VII. Reasonableness of Requested
Compensation

UCAN requests $76,180.90 for its participation in SDG&E's advisory group process from February through mid-October 2005, as follows:

Michael Shames, attorney/expert, (135.2 hours @$300 per hour)⁷ $40,560.00

Mark Thayer, policy expert, (162.2 hours @200 per hour) $32,440.00

Jeff Schlegal, policy expert, (24 hours @$135/hour) $ 3,180.90

Incidental Expenses .00

Total Claim: $76,180.90

The components of this request must constitute reasonable fees and costs of the customer's preparation for and participation that resulted in a substantial contribution. UCAN documented its claimed hours by presenting a daily breakdown for its representatives, accompanied by a brief description of each advisory group activity, including (1) reviewing advisory group materials distributed before meetings, (2) attending advisory group meetings, (3) preparing technical presentations for the meetings, and (4) writing and reviewing PRG assessments. The documentation reasonably supports the claim for total hours.

In determining compensation, we take into consideration the market rates for similar services from comparably qualified persons. Based on those considerations, D.05-11-031 sets forth principles to govern hourly rates for intervenors' representatives for qualifying hours worked in calendar year 2005. UCAN supported its requested hourly rates with an explanation in its compensation request, and in a later response to the assigned ALJ requesting clarifying information.

In D.05-11-031, the Commission established an hourly rate range of $270-$490 for 2005 work for attorneys with 13+ years of experience since completion of law school. Attorney Shames has over 20 years' experience in utility matters and has participated in Commission proceedings this entire time. He was previously awarded a $250/hour rate for work performed in 2003 and 2004 (D.05-10-031). In this proceeding, Shames is acting in the dual role of attorney and expert witness for UCAN. The $300 rate is within the range prescribed in D.05-11-031, and at the low end of attorneys with similar experience. We find that Shames' request is reasonable and adopt a $300 hourly rate.

UCAN policy expert Thayer holds a doctorate degree in Economics. He has been a professor of Economics since 1979, is Department Chair of Economics at San Diego State University since 1997, and has published extensively on issues relating to utilities and the environment. He was also selected by the Commission to serve on the California Board for Energy Efficiency (CBEE) from 1997-2000. D.05-11-031 set forth an hourly rate range for experts for 2005 of $110-$360. We find the $200 hourly rate for Thayer reasonable, in light of his experience and education, and adopt it here.

UCAN's policy expert Schlegal is an independent consultant specializing in policy analysis and program design for energy efficiency, renewable energy, and low-income energy programs. Schlegal has more than 20 years' experience in energy matters and served on the CBEE as a technical consultant from 1997-2000. The hourly rate of $135 requested for Schlegal is at the low-end of the range for experts provided in D.05-11-031. We find this rate reasonable and adopt it here.

To assist us in determining the reasonableness of the requested compensation, D.98-04-059 directed customers to demonstrate productivity. In its request, UCAN describes how it worked in a very closely coordinated fashion with other advisory participants, in a manner that did not duplicate efforts and substantially contributed to the development of SDG&E's energy efficiency portfolio plans. Although UCAN did not present a dollar value of the benefits of its advisory group participation, we note that the adopted utility program plans are expected to produce $2.7 billion in net resource benefits (resource benefits minus costs) over the life of the measures, and are capable of avoiding the equivalent of three giant (500 megawatt power plants over the next three years. In addition, the Commission projects that the energy savings resulting from the measures installed during that period would reduce global warming pollution by an estimated 3.4 million tons of carbon dioxide in 2008, equivalent to taking about 650,000 cars off the road.⁸ Overall, we find that UCAN's efforts have been productive.

⁷ UCAN submitted an hourly rate for Shames of $250 in its NOI, to reflect 2004 rates awarded for Shames' work, but notes a request for a $300 hourly rate in Rulemaking 04-10-010, where the Commission is reviewing hourly compensation rates for 2005. UCAN requests that the higher rate ($300) be used in this award pursuant to the principles contained in D.05-11-031.

⁸ D.05-09-043, mimeo., p. 3.