5. The Reasonableness of Requested Compensation

TURN requests $51,199.88 as follows:

Attorney Fees - TURN staff counsel
Matthew Freedman		85.25 hours x $200/hour			= $17,050.00
		8.25 hours x $100/hour5			825.00
Randy Wu		22.00 hours x $350/hour			7,700.00
Robert Finkelstein		7.75 hours x $310/hour			2,402.50
		5.5 hours x $155/hour			852.00
Michel Florio		3.25 hours x $350/hour			1,137.50
		Subtotal:			$29,967.50
Attorney Fees-Outside Counsel
Scott Hempling		21.75 hours x $350/hour			$7,612.50
Scott Rubin		24.25 hours x $330/hour			8,002.50
David Lapp		7.25 hours x $190/hour			1,377.50
		Subtotal			$16,992.50
Other Costs
Photocopying expense			$3,341.40
Postage costs			384.32
Phone charges			3.22
Lexis charges			510.87
	Subtotal			$4,289.31
	Total			$51,199.81

5.1 Overall Benefits of Participation

In D.98-04-059, the Commission adopted a requirement that a customer must demonstrate that its participation was "productive," as that term is used in § 1801.3, where the Legislature gave the Commission guidance on program administration. (See D.98-04-059, mimeo., at 31-33, and Finding of Fact 42). In that decision we discuss the requirement that participation must be productive in the sense that the costs of participation should bear a reasonable relationship to the benefits realized through such participation. Customers are directed to demonstrate productivity by assigning a reasonable dollar value to the benefits of their participation to ratepayers. This exercise assists us in determining the reasonableness of the request and in avoiding unproductive participation.

It is difficult to establish precise monetary benefits associated with TURN's participation in this proceeding. However, the potential financial consequences associated with the first priority condition, and the reaffirmation of Commission enforcement powers with respect to the holding companies are significant. These financial consequences may lead to a substantial return of capital from holding companies to the utility subsidiaries. As one means of measuring these financial consequences, TURN notes the amounts of money involved in related litigation. One measure is the litigation initiated by the California Attorney General seeking over $4 billion dollars in restitution for violations of the first priority condition by PG&E Corp. Also, a lawsuit filed by the City of San Francisco seeks the return of billions of dollars from PG&E Corp to the utility and its ratepayers. Although these are potential benefits rather than benefits realized, applying even a small probability of success to these amounts results in benefits greatly exceeding TURN's compensation request.

Furthermore, even in the absence of precisely defined financial benefits, we have previously recognized the qualitative benefits of intervenor participation where that participation assisted the Commission in developing the record on a matter of great public imporatance.⁶ In weighing TURN's substantial contribution to the issues in this proceeding, and the potential benefits for ratepayers, we find that TURN's participation in these two decisions was productive.

5.2 Hours Claimed

TURN documents its claimed hours through detailed daily records indicating the hours for its attorneys, the hours for outside legal counsel, and descriptions of the activities associated with all of these hours. The hours are also allocated to various issues in the proceeding. These hours and the associated activities reasonably support the claimed hours, including the time spent for preparing the compensation request.

5.3 Hourly Rates - TURN Staff Counsel

We will adopt rates of $310 per hour for Finkelstein, and $350 per hour for Florio. These are the same rates requested by TURN and adopted by us in D.02-06-070. TURN requests a rate of $200 per hour for Freedman, $20 per hour more than adopted in D.02-06-070. In its compensation request for that proceeding (Application 00-11-038), TURN indicated that while it would agree to a lesser rate on an interim basis, it would consider seeking an increased rate in a later proceeding. In this request, TURN has provided additional information on Freedman indicating an increase in his responsibilities and noting his additional experience. After considering this additional experience and responsibility, we will adopt a rate of $190 per hour for Freedman for 2001, a $10 increase over the $180 rate adopted in D.02-06-070.

TURN requests a rate of $350 per hour for Wu. In D.02-09-040 we adopted a 2001 rate of $350 per hour for Wu, and will adopt that rate herein.

5.4 Hourly Rates - Outside Counsel

TURN requests a rate of $350 per hour for Hempling, the same rate as for Florio. TURN submits that Hempling has worked almost as many years as Florio in energy related matters. Hempling has experience on a wide range of energy issues with numerous state regulatory commissions. He also practiced and provided testimony before the Federal Energy Regulatory Commission, the United States Senate and the House of Representatives. Particularly important for this proceeding is Hempling's experience with issues arising under the Public Utilities Holding Company Act. Considering his background, knowledge, and experience we adopt a rate of $350 per hour for his services.

TURN requests a rate of $330 per hour for Rubin, a rate mid-way between Florio and Finkelstein. Rubin's experience since 1983 has been entirely in utility regulation, and although he has more years of experience than Finkelstein, he has less than Florio. He has extensive experience in consumer matters, and he has produced expert witness testimony, and published articles on regulation and development of competition in regulated utilities. We agree with TURN that his background, knowledge and experience place him between Florio and Finkelstein, and therefore we will adopt a rate of $330 per hour for Rubin.

TURN requests a rate of $190 for Lapp. TURN notes this is the same rate TURN sought for Freedman's work in 2000. Lapp is a 1998 law graduate. He has worked as a law clerk for two years doing legal research, and then as an attorney for two years emphasizing electricity regulatory law and policy. Although his legal background, knowledge and experience compare favorably with Freedman, Freedman had many years of additional experience in energy matters prior to his work as an attorney. In recognition of this difference in backgrounds, we will adopt a rate of $180 per hour for Lapp.

5.5 Other Costs

TURN requests $4,239.81 in other costs (photocopying, postage, phone charges and Lexis charges). Our review of the amount of work performed by TURN, its interaction with outside counsel, the size of the service list,⁷ and the number of documents prepared in the proceeding leads us to conclude that these other requested costs are reasonable.