HD14 - State Corporation Commission Fees and Charges to Consumers and Groups Representing Consumer Interests When Participating in Proceedings Before Commission


Executive Summary:
House Joint Resolution No. 246 (1994) directs the State Corporation Commission to study charges to individual consumers and groups representing consumer interests when participating in proceedings before the Commission. The Resolution directs the Commission to suggest ways to eliminate, subsidize, or otherwise reduce such costs and expenses to consumers, or groups representing consumers.

The key issues are whether current Commission costs and charges to consumers are such a financial burden as to inhibit participation in Commission proceedings, and how best to reduce any identified burden.

The Commission's Rules of Practice and Procedure allow for two levels of participation by consumers in formal proceedings, as either an intervener or a protestant. As an intervener, a consumer or consumer group may participate in a limited manner by writing a letter or appearing at a hearing and making a statement as a public witness. Interveners, if they wish, may go further and file a brief in the case. With leave of the Commission, an intervener can also present oral argument.

As a protestant, a consumer or consumer group may act as a full party to the proceeding - presenting testimony, cross- examining witnesses, and presenting written and oral legal argument. Organizations must have legal counsel for such participation, and, although an individual may participate without counsel, legal representation is usually advisable.

Consumer interests are often represented by multiple parties in Commission proceedings. They may be represented by the Attorney General's Office, by individuals, or by groups. In large utility cases, there is generally extensive participation by consumer interests. In cases where these interests do not appear, Commission staff remains a representative of the public interest.

Commission Costs and Charges

Court reporting services are provided to the Commission pursuant to a contract between the Reporter and the Commission. Under the current contract, the Reporter must devote full time to the Commission and is responsible for satisfying all court reporting requirements of the Commission. Under the contract, the Commission pays the Reporter a fixed annual amount in compensation for services provided, which include providing to the Commission copies of transcripts. The Reporter sells copies of transcripts to parties in proceedings, or to anyone else, under rates established by the contract. Under the present arrangement, approximately 50 percent of the Reporter's annual income is derived from Commission compensation and 50 percent is generated by the sale of transcripts.

The Clerk's Office charges outside parties for copies of documents on file at the rate established by Virginia Code Section 13.1-617 (one dollar per page for the first two pages and fifty cents for each additional page). From a review of recent records, it appears that there is no subsidy of Commission operations by charges made to outside parties for copies of documents by the Clerk's Office. That is, reproduction costs to the Clerk's Office roughly approximate the charges made by the Clerk's Office to outside parties for document reproduction.

Perspectives of Interested Parties

During the study, 85 questionnaires concerning Commission fees and charges were mailed to parties who have recently participated in Commission proceedings; 24 responses were received. The most frequently cited costs of participation were the fees and costs associated with legal representation, expert witnesses and document purchases and distribution. Many of the consumer group respondents suggested that the costs associated with their participation be subsidized, while several stated that there should be no subsidization.

Findings and Recommendations

Based on the responses filed, it is clear that the expenses most often complained about are those associated with participating in litigation generally - fees and costs for lawyers, expert witnesses, and consultants. The use of expert witnesses and consultants is wholly within the discretion of participants in Commission proceedings. The Commission does not require expert testimony and has no control over the fees charged by experts and consultants. Whether individual consumers or consumer groups should be able to obtain these types of services at the expense of the Commonwealth is a public policy question beyond the scope of this study, and the resolution of which would require legislation.

Cost of Transcripts

Although it may be costly, in relative terms, to purchase a lengthy transcript from the Commission's Reporter, the prices charged are comparable to the costs involved in litigation transcribed by a private firm, and comparable to that found in other courts of record. It should be noted that the contract provides that the Reporter "shall furnish a transcript of all docketed proceedings, or portions thereof ...." Thus, with a voluminous transcript, a party can review the transcript available in the Commission's Clerk's Office and purchase from the Reporter only selected pages of interest. No legislation is required to address the cost of transcripts, and the Commission will consider the results of this study when it next reviews its contract with the Commission Reporter.

Cost of Commission Copy Work and of Other Documents

No changes are recommended. Total costs are relatively small and do not appear to affect the participants in proceedings who receive all filed documents in a proceeding free. Also, the cost and charges appear reasonable - cost of reproduction to the Clerk's Office approximates the revenues received for document reproduction for outside parties. If any change in rates is desired, it will have to be accomplished through legislation (Virginia Code Section 13.1-617).

Although it may add to a party's expenses to have to file with the Commission and serve on other parties copies of pleadings, this is a standard practice in litigation and is warranted by principles of justice and fairness. The Commission will review its rules that establish the number of copies of pleadings required to be filed.

Conclusion

It appears that current Commission practices do not inhibit significantly consumer participation in Commission proceedings. However, in certain circumstances, full participation in a complex, protracted proceeding can be relatively costly. Simpler forms of participation (i.e., intervener status) provide less costly alternative methods of participation. The Commission will consider changes to its rules of practice, and other administrative changes, which can lower the cost of participation in its proceedings. For the Commonwealth to provide significant subsidies to public interest interveners is a public policy question for the General Assembly and would require legislation.