Press Release

PUC Releases Aqua PA Management Efficiency Investigation Report

Published on 9/1/2016

Filed under: Water and Wastewater

      HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released a Management Efficiency Investigation report for Aqua Pennsylvania Inc. (Aqua PA) evaluating the implementation of recommendations from a 2013 Focused Management and Operations Audit.

      The Commission voted 5-0 to make the audit report and Aqua PA’s Implementation Plan public. The report indicates that the company has effectively or substantially implemented eight of the 22 prior recommendations and has taken some action on the remaining 14 recommendations.

Among the more notable improvements achieved by Aqua PA are:

• Improved average inventory turnover rates company-wide, including many smaller satellite warehouse locations;
• Established emergency stock levels for each warehouse and reduced inactive inventory by approximately $77,000 and reduced annual carrying costs by $13,860;
• Expanded the Aqua PA Damage Prevention Manual to include all relevant policies and procedures;
• Updated the Aqua PA Cross Connection Control Manual’
• Conducted an initial internal audit of affiliate transactions and incorporated a review of cost allocations and shared services into its three year audit cycle;
• Developed a set of operating policies and procedures for the Internal Audit Department which helped clarify accountability, expectations, and established consistency for audit plans and reports; and
• Submitted and received Commission approval for a new Affiliated Interest Agreement (AIA) which outlined services and affiliates not included in previous AIA agreements.

The audit report also identified 21 follow-up recommendations for additional improvements, some of which include the following:

• Take corrective action to reduce non-revenue water levels to at least 25% within the Greater PA region which could result in annual savings of approximately $465,000;
• Ensure Emergency Response Plans, Crisis Plans, and Integrated Contingency Plans are annually reviewed and updated;
• Develop and implement a cyber security awareness training program;
• Actively ensure third-party contract compliance with Company security standards;
• Establish methods to improve cost assignment in order to increase the level of costs directly charged between affiliates; and
• Perform a cost benefit analysis to assess the net benefits of automating the Company’s damage prevention program. 

Aqua PA has accepted the 20 follow-up recommendations and accepted in part the other recommendation.

The company provides service to more than 1.4 million residents in 30 counties across 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 shopping.

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Docket Number D-2015-2496112

Contact:

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