Press Release

PUC Audit Makes Management Recommendations to FirstEnergy Companies

Published on 2/12/2015

Filed under: Electric

HARRISBURG –The Pennsylvania Public Utility Commission (PUC) today released a report on the Focused Management and Operations Audit of Metropolitan Edison Company (Met-Ed), Pennsylvania Electric Company (Penelec), Pennsylvania Power Company (Penn Power), and West Penn Power Company (West Penn Power), collectively referred to as the FirstEnergy Pennsylvania Companies, that could provide a combined estimated annual cost savings of approximately $3.7 - $3.8 million and a one-time savings of approximately $19.2 million.

The Commission voted 5-0 to make the Audit Report and the Companies’ Implementation Plan public. The Focused Management and Operations Audit analyzed and evaluated management performance in 14 functional areas. The audit was conducted by the PUC’s Bureau of Audits.

The Audit Report makes 28 recommendations to the FirstEnergy Pennsylvania Companies for improvement. The Companies indicated acceptance of 25 recommendations in their Implementation Plan, partial acceptance of one recommendation and rejection of two recommendations.  Some of the more notable recommendations include:

• Establish target goals for metrics used in the Executive Leadership Team Reports and/or Key Performance Indicators that are linked to the Companies’ stated performance objectives and/or other regulatory requirements.
• Improve electric reliability performance at Penelec and Penn Power to achieve, at a minimum, both 12- and 36-month reliability standards and strive to achieve benchmark performance; and implement specific measures for West Penn Power to meet the reliability provisions of the 2010 Joint Petition.
• Conduct a staffing study accounting for future retirements to determine the proper staffing levels of craft workers to reduce overtime to the target level of 15 percent and improve reliability.
• Initiate policies to enforce union contract provisions which require craft worker acceptance of emergency call outs.
• Develop and implement remedial actions that effectively correct the deficiencies of circuits found on the worst performing circuits list such that the circuits do not re-appear on the list for several years.
• Establish a documented Damage Prevention Program to track and measure line hit incidents; recover damages for all line hit incidents; and take proactive measures to mitigate future line hits. 
• Implement measures to improve the Contact Center performance levels including efforts to reduce Customer Service Representative turnover levels.
• Initiate measures to comply with PUC regulations by eliminating and/or substantially reducing the number of meters not read within six- and 12- month periods.
• Monitor all new service installation performance to ensure new service installations are being completed within the targeted deadlines.
• Conduct a safety culture survey in order to identify employee safety related concerns, perceptions, and behaviors and implement training, methodologies, equipment, and ergonomic changes which address the primary causes of accidents at the Companies in order to improve actual performance and ensure safety goals are aligned with corporate objectives.

The FirstEnergy Pennsylvania Companies’ Implementation Plan indicates that all accepted recommendations will be implemented by the end of 2019.

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.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility. “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

###

Docket Nos. D-2013-2365991; D-2013-2365992; D-2013-2365993; D-2013-2365994

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov