PUC 2016-17 Management Audits & Efficiency Investigations Identified $4+ Million in Savings for Utilities & Consumers
October 05, 2017
HARRISBURG – Recommendations included in audits conducted on various regulated utilities by the Pennsylvania Public Utility Commission (PUC) during the past year identified more than $4 million in annual savings – helping to ensure that rates paid by consumers are fair and reasonable.
The Commission voted 4-0 to publish its 2016-17 annual report on PUC management audits (MAs) and management efficiency investigations (MEIs), which work to identify efficiencies and savings for utilities, including potential improvements in operations, service reliability and safety programs.
During Fiscal Year 2016-17, the PUC Bureau of Audits released the MAs of Newtown Artesian Water Company; Suez Water Pennsylvania Inc.; Peoples Gas Company, Peoples Gas Company-Equitable Division, and Peoples Gas TWP, collectively referred to as the Peoples Companies; and PPL Electric Utilities Corporation. These audits identified 185 improvement opportunities, with 178 of the recommendations being voluntarily accepted or partially accepted by these utilities. The quantifiable net annual or recurring benefits from implementing the recommendations in these four MA reports were $3.87 million in annual or recurring savings and $277,000 million in one-time savings.
Additionally, the PUC’s Bureau of Audits completed MEIs which evaluated the implementation efforts of Aqua Pennsylvania, Inc.; Columbia Gas Company; and Citizens’ Electric Company, Wellsboro Electric Company, and Valley Energy Company, referred jointly to as the C&T Companies, with respect to a combined total of 51 recommendations from prior MAs and the companies’ emergency preparedness efforts.
It was determined that 28 or 55% of the prior recommendations reviewed had been effectively implemented and that the companies had taken some action on the 24 remaining recommendations. A total of 30 follow-up recommendations were made by PUC staff, with the companies indicating acceptance or partial acceptance of all 30 of them in their implementation plans.
Total quantifiable net annual or recurring benefits from implementing the MEI follow-up recommendations are estimated at $465,000. Staff also found that the companies are realizing annually recurring savings of $44,000 and one-time savings of $133,000 by implementing the previous management audit recommendations.
The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.
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Docket No.: D-2017-2623947
Pennsylvania Public Utility Commission
P.O. Box 3265, Harrisburg, PA 17105-3265
(717) 787-5722 FAX (717) 787-4193