Press Release

PUC Issues Audit Management Recommendations to PECO Energy Co.

Published on 10/23/2014

Filed under: Electric Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released a report on the Focused Management and Operations Audit of PECO Energy Company (PECO) that could save the Company an estimated $2.9 to $5.7 million in annual savings and a one-time savings of $2.2 to $3.1 million.

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

The Audit Report makes 28 recommendations to PECO for improvement. The Company indicated acceptance of all 28 recommendations in its Implementation Plan.  Some of the more notable recommendations include:

• Reduce overtime levels, specifically non-storm overtime, for Construction and Maintenance and Distribution System Operations
• Reduce gas line hit damages resulting from PECO mapping data errors by mitigating mapping data errors and implementing an aggressive program to accurately locate facilities with an emphasis on plastic pipe
• Accelerate the replacement rate of unprotected bare steel mains through a risk-based/prioritized schedule
• Improve response rates to emergency orders by tracking the reasons for missing trouble order goals and implementing corrective measures as necessary
• Perform periodic staffing level and base workload studies
• Conduct periodic business case studies for contracted services, particularly Contractors of Choice contracts
• Reduce the number of customers experiencing four or more service interruptions a year
• Perform a periodic, comprehensive, system-wide review of emergency and inactive inventory and eliminate inventory, as appropriate
• Improve/expand oversight of contractor performed work

In PECO’s Implementation Plan, the company reports that all recommendations will be implemented by first quarter 2017. PECO provides electric service to approximately 1.6 million customers and natural gas service to about 500,000 natural gas customers within Bucks, Chester, Delaware, Montgomery, Philadelphia and York 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 No. D-2013-2370921

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