Press Release

WASHINGTON, D.C. -- Addressing a national panel, "Lesson Learned from the Enron Experience: How Will It Affect Regulation?" Pennsylvania Public Utility Commission (PUC) Chairman Glen R. Thomas today announced a PUC review of the current auditing practices of major Pennsylvania utilities, and urged other state and federal regulators to take similar steps in their jurisdictions.

"Pennsylvania public utilities in our post-competition Pennsylvania are among the best in the nation," said Chairman Thomas, addressing about 500 state and federal utility commissioners and their staffs, and industry and consumer representatives at the National Association of Regulatory Utility Commissioners’ Winter Meeting. "We want to keep it that way. While we have always conducted management audits of our utilities, the Enron case tells us we must do more. We will take a hard and comprehensive look -- codes of conduct, financial reporting, external and internal auditing, and limits placed on internal auditing by senior management. We want to find any problems so we can correct them before they become a crisis -- or an ‘Enron.’

"I urge my fellow regulators to take these same steps. After all, these are public utilities. And we must make sure they are accountable to the public."

The PUC’s Bureau of Audits is sending surveys about auditing procedures to major electric, natural gas, telephone utilities and water utilities. Pennsylvania is a national leader both for electric, natural gas and telephone competition, and for water regulation.

"Regulators need to take our market-monitoring responsibilities very seriously," Chairman Thomas said. "That’s why the Pennsylvania PUC’s Law Bureau is investigating a utility who allegedly manipulated our markets. Our consumers demand that markets are fair. And that is why we are taking steps to evaluate the current auditing practices of major Pennsylvania public utilities. In most cases, we are not talking about regulation, but cooperation. We will work to support those utilities who have already begun to look inward. And, by varying degrees, we will encourage others to follow their lead."

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition.

Chairman Thomas’s complete speech at NARUC's Winter Meeting.