Press Release

PUC 2022-23 Audit Investigations Identify Over $50 Million in Savings for Utilities & Pennsylvania Consumers

Published on 9/21/2023

Filed under: Electric Gas Water and Wastewater

$36.5 Million in Annual Savings and $13.5 Million in One-Time Savings Found by Management Audits & Management Efficiency Investigations

HARRISBURG – Recommendations from the Pennsylvania Public Utility Commission’s (PUC’s) Bureau of Audits identified $36.5 million in projected annual savings and $13.5 million in one-time savings from audits and efficiency investigations of utilities completed in the 2022-23 Fiscal Year (ending June 30^th).

The Commission voted 5-0 today to publish its 2022-23 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.

The thorough examination of utility operations by specialists from the PUC’s Bureau of Audits evaluates compliance with Commission regulations and directives; identifies cost savings and operational efficiencies; and helps to ensure safe and reliable utility service for Pennsylvania consumers and businesses.

During the 2022-2023 fiscal year, staff from the PUC’s Bureau of Audits completed MAs of PECO Energy Company, the Philadelphia Gas Works and the Pittsburgh Water and Sewer Authority. Audits staff also completed a MEI of UGI Utilities, which evaluated UGI’s implementation efforts on recommendations from a previous MA.

The Bureau of Audits’ MAs resulted in 95 recommendations, of which 92 were accepted or accepted in part by the companies. Additionally, the UGI MEI evaluated the implementation of 23 Bureau of Audits recommendations from the prior MA and the companies’ emergency preparedness efforts.  It was determined that 18 of the prior recommendations reviewed had been effectively implemented and that the company had taken some action on the five remaining recommendations.

In cases where implementation of prior recommendations was incomplete or where additional concerns were identified, audit staff developed follow-up recommendations.  A total of 10 follow-up recommendations were made, and all those recommendations were accepted in the utility’s implementation plan.

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-2023-3042338

Contact:

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