The draft decision of the ALJ in this matter was mailed to the parties in accordance with Section 311(g) of the Public Utilities Code and Rule 77.1 of the Rules of Practice and Procedure. Comments were filed by Intervenors on February 16, 2000. Intervenors argue that the hourly rates applied in the draft decision for attorney and expert services do not take into account market rates. Intervenors contend that the rates applied result in "separate and unequal" fee treatment for ratepayer representatives, and that the use of these rates constitutes legal error. We have reviewed the arguments made in the Comments and conclude that the record supports application of the hourly rates applied in the draft decision. We find no legal or factual error in the draft decision, and make no changes to the hourly rates applied.

Intervenors contend that the draft decision improperly deducts 10.5 hours from the total number of hours for which Brown is compensated. This time was spent in preparation of the fee request on February 8 and 9, 1999. Intervenors misinterpret the draft decision. The draft decision provides compensation for the 10.5 hours devoted by Brown to preparation of the fee request, but reduces the amount of the award to reflect payment at half of Brown's hourly rate for this activity. We find no error in the draft decision's treatment of Brown's hours related to fee request preparation, and accordingly we make no changes.

Findings of Fact

1. Intervenors' motion for the filing under seal of the confidential information submitted under seal as Exhibit D to the Request for Award of Intervenor Compensation is unopposed.

2. Intervenors both qualify for customer status pursuant to Section 1802(b) of the Public Utilities Code for purposes of the intervenor compensation program.

3. Intervenors have each made a showing of significant financial hardship within the meaning of Section 1802(g) of the Public Utilities Code and are eligible for an award of compensation.

4. Intervenors have made a timely request for compensation for their contribution to D.98-12-084.

5. Intervenors contributed substantially to D.98-12-084.

6. Any duplication of effort between Intervenors and CSD does not warrant a reduction in the amount of the award.

7. The long-term benefits to customers of Intervenors' participation outweigh the costs of funding Intervenors' participation.

8. With the exception of the hourly rate for Guillermo Rodriquez, Jr., Intervenors have requested hourly rates for all attorneys and advocates that are higher than rates previously adopted by the Commission for the same time period. The hourly rates previously adopted for Robert Gnaizda, Susan E. Brown, Guillermo Rodriquez, Jr., and John Gamboa, are set forth in D.98-04-048. We find these rates to be reasonable, with the exception of the rate for Gamboa. We find it reasonable to increase Gamboa's hourly rate by $10 per hour. The hourly rate of Itzel Berrio was set in D.98-12-058. We find that hourly rate to be reasonable for the time period covered by this Request.

9. Time spent by Brown working on fee petition preparation is billed at her full hourly rate in the Request. We have determined that 10.5 hours of this time falls within the category of services that do not require a lawyer's skill. This time should be compensated at half of Brown's hourly rate.

10. The miscellaneous other costs incurred by Intervenors in this proceeding are reasonable, with one exception. Intervenors have not demonstrated that the itemized travel expenses for Brown are reasonably related to this proceeding, and they should not be reimbursed.

11. The nature of Intervenors' work in this proceeding, and the demands of the proceeding, do not justify the application of a fee enhancement or multiplier to the award for the work of Gnaizda and Brown.

Conclusions of Law

1. Intervenors have fulfilled the requirements of Sections 1801-1812 of the Public Utilities Code, which govern awards of intervenor compensation.

2. Intervenors should be awarded $97,454.91 for contributions to

D.98-12-084.

3. This order should be effective today so that Intervenors may be compensated without undue delay.

O R D E R

IT IS ORDERED that:

1. The Greenlining Institute and Latino Issues Forum are awarded $97,454.91 as set forth herein for substantial contributions to Decision 98-12-084.

2. GTE California Incorporated shall, within 30 days of this order, pay Intervenors $97,454.91 plus interest at the rate earned on prime, three-month commercial paper as reported in the Federal Reserve Statistical Release G.13, with interest beginning on April 27, 1999, and continuing until the full payment has been made.

3. The billing rate information contained in the declaration of Robert Gnaizda, in the letters of Terry J. Houlihan and James Asperger, and in the declaration of Laurence Popofsky, which letters and declarations have been submitted under seal as an attachment (Exhibit D) to the Request, shall remain under seal for a period of two years from the date of this ruling. During that period they shall not be made accessible or disclosed to anyone other than Commission staff except on the further order or ruling of the Commission, the Assigned Commissioner, the assigned Administrative Law Judge (ALJ), or the ALJ then designated as Law and Motion Judge. If Intervenors believe that further protection of this information is needed after two years, they may file a motion stating the justification for further withholding the letters and declarations from public inspection, or for such other relief as the Commission rules may then provide. This motion shall be filed no later than 30 days before the expiration of this protective order.

4. Investigation 98-02-025 is closed.

This order is effective today.

Dated April 6, 2000, at San Francisco, California.

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