Press Release

PUC Audit Shows Potential One-Time Savings up to $375,000 for The York Water Co.

Published on 10/9/2008

Filed under: Water and Wastewater

HARRISBURG – According to a management and operations audit report released today by the Pennsylvania Public Utility Commission (PUC), The York Water Co. could experience a yearly savings from $63,500 to $87,500 and one-time savings estimated from $211,000 to $375,000 by implementing recommendations contained in the audit.

The Commission voted 5-0 to make the audit report public and directed the company to proceed with its plan to implement the recommendations outlined in the report.  The York Water Co. serves 58,490 customers in portions of York and Adams counties.  The PUC Bureau of Audits’ Focused Management and Operations Audit analyzed and evaluated management performance in nine areas.

The audit report makes 13 recommendations on issues that have been identified as needing minor or moderate improvement.  In response to the audit, The York Water Co. submitted an Implementation Plan indicating acceptance of all 13 recommendations. 

Some of the areas recommended for further improvement include:

• Developing and adhering to a proactive long-range component to the main replacement program;
• Accelerating the main replacement program to achieve a main replacement rate of approximately 100 to no more than 120 years;
• Adding an education component to the damage prevention program;
• Enhancing efforts to locate and encourage minority, women and persons with disabilities-owned business enterprises to submit bids for products and services used by York Water;
• Increasing the inventory turnover level;
• Including current PUC contact information in the Emergency Response Plan; and
• Striving to improve collections performance by using more than one collection agency to identify the best performing agencies.

The York Water Co. reports that it has already implemented three recommendations and plans to complete implementation of the remaining 10 accepted recommendations by May 1, 2009.  The Audit Staff will follow-up on the company’s implementation efforts during the next 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-07MGT0004

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov