4. Reasonableness of Requested Compensation

NRDC requests $20,859.52 for its participation in this proceeding. $9,952.02 is for work in the CEC's 2005 IEPR process, and the remaining $10,907.50 is for work in R.06-02-013 contributing to D.07-012-052. The cost breakdown is as follows:

Work on 2005 IEPR Summary
Attorney/Staff		Year	Hours	Hourly Rate	Total
Audrey Chang		2005	53	$110.00	$5,830.00
Devra Wang		2004	8	$100	$800.00
Devra Wang		2005	21.5	$120.00	$2,580.00
Subtotal:					$9,210.00
Preparation of NOI and Compensation Request
Attorney/Staff	Year		Hours	Hourly Rate	Total
Audrey Chang	2005		7	$55.00	$385.00
Subtotal Hourly Compensation:					$385.00
Expenses					$357.02
Total Requested Compensation					$9,952.02
Work on R.06-02-013 Contributing to D.07-12-052
Attorney/Staff		Year	Hours	Hourly Rate	Total
Audrey Chang		2006	16.5	$115.00	$1,897.50
Audrey Chang		2007	46.5	$150.00	$6,975.00
Devra Wang		2007	8.5	$160.00	$1,360.00
Subtotal:					$10,232.50
Preparation of NOI and Compensation Request
Attorney/Staff	Year		Hours	Hourly Rate	Total
Audrey Chang	2008		9	$75	$675
Subtotal Hourly Compensation:					$675
Expenses					$0
Total Requested Compensation					$10,907.50

4.1. Hours and Costs Related to and
Necessary for Substantial Contribution

We first assess whether the hours claimed for the customer's efforts that resulted in substantial contributions to Commission decisions are reasonable by determining to what degree the hours and costs are related to the work performed and necessary for the substantial contribution.

NRDC documented its claimed hours by presenting detailed timesheets showing the hours of its attorneys, accompanied by a brief description of each activity. The timesheets reasonably support the claim for total hours.

4.2. Intervenor Hourly Rates

We next take into consideration whether the claimed fees and costs are comparable to the market rates paid to experts and advocates having comparable training and experience and offering similar services.

NRDC seeks an hourly rate of $115 for Audrey Chang, for work performed in 2006. We had previously approved an hourly rate of $110 for Chang in both 2005 and 2006 in D.07-04-008, but NRDC notes that this rate did not reflect the 3% cost of living adjustment adopted by D.07-01-009. NRDC also notes that, even with the additional 4.5% requested by NRDC, Chang's hourly rate would still be at the low end of the 2006 adopted range for experts. We concur with NRDC's analysis and find that $115 per hour is a reasonable increase and adopt the proposed hourly rate of $115 for Chang's work in 2006.

NRDC also seeks an hourly rate of $150 for Chang's work in 2007. This is a substantial increase over the requested 2006 rate, but NRDC argues that this is consistent with D.07-01-009 in that it falls at the lowest end of the 2007 range for experts with 7-12 years of experience. NRDC also explains that it is in the process of adjusting its rates to be consistent with D.07-01-009, and that it has historically requested much more modest hourly rates for experts than those awarded to other intervenors. Furthermore, since Chang began working with NRDC, she has increased in both skills and experience, and this improvement has been recognized internally by two promotions since she joined NRDC. Therefore, NRDC considers the increased rate reasonable. While we are hesitant to approve of such large annual increases, we cannot disagree with NRDC's assessment of the value of Chang's expertise. Moreover, the requested rate is within the range we have previously approved for experts with similar qualifications and of similar talent. We, therefore, approve of Chang's requested hourly rate of $150 for work performed in 2007.

NRDC further seeks an hourly rate of $100 per hour for Devra Wang, for work performed in 2004, and an hourly rate of $120 per hour for work performed in 2005. We had previously approved these rates in D.05-06-027¹² and D.07-04-008, and adopt them herein.

For work performed in 2007 by Wang, NRDC requests that the Commission adopt a rate of $160 per hour. In support of the higher rate, NRDC notes that, from 2002 to 2004, the Commission awarded Wang a rate of only $100 per hour, which fell below the $110 lower limit of expert rates adopted for D.05-11-031. Moreover, since 2002 Wang has increased in skills and experience. Like Chang, she has been promoted twice during this period in recognition of her increased abilities. Wang currently has eight years of experience working on energy and environmental policy, and the requested $160 per hour rate is consistent with the Commission's approved rate for experts with 7 to 12 years of experience.¹³ We approve of the requested hourly rate of $160 for work performed in 2007.

4.3. Direct Expenses

The itemized direct expenses submitted by NRDC including the following, relating to their participation in the 2005 CEC IEPR Process:

The cost breakdown included with the request shows the miscellaneous expenses to be commensurate with the work performed. We find these costs reasonable.

¹² Devra Wang is referred to in that decision by her earlier name, Devra Bachrach.

¹³ D.07-01-009.