V. Reasonableness of Requested Compensation

CNUC requests $77,723.01 for its participation in this proceeding, as follows:

Advocates' Fees	Year	Hours	Rate	Amount
Stephen Cieslewiecz	2002	152.50	$175.00	$26,687.50
	2003	159.00	$175.00	$27,825.00
Cieslewicz (Travel)	2002	20.75	$ 87.504	$ 1,815.63
	2003	21.00	$ 87.50	$ 1,837.50
Robert Novembri	2002	67.50	$175.00	$11,812.50
	2003	24.00	$175.00	$ 4,200.00
Novembri (Travel)	2002	11.00	$ 87.50	$ 962.50
Subtotal				$75,140.63

Other Expenses

Travel, Transportation & Lodging	$2,451.16
Photocopy and Postage	$ 131.22
Subtotal	$2,582.38

TOTAL = $77,723.01

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. As noted earlier and further discussed below, we find that some of CNUC's claimed time is not clearly associated with its substantial contribution.

CNUC states that the proposed changes to Rule 35 could have added tens of millions of dollars annually to utilities' costs of vegetation management and could have resulted in the removal of thousands of trees that are no risk to electric service reliability on public safety. CNUC states that the only issues it addressed were the various proposals to amend Rule 35.

The timesheets submitted by CNUC are generalized in nature, with most of the entries showing a cryptic "emails" or "emails and attachments." Nevertheless, we are able to segregate claimed time for preparation and presentation of the formal report that CNUC delivered, along with time participating in and contributing to Rule 35 analysis in subsequent workshops. These efforts total 191.5 hours, as opposed to the 403 hours claimed. Based on our review of the record, we find that the electric utilities uniformly opposed changes in Rule 35 for essentially the same reasons offered by CNUC. CNUC responded to e-mail inquiries from the utilities, and its expert analysis was helpful to those utilities in preparing their positions. Arguably, however, consultation with the utilities should be billed to the utilities, rather than to ratepayers.

Thus, we disallow 211.5 hours which we find have not been adequately distinguished from the work performed by the utilities and other parties. Based on our review of the record, CNUC's request for compensation and CNUC timesheets, we will narrow our award of compensation to recognize 191.5 hours of compensable time, the firm's travel costs in attending the workshops and being available as experienced arborists to answer participant questions, and the partners' miscellaneous out-of-pocket costs of participating in this proceeding.

We acknowledge that this award falls substantially short of the amount requested. Nevertheless, our duty to ratepayers requires that awards ultimately paid by ratepayers are based on fees and costs demonstrated to be reasonable. Unlike most litigants, ratepayers generally have no direct control over the intervenors who purport to represent ratepayer interests, and unlike most advocates, intervenors need not submit their litigation budgets for prior approval. Here, we find the requested amount to be excessive in relation to the relatively informal workshop process and work product involved in this rulemaking.

Finally, in determining compensation, we take into consideration the market rates for similar services from comparably qualified persons. CNUC requests Commission approval of an hourly rate of $175 for professional work performed during 2002 and 2003 and half that amount ($87.50) for travel time. CNUC states that these are market rates for vegetation management experts, and it attaches a Federal Energy Regulatory Commission (FERC) document (FERC-03AL-30574) establishing those rates for FERC proceedings requiring analysis of vegetation management practices. We will approve the claimed rates as reasonable.

The itemized direct expenses submitted by CNUC include costs for travel, photocopying and postage and total $2,582.38. We find these costs reasonable.