5. Reasonableness of Requested Compensation

After we have determined the scope of a customer's substantial contribution, we look at whether the compensation requested is reasonable. The tables below detail the request of each intervenor for their respective participation in this proceeding.





Greenlining requests $116,623.46, as follows:

Advocate	Year	Hours	Rate	Amount
Gnaizda	2005	145.9	$490.00	$ 71,491.00
Gnaizda	2006	18.4	$490.00	$ 9,016.00
Berrio	2005	40.8	$325.00	$ 13,260.00
Camarena	2005	1.2	$250.00	$ 300.00
Camarena	2006	3.5	$250.00	$ 875.00
Vaeth	2005	54.75	$150.00	$ 8,212.50
Vaeth	2006	3	$150.00	$ 450.00
Cacananta	2005	5.6	$125	$ 700.00
Lapidario	2005	11.55	$125	$ 1,443.75
Lapidario	2006	2	$125	$ 250.00
Palpallatoc	2005	48.25	$110	$ 5,307.50
Palpallatoc	2006	8	$110	$ 880.00
Gamboa	2005	9	$360	$ 3,240.00
Phillips	2005	1.5	$360	$ 540.00
Travel	2005			$ 328.38
Subtotal				$116,294.13
Photocopies				$ 214.80
Postage				$ 114.53
Subtotal				$ 329.33
TOTAL				$116,623.46

LIF requests $82,343.62, as follows:

Advocate	Year	Hours	Rate	Amount
Brown	2005	118.50	$450	$53,325.00
Arteaga	2005	34	$350	$11,900.00
Chabran	2005	14	$200	$ 2,800.00
Gallardo	2005	47.25	$300	$14,175.00
Subtotal				$82,200.00
Photocopies				$ 4.95
Postage				$ 135.48
Supplies				$ 3.19
Subtotal				$ 143.62
TOTAL				$82,343.62

Disability Rights Advocates requests $59,567.39, as follows:

Representative	2005 Rate	Hours	Amount
Melissa Kasnitz/Attorney Comp. Request*	$425 $212.50	45.2 1.9	$19,210.00 $403.75
Kevin Knestrick/Attorney Comp. Request*	$190 $95	53.4 0.8	$10,146.00 $76.00
Lisa Burger/Attorney Comp. Request*	$170 $85	98.7 22.0	$16,779.00 $1,870.00
Paralegals/Law Clerks Comp. Request*	$90 $45	43.7 0.8	$3,933.00 $36.00
Timothy Gilbert/Consultant	$200	30	$6,000.00
Expenses			$1,113.64
Total			$59,567.39

* Time preparing compensation request claimed at ½ hourly rate.

TURN requests $339,540.99, as follows:

Advocate	Year	Hours	Rate	Amount
Nusbaum	2005	262	$400	$104,800.00
Nusbaum (comp. request)	2005	16	$200	$ 3,200.00
Costa	2005	.50	$230	$ 115.00
Mailloux	2005	5.25	$325	$ 1,706.25
Finkelstein	2005	5.75	$395	$ 2,271.25
Finkelstein (comp. request)	2005	3.50	$197.50	$ 691.25
Murray	2005	291.25	$350	$101,937.50
Cratty	2005	264.75	$225	$ 59,568.75
Kientzle	2005	264.75	$225	$ 59,568.75
Roycroft	2005	15.50	$200	$ 3,100.00
Subtotal				$336,958.75
Photocopies				$ 1,999.00
Postage				$ 23.49
Lexis				$ 526.95
Phone, Fax				$ 14.80
Misc.				$ 18.00
TOTAL				$339,540.99

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

To assess the reasonableness of the hours claimed for the customer's efforts that resulted in substantial contributions to Commission decisions, we analyze to what degree the hours are related to the work performed and necessary for the substantial contribution.

