5. Reasonableness of Requested Compensation

After we have determined the scope of a customer's substantial contribution, we then look at whether the compensation request is reasonable. 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 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.

TURN requests $482,720.09 for its participation in D.06-06-014 and
D.07-03-044, as follows:

Work on Proceeding
Attorney/Staff	Year	Hours	Hourly Rate	Total
Matthew Freedman	2005	4.75	$270	$1,282.50
	2006	260	$280	$72,800.00
	2007	35.75	$300	$10,725.00
Hayley Goodson32	2005	4.5	$190	$855.00
	2006	216.25	$195	$42,168.75
	2007	20.75	$210	$4,357.50
Robert Finkelstein	2005	5	$395	$1,975.00
	2006	227	$405	$91,935.00
	2007	19.25	$435	$8,373.75
Michel P. Florio	2006	5.75	$485	$2,788.75
Marcel Hawiger	2006	94.25	$280	$26,390.00
	2007	17.75	$300	$5,325.00
Nina Suetake	2006	59	$195	$11,505.00
	2007	11.5	$210	$2,415.00
Outside Expert Fees
JBS Energy
William Marcus	2005-06	38	$210	$7,980.00
	2006-07	160	$220	$35,200.00
Gayatri Schilberg	2005-06	62.3	$165	$10,279.50
	2006-07	35	$175	$6,125.00
Jeff Nahigian	2005-06	68.75	$155	$10,656.25
	2006-07	25.5	$165	$4,207.50
Greg Ruszovan	2005-06	10.66	$155	$1,652.30
Snavely King
Michael Majoros	2005-06	258.5	$240	$62,040.00
Margaret Kenney	2005-06	203.75	$160	$32,600.00
David Geissler	2006	111	$160	$17,760.00
Mark Sam	2006	37	$75	$2,775.00
Subtotal:				$474,171.80
Preparation of NOI and Compensation Request33
Attorney/Staff	Year	Hours	Hourly Rate	Total
Matthew Freedman	2007	5.75	$150	$862.50
Haley Goodson	2006	2	$97.50	$195.00
	2007	2	$105	$210.00
Robert Finkelstein	2007	15	$217.50	$3,262.50
Subtotal:				$4,530.00
Total Hourly Compensation:				$478,701.80
Costs			$4,018.29
Total Requested Compensation			$482,720.09

TURN requests $27,883.10 for its participation in D.07-05-058 as follows:

Work on Proceeding
Attorney/Staff	Year	Hours	Hourly Rate	Total
Hayley Goodson	2006	48.5	$195	$9,457.50
	2007	11.5	$210	$2,415.00
Robert Finkelstein	2006	1.5	$405	$607.50
	2007	0.75	$435	$326.25
Outside Expert Fees
Gayatri Schilberg	2005-06	61.89	$165	$10,211.85
	2006-07	22.1	$175	$3,867.50
Subtotal:				$26,885.6
Preparation of NOI and Compensation Request34
Attorney/Staff	Year	Hours	Hourly Rate	Total
Haley Goodson	2007	9.5	$105.00	$997.50
Subtotal:				$997.50
Total Requested Compensation				$27,883.10

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 of its attorneys and consultants, accompanied by a brief description of each activity. The hourly breakdown reasonably supports the claim for total hours.³⁵

As discussed above, we disallow time spent on the late payment fee issue. Goodson's time records indicate that 4.25 hours were spent specifically on this issue. In response to an ALJ request for the proportionate amount of general (non-allocable) time spent on this issue, TURN estimates that Goodson spent three hours, Freedman spent two hours and Schilberg spent 11.5 hours. Accordingly, we reduce Goodson's 2006 hours by 7.25, Freedman's 2006 hours by two hours and Schilberg's 2005-2006 hours by 11.5 to reflect this disallowance.

We also disallow half of TURN's time spent addressing the net salvage depreciation proposal for the reasons previously discussed. TURN estimates that approximately 45% of its time spent on depreciation expenses was related to net salvage. Based on this estimate, Finkelstein spent 1.46 hours (3.25 hours x .45) on this issue in 2005 and 73.58 (163.5 hours x .45) in 2006. Accordingly, we reduce Finkelstein's time by 0.78 hours in 2005 and 36.79 hours in 2006. Additionally, we reduce Majoros' time by 58.2 hours (258.5 hours x .45 x .5), Kenney's time by 45.8 hours (203.75 hours x .45 x .5), Geissler's time by 25 hours (111 hours x .45 x .5) and Sam's time by 8.3 hours (37 hours x .45 x .5).

