Press Release

PUC Releases Management Efficiency Investigation Report for Columbia Gas of Pennsylvania

Published on 5/18/2017

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released a Management Efficiency Investigation report for Columbia Gas of Pennsylvania Inc. (Columbia Gas) evaluating the implementation of eleven recommendations from a 2013 Focused Management and Operations Audit.

The Commission voted 5-0 today to make public both the audit report and the Columbia Gas Implementation Plan.  The report indicates that the company has effectively or substantially implemented 7 of the 11 prior recommendations that were reviewed, and has taken some action on four remaining recommendations. 

Among the more notable improvements achieved by Columbia Gas are:

• Achieving priority pipe replacement levels consistent with the company’s Long Term Infrastructure Improvement Plan.
• Installation of Mobile Automated Meter Reading has been completed on virtually all active residential meters, significantly reducing the number of meters not read in six and twelve months.
• Successfully tracking to meet the Commission’s regulatory requirement to relocate inside meter sets by Sept. 13, 2034.
• A formal dividend policy has been developed.
• Beginning in 2014, all schedules have been completed fully and accurately in PUC Annual Reports.
• Reduction in the company’s levels of residential gross write-offs to compare more favorably with the panel average of other natural gas distribution companies in Pennsylvania.
• The filling of vacancies identified in the 2013 Management Audit for the Field Operations, Construction, and Engineering departments.

 The four recommendations identified as improvement opportunities by the Commission include:

• Creation of a policy documenting the operations and maintenance budgeting process.
• Establishment of state specific threshold levels or goals for measuring collection agency performance, based on the gross collections as a percentage of amounts placed for collection in Pennsylvania and, if needed, replacement of any poor performing collection agencies.
• Continuation of monitoring overtime metrics established by NiSource to distribute overtime equitably.
• Continuation of periodic reviews of dispatch time performance to monitor the effectiveness of a new resource management software package, and making modifications as needed to ensure emergency dispatches can be completed within 15 minutes.

Columbia Gas provides natural gas service to about 423,000 residential, commercial and industrial customers in portions of 26 counties in western, northwestern, central and southern Pennsylvania.

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.

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 Docket No.: D-2016-2564606

Contact:

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