Press Release

PUC Issues Audit Recommendations for PPL Electric Utilities

Published on 12/8/2016

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released a Stratified Management and Operations Audit Report of PPL Electric Utilities Corporation (PPL Electric) that could generate an estimated $3.38 million in annual savings as a result of effective implementation of its recommendations.

The Commission voted 5-0 to make the Audit Report and PPL Electric’s Implementation Plan public. The Stratified Management and Operations Audit analyzed and evaluated management performance in 15 functional areas. The audit was conducted by Vondle & Associates on behalf of the Commission. Access to Final Report Volume 1 and Final Report Volume 2 are available on the PUC’s website.

PUC Chairman Gladys M. Brown issued a statement.

The Audit Report makes a total of 118 recommendations for improvement.

PPL Electric’s implementation plan indicates full acceptance of 72 recommendations, partial acceptance of 40 recommendations, and rejection of six recommendations.

Some of the more notable recommendations include:

• Charter a robust merger synergy initiative as constrained by the regulatory merger conditions and follow a well-established process to achieve merger synergies;
• Consider establishing a conventional corporate money pool and cease the CEP Commerce and CEP Lending relationships;
• Re-evaluate the staff resources that are dedicated to and support the OnTrack program;
• Accelerate the evaluation of the system changes and other implementation requirements that are needed to have phone agents enroll customers in OnTrack;
• Improve OnTrack outsourcing processes and decisions;
• Negotiate comprehensive, arms-length service level agreements for each affiliate relationship and submit them for PUC approval;
• Reevaluate prior ring fencing measures and consider enhancing PPL Electric ring fencing;
• Conduct a comprehensive review of emergency stock and spares at least every two years;
• Take actions to reduce the growth in net write-offs; and
• Conduct a staffing study or participate in a benchmarking study that evaluates staffing levels or labor costs at least every three years; 

PPL Electric maintains over 48,000 miles of power lines and provides service to over 1.4 million customers across 29 counties in central and eastern 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” Pennsylvania Public Utility Commission on Facebook for easy access to information on utility issues.

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Docket No.: D-2016-2576052
 

Contact:

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