5. Reasonableness of Requested Compensation

Having determined the scope of TURN's contribution, we look at whether the compensation request is reasonable.

TURN requests $73,946.78 for its participation in this proceeding. When corrected for calculation errors, the amount is $73,913.03 as follows:

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, accompanied by a brief description of each activity. TURN provided a similar breakdown for its consultants. The hourly breakdown reasonably supports the claim for total hours.

5.2. Intervenor Hourly Rates

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 $395 for work performed by Finkelstein in 2005. We previously approved this rate in D.06-10-007, and adopt it here.

TURN seeks an hourly rate of $405 for work performed by Finkelstein in 2006. We previously approved this rate in D.06-10-018, and adopt it here.

TURN seeks an hourly rate of $190 for work performed by Suetake in 2005. We previously approved this rate in D.06-04-065, and adopt it here.

TURN seeks an hourly rate of $195 for work performed by Suetake in 2006. We previously approved this rate in D.06-10-018, and adopt it here.

TURN seeks an hourly rate of $210 for work performed by Suetake in 2007.

We previously adopted this rate in D.07-11-033, and adopt it here.

Since TURN does not claim any hours for Marcus in 2005, references to that year are not needed. TURN requests $220 for Marcus' work in 2006 and 2007 (see page 16 of the electronic text of the Request). I suggest changing a text on page 12 of the Proposed Decision as follows:

TURN seeks an hourly rate of $220 for work performed by Marcus in 2006 and 2007. We previously approved this rate for the year 2006 in D.07-05-018, and adopt it here for both 2006 and 2007.

TURN seeks an hourly rate of $155 for work performed by Nahigian in 2005 and up to May 1, 2006. We previously approved this rate in D.06-04-029, and adopt it here. After May 1, 2006, TURN seeks an hourly rate of $165 for work performed by Nahigian. We previously approved this rate in D.07-12-026, 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's participation resulted in changes in the way line extension allowances are calculated, with the result that the allowances will be less than they would have been without TURN's participation. Lower allowances result in lower rates, all else being the same. Therefore, TURN's participation will result in savings to ratepayers. We cannot calculate the amount of this effect, but it is reasonable to assume that it will be far more than the claimed compensation. Therefore, TURN's contribution was productive.

5.4. Direct Expenses

The itemized direct expenses submitted by TURN include the following:

The cost breakdown included with the request shows the miscellaneous expenses to be commensurate with the work performed. We find these costs reasonable.

⁵ TURN requested $405 but used $410 in its calculation.

⁶ TURN requested $220 for 2006 and 2007 but used $210 in its calculation for both years. The work done by Marcus in 2006 was after May 1, 2006.

⁷ Hourly rates are reduced 50% for preparation of the NOI and compensation request.