PUC directs FirstEnergy to resubmit implementation plan following audit report

PUC Audit of FirstEnergy PA mandates a detailed implementation plan, compliance reporting, and utility oversight to improve reliability and customer service, with timelines, technology investments, staffing, and cost savings for grid performance and protection.

The Pennsylvania Public Utility Commission PUC recently directed 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, to resubmit a more detailed implementation plan following the Feb. 12 release of its Focused Management and Operations Audit.

The Commission voted to approve the motion by PUC Commissioner James H. Cawley, which also directs FirstEnergy in line with FERC grid reliability orders to provide additional reports for a period of three years in order to track the effectiveness of its progress in correcting many of its operational and customer service performance issues identified in the audit.

“Because we have received similar responses to previous audit recommendations in the past with little meaningful improvement, it is imperative that FirstEnergy develop more robust responses to these recommendations by building on its support for Pennsylvania initiatives across programs,” said Commissioner Cawley in his motion. “I propose that the Companies be directed to provide a more detailed Implementation Plan that provides specific descriptions for investments, process improvements, increased staffing, use of specified technologies, and timelines which will provide binding commitments by the Companies towards rapid compliance with reliability and customer service deficiencies.”

The Focused Management and Operations Audit, conducted by the PUC’s Bureau of Audits, analyzed and evaluated management performance in 14 functional areas. The Audit Report makes 28 recommendations to the FirstEnergy Pennsylvania Companies for improvement that, as seen in Ohio regulator directives in a related case, if implemented, 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 FirstEnergy Pennsylvania Companies submitted an initial Implementation Plan that indicates that all accepted recommendations will be implemented by the end of 2019, while its Ohio affiliates pursued an electric security plan settlement in a separate case demonstrating broader efforts. Today’s action directs FirstEnergy to work closely with the PUC’s Bureau of Technical Utility Services, the Electric Safety Division of the PUC’s Bureau of Investigation and Enforcement, and the PUC’s Bureau of Consumer Services to provide a more detailed plan within 60 days.

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 as illustrated by a recent bidding process filing from a utility, in an environmentally sound manner.

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