hearing on the First Interim Application, that "17 $4,500 of the fees requested for this period would be disallowed.

27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JUNE 1, 28 2002, TO JUNE 30, 2002) 4 Application Period Amount Description First (4/7/01 to

($14,344.05)6 10% (15% after July 31) 2/28/02) holdback of fees requested under the Firm's first "cover sheet" application Second (10/1/01 to

$241,997.327 15% holdback of fees requested 3/31/02) by the Firm's second "cover sheet" application, filed April 29, 2002 Third (4/1/02 to

$34,878.45 15% holdback of fees 4/30/02) requested by the Firm's third

" cover sheet" application filed May 29, 2002 Fourth (5/1/02 to

$22,052.47 15% holdback of fees requested 5/31/02) by the Firm's fourth "cover sheet" application filed June 27, 2002 Total Owed to the

$284,584.19 Firm to Date

1 the United States Trustee are (i) a list of the names and hourly billing rates of each professional 2

who performed services for which compensation is sought by this Application and (ii) detailed 3

time statements for the Application Period that comply with all Northern District of California 4

Bankruptcy Local Rules and Compensation Guidelines and the Guidelines of the Office of the 5

United States Trustee.

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7. The Firm has served a copy of this Application on each person shown on the Special 7

Notice List for this case. (Only the parties referred to in paragraph 6 received Exhibits 1 and 2; 8

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 10 and Expense Reimbursement Procedure, filed on March 18, 2002, the Debtor will be authorized 11 to make the payment requested herein without further hearing or order unless an objection to this 12 Application is filed with the court by the Debtor, the Committee, or the United States Trustee and 13 served by the fifteenth day of the month following the service of this Application. If such an 14 objection is filed, Debtor will be authorized to pay the amounts, if any, not subject to the 15 objection. The Firm is informed and believes that this Application was mailed to all persons 16 shown on the Special Notice List by first class mail, postage prepaid, on July 23, 2002.

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9. The interim compensation sought by this Application is on account and not final. At 18 the conclusion of this case, the Firm will seek fees and reimbursement of expenses incurred for 19 the totality of its employment in this case. Any interim fees or reimbursement of expenses 20 approved by the court and received by the Firm (along with any retainer paid to the Firm) will be 21 credited against such final fees and expenses as may be allowed by the court.

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10. The Firm represents and warrants that its billing practices comply with all Northern 23 District of California Bankruptcy Local Rules and Compensation Guidelines and the Guidelines 24 of the Office of the United States Trustee. Neither the Firm nor any member of the Firm has any 25 agreement or understanding of any kind or nature to divide, pay over or share any portion of the 26 27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATION 5

FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JUNE 1, 28 2002, TO JUNE 30, 2002)

fees or expenses awarded to the Firm with any other person or entity other than members and/or associates of the Firm.

WHEREFORE, the Firm respectfully requests that Debtor pay compensation to the Firm as requested herein pursuant to and in accordance with the terms of the Second Amended Order Establishing Interim Fee Application and Expense Reimbursement Procedure.

Dated: July 23, 2002 7

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10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 DELOITTE & TOUCHE LLP'S COVER SHEET APPLICATIOI FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JUNE 28 2002, TO JUNE 30, 2002)

DELOITFITE & TOUCHE LLP By

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,ý/ htmes T. Adams, Partner Independent Auditor, Accountant, Tax Advisor and Consultant to Debtor Pacific Gas and Electric Company N4 6

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1 PROOF OF SERVICE 2

I am over the age of 18, and I am employed at the offices of Deloitte & Touche LLP, located at 50 Fremont Street, San Francisco, California.

3 On July 23, 2002, I served the foregoing DELOITTE & TOUCHE LLP'S COVER 4

SHEET APPLICATION FOR ALLOWANCE AND PAYMENT OF INTERIM COMPENSATION (FOR SERVICES RENDERED FROM JUNE 1, 2002, TO JUNE 30, 5

2002) by (1) depositing true and correct copies thereof in the United States Mail at San Francisco, California, in sealed envelopes with first class postage thereon fully prepaid, 6

addressed to each party shown on the attached list and (2) by sending true and correct copies via United Parcel Service, for overnight delivery, with charges fully prepaid, to each of the following 7

three addressees 6:

8 James L. Lopes Stephen Johnson Howard, Rice, Nemerovski,Canady, Falk & Rabkin Office of the U.S. Trustee 9

Three Embarcadero Center, 7th Floor 250 Montgomery Street, Suite 1000 San Francisco, CA 94111 San Francisco, CA 94104-3401 10

[Counsel for Pacific Gas and Electric Company]

[United States Trustee]

11 Robert J. Moore Paul S. Aronzon 12 Milbank, Tweed, Hadley & McCloy LLP 601 South Figueroa Street 13 Los Angeles, CA 90017

[Counsel for Official Committee of Unsecured Creditors]

14 I declare under penalty of perjury under the laws of the State of California and the United 15 States of America that the foregoing is true and correct.

16 Dated: July 23, 2002.

17 18 Lydia Lee 19 6 Only the copies served on the Office of the United States Trustee, counsel for debtor Pacific Gas and Electric Company, and counsel for the official committee of unsecured creditors included Exhibits I and 2; the copies served on other parties did not include the exhibits.

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