Press Release

PUC Audit Makes Management Recommendations to Pike County Light & Power Co.

Published on 1/28/2010

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released a report on the Focused Management and Operations Audit of Pike County Light & Power Co. (PCL&P).

The Commission voted 5-0 to make the audit report and the company’s implementation plan public.  The Focused Management and Operations Audit analyzed and evaluated management performance in six areas.  The audit was conducted by the PUC’s Bureau of Audits Staff.

The audit makes six recommendations to the company for improvement.  The company’s implementation plan accepted all six of the recommendations.

The audit recommendations accepted in full or in part by the company include:

• Filing an updated affiliated interest agreement reflect current corporate structure, affiliate relationship and allocation methodologies;
• Implement mandatory annual refresher training in Standards of Competitive Conduct for employees who have contact or potential contact with PCL&P customers;
• Report the age of natural gas distribution mains and services by decade of installation in the annual Department of Transportation reports;
• Develop a written damage prevention program and document the continuing public education program and incorporate it into the damage prevention program and consistently comply with these programs;
• Develop a policy that prohibits the use of undocumented business agreements with third-party contractors and incorporate the policy into the damage prevention program; and
• Develop a more accurate budgeting process and implementation variances reporting for PCL&P. 

PCL&P reported that it has already implemented one of the recommendations and plans to complete implementation on the remaining recommendations by the third quarter of 2010.  The Commission will conduct a follow up on the company’s implementation efforts during a future management efficiency investigation. 

PCL&P provides electrical service to approximately 4600 customers located in Westfall, Milford and Dingman Townships, and the boroughs of Matamoras and Milford, Pike County.  The company also provides natural gas service to approximately 1200 customers in Westfall Township and Matamoras Borough, Pike 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, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket Number D-2009-2085507

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