7. Authorized Hourly Rates for Work Performed in 2005

In this part of today's decision, we establish principles and approve ranges to guide authorized hourly rates for work performed in 2005. We begin with our general approach and then discuss particular issues raised by the showings of the intervenors in support of their hourly rate proposals.

Initially, we intended to set individual rates for all intervenor representatives in this proceeding. We have decided not to do so, given the large number of intervenor representatives, especially those for whom no authorized rate currently exists. Instead, the principles and ranges set forth below should enable quick determination of the appropriate hourly rate for each type of intervenor representative and level of experience. First-time representatives must make a showing in the compensation request to justify their proposed hourly rate taking into consideration rates previously awarded representatives with comparable training and experience.

The recent utility data show little or no increase from 2003 to 2004 in the hourly rates that utilities are paying for representation in Commission matters. The very limited utility data for 2005 are consistent with this trend. Thus, absent the considerations listed below, we will not authorize an increase from previously authorized rates for work performed in 2005.

The following tables show the range of rates authorized for intervenor attorneys and experts in 2004. We will authorize rates only within these same ranges for 2005. Intervenors new to our proceedings, with work performed in 2004 or 2005, will be authorized rates within these same ranges.

2005 Hourly Rates for Intervenors' Attorneys:

(based on years' experience since completion of law school)

13+ years: $270-$490*

8-12 years: $270-$325

5-7 years: $250-$270

3-4 years: $185-$220**

0-2 years: $135-$190***

*The low-end range for 2004 is $250, but this is anomalous in light of the range for 8-12 years
and thus is increased to $270 for 2005.

**No 2004 data for intervenors for 3-4 years. Low-end rate from utility outside attorneys. The
high-end rate is approximately 15% above the rate for 0-2 year level (the average differential
requested by intervenors for 2005 between these same levels).

***Low-end rate from utility outside attorneys - no data from intervenors.


2005 Hourly Rates for Experts:

$110-$360*

* Exact Rate to be determined from training and experience of individual as compared to peers.

Under the following conditions, a request justifying an increase in a previously authorized rate for a particular representative, for work performed in 2005, may be considered. No rates will be authorized outside the ranges shown above.

1. Where a representative's last authorized rate was for work done before 2004, an increase is reasonable, but we will limit the increase to 3% per year, which is roughly the recent rate of inflation as reported by various government agencies. (See note 5.)

2. Where additional experience since the last authorized rate would move a representative to a higher level of qualification (e.g., from intermediate to senior), an increase is reasonable to bring the representative's hourly rate within the range of the representative's peers at the higher level.

3. Where a representative's last authorized rate is below that of the range of rates shown in the tables above for representatives with comparable qualifications, an increase is reasonable to bring the representative's rate to at least the bottom level of the rate range. Here, we have in mind certain representatives who have historically sought rates at or below the low end of the range of rates for their peers⁷. We emphasize, however, that for any given level of qualifications, there will always be a range of rates in the market, so this increase is intended to narrow but not necessarily eliminate perceived disparities.

⁷ For example, William Marcus of JBS Energy, Inc. has approximately 30 years' experience and is a recognized expert in energy-related matters, yet has consistently requested small rate increases at rates below that of his peers.