Press Release

PUC Issues Audit Management Recommendations to The Peoples Companies

Published on 12/8/2016

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 Company (Peoples Gas), Peoples Gas Company – Equitable Division (Equitable Division), and Peoples TWP collectively referred to as The Peoples Companies or Companies, that could save the Companies an estimated $329,000 in annual savings.

The Commission voted 5-0 to make the Audit Report and the Companies’ Implementation Plan public. The Focused Management and Operations Audit analyzed and evaluated management performance in 11 functional areas. The audit was conducted by the PUC’s Bureau of Audits.  The Audit Report makes 21 recommendations to The Peoples Companies for improvement. The Companies indicated acceptance of all 21 recommendations in its Implementation Plan.  Some of the more notable recommendations include:

• Expedite the replacement of unprotected bare steel pipe to ensure Long Term Infrastructure Improvement Plan (LTIIP) targets are met for each of the Peoples Companies;
• Develop a staffing plan that accounts for the pending retirements while addressing the need for additional qualified personnel to perform all field operations activities and ensure the completion of future LTIIP pipeline replacement projects;
• File revised affiliated interest agreements that accurately describe the transactions and cost allocation of services provided between the Peoples Companies and their affiliates;
• Develop a cost allocation manual, distribute it to appropriate employees, and provide periodic training on proper time allocation and expense to all Peoples Companies’ employees, in order to ensure consistent application of cost allocation policies and procedures among all affiliates;
• Develop and implement an Emergency Response Improvement Plan that addresses controllable causes to excessive emergency dispatch and response times to conform to merger commitments;
• Increase third-party line hit damage collection performance by transferring the responsibilities to the General Counsel to actively pursue and litigate damage claims;
• Accelerate efforts to eliminate inside meter sets to comply with PUC regulations;
• Implement AMR/smart meter technology as planned to minimize meter reading and billing errors; and
• Expedite the implementation of a uniform theft of service program for the Peoples Companies.

In the Implementation Plan, the Companies report that the vast majority of the recommendations will be implemented by December 2017. The Peoples Companies provide natural gas service to approximately 700,000 customers within 18 counties in western Pennsylvania.

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 Nos. D-2015-2485264, D-2015-2485265, D-2015-2485266

Contact:

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