2. Requirements for Awards of Compensation

The intervenor compensation program set forth in Pub. Util. Code §§ 1801-1812,¹ requires California jurisdictional utilities to pay the reasonable costs of an intervenor's participation if that party makes a substantial contribution to the Commission's proceedings. The statute provides that the utility may adjust its rates to collect the amount awarded from its ratepayers.

All of the following procedures and criteria must be satisfied for an intervenor to obtain a compensation award:

1. The intervenor must satisfy certain procedural requirements including the filing of a sufficient notice of intent (NOI) to claim compensation within 30 days of the prehearing conference (PHC), pursuant to Rule 17.1 of the Commission's Rules of Practice and Procedure (Rules), or at another appropriate time that we specify. (§ 1804(a).)

2. The intervenor must be a customer or a participant representing consumers, customers, or subscribers of a utility subject to our jurisdiction. (§ 1802(b).)

3. The intervenor must file and serve a request for a compensation award within 60 days of our final order or decision in a hearing or proceeding. (§ 1804(c).)

4. The intervenor must demonstrate "significant financial hardship." (§§ 1802(g) and 1804(b)(1).)

5. The intervenor's presentation must have made a "substantial contribution" to the proceeding, through the adoption, in whole or in part, of the intervenor's contention or recommendations by a Commission order or decision or as otherwise found by the Commission. (§§ 1802(i) and 1803(a).) An intervenor who has made a "substantial contribution" may also, in certain circumstances, receive a compensation award for fees and costs incurred in "obtaining judicial review." (§ 1802(a); Southern California Edison Co. v. PUC, 2004 Cal. App. LEXIS 568, affirming D.02-06-070 and D.03-04-034.)

6. The claimed fees and costs must be reasonable (§ 1801), necessary for and related to the substantial contribution (D.98-04-059), comparable to the market rates paid to others with comparable training and experience (§ 1806), and productive (D.98-04-059).

2.1. Preliminary Procedural Issues

Under § 1804(a)(1) and Rule 17.1(a)(1), a customer who intends to seek an award of intervenor compensation must file an NOI before certain dates.

In a proceeding in which a PHC is held, the intervenor must file and serve its NOI between the date the proceeding initiated until 30 days after the PHC is held. (Rule 17.1(a) (1).) The PHC in this matter was held on January 8, 2002. TURN timely filed its NOI on February 5, 2002. UCAN filed its NOI timely on August 8, 2005 in a subsequent prehearing conference held on July 22, 2005.

Section 1802(b)(1) defines a "customer" as: (A) a participant representing consumers, customers or subscribers of a utility; (B) a representative who has been authorized by a customer; or (C) a representative of a group or organization authorized pursuant to its articles of incorporation or bylaws to represent the interests of residential or small business customers. In this case, TURN asserted it is a customer as defined in § 1802(b)(1). In its NOI, TURN also asserted financial hardship.

On May 28, 2002, ALJ Walwyn ruled that TURN is a customer, pursuant to §1802(b)(1)(C) and meets the requirements for financial hardship, pursuant to §1804(a)(2)(B). On June 28, 2005, ALJ Long ruled that UCAN is a customer, pursuant to §1802(b)(1)(C) and meets the requirements for financial hardship, pursuant to §1804 (a)(2)(B). TURN/UCAN filed a joint request for compensation on November 7, 2006, within 60 days of D.06-09-021. No party opposed the request. In view of all of the above, we find that TURN/UCAN has satisfied all the procedural requirements necessary to make its request for compensation.

¹ All subsequent statutory references are to the Public Utilities Code unless otherwise indicated.