Federal bankruptcy judge Dennis Montali approved much of the nearly $475 million in claims submitted by the plethora of attorneys, consultants, and bankers involved in the Pacific Gas & Electric Chapter 11 case September 14. Professional fees and expenses totaled more than $279 million. PG&E Corp.'s tab as of September 30, 2003, was $128 million, and the underwriting fees related to PG&E's $6.7 billion bond issuance amounted to $43 million. UBS Warburg and Lehman Brothers together reaped a $43 million underwriting fee. The highest legal bill approved was a $37 million tab submitted by Howard Rice, PG&E's lead counsel. According to the U.S. Trustee's final report detailing the huge stack of bills up to April of this year, the total cost is estimated at between $450 million and $475 million. The actual amount of the bankruptcy bill will drop if the total figure is offset by the interest the utility earned on the "large cash reserves it accumulated during the bankruptcy case," the Trustee noted. This claims summary is the final one the Trustee will issue because the bankruptcy court did not retain jurisdiction over professional fees and expenses incurred after April 12, 2004, when PG&E emerged from Chapter 11. The fees for principal lawyers and financial consultants involved in nearly three years of litigation, which include hourly rates as high as $720, amounted to $110 million. Another $56 million was added to the legal bill by the 90 firms of special counsel, which include 12 out-of-state firms. In addition to the hourly fees, there is nearly $29 million in success fees," which is being given a closer look. Rothschild, PG&E's investment banker, is seeking $20 million. Saybrook Financial, the creditors committee investment banker, is asking for $7.4 million. Milbank Tweed, counsel for the Official Committee of Unsecured Creditors, is seeking $1.2 million. Milbank is seeking the extra million dollars on grounds it allegedly gave the utility an hourly discount on its legal fees "given the financial turmoil and regulatory crisis that threatened the Debtor's business in early 2001," the firm claimed in a September 7 filing. Milbank charged PG&E $595\/hour, a $130\/hour discount, but should get the markup because the utility is solvent and "no creditor will be affected by such payments," it argued. PG&E countered that Milbank agreed to cap its rates at $595\/hour. Montali said at this week's hearing that he would take the matter under submission. Montali will hear the dispute over success fees claimed by Rothschild and Saybrook on September 20. Not approved by the court was a $26 million claim by Celerity Information Groups, a litigation consulting firm, as well as $8.4 million from utility consultant Zia Information Analysis Group and $2.2 million by consultant Energy and Environment Economics. The judge will decide on the claims of the California Public Utilities Commission, which total $25 million, the city of Palo Alto's $1.9 million bill, and Dynegy's $1 million claim on November 11. The latter two are being challenged by PG&E. <b>PG&E Bankruptcy: Millions Invoiced<\/b> Following are the legal bills and expenses for various law firms involved in the PG&E case:<ul><li>Howard Rice, lead PG&E counsel: $37 million.<\/li> <li>Heller Ehrman, counsel for PG&E: $26 million.<\/li> <li>Paul Weiss, California Public Utilities Commission counsel: $20.5 million.<\/li> <li>Latham & Watkins, PG&E regulatory counsel: $29 million.<\/li> <li>Milbank Tweed, official creditors' committee counsel: $15.6 million.<\/li> <li>Cooley Goodward, PG&E counsel: $14 million.<\/li> <li>Legal counsel for the city of Palo Alto: $2 million.<\/li> <li>Counsel for Dynegy Power Marketing: $1 million.<\/li> <li>Legal counsel for the counties of Alameda, Fresno, San Luis Obispo, and Sonoma: $809,653.<\/li> <li>California Power Exchange: $516,912.<\/li><\/ul>Consultant and banker fees to PG&E and creditors committee:<ul><li>UBS Securities, bond underwriter and book runner for the utility: $30 million.<\/li> <li>Celerity Consulting, representing PG&E: $26 million.<\/li> <li>Rothschild Inc., PG&E investment banker and financial adviser: $25.5 million.<\/li> <li>FTI Consulting, accountant and financial adviser to the creditors' committee: $8 million.<\/li> <li>Saybrook Financial, creditors' committee consultant: $14 million.<\/li> <li>Deloitte & Touche, PG&E auditor and tax accountant: $8 million.<\/li><\/ul>Note: Numbers are according to the U.S. Trustee's report.