Press Release

PUC 2013-14 Fiscal Report Announces Management Audits, Efficiency Investigations Realized Savings of Approximately $26 Million Annually

Published on 10/23/2014

Filed under: Electric Gas Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released a 2013-14 annual report on management audits (MAs) and management efficiency investigations (MEIs) that showed that the PUC has helped utilities save millions of dollars through voluntary improvements to operations, service reliability and safety by regulated utility companies.

The Commission voted 5-0 to make the annual report public.

In Fiscal Year 2013-14, the PUC Bureau of Audits released MAs of Citizens’ Electric Co., Wellsboro Electric Co., and Valley Energy Inc. (collectively referred to as the C&T Companies), along with Columbia Gas of PA Inc., and Superior Water Co.  These audits resulted in 41 improvement opportunities with 40 the recommendations being accepted or partially accepted by the companies in their implementation plans and rejection of one recommendation.

The quantifiable recurring annual benefits from implementing the recommendations in the three MAs could save the utilities up to $61,000. The quantifiable one-time savings from implementing recommendations in the three MAs could save the utilities up to $334,600. More specifically, the audit staff estimated that the C&T Companies could save $46,000 annually and realize a one-time savings or benefit of $334,600 million by reducing their inventory levels and achieving higher inventory turnovers.  Additionally, the audit staff found that Columbia could save approximately $15,000 annually by minimizing write-offs of delinquent accounts receivables.

Staff also released MEIs of Newtown Artesian Water Co., Peoples Natural Gas Co. LLC, Peoples Natural Gas Co. LLC – Equitable Division, and United Water Pennsylvania Inc.  The MEIs showed that 26 of the 58 total recommendations from prior MAs that were reviewed  had been effectively implemented and that the companies also had taken some action on all 32 of the remaining recommendations.  

The MEIs found that Peoples Natural Gas is realizing quantifiable savings of approximately $11.1 million annually in avoided purchased gas costs from identifying and reducing major causal factors of unaccounted for gas.  Additionally, Peoples-Equitable Division is realizing annual savings of approximately $14.9 million attributable to: developing cost saving alternative arrangements for natural gas supply (approximately $13.3 million), and reducing unaccounted for gas levels ($750,000).

A total of 36 follow-up recommendations were made, with the companies accepting or partially accepting all of them. More specific information on each of the original audits and investigations can be found at the Commission’s website at under www.puc.pa.gov press releases.

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-2014-2445261

Contact:

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