Press Release

PUC OKs Audit Results, Implementation Plan of a Montgomery County Water Company

Published on 1/11/2007

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved the results of an implementation plan for a focused management and operations audit conducted on Superior Water Co. in Gilbertsville, Montgomery County.

The Commission voted unanimously to make the PUC Bureau of Audit’s report and the company’s implementation plan public. The objective of the audit is to provide an assessment of the company’s management and operations, identify opportunities for improvement and develop recommendations to achieve improvement. The audit contained 14 recommendations. The effective implementation of the recommendations could yield significant qualitative or quantitative benefits for the company and ultimately its ratepayers.

In its implementation plan, the company fully accepted 13 of the recommendations and partially accepted one. According to the company, four of the recommendations have been completed and the majority of the remaining items will be implemented by the end of 2007.

The Commission’s Bureau of Audits recommendation for the company included:

• Expanding the company’s board to include, at minimum, an independent director with financial expertise;
• Establishing policies and procedures for periodically obtaining and evaluating bids and/or prices solicitations for ongoing services such as accounting, legal and insurance;
• Developing and documenting both a short-term contingency plan and a long-term management succession plan for the operations manager position; and
• Establishing a multi-year capital budget that estimates and prioritizes expenditures by project and indicates potential funding sources.

The Commission will conduct a follow-up on the company’s implementation efforts during a future Management Efficiency Investigation.

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-05MGT023

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