5. NRDC's Requested Compensation

NRDC requests $54,365.01 for its participation in this proceeding as follows.

^* In its tables summarizing the requested amount of compensation, NRDC combines hours of work on the merits of the proceeding with the time spent on intervenor compensation matters. In these tables, we separate these two different types of work. Information regarding NRDC's time spent on intervenor compensation matters is provided based on timesheets attached to the Request for Compensation.

^** In its tables summarizing the requested compensation, NRDC enters the amount of $502.80 twice - as expenses related to the work towards D.07-10-032 and as expenses related to the PRG/PAG activities. The second time, the expenses are properly itemized in the attachment to the Request for Compensation. It is apparent that the duplication of the amount in the tables occurred in error. We correct the error in these tables, by entering this amount one time.

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. We 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.

5.1. Attorney and Expert Rates

We consider here 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.¹⁰

Audrey Chang. NRDC seeks an hourly rate of $115 for 2006 and $150 for 2007. NRDC states the Commission previously approved a 2006 rate for Chang of $110, which had not included a 3% cost-of-living increase approved in D.07-01-009. NRDC seeks an increase for Chang's work in 2007 that exceeds the 3% increase authorized in D.07-01-009. NRDC explains it believes Chang's rate should be increased substantially because her rate is at the low end of the rate range adopted in D.07-01-009.

NRDC does not make a case for increasing Chang's rate by almost 40%. If we were to increase hourly rates solely on the basis that they are at the low end of an adopted range, the range would be meaningless. A request for a significant increase in an intervenor's rate should be accompanied by evidence that the expert or attorney has extraordinary skills or knowledge, which NRDC's request does not provide. We note here that Chang has only two years of relevant regulatory experience, which suggests that her rate should be at the low end of the range. We apply the 3% cost-of-living increase to the hourly rates for 2006 and 2007. Accordingly, Chang's rate would be $115 for 2006 and $120 for 2007.

Eric Wanless. NRDC seeks a rate of $115 for Wanless' work in 2006 and $120 for work performed in 2007, which NRDC observes are at the low end of rates for experts with Wanless' experience. We adopt those rates here.

Peter Miller. NRDC seeks an hourly rate of $100 an hour for Peter Miller's consulting services, which is the rate Miller billed and which is below the range adopted in R.07-01-009 for experts with Miller's experience. We apply that rate here.

5.2. Hours Claimed

We discuss above reductions in hours claimed by NRDC for work that was either outside the scope of work NRDC was authorized to do on behalf of the PRG/PAG or for work that did not contribute substantively to a Commission decision. We grant NRDC 20% of the hours claimed for work leading to D.07-10-032 and all hours claimed for PRG and PAG work except for 15.5 hours spent on a report assigned to Energy Division. We authorize all hours NRDC's consultant spent on EM&V protocols.

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. NRDC states it cannot assign a value to its participation in a proceeding like this. We agree with NRDC, however, that the benefits to customers of NRDC's participation are likely to outweigh the costs.

5.3. Direct Expenses

NRDC seeks $957.51 for expenses, mostly related to travel to PRG and PAG meetings. These costs are reasonable and we authorize their recovery.

¹⁰ NRDC appropriately seeks half of the adopted rates for work on the compensation request.