6. The Reasonableness of Requested Compensation

TURN requests compensation in the amount of $110,913, as follows (TURN's proposed reductions discussed in Section 6.2, below):

6.1. Overall Benefits of Participation

In D.98-04-059, the Commission required that customers demonstrate their participation was "productive," as that term is used in § 1801.3, where the Legislature gave the Commission guidance on program administration. (See D.98-04-059, mimeo., at 31-33, and Finding of Fact 42.) In that decision we discuss the requirement that participation be productive in the sense that the costs of participation should bear a reasonable relationship to the benefits realized through participation. Customers are directed to demonstrate productivity by assigning a reasonable dollar value to the benefits of their participation to ratepayers. This exercise assists us in determining the reasonableness of the request and in avoiding unproductive participation.

We find TURN's participation was productive in that the costs it claims for its participation were less than the benefits realized. As noted by TURN, its participation reduced the adopted tariff prices of BLV, EI, and DA. Similarly, TURN's opposition to Pacific's proposed DA ceiling price of $1.10 influenced the reduction to $0.46 and eliminated the likelihood of additional near term rate increases. TURN's efforts produced benefits for ratepayers that outweigh the cost of participation.

6.2. Hours Claimed

TURN's request includes time records for Thomas Long and Paul Stein by allocation to activity and issue. TURN allocates its attorneys' time by generic issues and not by the seven issues it includes in its request. That allocation supports TURN's proposed 10% reduction of its claim for its attorneys' time for D.99-11-051 and D.00-03-042, because approximately 18% of its attorneys' time was spent on DA, the area where TURN had the least impact. In addition, TURN concurs with Pacific that the Commission should reduce its award by the two hours Stein spent preparing the motion to accept a late-filed pleading. TURN does not allocate its consultants' (Terry Murray and Scott Cratty) time by issue. Pacific states no compensation should be given, because TURN's consultants spent their time re-examining previously approved cost studies. Pacific also states Murray's re-examination of approved OANAD costs was discredited. TURN replies that Murray's testimony addressed a number of issues. Since TURN did not provide an allocation by issue, we must determine whether TURN's or Pacific's proposed reductions are reasonable. Murray's testimony in this proceeding and Cratty's activity description indicate an allocation of approximately 50% of their time to DA issues. We have accepted TURN's proposed reduction of 10% for its attorneys' time, because it reasonably discounts by approximately half the time TURN's attorneys spent on DA issues. Similarly, we will reduce Murray's and Cratty's hours by 25% for D.99-11-051 and D.00-03-042, approximately one half the time spent on DA issues.

TURN's proposed reduction of 50% of its attorneys' time for D.00-11-042 acknowledges TURN's limited success on rehearing and is within the range of our prior reductions where we have found a substantial contribution but rejected the intervenor's position. However, the 50% reduction must apply to both the attorneys' and the consultants' time.

TURN was one among other parties supporting several of the proposals. TURN does not propose a reduction for duplication in effort. Pacific notes that other parties opposed Pacific's request for a $1.10 price ceiling for DA. In D.99-11-051 we described how our Public Advisor's Office had received over 34,000 comments from the general public on this application. This unusually high level of consumer interest indicates it would not be in the public interest to reduce compensation for duplication.

Pacific's proposal to offset TURN's compensation award by any fundraising efforts finds no statutory or decisional support. We will not further consider that proposal.

6.3. Hourly Rates

TURN proposes new hourly rates of $300 and $280 for Thomas Long (for 2000 and 1999), and $190 for Paul Stein (for 1999). TURN provides market rates and other information, previously submitted, to justify the request. The last approved hourly rates for Thomas Long and Paul Stein were $260 and $170 for 1998, adopted in D.99-07-045. Since 1998, Stein has represented TURN in a number of energy and telecommunications proceedings before the Commission. Based upon the information TURN has provided, it is reasonable to increase Stein's rates to the level requested by TURN. TURN provides comparable information to support the increase in Long's hourly rate. Long has extensive experience before this Commission, and it is reasonable to increase his hourly rate as proposed.

TURN proposes hourly rates of $300 for Terry Murray (for 1998 and 1999) and $175 for Scott Cratty (for 1998 and 1999). The last approved hourly rates for Terry Murray and Scott Cratty were $250 and $125, approved in D.98-04-025. As Pacific notes, TURN did not provide market rates to justify the increases for Murray and Cratty. However, §1806 also permits the Commission to award compensation that does not exceed the comparable market rate for services paid by the public utility. TURN states that the rate charged by Cratty and Murray to TURN is the same rate that they charge all of their business clients, including utilities such as AT&T and MCI. We find that increased experience, inflation, and the overall increase in demand for telecommunications experts justify the increase in rates sought for Cratty and Murray. We will adopt the proposed hourly rate increases.

6.4. Other Costs

TURN requests $4,969 for photocopying, fax/phone, research and postage. Pacific does not dispute this request. These expenses are generally reasonable, considering the length of this proceeding and TURN's participation. TURN concurs with Pacific that its award should be reduced by $50.04 in postage and copying for the motion to accept a late-filed pleading. We will make that reduction.

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