6. Reasonableness of Requested Compensation
After we have determined the scope of a customer's substantial contribution, we then look at whether the amount of the compensation request is reasonable.
6.1. NRDC' Requested Compensation
6.1.1. Reasonableness of NRDC's Requested Compensation
NRDC requests $41,452.95 for its participation in this proceeding, as follows:
Work on Proceeding | ||||
Attorney/Staff |
Year |
Hours |
Hourly Rate |
Total |
Audrey Chang |
2007 |
21.25 |
$150 |
$ 3,187.50 |
Eric Wanless |
2007 |
30.75 |
$125 |
$ 3,843.75 |
Ronnie Cohen |
2007 |
28.75 |
$150 |
$ 4,312.50 |
Clyde Murley |
2007 |
145.90 |
$195 |
$28,450.50 |
Subtotal: |
$39,794.25 | |||
Preparation of NOI and Compensation Request | ||||
Attorney/Staff |
Year |
Hours |
Hourly Rate |
Total |
Audrey Chang |
2007 |
7.00 |
$75.00 (50% of $150) |
$ 525.00 |
Clyde Murley |
2007 |
11.40 |
$97.50 (50% of $195) |
$ 1,111.50 |
Subtotal of Compensation (on NOI and Compensation Request): |
$ 1,636.50 | |||
Expense Request | ||||
Clyde Murley (Commute Expense/Travel Time excluded) |
2007 |
$ 22.20 | ||
Subtotal of Expense: |
$ 22.20 | |||
Total Requested Compensation |
$41,452.95 | |||
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.
We first assess whether the hours claimed for the customer's efforts that resulted in substantial contributions to Commission decision 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 an hourly and daily breakdown of the time its staff and consultant Murley spent relating to this proceeding, accompanied by a brief description of each activity, which are detailed in the following section. In general, the hourly breakdown reasonably supports the claim for total hours.
We next take into consideration whether the claimed fees are comparable to the market rates paid to advocates and experts having comparable training and experience and offering similar services.
NRDC seeks an hourly rate of $150 for 2007 work. In D.08-10-011, this rate was adopted for Chang's 2007 work and we utilize it here.
This new requested rate for Chang is consistent with D.07-01-009, as it falls at the lowest 2007 range adopted by D.07-01-009 for experts with 7-12 years of experience, and we adopt that requested rate here.
NRDC seeks an hourly rate of $125 for work performed by Wanless in this proceeding. We have not previously adopted an hourly rate for Wanless. Wanless has a Master's degree in Energy Engineering and a Bachelor's degree in Environmental Science, both from Stanford University. Wanless has three years of experience working on energy and environmental issues.
This new requested rate for Wanless is consistent with D.07-01-009, as it falls at the lowest 2007 range adopted by D.07-01-009 for experts with 0-6 years of experience, and we adopt that requested rate here.
NRDC seeks an hourly rate of $150 for Ronnie Cohen. We have not previously adopted an hourly rate for Cohen. Cohen has a Master's degree in Public Policy from UC Berkeley and a Bachelor's degree in Environmental Studies from Brown University. Cohen has over twelve years of experience working on water and environmental issues. She has served on the Steering Committee of the California Urban Water Conservation Council, and was appointed to the Landscape Task Force established by the state Legislature. She is the author of several reports on water efficiency, including Energy Down the Drain: The Hidden Cost of California's Water Supply, which has been credited for initiating the recent focus on the connection between water and energy consumption. Prior to joining NRDC in 1994, Cohen worked as a consultant for Barakat & Chamberlin, specializing in water efficiency and Integrated Resource Planning.
NRDC's request for a 2007 hourly rate of $150 for Cohen is consistent with D.07-01-009, as it falls at the lowest 2007 range adopted by D.07-01-009 for experts with 7-12 years of experience, and we adopt that requested rate here.
NRDC seeks to increase consultant Murley's hourly rate to $195 ($15 above his 2006 authorized rate). Murley's most recent awarded rate at the Commission is $180, in 2006.
Murley is an independent consultant with 20 years of professional experience in energy and environmental issues, including policy and technical experience and expertise in the areas of EE, renewable energy, demand response, integrated resource planning, energy economics, energy procurement, and environmental protection, and he has served as an expert witness in several of these areas and before the Commission on numerous proceedings.
NRDC's requested hourly rate of $195 for Murley's 2007 work related to D.07-12-050 is consistent with D.07-01-009,7 as it falls at the lowest 2007 range adopted by D.07-01-009 for experts with his experience, and we adopt that requested hourly rate of $195 here.
