Reasonableness of Requested Compensation

We consider whether the CEC's compensation request is reasonable. CEC requests $12,963.59 for its participation. However, CEC incorrectly calculated its request to be $11,763.59. CEC requests the following:

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:

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.

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. Consistent with
D.06-05-037, we find that CEC's work was "duplicative of the work of many of the other parties" and that CEC "did not prevail on a number of its issues. See D.06-05-037, mimeo. at p. 15. Accordingly, we found that CEC's work was not highly productive. Consistent with D.06-05-037, we adopt a 20% reduction of CEC's request for compensation for work performed prior to the issuance of D.05-12-041.

It is unclear from CEC's request whether it appropriately claims half of Hunt's requested hourly rate for time spent on drafting its intervenor compensation request. CEC indicates that Hunt spent two hours on February 28, 2005 for a total of $440, 4.5 hours on March 1, 2005, for a total of $990, and three hours on March 2, 2005, for a total of $660. For 2006, CEC indicates that Hunt spent 3.5 hours on December 19, 2006, for a total of $420. No hourly rate discount is noted for this intervenor compensation. Accordingly, we make the required 50% reduction in the hourly rate for work related to CEC's intervenor compensation request.

In addition, CEC requests compensation on April 4, 2005 for two hours, $440, to renegotiate its contract with its expert, Mike Nelson. We do not compensate intervenors for time spent developing employment contracts for staff or consultants. Accordingly, we will not compensate CEC for time spent on this matter.

Regarding hours spent after the issuance of D.05-12-041, we find those hours reasonable in light of CEC's contribution to Resolution, E-4012.

Intervenor Hourly Rates

CEC seeks an hourly rate of $220 for Hunt for work performed in 2005 and a rate of $240 for work performed by Hunt in 2006. CEC claims that we approved a rate of $220 for Hunt in a prior decision but provides no citation. Contrary to CEC's assertion, we have not approved a rate of $220 for 2005. We approved a 2005 rate for Hunt of $205 in D.06-05-037.

We have not adopted an hourly rate for Hunt for work conducted in 2006. In D.07-01-009, we adopted a 3% cost-of-living adjustment to hourly rates for work performed in calendar year 2006. Therefore, based on the guidance provided in D.07-01-009, we increase Hunt's 2005 hourly rate of $205 by 3% for a 2006 hourly rate of $210.

CEC also requests an hourly rate of $70 for its Legal Assistant, Kelly Neumann. The $70 hourly rate for Kelly Neumann is reasonable, and we adopt it here. CEC claims the full rate for Neumann for work related to its request for compensation. Unlike our policy for attorneys and consultants, we do not discount the rates for Legal Assistant/Paralegals for this type of work.

Direct Expenses

The itemized direct expenses submitted by CEC include costs for the following:

The litigation support/research expenses of $1,750.00 for Westlaw computerized research and the air travel costs of $407.58 to San Francisco are commensurate with the work performed. We find these costs reasonable. We do not, however, award compensation for an individual's food expenses. Since it is unclear what portion of CEC's requested $36.01 may relate to costs other than food, we disallow the entire $36.01. Therefore, we find reasonable $2,157.58 in costs.

⁴ Attorney and Expert Witness hourly rates are reduced 50% for preparation of the NOI and compensation request. CEC did not reduce these amounts. We correct this error in the final award.

⁵ In its request for compensation, CEC incorrectly describes this line item as a 2006 cost. We corrected CEC's error in our final award.

⁶ CEC incorrectly claims that we previously approved an hourly rate of $220 for Hunt for year 2005.