5.1.1. Greenlining

According to Greenlining's timesheets, its participation in this proceeding included extensive discovery, preparation of pleadings and development of the proposed settlement agreement with Verizon. Verizon agrees that Greenlining's efforts warrant compensation, but argues that certain hours related to activities that occurred after the Commission's decision - in particular time and expense associated with a meeting with Verizon's chief executive officer following the decision - should be disallowed in that § 1802 refers to activities that contributed to the Commission "in the making of its order or decision." Verizon cites also D.05-08-028 (post-decision work cannot be characterized as assisting Commission in its work). Greenlining objects to so narrow a reading of § 1802 but provides no authority supporting compensation for the kind of post-decision work conducted here. Greenlining does not dispute Verizon's calculation of 70.8 hours by four individuals that were devoted to post-decision work. Our order today disallows these hours, along with 13.55 hours described in Greenlining's timesheets as typing documents and making travel arrangements, since such administrative tasks normally are captured in an attorney's hourly rates.

5.1.2. LIF

As it did in addressing Greenlining's request, Verizon agrees that LIF's efforts warrant compensation, but again suggests that certain hours related to activities that occurred after the Commission's decision - in particular time and expense associated with a meeting with Verizon's chief executive officer following the decision - should be disallowed in that § 1802 refers to activities that contributed to the Commission "in the making of its order or decision." LIF does not dispute Verizon's calculation of 10.25 hours devoted to post-decision work, and our order today disallows these hours.

5.1.3. Disability Rights Advocates

As discussed in Section 4.3 (Substantial Contribution), the number of professional hours claimed by Disability Rights Advocates is reduced by 50%. This includes the time of its attorneys, paralegals, and consultant. Considering this reduction, we find the resulting number of hours to be reasonable in comparison to the work performed.

5.1.4. TURN

TURN documented its claimed hours by presenting a daily breakdown of the hours of its attorneys, accompanied by a brief description of each activity. TURN represents that it coordinated its efforts with other intervenors to minimize duplication of effort. The hourly breakdown reasonably supports the claim for total hours. However, as TURN acknowledges, the Commission's decision rejected most of TURN's recommendations. The first and second Alternate Decisions gave more credence to TURN's reasoning, along with that of ORA, but even here only an estimated 60% to 75% of the issues raised by TURN were acknowledged in any significant manner. Accordingly, we exercise our judgment to reduce by 25% the total hours of TURN's lead attorney. TURN's pleadings were voluminous and well crafted, but it is the "substantial contribution" to the Commission's decision that we must measure and evaluate. By that standard, we believe that in this case the reduction in attorney hours is appropriate.

5.2. Market Rate Standard

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. In D.05-11-031, we established guidelines and principles for setting intervenors' hourly rates for work performed in 2005. That decision also set forth a range of rates for attorneys and experts based on levels of experience.

5.2.1 Greenlining

Greenlining seeks an hourly rate of $490 for attorney Gnaizda for work performed in 2005 and 2006; $325 for attorney Berrio for 2005 work; and $360 for expert Gamboa for 2005 work. We previously approved these same rates for 2005 work in D.06-04-021, and we adopt them here.

Greenlining requests a rate of $360 for expert Phillips for 2005. We previously approved a rate of $335 for Phillips for 2005 in D.06-04-021, and we adopt that rate here.

Attorney Camarena is new to our proceedings. Greenlining is requesting a rate of $250 for 2005 work. This rate is within the range of rates set forth in D.05-11-031 for attorneys with Camarena's level of experience (5-7 years) and we adopt that rate here.

Greenlining is requesting a 2005 rate of $150 for expert Vaeth. We previously approved this rate in D.06-04-021, and we adopt it here.

Greenlining is requesting rates for paralegals Cacananta, Lapidario, and Palpallatoc of $125, $125, and $110, respectively. These rates are within the guidelines of D.05-11-031, and we adopt them here.

5.2.2 LIF

For 2005 work, LIF seeks hourly rates of $450 for attorney Brown, $300 for attorney Gallardo, and $350 for attorney Arteaga. In D.06-04-021, we approved 2005 rates of $390 for Brown and $275 for Gallardo, and we adopt those rates here. We approved a rate of $340 for Arteaga for 2004 work in D.05-05-009. In D.05-11-031, the Commission determined that rates established for work completed in 2004 will not change in 2005 except in response to specified circumstances, and we therefore adopt a rate of $340 for Arteaga for 2005. LIF seeks a rate of $200 an hour for expert Chabran for 2005. We previously approved the same rate for Chabran in D.04-06-036, and we adopt it here.

