Press Release

PUC Audit Recommendations to Peoples Natural Gas Co. Could Save Up To $14.3 Million Annually

Published on 3/11/2010

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released a report on the Focused Management and Operations Audit of Peoples Natural Gas Co. that contained recommendations that could save the company up to $14.3 million annually.

The Commission voted 4-0 to make the audit report and the company’s implementation plan public.  Vice Chairman Tyrone J. Christy issued a statement. The Focused Management and Operations Audit analyzed and evaluated management performance in nine areas.  The audit was conducted by the PUC’s Bureau of Audits Staff.

The audit makes 22 recommendations to the company for improvement.  The company’s implementation plan accepted 21 recommendations and indicated partial acceptance of the remaining recommendation. The audit recommendations include:

• Identify major sources of unaccounted-for gas, implement programs to reduce the amount of unaccounted for gas in the system and establish reduction goals, which could save up to $13.2 million annually;
• Develop more appropriate unaccounted-for gas calculation and allocation methodologies and utilize them to accurately report unaccounted-for gas in the PUC annual report, U.S. Department of Transportation annual report and other PUC filings;
• Strive to reduce facility damage by effectively modifying, tracking and enforcing the damage prevention program, determining proper line-marking procedures and training company and contracted personnel in the damage prevention program and proper line-marking procedures;
• Expedite the replacement of bare steel facilities within the distribution system infrastructure;
• Reduce billing errors by developing more accurate tracking to determine the more significant causes and implementing appropriate process and procedure improvements;
• Initiate actions to increase collections success by properly tracking collections by collection agency, by active and inactive accounts, and initiating necessary changes to improve the collection process; and
• Reduce long-term arrearages by enhancing current policies and procedures as appropriate.

Dominion Peoples provides natural gas service to about 360,000 homes in central and western Pennsylvania.

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 No. D-2009-2149012

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