12. Assignment of Proceeding
This proceeding is assigned to Commissioner Michael R. Peevey and ALJ Steven Kotz.
1. The purpose of this rulemaking is to develop a process for determining the hourly rates to be used in calculating intervenor compensation awards for work performed in 2005.
2. It is necessary to develop a process for determining hourly rates for intervenors for 2006 and beyond. This process is expected to evolve and may differ from the process used for today's decision.
3. The computation of compensation and hourly rates paid to intervenors takes into account the market rates paid to others of comparable training and experience offering similar services.
4. To determine market rates, it is necessary to collect data from the utilities and the intervenors relating to hourly rates paid for comparable services.
5. The parties developed a reasonable schedule and reporting format for filing data sets of hourly rates, and reviewed alternative proposals for collecting data.
6. Verizon presented an alternative proposal to the data collection process that will not be used for 2005, but may be revisited for 2006 if Verizon wishes to renew its proposal.
7. The Commission's own costs of representation are relevant under the meaning of § 1806.
8. The Executive Director reported that the Commission has not paid rates exceeding those paid by the utilities.
9. The data show a high concentration of representatives of the intervenors and the utilities (outside and in-house) appearing in Commission proceedings at the higher levels of experience.
10. The hourly rates currently authorized for intervenors for work performed in 2003 and 2004 are fully within the range of rates paid by utilities to their outside representatives, for both attorneys and experts, with similar training and at all levels of experience.
11. The hourly rates currently authorized for intervenors for work performed in 2003 and 2004 is slightly higher than the rates utilities pay their in-house representatives with similar training and experience.
12. The currently authorized 2003 and 2004 intervenor rates are reasonable and do not exceed the "comparable market rate" within the meaning of § 1806.
13. The last authorized increase in hourly rates for some intervenors was prior to 2004.
14. Some intervenors have historically sought rates that appear to be in the low end of the range of authorized rates for their peers.
15. Cost-of-living data readily available to the public from several federal agencies shows the general rate of inflation for 2004 to be 2.7%.
16. On August 23, 2005 Greenlining filed a NOI for intervenor compensation in this proceeding, and was ruled ineligible by the Assigned Commissioner on August 29, 2005.
1. Increases in hourly rates for work performed by intervenors in 2005 should not be authorized above rates previously authorized for 2004, except as discussed in the foregoing opinion.
2. For intervenors new to our proceedings for work performed in 2004 or 2005, authorized hourly rates should be within the same range of rates previously authorized for 2004 for other intervenors, for the same type of work and level of experience.
3. By April 30, 2006, and annually thereafter, or until further order, the state's six largest investor-owned utilities should file data sets, as described herein, on the hourly rates paid to outside and in-house representatives participating in our proceedings in the two preceding years.
4. Intervenors requesting an escalation of rates for work performed in 2006 and thereafter should include sufficient justification in the request for compensation, and be guided by the principles contained in today's decision.
5. The Assigned Commissioner's Ruling in this proceeding, dated August 29, 2005, denying intervenor status to Greenlining should be affirmed.
6. Today's decision should be made effective immediately.
IT IS ORDERED that:
1. No increases in hourly rates paid to intervenors for work performed in our proceedings in 2005 will be authorized above those rates previously authorized, except as described in today's decision.
2. For intervenors new to our proceedings for work performed in 2004 or 2005, hourly rates shall be within the same range of rates as those previously authorized for other intervenors for 2004, and as shown in the tables herein.
3. By April 30, 2006, and annually thereafter, Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas and Electric Company, Southern California Gas Company, SBC California, and Verizon California Inc. shall serve data sets, as described herein, on the hourly rates they paid to attorney and expert representatives, both in-house and outside, for participation in our proceedings in the two preceding years.
4. The Chief Administrative Law Judge, in consultation with the President of the Commission, may take reasonable steps to coordinate and facilitate the hourly rate updating process for work performed in 2006 and beyond. Such steps may include, but are not limited to, holding workshops, adjusting the timing or contents of the utility data sets, providing for comment on the data sets, and considering refinements to the updating process.
5. Intervenors requesting increases in previously authorized rates, for work performed in 2006 and thereafter, shall be guided by the principles in today's decision.
6. The Assigned Commissioner's Ruling in this proceeding, dated August 29, 2005, is affirmed.
7. Rulemaking 04-10-010 is closed.
This order is effective today.
Dated November 18, 2005, at San Francisco, California.
MICHAEL R. PEEVEY
President
GEOFFREY F. BROWN
SUSAN P. KENNEDY
JOHN A. BOHN
Commissioners
Commissioner Grueneich recused herself
from this agenda item and was not part
of the quorum in its consideration.
ATTACHMENT A
Intervenors' Proposed Rates for Attorneys: 2005
The table below summarizes the rates for attorneys proposed by the intervenors for work performed in 2005. The first column shows 2004 rates paid by utilities and authorized for intervenors, the second column 2005 rates proposed by intervenors, and the third column the average percent increase (measured from the top of the rate range) from 2004. For 2005, the intervenors are proposing hourly rate increases for attorneys ranging from 1-40% above rates authorized for 2004, with a median increase of 10%. The number of data points for the intervenors is shown in parenthesis for each level of experience.
Years Experience |
2004 |
2005 (Requested) |
% Increase |
13+years |
|||
Utilities (outside) |
$205-$585 |
N/A |
N/A |
Intervenors |
$250-$490 (11) |
$265-$530 (13) |
8% |
|
|||
8-12 years |
|||
Utilities (outside) |
$190-$535 |
N/A |
N/A |
Intervenors |
$270-$325 (5) |
$280-$415 (7) |
28% |
|
|||
5-7 years |
|||
Utilities (outside) |
$250-$400 |
N/A |
N/A |
Intervenors |
$250-$270 (1) |
$320-$335 (2) |
18% |
|
|||
3-4 years |
|||
Utilities (outside) |
$185-$400 |
N/A |
N/A |
Intervenors |
N/A |
$220-$230 (2) |
N/A |
0-2 years |
|||
Utilities - outside |
$130-$400 |
N/A |
N/A |
Intervenors |
$190 (1) |
$200 (2) |
5% |
Intervenors' Proposed Rates for Experts: 2005
The table below identifies the range of rates requested by intervenors for 2005 for experts. The number of data points for intervenors is shown in parenthesis in the table. For 2005, the intervenors are proposing hourly rate increases for experts ranging from 8-65% above rates authorized for 2004, with a median increase of 12%. The utilities did not file hourly rate data for 2005 for experts.
2004 Range |
2005 Range (Requested) | |
Utilities* |
||
Outside |
$90-$475 |
|
In-House |
$60-$420 |
|
Intervenors |
$110-$360 (28) |
$140-$405 (43) |
* For utilities, excludes rates paid to executive level experts (company presidents,
directors and officers).
(END OF ATTACHMENT A)
