Press Release

PUC Audit Makes Management Recommendations to United Water Co.

Published on 1/13/2011

Filed under: Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released a report on the Focused Management and Operations Audit of United Water Pennsylvania, Inc. that contained recommendations that could save the Company $315,500 annually and provide a one-time savings of $57,000.

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 10 functional areas.  The audit was conducted by the PUC’s Bureau of Audits Staff.

The audit makes 17 recommendations to the company for improvement.  The Company indicated acceptance of 16 recommendations in its Implementation Plan and rejection of one.

The accepted audit recommendations included:

• Correct the inventory turnover calculation and strive to achieve an inventory turnover of at least 2.0.
• Establish emergency stock and eliminate obsolete material
• Enhance automation of the materials management system, document procedures, and strive to eliminate parts of the current process that may cause errors
• Improve inventory accuracy and implement a cycle counting procedure
• Accelerate the main replacement program to achieve long range main replacement rates of approximately 100 to 120 years
• Develop a more proactive main replacement program
• Strive to reduce Unaccounted for Water (UFW) to or below Commission guidelines of 20 percent.

The company provides water service to approximately 56,000 customers in portions of eight Pennsylvania Counties including Cumberland, Columbia, Dauphin, Luzerne, Perry, Schuylkill, Wyoming and York. 

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-2010-2150875

Contact:

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