6.2. NRDC's Direct Expenses
NRDC seeks $22.20 for Murley's travel expense for his travel from his residence in East Bay to San Francisco to attend meetings and workshops related to this proceeding as itemized on their Attachment B. We have previously found that routine commuting to San Francisco is not appropriate for compensation. If an intervenor has extraordinary travel costs that are reasonable and justified, such as might be incurred to attend hearings in another area of the state or to bring in a consultant with special expertise from another part of the country, we will continue to compensate them.
6.3. TURN'S Requested Compensation
6.3.1. Reasonableness of TURN's Requested Compensation
TURN requests $76,349.76 for its participation in this proceeding, as follows:
Work on Proceeding | ||||
Attorney/Staff |
Year |
Hours |
Hourly Rate |
Total |
Haley Goodson |
2006 |
26.25 |
$195 |
$ 5,118.75 |
Haley Goodson |
2007 |
152.00 |
$210 |
$31,920.00 |
Cynthia K. Mitchell |
2006 |
74.00 |
$140 |
$10,360.00 |
Cynthia K. Mitchell |
2007 |
192.25 |
$140 |
$26,915.00 |
Subtotal: |
$74,313.75 | |||
Preparation of NOI and Compensation Request | ||||
Attorney/Expert |
Year |
Hours |
Hourly Rate |
Total |
Haley Goodson |
2007 |
2.50 |
$105 (50% of $210) |
$ 262.50 |
Haley Goodson |
2008 |
15.75 |
$105 (50% of $210) |
$ 1,653.75 |
Subtotal of Compensation (on NOI and Compensation Request): |
$ 1,916.25 | |||
Expense Request | ||||
Photocopying |
-- |
$ 97.20 | ||
Telephone Expense |
-- |
$ 22.56 | ||
Subtotal of Expense: |
$ 119.76 | |||
Total Requested Compensation |
$76,349.76 | |||
The issues we consider to determine reasonableness of TURN's request are discussed below.
We first assess whether the hours claimed for TURN's efforts that resulted in substantial contributions to Commission decision are reasonable by determining to what degree the hours and costs are related to the work performed and necessary for the substantial contribution.
TURN documented its claimed hours by presenting an hourly and daily breakdown of the time its staff attorney Haley Goodson and consultant Cynthia K. Mitchell spent on this consolidated proceeding, accompanied by a brief description of each activity. In general, the hourly breakdown reasonably illustrates and supports TURN's claim for total hours and sufficiently shows the details of TURN's participation.
We next take into consideration whether the claimed hourly rates by TURN are comparable to the market rates paid to advocates and experts having comparable training and experience and offering similar services.
Goodson served as TURN's attorney in this consolidated proceeding. Goodson also served as TURN's attorney in the related proceeding, R.06-04-010. TURN seeks an hourly rate of $195 for Goodson's work in 2006. The Commission approved this rate for Goodson's work in 2006 in D.07-12-026, issued in A.05-12-002 (PG&E's 2007 GRC). For Goodson's work in 2007, TURN requests an hourly rate of $210, the same rate the Commission approved for her 2007 work in D.07-12-026. TURN requests that the Commission apply Goodson's 2007 rate of $210 to her very limited work in 2008, in preparing this request for compensation (with the customary 50% reduction for compensation-related matters).
The Commission adopts TURN's requested hourly rates for Goodson as requested, and approves her 2006 hourly rate as $195, her 2007 hourly rate as $210, and her 2008 hourly rate as $210. TURN reserved its right to seek Commission approval of a higher rate for Goodson's 2008 work in other proceedings.
6.3.3.2. Cynthia K. Mitchell, Energy Economics, Inc.
TURN also relied on outside technical expert witness Mitchell of Energy Economics, Inc., in its contribution to the consolidated proceeding. Mitchell assisted TURN as needed throughout the course of this proceeding, as well as with TURN's work related to water-embedded energy savings in R.06-04-010 in 2006.
TURN seeks compensation for Mitchell's work in 2006 and 2007 at the hourly rate of $140. In D.08-10-012, issued in R.06-02-013, the Commission approved an hourly rate of $140 for Mitchell's 2007 work. The Commission adopts TURN's requested hourly rates for Mitchell's 2006 and 2007 work at the requested rate of $140.
6.4. TURN's Expenses Are Reasonable
The miscellaneous expenses of $119.76 listed in the summary presented above are reasonable in magnitude and were necessary for TURN's efforts in this case. They consist of basic photocopying expenses that relate to the preparation and distribution of TURN's pleadings, as well as telephone communication related to this consolidated proceeding. TURN's requested costs are reasonable.
7 D.07-01-009 further provided for a 2007 cost-of-living adjustment (COLA) and for intervenor representatives to receive up to two annual 5% "step" increases within each experience level. Applying one 5% step increase plus a 3% 2007 COLA to Murley's 2006 approved hourly rate of $180, together with rounding, yields a 2007 rate of $195.