5.2.3 Disability Rights Advocates

Disability Rights Advocates seeks an hourly rate of $425 for attorney Kasnitz for work performed in 2005. In D.06-05-030 and D.06-04-021, we previously approved a 2005 rate for Kasnitz of $350, and adopt that rate here.

Disability Rights Advocates seeks 2005 hourly rates of $190 for attorney Knestrick, and $170 for attorney Burger. We previously approved a 2005 rate of $190 for Disability Rights Advocates attorneys Markwalder and Basrawi in D.06-05-030 and D.06-04-021, respectively. Markwalder and Basrawi have similar experience to Knestrick and Burger. We adopt the requested 2005 rates of $190 for Knestrick, and $170 for Burger, in this proceeding.

Disability Rights Advocates seeks a 2005 hourly rate of $90 for its paralegals and law clerks. We previously approved this same rate in D.06-05-030 and adopt it here.

Disability Rights Advocates seeks a 2005 rate of $200 for its expert/consultant Timothy Gilbert. Disability Rights Advocates included its claim for Gilbert's work in its listing of related expenses. Gilbert has over 25 years experience involving issues of access for persons with disabilities, and provided unique expertise in this area. The requested rate of $200 for Gilbert is within the guidelines of D.05-11-031, and we adopt it here.

5.2.4 TURN

TURN seeks hourly rates for 2005 of $325 for attorney Mailloux, $395 for attorney Finkelstein and $230 for expert Costa. We previously approved these rates in D.06-04-021 and D.06-04-023, and we adopt them here.

TURN seeks a 2005 rate of $400 for attorney Nusbaum. D.06-05-020 adopted a 2005 rate for Nusbaum of $365, and we will adopt that rate here.

Regarding the consultants from Murray and Cratty, LLC, TURN seeks hourly rates for 2005 work of $350 for Murray, $225 for Cratty and Kientzle, and $200 for Roycroft. In D.05-11-031, we set forth guidelines for setting 2005 rates for representatives whose last authorized rate was for work done before 2004, allowing for annual increases of 3% from the last authorized rate. We last approved rates of $320 for Murray and $185 each for Cratty and Kientzle for 2001 work in D.05-12-038. Considering the 3% annual escalation factor from D.05-11-031, we adopt 2005 rates of $350 for Murray (rate requested), and $210 each for Cratty and Kientzle. In D.03-06-010, we last approved a rate of $135 for Roycroft for work performed in 2001-2003. Using the same formula from D.05-11-031, we award Roycroft a rate of $155 (using 2001 as a base year) .

5.3. Productivity

D.98-04-059 directed customers to demonstrate productivity by assigning a reasonable dollar value to the benefits of their participation to ratepayers. The costs of a customer's participation should bear a reasonable relationship to the benefits realized through their participation. This showing assists us in determining the overall reasonableness of the request.

Because this proceeding dealt with a merger that the final decision found beneficial to ratepayers, it is difficult to determine a dollar value for the work undertaken by intervenors. In the case of other proceedings where dollar value was hard to determine, we have considered factors such as the breadth of the proceeding and the policies at issue. Here, there are millions of potentially affected subscribers and the policy debate includes such considerations as industry structure and service to low-income communities. The intervenors significantly advanced our thinking on the important public policy questions we addressed, and on that basis we find their participation productive.

5.4. Direct Expenses

The itemized direct expenses submitted by intervenors include costs for travel, photocopying, postage, telephone, Lexis services and messenger services.

Greenlining requests $329.33 for copying and postage. This is reasonable and we approve it.

LIF seeks $143.62 for postage, copying and supplies, which is reasonable. The request is approved.

Disability Rights Advocates seeks $1,113.64 for photocopies, postage and other related expenses. These expenses are reasonable.

TURN seeks $2,582.24, most of it for photocopying and Lexis costs, an amount that is reasonable considering the extent of work TURN undertook in the proceeding.