4. The Reasonableness of Requested Compensation

TURN requests compensation in the amount of $649,134.95, as follows:

Attorney Fees-TURN Staff Counsel
Robert Finkelstein	201.75	hours	X	$280	=	$56,490.00
	429.75	hours	X	$320	=	$137,520.00
	41.25	hours	X	$160	=	$6,600.00
Michel P. Florio	124.75	hours	X	$350	=	$43,662.50
Matthew Freedman	104.25	hours	X	$190	=	$19,807.50
				Subtotal	=	$264,080.00

Attorney Fees-Outside Counsel
Michael Strumwasser	456.8	hours	X	$425	=	$194,140.00
Fredric Woocher	9.7	hours	X	$425	=	$4,122.50
Harrison Pollak	456.0	hours	X	$250	=	$114,000.00
Johanna Shargel	2.0	hours	X	$250	=	$500.00
Expenses						$10,818.97
				Subtotal	=	$323,581.47

Expert Witness Fees and Expenses
JBS ENERGY INC.
William Marcus	236.32	hours		X		$160	=	$37,811.20
Gayatri Schilberg	20.10	hours		X		$115	=	$2,311.50
Jeff Nahigian	45.25	hours		X		$100	=	$4,525.00
JBS Expenses								$482.92
					JBS Subtotal		=	$45,130.62

Other Costs
Photocopying expense						$13,148.28
Postage costs						$1,902.11
Fax charges						$18.40
Federal Express/Delivery costs						$39.52
Attorney travel						$67.50
Consultant fee4						$531.25
Phone costs						$292.61
Lexis charges						$343.19
				Subtotal	=	$16,342.86
TOTAL						$649,134.95

4.1 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 Section 1801.3, where the Legislature gave the Commission guidance on program administration. (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.

We did not attribute our adopted positions in D.01-03-081, D.01-03-082, D.01-04-005, and D.01-05-064 to specific parties, although we have discussed their various contributions throughout. Furthermore, we have considered the substantial contributions of TURN through its cross-examination, briefs, and other participation in this proceeding. TURN stated that as the principal author and proponent of the accounting changes adopted in D.01-03-082, it can claim primary credit for helping all consumers avoid being assigned billions of dollars in unintended cost recovery. TURN similarly points out that its arguments on the revenue allocation issues assisted the Commission in reducing by hundreds of millions of dollars the costs allocated to residential and small commercial customers. In a context of unprecedented proposals to increase rates, we believe that TURN's participation was productive and greatly assisted us in our overall decision-making, as well as with specific decisions on certain disputed issues. The results of these decisions provided significant savings to ratepayers.

While we did not adopt all the arguments presented by TURN, our deliberations were enhanced by TURN's arguments and analysis. Most importantly, we benefited from TURN's initiative in proposing the accounting changes, and TURN's pursuit of implementation of those changes. Although TURN's compensation request is considerable, the ratepayer savings on the issues advanced by TURN greatly exceed the amount of the request.

4.2 Hours Claimed

TURN documented its claimed hours through detailed records of the time spent by its attorneys, outside counsel, and outside experts in the different phases of this proceeding. The records indicate both the professional hours and the activities associated with the hours. The hourly breakdowns and allocation of hours reasonably support the claimed hours for TURN.

4.3 Hourly Rates

TURN's requested hourly rates and the approved hourly rates for its attorneys are set out below:

Attorney	2000		2001
	Requested	Approved	Requested	Approved
R. Finkelstein	280	280	320	310
M. Florio	3505	3156	350	350
M. Freedman	190	180	190	190
Strumwasser	425	315	425	350
F. Woocher	425	315	425	350
H. Pollak	250	180	250	190
J. Shargel	250	180	250	190

For their work in 2001, attorneys Finkelstein and Florio request an increase of 14% and 13%, respectively, from their approved hourly rates for 2000. The Commission has a practice of increasing hourly compensation on an annual basis in recognition of increased experience and other factors. The most common increase is $10/hour, see, e.g., D.01-09-045, but the Commission recently approved an increase of $20 hour, or about 10%, in D.01-11-054. We will authorize an increase for Finkelstein and Florio of 10%, with the amount rounded to the nearest $10. Consequently, Finkelstein's hourly rate for 2001 will be $310 ($280 x 1.1 = $308, rounded to $310) and Florio's rate will be $350, as requested ($315 x 1.1 = $346.50, rounded to $350).

Attorneys Woocher and Strumwasser have not previously appeared before this Commission. Their training and experience levels are comparable to Florio's (more than 20 years), so we compensate them at Florio's hourly rate. We note that Woocher and Strumwasser are in private practice and that TURN stated that their regular billing rate was substantially greater than the rate we allow. In evaluating the particular facts of this case, however, we conclude that Woocher's and Strumwasser's applicable training and experience do not justify an hourly rate in excess of Florio's.

Attorney Freedman is a new staff attorney at TURN. We previously approved a compensation rate of $170 for 1997 for a TURN attorney of comparable skill and experience. We will increase that amount by $10 for work in 2000, as well as another $10 for work in 2001.

Attorneys Pollack and Shargel have more extensive overall legal experience than Freedman, but their energy litigation experience is comparable to Freedman. We will, therefore, compensate them at the same level as Freedman.

TURN also requests compensation for its expert witnesses, William Marcus, Gayatri Schilberg, and Jeff Nahigian of JBS Energy, Inc. at rates of $160, $115, and $100, respectively. These hourly rates reflect modest increases from our previously approved rates for 1999, and will be approved.

As modified, TURN's overall request is:

Attorney Fees-TURN Staff Counsel
Robert Finkelstein	201.75	hours	X	$280	=	$56,490.00
	429.75	hours	X	$310	=	$133,222.50
	41.25	hours	X	$160	=	$6,600.00
Michel P. Florio	87.5	hours	X	$315	=	$27,562.50
	37.25	hours	X	$350	=	13,037.50
Matthew Freedman	104.25	hours	X	$190	=	$19,807.50
				Subtotal	=	$256,720.00

Attorney Fees-Outside Counsel
Michael Strumwasser	104.1	hours	X	$315	=	$32,791.50
	352.7	hours	X	$350	=	$123,445.00
Fredric Woocher	5.9	hours	X	$315	=	$1,858.50
	3.8	hours	X	$350	=	$1,330.00
Harrison Pollak	87.3	hours	X	$180	=	$15,714.00
	368.7	hours	X	$190	=	$70,053.00
Johanna Shargel	2.0	hours	X	$190	=	$380.00
Expenses						$10,818.97
				Subtotal	=	$256,390.97

Expert Witness Fees and Expenses
JBS ENERGY, INC.
William Marcus	236.32	hours		X		$160	=	$37,811.20
Gayatri Schilberg	20.10	hours		X		$115	=	$2,311.50
Jeff Nahigian	45.25	hours		X		$100	=	$4,525.00
JBS Expenses								$482.92
					JBS Subtotal		=	$45,130.62

Other Costs
Photocopying expense						$13,148.28
Postage costs						$1,902.11
Fax charges						$18.40
Federal Express/Delivery costs						$39.52
Attorney travel						$67.50
Consultant fee						$531.25
Phone costs						$292.61
Lexis charges						$343.19
				Subtotal	=	$16,342.86
TOTAL						$574,584.45

4.4 Other Costs

TURN requests $16,342.86 for other costs (e.g., photocopying, postage, fax, delivery fees, legal research). These costs have been itemized by date, amount, and activity. Based on the scope of TURN's work, documents needed, the number of phases of the proceeding, and the size of the service list (238), these costs appear reasonable.