Press Release

PUC 2019-20 Investigations Identify Utility & Consumer Savings

Published on 10/9/2020

Filed under: Electric Gas Telecommunications Water and Wastewater

$1.3 Million in Annual Savings and $19.7 Million in One-Time Savings from Management Audits & Management Efficiency Investigations

HARRISBURG – Recommendations from the Pennsylvania Public Utility Commission’s (PUC’s) Bureau of Audits identified $1.0 million and $8.6 million in projected annual and one-time savings and $300,000 and $11.1 million in achieved annual and one-time savings from audits and efficiency investigations of utilities completed in the 2019-20 Fiscal Year (ending June 30^th).

The Commission voted 4-0 to publish its 2019-20 annual report on PUC management audits (MAs) and management efficiency investigations (MEIs), which work to identify efficiencies and savings for utilities, including potential improvements in operations, service reliability and safety programs.

Investigations by the PUC’s Bureau of Audits assure that
utilities’ operations are efficient and comply with Commission
directives – helping to ensure that rates paid by consumers
are fair and reasonable and utility service is safe and reliable.

During the 2019-2020 fiscal year, staff from the PUC’s Bureau of Audits completed MAs of Duquesne Light Company; UGI Utilities Inc., UGI Central Penn Gas Inc. and UGI North Penn Gas Inc. (collectively referred to as UGI Utilities); and Citizens Electric, Wellsboro Electric and Valley Energy (collectively referred to as the C&T Companies).  Audits staff also completed MEIs which evaluated the implementation efforts of PPL Electric Utilities, Newtown Artesian Water Company and Columbia Water Company.

The PUC’s MAs resulted in 68 recommendations, of which 66 were accepted by the companies. Additionally, efficiency investigations evaluated a combined total of 73 recommendations from prior MAs and the companies’ emergency preparedness efforts. In cases where implementation of prior recommendations was incomplete or where additional concerns were identified, audit staff developed follow-up recommendations and addressed. 

The Bureau of Audits also continues to work on special projects for the Commission, including a detailed review of the driver background process used by Lyft – which was also released today.  Those recommendations for improvements to Lyft’s background checks and rider safety programs follow a similar 2019 review of Uber.  Collectively, those reports cover the two largest transportation network companies operating in Pennsylvania.

About the PUC

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-2020-3021940

Contact:

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