Press Release

PUC Makes Management Recommendations to Pike County Light and Power and Leatherstocking Gas Company; Releases Focused Management and Operations Audit

Published on 2/12/2018

Filed under: Electric Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) has released a Focused Management and Operations Audit Report of Pike County Light and Power Company (PCLP) and Leatherstocking Gas Company.

At its Public Meeting on Feb. 8, the Commission voted 5-0 in favor of a motion by Vice Chairman Andrew G. Place, to make the Audit Report and the Implementation Plan public – while also placing additional reporting requirements on the Companies. Focused Management and Operations Audits, performed by the PUC’s Bureau of Audits, analyze and evaluate management performance in various functional areas.

The audit report makes 33 recommendations to the Companies for improvement.  The Companies indicated acceptance of all 33 recommendations in their implementation plan. Some of the more notable recommendations include:

• Accelerate replacement of unprotected bare steel and cast-iron main for PCLP;
• Develop a staffing plan to document the cost-benefit analyses used to support the decision-making process in determining staffing level resources:
• Review, test and update emergency response plans annually;
• Develop physical security plans and review, test and update those plans annually;
• Develop comprehensive business continuity plans and review, test and update them annually; 
• Develop comprehensive cybersecurity plans, and consider utilizing a cybersecurity risk analysis or cyber vulnerability assessment;
• Ensure all charges between affiliates are appropriate, reasonable, documented, and align with the PA PUC-approved affiliated interest agreement;
• Expand the safety manual to include detailed safety topics related to gas and electric operations; and
• Select, purchase, install and test all remaining computer systems required to run and manage PCLP in a timely manner.

Additionally, the Commission directs Pike to file a status report with the Bureaus of Technical Utility Services (TUS), Investigation and Enforcement (I&E), and Audits by July 1, 2018, and adds additional requested information to the existing implementation progress report, due by Feb. 1, 2019.  Each status report shall provide updated information regarding Pike’s implementation of the accepted audit recommendations with a focus on the following:

• Expand Safety Manual to include detailed safety topics related to gas and electric operations.
• Update PCLP’s Storm Response and Restoration Plan and tailor it to PCLP’s available equipment, resources, and capabilities.
• Development of the Emergency Response Plan, Physical Security Plan, Business Continuity Plan, and Cybersecurity Plan.
• Select, purchase, install, and test all remaining computer systems required to run and manage PCLP in a timely manner.
• Develop and periodically update an Electric Operations and Maintenance Manual specific to PCLP’s system. 

The Commission further directs Pike to file a status report with the Commission’s TUS Reliability and Emergency Preparedness Section, I&E, Audits, and the statutory advocates on April 1, 2018, regarding Pike’s completed plan and cost-benefit analysis to support the decision-making process in determining staffing level resources.

Pike is also directed to hold a meeting, during the 4th quarter 2018, at their facilities with staff from TUS and Audits to review their completed plans, and Pike is directed to file a written monthly status report, to the Commission’s Office of Competitive Market Oversight (OCMO), on their Electronic Data Interchange (EDI) capabilities and when they expect to have EDI fully available for electric generation suppliers.

The PUC Bureau of Audits staff plans to follow-up on implementation efforts related to the more significant recommendations during the next Management Efficiency Investigation, which should begin in mid-2020.

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.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.:  
D-2017-2584891
D-2017-2584892

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov