5. Reasonableness of Requested Compensation

TURN requests $81,696.74 for its participation in this proceeding, as follows:

Work on Proceeding
Attorney/Staff		Year	Hours	Hourly Rate	Total
Matthew Freedman		2005	10.25	$270	$2,768
Matthew Freedman		2006	228.75	$280	$64,050
Matthew Freedman		2007	31.25	$300	$9,375
Robert Finkelstein		2006	0.5	$405	$203
Michel P. Florio		2006	7	$485	$3,395
Subtotal:					$79,791
Preparation of NOI and Compensation Request
Attorney/Staff	Year		Hours	Hourly Rate	Total
Matthew Freedman	2006		0.75	$140	$105
Matthew Freedman	2007		11	$150	$1,650
Subtotal Hourly Compensation:					$1,755
Expenses					$151.74
Total Requested Compensation					$81,696.74

UCS requests $14,307.25 for its participation in this proceeding, as follows:

Work on Proceeding
Attorney/Staff		Year	Hours	Hourly Rate	Total
Alan Nogee		2006	0.40	$240	$96.00
John Galloway		2006	15.55	$125	$1,943.75
John Galloway		2007	8.20	$130	$1066.00
Cliff Chen		2006	8.20	$115	$943.005
Clyde Murley		2006	17.30	$180	$3,114.00
Clyde Murley		2007	18.50	$195	$3,607.50
Subtotal:					$10,770.25
Preparation of NOI and Compensation Request
Attorney/Staff	Year		Hours	Hourly Rate	Total
Cliff Chen	2007		3.50	$60.00	$210.00
Clyde Murley	2007		29.20	$97.50	$2,847.00
Subtotal Hourly Compensation:					$13,827.25
Expenses					$0
Total Requested Compensation					$13,827.25

In general, the components of this request must constitute reasonable fees and costs of the customer's preparation for and participation in a proceeding that resulted in a substantial contribution. The issues we consider to determine reasonableness are discussed below.

5.1. 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.

TURN and UCS each documented their claimed hours by presenting a daily breakdown of the hours of their attorneys and analysts, accompanied by a brief description of each activity.

TURN's hourly breakdown reasonably supports the claim for total hours. We noticed, however, that Matthew Freedman's timesheet includes an entry of February 6, 2005, which was almost a year prior to the commencement of this proceeding, and at the time when R.04-04-026, a proceeding-predecessor of the present rulemaking, was well under way. Unfortunately, TURN does not provide in its request any detail that would explain how that rather remote in time entry related specifically to this proceeding. We, therefore, disallow 2.25 hours of Freedman's time in 2005.

UCS has reasonably supported its compensation request with respect to the hours spent on substantive matters. The hours spent on the NOI and intervenor compensation request itself, however, appear to be out of proportion to the work on the substance of the proceeding. UCS spent almost 33 hours on compensation matters, for a proceeding in which it spent about 68 hours on substantive matters. It is not reasonable for an experienced intervenor such as UCS to spend approximately one-third of its time on compensation matters. We therefore reduce the compensation-related hours for which compensation will be awarded to 20 hours.

5.2. 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.

TURN seeks hourly rates for Freedman for work performed in 2005, 2006 and 2007 that we previously adopted in D.06-07-011, D.08-08-026 and D.07-10-002 respectively and we adopt them here. TURN seeks an hourly rate for Finkelstein for work performed in 2006 that has been previously adopted in D.06-10-018. TURN seeks an hourly rate for Florio for work performed in 2006 that has been previously adopted in D.06-11-032 and we adopt it here.

UCS seeks an hourly rate of $240 for work performed by Nogee in 2006. We previously approved an hourly rate for Nogee of $232 for work performed in 2006. UCS asserts that this rate was adopted prior to issuance of D.07-01-009, which permitted intervenors to seek a 3% increase in hourly rates for work performed in 2006. The requested rate ($240/hour for 2006) is consistent with the guidelines set forth in D.07-01-009, and is adopted here. UCS seeks an hourly rate of $260 for work performed by Nogee in 2007. However, UCS's request does not detail any work performed by Nogee in 2007. We decline to set a 2007 hourly rate for Nogee.

UCS seeks an hourly rate of $125 for work performed by Galloway in 2006. We previously approved this rate in D.07-06-032, and adopt it here. UCS seeks an hourly rate of $130 for Galloway for 2006, an increase of 3% above previously approved 2006 hourly rates. This rate is consistent with the guidelines set forth in D.07-01-009, and is adopted here.

UCS seeks an hourly rate of $115 for work performed by Chen in 2006. We previously approved this rate in D.07-06-032, and adopt it here. UCS seeks an hourly rate of $120 rate for Chen for 2007, an increase of 3% above previously approved 2006 rates. This rate is consistent with the guidelines set forth D.07-01-009, and is adopted here.

UCS requests an hourly rate of $180 for Murley for work performed in 2006. UCS argues that while we previously adopted a rate of $173 for work performed by Murley in 2006 in D.07-06-032, the previously adopted rates does not reflect the increase of 3% for 2006 work deemed reasonable in D.07-01-009. The requested hourly rate for 2006, $180, is consistent with D.07-01-009 and is adopted here.

UCS requests an hourly rate of $195 for Murley for work performed in 2007 to reflect an annual 3% increase and a 5% "step" increase. UCS argues that in addition to specifying 3% annual increases for hourly rates in 2006 and 2007, D.07-01-009 allows intervenor representatives up to two annual 5% "step" increases within each experience level. We agree with UCS that it is appropriate to grant Murley both the 3% annual increase and a 5% "step" increase, resulting in an hourly rate of $195 which we adopt for work performed by Murley in 2007.

5.3. Direct Expenses

The itemized direct expenses submitted by TURN include the following:

The cost breakdown included with the request shows the miscellaneous expenses to be commensurate with the work performed. We find these costs reasonable. UCS did not submit any expenses.

⁵ UCS made an arithmetic error in its request for compensation for analyst Chen's participation, and we correct it here. (Chen's 8.20 hours multiplied by his hourly rate of $115 yields $943 instead of $1,153.)