Press Release

PUC Releases Management Efficiency Investigation Reports for Citizens Electric Co., Wellsboro Electric Co. and Valley Energy Inc.

Published on 1/26/2017

Filed under: Electric Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released a Management Efficiency Investigation report for Citizens’ Electric Co. of Lewisburg, Wellsboro Electric Co., and  Valley Energy, Inc. (collectively referred to as the C&T Companies) evaluating the implementation of recommendations from a 2014 Focused Management and Operations Audit.

The Commission voted 5-0 today to make the audit report and the C&T Companies Implementation Plan public.  The report indicates that the companies have effectively or substantially implemented 13 of the 18 prior recommendations and has taken some action on the remaining 5 recommendations. 

Among the more notable improvements achieved by the C&T companies are:

• Management incentive compensation/bonus policies have been developed with emphasis on the achievement of established performance objectives or goals.
• Written policies have been developed which require the external audit firm to rotate the managing or engagement partner and lead auditor at least every five years.
• The C&T Enterprises and Valley Energy allocation factors are now reviewed annually, resulting in an appropriate allocation of costs among affiliates.
• Commercial lease agreements between Wellsboro and C&T Enterprises were updated to accurately reflect operating practices.
• The C&T Enterprises call center allocation methodology has been updated to more accurately distribute call center fixed costs.
• Wellsboro Electric and Valley Energy have developed detailed customer service procedures manuals.
• Wellsboro Electric and Valley Energy have launched various social media accounts to assist in customer communications.
• A clearly defined vehicle use policy for employees was adopted by Citizens’ Electric and Wellsboro Electric.
• The C&T Companies now file annual diversity reports with the Commission that meet the 1997 PUC Diversity Filing guidelines.

Citizens’ Electric provides electric distribution service to approximately 5,752 residential customers and approximately 1,127 commercial, industrial and lighting customers in Lewisburg Borough, Buffalo, East Buffalo and Kelly Townships (Union County), as well as West Chillisquaque Township (Northumberland County).

Wellsboro Electric provides electric distribution service to approximately 5,800 residential customers and approximately 1,185 commercial and industrial customers in the Borough of Wellsboro (Tioga County).

Valley Energy provides natural gas service to about 5,856 customers in Athens, Sayre, South Waverly and Towanda boroughs and Athens, North Towanda, Towanda, Ulster and Wysox townships, Bradford County.

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” Pennsylvania Public Utility Commission on Facebook for easy access to information on utility issues.

 # # #

 Docket Nos.: D-2016-2537443

                        D-2016-2537444

                        D-2016-2537445

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov