Reasonableness of Requested Compensation

TURN requests $103, 651.20⁷ for its participation in this proceeding, as follows:

Attorney Fees: Robert Finkelstein

24.25 hours @ $265 per hour (1999) = $ 6,426.25

151.25 hours @ $280 per hour (2000) = 42,350.00

13.75 hours @ $310 per hour (2001) = 4,262.50

43.25 hours @ $365 per hour (2003 and 2004) = 15,786.25

11.5 hours @ $182.50 per hour⁸ = 2,098.75

Subtotal =$ 70,923.75

Expert Witness Fees-JBS Energy, Inc.

William Marcus - 31.83 hours @ $150 per hour =$ 4,774.50

Jim Helmich - 235.65 hours @ $110 per hour = 25,921.50

JBS expenses = 357.50

Subtotal = $ 31,053.50

Other Reasonable Costs

Photocopying Expenses = $ 1,382.80

Fax and Phone Costs = 173.24

Postage/Fed Ex costs = 75.88

LEXIS Research costs = 132.03

Subtotal = $ 1,763.95

Total = $103,741.20

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. Thus, only those fees and costs associated with the customer's work that the Commission concludes made a substantial contribution are reasonable and eligible for compensation.

To assist us in determining the reasonableness of the requested compensation, 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.

TURN's participation was productive in that its initial testimony resulted in Edison's withdrawal of three projects from rate recovery of approximately $420,000. In addition, TURN challenged another Edison project of approximately $274,000⁹ that was later withdrawn by Edison during the hearings.¹⁰ Taken together these amounts substantially exceed TURN's compensation request. TURN also provided other less tangible benefits to D.04-02-025. TURN notes that the original proposed decision incorrectly addressed certain capital additions, resulting in modifications to the revised proposed decision. Finally, TURN's work highlighted the analyses Edison performed on project cost-effectiveness, and potential deficiencies and thus made a substantial contribution to the development of the record. In total, TURN's efforts were productive.

Next, we must assess whether the hours claimed for the customer's efforts that resulted in substantial contributions to Commission decisions are reasonable. This proceeding covered a number of years during which TURN spent time responding to various ALJ rulings, and commenting on two proposed decisions. Thus, TURN's claimed hours are spread over the period between 1999 and 2004. TURN documented its claimed hours by presenting a daily breakdown of the hours of its attorney, accompanied by a brief description of each activity. TURN also requests consultant hours spent by its expert witnesses in 1999 and 2000, and related consultant expenses. TURN documents the expert witness hours by a daily breakdown, also accompanied by a brief description of each activity. The hourly breakdown reasonably supports the claim for total hours by both the TURN attorney and the expert witnesses. Although we have not adopted TURN's recommendations on the central issues in this proceeding, we find that all of TURN's efforts made a substantial contribution to D.04-02-025 and therefore, we do not exclude any hours from TURN's award as a result of a different outcome than that proposed by TURN.

Finally, in determining compensation, we take into consideration the market rates for similar services from comparably qualified persons. The Commission has previously approved the rates sought for work performed by Finkelstein in 1999,¹¹ 2000,¹² 2001,¹³ and 2003.¹⁴ TURN requests the same rate for work in 2003 and 2004, but reserves the right to ask for a different rate for work in 2004 in another compensation request. The Commission has previously approved the rate for work performed by Marcus in 1999 and 2000.¹⁵ The rates requested for Finkelstein and Marcus remain reasonable.

TURN requests an hourly rate of $110 for Helmich for work performed in 1999-2000. The Commission approved an hourly rate of $100 for Helmich for work performed in 1997-98, and $150 per hour for work performed in 2003.¹⁶ Given these previously approved rates for Helmich, the hourly rate of $110 for work performed in 1999 and 2000 is reasonable.