Pennsylvania Public Utility Commission

11/07/2024 | Press release | Distributed by Public on 11/07/2024 12:04

PUC Issues Management and Operations Audit for National Fuel Gas Distribution Corporation

PUC Issues Management and Operations Audit for National Fuel Gas Distribution Corporation

Published on 11/7/2024

Filed under: Gas

Audit Identified 23 Recommendations for Improvements in Management and Operations and Potential $3.1 Million in Annual Cost Savings

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) has released the results of a detailed Management and Operations Audit of the National Fuel Gas Distribution Corporation (NFG), which includes 23 recommendations for improving operations at NFG and details a potential annual cost savings of approximately $3.1 million.

The review examined key functional areas at NFG, which serves approximately 214,000 customers in 14 counties across northwestern Pennsylvania.

Audit Report and Recommendations

The PUC audit report includes recommendations that identify operational and service improvements for NFG customers, including several significant items:

  • Analyzing and improving the billing process to reduce billing lag and decrease associated interest expenses.
  • Acquiring and implementing automated metering technology.
  • Discontinuing the collection of physical forms of payment on customer's premises.
  • Tracking billing adjustments by reason, to identify potential process improvements and decrease the number of adjustments.
  • Identifying safety and security measures needed at each NFG facility in Pennsylvania and install the appropriate equipment.
  • Analyzing safety incident root cause data to identify areas of improvement for training and safety programs.

As part of the recommendations for enhancing operational issues and customer service, the PUC audit report identified approximately $3.1 million in potential annual savings, which if effectively implemented will yield an overall cost savings for ratepayers.

NFG's implementation plan accepts 20 of the recommendations detailed in the PUC audit report, partially agrees with two other recommendations, and rejects one of the recommendations.

NFG will submit reports on the progress of their implementation efforts for the next three years, to be filed annually by October 1st. Additionally, the PUC's audit staff will examine NFG's implementation efforts related to the more significant recommendations during the next PUC Management Efficiency Investigation, expected to begin in 2026.

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.

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Docket No.: D-2023-3040107

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