Press Release

PUC Releases Columbia Gas Audit Report and Implementation Plan

Published on 7/16/2020

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released a Management and Operations Audit of Columbia Gas of Pennsylvania, Inc. (Columbia Gas) and the company’s implementation plan.

The Commission voted 4-0 to make the audit report and Columbia Gas’ implementation plan public. Columbia Gas submitted an implementation plan responding to each of the auditors’ 18 recommendations. Among the more notable recommendations include:

• Perform and retain documentation of span of control analysis upon completion of the reorganization at year-end 2020.
• Analyze processes where data is being reported on by a different group than those responsible for the business activities to ensure that appropriate levels of communication and review are maintained.
• Formally record and retain minutes of all NiSource Gas Distribution Group (NGD) and Columbia Gas management committee meetings during which corporate governance activities are performed. Alternatively, establish an Executive Committee for the NGD and CPA Boards of Directors, respectively, which would record and retain meeting minutes.
• Develop and implement controls to ensure that borrowing activities comply with regulatory approvals and notification requirements.
• Develop and implement a review schedule to regularly update the NiSource Corporate Services Company (NCSC) Cost Allocation Manual (CAM) consulting the National Association of Regulatory Utility Commissioners (NARUC) Guidelines for Cost Allocations and Affiliate Transactions.
• Review and strengthen internal control subsequent to the NCSC accounting function reorganization.
• Develop and implement cost allocation training for employees subsequent to the review and update of the CAM.
• Revise the Dividend Policy to provide advanced notice, including explanation of rationale, to the Commission whenever a dividend payment would exceed 85% of net income.
• Update the delegation of authority table to include approval levels for internal transactions.
• Revise the Treasury Operations Payment Guidelines, the O&M Policy, the Delegation of Authority Table, and Cash Collections Policy to include a responsibility and scope section.
• Implement various strategies to reduce arrearage levels such as increasing CAP enrollment and effective calculation of internal arrearage data to appropriately monitor and manage arrearage performance.
• Develop and implement net collection goals with which to manage third-party collection efforts by benchmarking with similar utilities.
• Develop and implement a documented theft of service (TOS) program.
• Complete an analysis of the third-party retention application to evaluate program efficacy in reducing customer service representative (CSR) turnover rates by Dec. 31, 2020.
• Analyze influencing factors when developing future safety performance targets to ensure goals are set at challenging, attainable levels while continuing to prioritize the safety culture to bolster continuous improvement toward long-term safety performance goals.

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.

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Docket No.: D-2019-3011582

Contact:

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