Press Release

PUC Audit Shows United Water Could See $443,000 in Annual, One-Time Savings

Published on 12/20/2007

Filed under: Water and Wastewater

HARRISBURG – According to an audit report released today by the Pennsylvania Public Utility Commission (PUC), United Water Pennsylvania could experience yearly savings up to $230,000 and one-time savings of up to $213,000 by implementing new recommendations from the Commission’s Bureau of Audits. 

The Commission 4-0 to make the audit report and United’s implementation plan public.  The PUC Bureau of Audits’ Management Efficiency Investigation (MEI) examined United’s progress in implementing recommendations from an August 2004 Focused Management and Operations Audit. The Commission found that United has effectively implemented 4 of the 12 recommendations reviewed and has taken some action on 8 other recommendations from the 2004 audit. 

The Commission directed the company to proceed with its plan to implement the 10 follow-up recommendations in the audit report. United’s implementation plan indicated that the company accepted seven of the PUC staff’s follow-up recommendations and partially accepted the remaining three.  Furthermore, the company reported that it has already fully implemented three and partially implemented one of the follow-up recommendations.

Some of the areas recommended for further improvement include:

• Strive to reduce the statewide lost water to no more than the Commission guidelines of 20 percent;
• Accelerate the main replacement program to achieve main replacement rates of approximately 100 to 120 years;
• Strive to ensure all emergency preparedness plans and procedures are complete, up-to-date and site specific;
• Strive to increase inventory turnover levels by reducing excess inventory and establishing inventory turnover goals;
• Update inter-company allocation data on an annual basis;
• Implement procedures that will enable the Company to keep its vendor list updated with minority, women and persons with disabilities owned business enterprise certified vendors and track the dollar value of purchases made from these vendors; and
• Prepare and file annual diversity reports with the Commission according to the most recent guidelines.

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-06MEI021

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