In addition to the disallowances discussed above, we correct the following mathematical errors in the compensation requests:

· In TURN's May 21^st Request, Finkelstein's 2007 hours for preparing the compensation request should be 19.

· In TURN's May 21^st Request, the hours for JBS consultants Marcus and Schilberg are incorrectly allocated. Marcus' hours should be 125.75 hours for work performed from 2005 through May 1, 2006 and 72.25 hours for work performed after May 1, 2006 through the issuance of D.07-03-044. Schilberg's hours should be 84.3 hours for work performed from 2005 through
May 1, 2006 and 13 hours for work performed after May 1, 2006 through the issuance of D.07-03-044.

Finally, TURN states that its July 30^th Request includes 0.75 hours for Goodson and 4.13 hours for Schilberg that were devoted to implementing the new service quality standard adopted by D.07-03-044.³⁶ TURN indicated that if needed, it would file an amendment to its May 21^st Request to include these additional hours and remove the hours from its July 30^th Request. We have confirmed that TURN has not included this time in its compensation request of D.07-03-044. Given the de minimis number of hours, we do not require TURN to file an amendment to its May 21^st Request, but we include these hours in the
July 30^th Request.

5.2. Intervenor Hourly Rates

We next consider 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.

We previously approved all of the 2005 and 2006 rates TURN requested for its own staff³⁷ and adopt those rates here. For 2007 work, TURN seeks an 8% increase of the approved 2006 rates, rounded to the nearest $5 increment, consistent with D.07-01-009. With the exception of Florio, who did not record any time for 2007,³⁸ we find the 2007 hourly rates sought by TURN to be reasonable and adopt them here.

We previously approved the 2005-2006 rates TURN requested for JBS consultants Marcus, Schilberg and Nahigian in D.06-10-018 and adopt those rates here. For JBS consultant Marcus, TURN requests an hourly rate of $220 for work performed after May 1, 2006. We previously approved this rate in D.07-05-018 and adopt it here.

TURN seeks to increase consultants Schilberg's and Nahigian's hourly rates by $10 to $175 and $165, respectively, for work performed after May 1, 2006 and in 2007. TURN states that the $175/hour for Schilberg and the $165/hour for Nahigian are the same rates that JBS billed TURN for their work during that period. TURN submits that since JBS did not implement rate changes in early 2006, the $10 increase is approximately equivalent to the 3% cost-of-living increase approved for 2006 rates in D.07-01-009. TURN also makes its request pursuant to D.05-11-031, which permits such an increase, because the requested rates are near the bottom of the range set in D.07-01-009 for even the most junior witnesses, while both Schilberg's and Nahigian's track records at the Commission demonstrate that they are two of the more qualified witnesses to work on energy utility issues. As TURN explains, Schilberg has over 20 years of experience and has testified before the Commission, the California Energy Commission, the Nevada Public Service Commission and the Nevada County Superior Court since joining JBS in 1987. Further, she is the JBS lead on service quality-related issues. Nahigian has over 15 years of experience analyzing utility operations and rate design issues and is the firm's expert witness in the area of line and service extensions. Further, he often serves as TURN's expert witness in a wide range of regulatory proceedings, particularly those addressing line extensions and demand response issues. In light of these considerations under D.05-11-031, we find the requested rates for Schilberg and Nahigian for work after May 1, 2006 to be reasonable and adopt them here.

TURN requests an hourly rate of $155 for work performed by JBS consultant Ruszovan in 2006. This is the same rate adopted in D.06-10-018 for work performed in 2005. We find the requested rate reasonable and adopt it here.

For depreciation-related issues, TURN engaged the services of Snavely, King, a consulting firm of economists, accountants, engineers and cost accountants. TURN requests that the Commission adopt the same rates for work performed by Snavely King consultants Majoros, Kenney and Geissler in 2006 as were adopted in 2005.³⁹ We find the requested rates reasonable and adopt them here.

