2001 DETERMINATION OF REASONABLE AND NECESSARY EXPENDITURES

2001.1 When any proceeding is initiated, the Office shall, from time to time and prior to issuing a Notice of Agency Fund Requirements to the Commission, determine the reasonable and necessary expenditures required to fully carry out its statutory duties, consistent with the procedures set forth in this chapter.

2001.2 The Case Manager shall identify and define the need for resources, and in so doing shall take into account the following factors:

1. (a) The nature of the proceeding;
2. (b) The number, scope, and complexity of the issues;
3. (c) The time and labor required;
4. (d) Time limitations imposed by the client or the circumstances;
5. (e) The expertise, reputation, and ability of the contractor;
6. (f) The quality of the contractor's work;
7. (g) The customary expenditures required for services in comparable proceedings;
8. (h) The potential effect of the proceeding on District ratepayers in terms of cost, regulatory policy, socioeconomic impact, or precedent;
9. (i) The existence of other pending litigation and other proceedings which may have a direct or indirect impact on the proceeding in question; and
10. (j) Any other factors which reasonably affect the resources required.

2001.3 Whenever the Case Manager concludes that resources are required that necessitate the preparation of a recommended determination of Agency Fund requirements, he or she shall submit to the Agency Administrator a written statement of need which shall be made a part of the official record and which shall include the following information:

1. (a) The number and type of contractors needed;
2. (b) The names of the contractors required, noting the category of services to be prodded and the matters to be addressed by each contractor; and
3. (c) A narrative, based upon the considerations required in §2001.2, supporting the need for the resources requested.

2001.4 Whenever the Agency Administrator receives a written statement of need from the Case Manager under §2001.3, the Agency Administrator shall prepare a recommended determination of Agency Fund requirements and a proposed Commission order based upon the resource requirements identified and defined by the Case Manager, including the following:

1. (a) The amount sought from the affected utility and the date(s) on which payment is requested to be made by the utility;
2. (b) The name of each contractor to be hired, accompanied by a brief description of their

qualifications;

(c) The contract negotiated with each contractor, indicating the following:

(1) A brief description of the work to be performed and the matters assigned;

(2) The number of persons employed under the contract by each contractor and the hourly rate to be charged by such persons; and

(3) The actual or estimated contract ceiling of each contract; and

(d) A statement based upon the narrative submitted by the Case Manager under §2001.3(c) justifying the necessity and reasonableness of the expenditures.

2001.5 Prior to submitting a recommended determination and proposed order to the People's Counsel, the Agency Administrator shall do the following:

(a) Hand-deliver a copy of all the materials listed in §2001.4 to the affected utility for review and comment; and

(b) Respond to any formal opposition in writing by either modifying the recommended determination and proposed order, or setting forth with particularity the reasons for denying or rejecting the opposition raised.

2001.6 Whenever an affected utility does not file a timely opposition, the Agency Administrator shall forward the recommended determination and proposed order, a draft cover letter to the Commission, and the official written record to the People's Counsel within six (6) business days of the date on which the determination was submitted to the affected utility.

2001.7 Whenever the affected utility does file a timely opposition, the Agency Administrator shall forward the recommended determination and the official record to the People's Counsel within nine (9) business days of the date on which the recommended determination was submitted to the affected utility.

2001.8 The Agency Administrator shall, upon submission of a recommended determination to the People's Counsel, certify as to the accuracy and completeness of the record submitted.

2001.9 The Agency Administrator shall, on the same date, provide to the affected utility the recommended determination which was submitted to the People's Counsel.

SOURCE: Final Rulemaking published at 32 DCR 5616 (October 4, 1985).