V. Experience Levels for Experts

The most troublesome current issue has been refining our determination of hourly rates for experts. The range of rates adopted for experts in D.05-11-031 was $110-$360/hour, with no differentiation for levels of experience. In light of comments, we have tempered the "peer group" proposal in the OIR; we deem that proposal unduly complex. Instead, effective with 2007 work, we adopt three experience levels for experts, conceptually similar to the experience levels and rate ranges we previously adopted for attorneys. The three levels for experts are: 0-6 years; 7-12 years; and 13-plus years.

We chose levels for experts on the basis of clusters we observed among representatives appearing in our proceedings; however, we note that experts with 13-plus years clearly predominate (i.e., 24 of the 35 experts identified in Attachment B of the OIR, or almost 70%, have 13-plus years experience). There is substantial overlap in the rate ranges we approve. The low end of the 13-plus year range ($150 for 2007) is equal to the low end for the 7-12 year level (similar to the situation for attorneys), and is lower than the high end of the range for experts with 0-6 years ($180). Thus, an expert with relatively few years of experience may still argue on the basis of, e.g., advanced degrees, honoraria, significant responsibility within the firm or in the proceeding, or other factors, for a rate commensurate with experts who may have more years of experience. In other words, qualifications besides experience will still be important.

The utilities generally do not oppose experts' rates based on years of experience. SCE further recommends that if experience-based rates are adopted, intervenors should be required to disclose the full credentials of their representatives to allow for a meaningful analysis of the nature of the work performed. The Joint Intervenors comment that experience levels should be adopted with a floor-ceiling structure for each range, and that a continuing analysis/comparison of utility data sets should be made.

We find that basing expert rates on levels of experience, similar to the levels established for attorneys, will better ensure that an expert's given rate is within the market rates paid to persons of comparable training and experience. However, in no event should the rate requested by an intervenor exceed the rate billed to that intervenor by any outside consultant it hires, even if the consultant's billed rate is below the floor for a given experience level. We also agree with SCE that intervenors must disclose the credentials of their representatives in order to justify the requested rates. The adopted rate ranges for experts are shown in the table in a later section of today's decision.