Press Release

PUC Audit Shows a Bucks County Water Co. Could Achieve $153,000 in Annual, One-Time Savings by Implementing Previous Recommendations

Published on 8/30/2007

Filed under: Water and Wastewater

HARRISBURG – According to an audit report released today by the Pennsylvania Public Utility Commission (PUC), Newtown Artesian Water Co. has experienced a yearly savings of about $86,000 and one-time savings of $67,000 by implementing new recommendations from the Commission’s Bureau of Audits.  

The Commission voted 5-0 to make the audit report public. Commission Chairman Wendell F. Holland issued a statement. The Commission directed the company to proceed with its plan to implement 10 follow-up recommendations in the audit report. Newtown Artesian serves about 9,600 customers in Bucks County.

The PUC Bureau of Audits’ Management Efficiency Investigation examined the company’s progress in implementing recommendations from an August 2004 Focused Management and Operations Audit, and reviewed their emergency preparedness efforts. 

The Commission found that Newtown Artesian has effectively implemented five of the 13 recommendations reviewed and have taken some action on the remaining eight recommendations from the 2004 audit.  As a result of those implementation efforts, the companies have experienced the $153,000 in combined annual and one-time savings.

Among the more notable improvements achieved by the company include:

• Developed and implemented a comprehensive distribution system valve inspection  and maintenance program;
• Reduced the size of the Board of Directors from seven to five members, resulting in annual savings of about $80,000’
• Adopted a code of ethics that addresses many of the key corporate governance issues;
• Began to conduct a comprehensive lease versus buy analysis when making vehicle purchases; and
• Reduced the fleet by two vehicles as a result of implementing utilization and maintenance reporting practices, resulting in a one-time savings of about $67,000 with annual savings of about $6,000.

The Commission identified areas for further improvement including:

• Compliance with regulations that include development of physical security plans, cyber security plans and business continuity plans;
• Prioritization and implementation of the vulnerability assessment recommendations;
• Continued efforts to contain Board of Directors’ fees;
• Establishment of formal competitive bid/quote policy for purchases of goods and services; and
• Continued implementation of diversity initiatives.

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

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Docket No. D-06MEI033

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