Press Release

PUC Issues Management Efficiency Investigation Report for UGI Utilities

Published on 5/18/2023

Filed under: Electric Gas

Report Tracks UGI’s Progress Implementing Recommendations Made During a Previous PUC Management and Operations Audit

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released a report on a Management Efficiency Investigation (MEI) of UGI Utilities, which provides natural gas and/or

electric services to approximately 740,000 customers in 45 counties across Pennsylvania.

The Commission voted 5-0 to make the MEI report public, along with the publication of an implementation plan submitted by UGI.

This most recent report focuses on UGI’s progress in implementing 23 of the recommendations that were made as part of a 2019 Management and Operations Audit of UGI, along with UGI’s compliance with PUC regulations regarding physical security, cybersecurity, emergency response, and business continuity plans.

PUC auditors found that UGI Utilities effectively or substantially implemented 18 of the earlier recommendations and has taken steps toward addressing the remaining five items.

Notable improvements highlighted in the audit report include:

• Reducing the number of third-party damages to company infrastructure.
• Increasing spending on capital replacements, resulting in a decrease in Class A leaks.
• Constructing a state-of-the-art training and operations center.
• Creating and revising many aspects of physical security, business continuity, emergency response, and cybersecurity plans.
• Conducting security assessments for physical buildings and cybersecurity.

The MEI report also identified opportunities for further improvement, including:

• Enhancing the process for recording damages and related collection efforts.
• Improving, as appropriate, termination and collection processes including decreasing non-access accounts.
• Increasing staffing levels and reducing turnover rates for Customer Care Representatives.
• Utilizing annual market studies to assess compensation for Customer Care Representatives.
• Developing a process to follow national guidelines for services and costs provided by affiliates.
• Preparing a new affiliated interest agreement that adequately describes transactions between affiliates and obtain Commission approval.
• Updating the company’s Cost Allocation Manual based on the current organization structure.

According to the implementation plan submitted by UGI, they agree with 10 of the additional recommendations made by the PUC’s auditors, with implementation of most items expected to be completed within the next year.

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-2022-3032778

Contact:

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