HARRISBURG — The Pennsylvania Public Utility Commission has released the results of a detailed management and operations audit of the National Fuel Gas Distribution Corp., 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, including McKean, Elk and Cameron.
The PUC audit report includes recommendations that identify operational and service improvements for NFG customers. One such recommendation was analyzing and improving the billing process to reduce billing lag and decrease associated interest expenses.
Others including the following: acquiring and implementing automated metering technology, discontinuing the collection of physical forms of payment on customer’s premises, and tracking billing adjustments by reason. At the NFG facilities, identifying safety and security measures needed and installing the appropriate equipment, and 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 Oct. 1. 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.