Press Release

PUC Releases Findings in Pittsburgh-area PA-American Water Investigation, Tentatively Directs Company to Improve Service, Business Practices

Published on 6/21/2007

Filed under: Water and Wastewater

HARRISBURG –  In releasing its investigative report into the Pennsylvania-American Water Co.’s (PAWC) water main breaks in the Pittsburgh area, the Pennsylvania Public Utility Commission (PUC) today tentatively approved a list of action items that direct the company to make several improvements in service and business practices.

“It is my hope that the lessons learned from this investigation will provide the company with the tools they need to avoid these types of problems in the future,” said Commission Chairman Wendell F. Holland who issued a statement on the issue. ”Today’s action provides this company with a list of directions on how we believe they can improve the service to its Pittsburgh-area customers with specific deadlines of when we would like to see them accomplished.”

The Commission voted 4-0 to release the investigative report and tentatively make directives to the company. A copy of the Commission's Order  are available on the Commission's Web site at the following link http://www.puc.state.pa.us/PcDocs/671023.doc.

The company and other interested parties have 15 days to comment on the Commission’s Order. If no comments are filed, the Commission’s Order becomes final with no further action.

According to the report, the Pittsburgh outage was caused by “a sequential break of several large mains in a concentrated area.” The repair of the breaks was aggravated by the location of the mains. The Commission also acknowledged that the company has taken the initiative to begin several positive steps to ensure this type of situation does not occur again.

The Commission directed the company to:

• Reevaluate its staff complement in the Pittsburgh district office on an annual basis;
• Directly contact its customers through bill inserts and direct mail to ensure the company has updated customer information;
• Develop an effective process for providing updates to customers, local officials, emergency services and the media as to the status of main breaks and service interruptions;
• Maintain – at a minimum – daily contact with municipal and state offices in affected areas, using e-mails when possible;
• Meet with affected municipalities and emergency management agencies in the Pittsburgh district within six months to further discuss the appropriate notification requirements;
• Review and update the training of Customer Service Center personnel;
• Establish direct communication with all critical care customers in the Pittsburgh district;
• Complete the reduction of the various pressure zones in the Pittsburgh district;
• Continue efforts to minimize the occurrence of pressure surges originated from the Hay Mine production plant; and
• Adjust the weighting factors in their capital criteria related to main size such that the replacements of small diameter mains are given higher priority.

On Dec. 21, 2006, the Commission initiated an investigation into extended outages that affected about 1,400 PAWC customers and two schools in the Pittsburgh area as well as outages that affected about 2,000 customers in portions of Lackawanna County. The report released today only addressed the Pittsburgh outages. A second report will be issued on the problems in Lackawanna County.

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, or more information about the PUC, visit our Internet homepage www.puc.state.pa.us.

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Docket No. I-00060112

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