Press Release

PUC Efficiency Investigation Shows United Water Pennsylvania Inc. Could Realize $398,000 in Annual Savings, $29,000 in One-Time Saving

Published on 9/26/2013

Filed under: Water and Wastewater

HARRISBURG – According to an audit report released today by the Pennsylvania Public Utility Commission (PUC), United Water Pennsylvania Inc. had implemented six of the 16 prior audit recommendations reviewed from a Focused Management and Operations Audit report released in January 2011.

The Commission voted 5-0 to make the audit report and the company’s implementation plan to address those recommendations public. 

The objective of this Management Efficiency Investigation (MEI) was to review and evaluate the effectiveness of United Water’s efforts to implement certain recommendations contained in the Focused Management and Operations Audit report released in January 2011. The scope of this evaluation was limited to the company’s efforts in implementing 16 prior management audit recommendations.

The Audit Staff found that United Water has effectively or substantially implemented six of the 16 prior management audit recommendations reviewed and has taken some action on the remaining ten recommendations. Among the more notable improvements achieved by United Water are:

• Documenting its internal dividend policy;
• Proactively addressing physical security;
• Creating a mechanism to review affiliated interest agreement cost allocations to some extent, annually; and
• Creating and enforcing a confidentiality agreement for employees who handle customer data.

The PUC also identified additional improvement opportunities. In particular, United Water needs to:

• Continue its efforts to reduce unaccounted-for-water levels below the Commission’s guidelines of 20 percent, which could result in annual savings of $278,000 in avoided production costs;
• Accelerate its main replacement program to align with long-term main replacement rates of approximately 100 to 120 years;
• Deploy a more proactive main replacement program;
• Strive to increase inventory turnover which could result in a one-time savings of $95,000 and annual carrying costs of up to $23,500; and
• Establish minimum and maximum levels for inventory items.

United Water provides metered water service to approximately 51,300 residential in portions of Dauphin, Cumberland, Perry, York, Luzerne, Wyoming, Columbia and Schuylkill counties.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner. 

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

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Docket Number D-2012-2340572

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• Press Secretary
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