Press Release

PUC Audit Shows Aqua Pennsylvania Could See $2.14 Million in Annual, One-Time Savings

Published on 11/9/2006

Filed under: Water and Wastewater

HARRISBURG – According to an audit report released today by the Pennsylvania Public Utility Commission (PUC), Aqua Pennsylvania Inc. could experience a yearly savings between $1.1 million to $1.2 million and a one-time savings of $890,000 by implementing new recommendations from the Commission’s Bureau of Audits.

           The Commission voted to make the management audit report public. Management audits determine the extent to which a utility has contained costs, developed reasonable long and short-range plans for the company’s continued operations, provided adequate service to its customers and provided proper management and organizational structure. The Commission directed the company to proceed with its plan to implement the 27 recommendations in the audit report.

            Outlined below are some of the recommendations that the PUC’s Bureau of Audits made:

• Revise the polices and procedures used to calculate and allocate the overhead costs associated with employee labor provided to other affiliates;
• Develop and implement written polices and procedures to specify how and when the applicable costs associated with services provided by Aqua Services to its unregulated affiliates are to be captured and allocated. Annually, review the applicability of the allocators used and adjust as necessary;
• Strive to reduce inventory to an average of a three-month supply on-hand;
• Reduce unaccounted for water volumes in certain divisions; and
• Reduce recordable and lost time accident rates.

           Aqua Pennsylvania has submitted an Implementation Plan accepting 23 of the 27 recommendations and partially accepting on the remaining four recommendations. The company has already completed two of the 27 recommendations and plans to implement the majority of the remaining recommendations by the end of the first quarter of 2008.         

          The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

          For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No. D-05MGT022

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