5. Reasonableness of Requested Compensation

TURN initially requested $169,789.05 for its participation in this proceeding. After correction of errors in its calculations, TURN's request amounts to the following:

Requested Compensation

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. The issues we consider to determine reasonableness are discussed below.

5.1 Hours and Costs Related to and Necessary for Substantial Contribution

We first 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.

TURN documented its claimed hours by presenting a daily breakdown of the hours spent by each attorney or consultant, accompanied by a brief description of each activity. The hourly breakdown reasonably documents the total hours spent.

TURN allocated its hours to five categories discussed above as follows:

Requested Hours

Since TURN did not make a substantial contribution regarding Category 2, we will not award compensation for the hours related to this category. Since TURN made a substantial contribution regarding one of the three issues it addressed Category 3, we will award compensation for one third of the hours allocated to this category. Since we find that TURN made a substantial contribution regarding Category 4, we will award compensation for all of the hours allocated to this category.

The hours TURN allocated to Category 1, General, were spent on the initial review of the application, discovery, attending the prehearing conference, and reviewing the nondisclosure agreement utilized in this proceeding for confidential materials. These activities were necessary for participation in the proceeding regardless of the issues addressed. The claimed hours are reasonable given the scope of TURN's participation in this proceeding. Since TURN made a substantial contribution as discussed above, we will award compensation for these hours.

The hours TURN allocated to Category 5 were spent preparing its intervenor compensation claim. The claimed hours are reasonable given the scope of this proceeding. Since TURN made a substantial contribution as discussed above, we will award compensation for these hours.

For the reasons discussed above, the hours for which we award compensation are as follows:

Award Hours

5.2 Market Rate Standard

We next take into consideration 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.

TURN seeks an hourly rate of $270 for work performed by Freedman in 2004 and 2005. We previously approved this rate for Freedman in D.05-06-049 for 2004 work, and find it reasonable for 2004 and 2005. A small number of hours in early 2006 were also charged at half this rate for preparation of the intervenor compensation request. As TURN did in its request, we treat these hours at the 2005 rate.

TURN seeks an hourly rate of $395 for work performed by Finkelstein in 2004 and 2005. We previously approved this rate for Finkelstein in D.05-04-049 for 2004 work, and find it reasonable for 2004 and 2005.

TURN seeks an hourly rate of $470 for work performed by Florio in 2004 and 2005. We previously approved this rate for Florio in D.05-01-029 for 2004 work, and find it reasonable for 2004 and 2005.

TURN seeks an hourly rate of $195 for work performed by Marcus in 2004. We previously approved this rate for Marcus in D.05-03-016 for 2004 work, and find it reasonable for 2004. A small number of hours in early 2005 were also charged at this rate. As TURN did in its request, we treat these hours at the 2004 rate.

TURN seeks an hourly rate of $180 for work performed by David Schlissel in 2004. TURN represents that David Schlissel has more than 26 years experience as a consultant, expert witness and attorney on complex management, engineering and economic issues, primarily relating to energy and the environment. TURN states he has presented testimony in more than 70 cases before regulatory agencies in 21 states, two federal regulatory agencies and state and federal courts, and holds BS and MS degrees in astronautical engineering and a Juris Doctor degree in law. He has also studied nuclear engineering and project management. TURN argues that David Schlissel should be compared to the top of the intervenor and utility experts appearing before the Commission. In D.05-11-031, we approved a range for intervenor experts of $110-360. Given his education and experience, we find a rate of $180 reasonable David Schlissel for 2004.

TURN seeks an hourly rate of $150 for work performed by William Steinhurst in 2004. TURN represents that Steinhurst has more than 20 years experience at the Vermont Department of Public Service where he served as Planning Econometrician from 1981-1986, and as Director for Regulated Utility Planning form 1986-2003. He then joined Synapse Energy Economics where he is currently employed. TURN states that he has presented testimony in more than 30 cases before regulatory agencies, and holds B.A. in physics, an M.S. in statistics and PhD in Mechanical Engineering. TURN argues that Steinhurst should be compared to the top of the intervenor and utility experts appearing before the Commission. In D.05-11-031, we approved a range for intervenor experts of $110-360. Given his education and experience, we find a rate of $150 reasonable for Steinhurst for 2004.

TURN seeks an hourly rate of $65 for work performed by Jennifer Schlissel in 2004. TURN represents that Jennifer Schlissel is a college graduate, was employed as a research assistant during the time she worked on this proceeding, and is currently employed as a litigation legal assistant. TURN argues that it was granted an hourly rate of $85 for paralegal work in 2001 by D.05-12-038, and that $65 is a reasonable rate given Jennifer Schlissel's qualifications. The rate requested by TURN is less that that previously granted for paralegals in 2001. Therefore, we find a rate of $65 reasonable for 2004.

5.3 Productivity

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.

This proceeding did not set rates, and no direct dollar amount benefit from an intervenor's participation can be identified. The SGRP will cost ratepayers hundreds of millions of dollars over the remaining license lives of Diablo.7 The purpose of this proceeding was to determine whether the SGRP should proceed. TURN made a substantial contribution to that determination. TURN's expenditures, given its substantial contribution to the Commission's analysis of risks and benefits, are miniscule in comparison to the SGRP costs. Therefore, we find TURN's participation was productive.

5.4 Direct Expenses

The itemized direct expenses submitted by TURN include costs for: travel, copying, postage, and telephone, and total $5,742.20. These expenses are commensurate with the work performed, and we find them reasonable.

5 Billed at half the hourly rate.

6 Steinhurst's hours were included in David Schlissel's hours in TURN's request.

7 Since the end of the operating licenses for each unit is different, the remaining life for each unit is different.

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