Press Release

PUC Issues Management and Operations Audit and Implementation Plan for Philadelphia Gas Works

Published on 3/2/2023

Filed under: Gas

Audit Examines Management & Operations and Identifies 32 Recommendation for Improvements

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released the results of a detailed Management and Operations Audit of the Philadelphia Gas Works (PGW), which includes 32 recommendations for improving operations at PGW.

The review examined key functional areas at PGW, which serves approximately 500,000 natural gas customers within the City of Philadelphia. PGW is fully owned by the City of Philadelphia and is the largest municipal owned natural gas distribution utility in the United States.

The Commission voted 5-0 today to release the PGW Audit Report, along with the Implementation Plan that was submitted by PGW to address recommendations in the report.

Audit Report and Recommendations

The PUC audit report includes recommendations that identify operational and service improvements for PGW customers, including:

• Implementing a safety management system and improving safety culture at PGW.
• Accelerating replacement of cast iron pipelines.
• Increasing PGW’s focus on cybersecurity, including a dedicated cybersecurity budget, along with a study of cybersecurity staffing and creation of an executive level cybersecurity leadership position.
• Making greater use of pandemic and low-income resources to help reduce the overall level of outstanding customer balances and maintain outreach efforts to engage payment troubled customers.
• Enhancing safety performance to meet industry standards.

PGW’s implementation plan accepts 26 of the recommendations detailed in the PUC audit report, partially agrees with three other recommendations, and rejects the remaining three recommendations.

The three PUC audit recommendations that were rejected by PGW all related to corporate governance – including streamlining PGW’s corporate governance processes. While PGW maintains that it does not have the sole authority to implement those recommended changes, the PGW implementation plan does indicate that PGW is willing to continue to raise these issues with the Philadelphia Facilities Management Corporation and Philadelphia Gas Commission.

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 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-2022-3030321

Contact:

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