Press Release

PUC 2018-19 Investigations Identified Nearly $1.8 Million in Annual Savings, $60.5 Million in One-Time Savings for Utilities & Consumers

Published on 10/24/2019

Filed under: Electric Gas Water and Wastewater

HARRISBURG – Recommendations from the Pennsylvania Public Utility Commission’s (PUC’s) Bureau of Audits identified nearly $1.8 million in annual savings from audits of utilities completed in the 2018 – 2019 Fiscal Year ending June 30th and $60.5 million in achieved one-time savings from previously conducted audits on utilities – helping to ensure that rates paid by consumers are fair and reasonable.

The Commission voted 5-0 to publish its 2018-19 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 Bureau of Audits represents the Commission’s frontline in economic regulation, assuring that utilities’ operations are compliant with Commission directives while also evaluating operations for increased efficiencies,” noted PUC Chairman Gladys Brown Dutrieuille in a statement at today’s public meeting. “I would like to take the time to commend the Bureau for the work it has done over the course of the 18/19 Fiscal Year.”

During Fiscal Year 2018-19, the Bureau of Audits completed MEIs which evaluated the implementation efforts of Metropolitan Edison, Pennsylvania Electric, Pennsylvania Power, and West Penn Power companies; Pennsylvania American Water Company; and Philadelphia Gas Works. 

The MEIs evaluated a combined total of 127 recommendations from prior MAs and the companies’ emergency preparedness efforts - determining that 51 (40%) of prior recommendations reviewed had been effectively implemented, and that the companies had taken some action on 76 remaining recommendations.  Lastly, the companies could realize $2.6 million in annual savings by implementing the further MEI recommendations.

In addition to the audit results, this year’s report also noted several special projects undertaken by the Bureau of Audits – highlighted by the first ever review of Uber’s driver background check process.  Following the detailed review, the Bureau of Audits made seven major recommendations for improvements related to background checks and rider safety.

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.

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Docket No.:   D-2019-3013109

Contact:

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