Press Release
PUC Efficiency Investigation Shows UGI Utilities Inc. and UGI Penn Natural Gas Inc. Could Save Up to $1.8 Million Annually
Published on 10/9/2008
HARRISBURG – According to an audit report released today by the Pennsylvania Public Utility Commission (PUC), UGI Utilities Inc. (UGI) and UGI Penn Natural Gas Inc. (UGI Penn) could realize combined yearly savings up to $1.8 million and one-time savings of up to $240,000 by implementing the recommendations contained in the report.
The Commission voted 5-0 to approve the release of the report and a motion by Vice Chairman Tyrone J. Christy directing Commission staff to open a docketed, non-prosecutory investigation to review the Commission’s jurisdiction over propane distribution systems.
UGI Penn, the former PG Energy company, is now owned by UGI but operated separately. The PUC Bureau of Audits’ Management Efficiency Investigation (MEI) examined UGI’s progress in implementing 20 of the 23 original recommendations from a February 2005 Focused Management and Operations Audit, the companies’ compliance with the order approving the acquisition of PG Energy, and their emergency preparedness.
The auditors found that UGI effectively implemented 10 of the 20 prior recommendations reviewed and has taken some action on the 10 remaining recommendations resulting in realized annual savings of approximately $489,000 and one-time savings of $48,000. Some of the changes made by the companies included:
- Initiating efforts to fully deploy automated meter reading devices to both gas and electric customers;
- Revitalization of its theft of service program;
- Reducing call center staffing requirements;
- Eliminating substation inventory; and
- Providing justification to the Commission for gas beyond the mains systems that have been served with propane for more than five years.
Additionally, the audit report contained 15 follow-up recommendations for improvement, which the companies accepted. The Commission directed the companies to proceed with their plans to implement the follow-up recommendations. The additional recommendations identified quantifiable potential annual cost savings of approximately $1.8 million and a one-time savings estimated at $240,000.
The follow-up recommendations accepted by the companies include:
- Initiating steps to remove long-term individual customers from the gas beyond the main program;
- Completing full deployment of automated meter reading devices;
- Replacing defective cutouts in order to reduce electric outages due to equipment failure;
- Fully complying with recently established tree trimming cycle standards that prescribe a four to eight-year trimming cycle;
- Striving to improve safety performance and consistently meet Electric Division safety goals;
- Completing a feasibility study to determine whether additional consolidation of call centers is appropriate;
- Annually reviewing and updating certain emergency response and physical security plans as appropriate; and
- UGI Penn taking corrective actions in order to improve quality of service performance and achieve the benchmark levels not currently being met, regularly monitoring ongoing service quality, and as necessary taking action to correct an deficiencies that occur.
For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.
# # #
Docket No. D-07MEI005
Contact:
-
Denise McCracken
Senior Communications Specialist
717-787-5722
demccracken@pa.gov
Complaints
Learn how to submit a complaint with a public utility. You can also search existing formal complaints.
Get DetailsSubscribe to Press Releases
Keep track of PUC news and activities with press releases delivered straight to your email inbox.
SubscribeNeed More Help?
If you can't find what you're looking for here, please contact the PA Public Utility Commission. Call us at 1-800-692-7380 or contact us online.
Document Search
Public utility documents available electronically include case dockets, public meeting orders and more.
Filing & Resources
Find utility-related reports, laws and regulations, federal filings, tariffs, procedures and more.
eFILING
Consumers, utilities and attorneys can save time by submitting documents to the PUC electronically.