TURN requests that a rate of $75 be adopted for Snavely King analyst Sam for work performed in 2006. This is the first time we have reviewed a request for compensation for Sam. In evaluating the proper hourly rate, we look to the experience of the individual and the rates awarded to peers practicing before the Commission. TURN claims that Sam provides technical and analytical assistance in the development of expert professional testimonies in the utility and transportation industries, including aiding in citation and editing of testimonies and presentation of exhibits. The requested hourly rate for Sam is lower than rates we have awarded other intervenors for paralegal and analyst work. Accordingly, we find the requested rate reasonable and adopt it here.

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 its participation. This showing assists us in determining the overall reasonableness of the request.

TURN estimates that the concessions made by PG&E in response to TURN's efforts prior to the close of hearings resulted in approximately $8.2 million of reduced revenue requirement. TURN also points out that many of its recommendations were subsumed in the GRC Settlement adopted in D.07-03-044 and, thus, while not quantifiable, should be considered a benefit resulting from TURN's participation. Similarly, TURN contends that while it is difficult to establish specific monetary benefits associated with TURN's participation in front counter issues, its participation should be considered productive due to the qualitative customer service benefits adopted in D.07-05-058.

We agree. TURN's participation in PG&E's GRC application produced both quantitative and qualitative benefits to ratepayers. Accordingly, we find that its efforts have been productive.

5.4. Direct Expenses

The itemized direct expenses submitted by TURN in its May 21^st Request include the following:⁴⁰

TURN requests $9 related to late-night travel for TURN's attorneys. While it is the Commission's policy to not compensate intervenors for travel within the Bay Area that would normally be considered commuting, we have stated that an intervenor may be compensated for extraordinary travel costs that are reasonable and justified.⁴¹ We find TURN has justified this extraordinary expense. Accordingly, we find this travel expense reasonable. We find all of TURN's other direct expenses to be reasonable.

JBS Energy's travel expenses include $94 for mileage from Yolo County to San Francisco. In its August 28, 2007 response to an ALJ inquiry concerning this expense, TURN indicates that the mileage was calculated based on 200 miles at the rate of $0.47/mile. We find this rate to be excessive and limit mileage to the 2006 standard mileage rate of $0.445/mile set by the Internal Revenue Service. We find all of JBS Energy's other expenses to be reasonable.

Snavely King's roundtrip airfare for Majoros to travel from Baltimore to San Francisco is $1,138.69. In its August 28, 2007 response to an ALJ inquiry on the airfare, TURN could not recall why this amount was higher than normal and suggested reducing this expense by half, to $569.34. We adopt TURN's suggestion. We find all of Snavely King's other expenses to be reasonable.

³² Goodson's 2006 and 2007 hourly rates reflect the revision made by TURN on July 30, 2007.

³³ Hourly rates are reduced 50% for preparation of the NOI and compensation request.

³⁴ Hourly rates are reduced 50% for preparation of the NOI and compensation request.

³⁵ TURN's May 21^st Request includes time (1.5 hours for Goodson and one hour for Freedman) spent to meet with PG&E prior to the GRC application's filing. Since these pre-filing meetings helped shape PG&E's application, we find that TURN's participation in this proceeding prior to December 2005 substantially contributed to D.07-03-044. Thus, consistent with prior decisions, we find that TURN's work prior to the proceeding beginning should be compensated. (See, e.g., D.05-05-046.)

³⁶ See Request of The Utility Reform Network for an Award of Compensation for Substantial Contribution to Decision 07-05-058, filed July 30, 2007, p. 11, fn. 4.

³⁷ See D.05-12-088; D.06-04-012; D.06-07-011; D.06-10-018; D.06-11-032; D.07-05-018.

³⁸ Although Florio did not record time for 2007, TURN requests that we adopt a 2007 hourly rate of $525 for him. Since no work was performed in 2007, we decline to adopt a 2007 rate for Florio here.

³⁹ TURN also requested that the Commission adopt the 2005 rates for work performed by Majoros, Kenney and Geissler in 2007. However, none of these consultants recorded any work done in 2007 in this proceeding. Accordingly, we decline to adopt 2007 rates for Majoros, Kenney and Geissler here.

⁴⁰ No expenses were included in the July 30^th Request.

⁴¹ See D.07-04-010, p. 12.