2010 Pennsylvania Code
Title 66 - PUBLIC UTILITIES
Chapter 5 - Powers and Duties
516 - Audits of certain utilities.

     § 516.  Audits of certain utilities.
        (a)  General rule.--The commission shall provide for audits
     of any electric, gas, telephone or water utility whose plant in
     service is valued at not less than $10,000,000. The audits shall
     include an examination of management effectiveness and operating
     efficiency. The commission shall establish procedures for audits
     of the operations of utilities as provided in this section.
     Audits shall be conducted at least once every five years unless
     the commission finds that a specific audit is unnecessary, but
     in no event shall audits be conducted less than once every eight
     years. A summary of the audits mandated by this subsection shall
     be released to the public, and a complete copy of the audits
     shall be provided to the Office of Trial Staff and the Office of
     Consumer Advocate.
        (b)  Management efficiency investigations.--In addition to
     the audits mandated by subsection (a), the commission shall
     appoint a management efficiency investigator who shall
     periodically examine the management effectiveness and operating
     efficiency of all utilities required to be audited under
     subsection (a) and monitor the utility company responses to the
     audits required by subsection (a). For the purposes of carrying
     out the periodic audit required by this subsection and for
     carrying out the monitoring of audits required by subsection
     (a), the commission is hereby empowered to direct the management
     efficiency investigator to conduct such investigations through
     and with teams made up of commission staff and/or independent
     consulting firms; further, the commission may designate specific
     items of management effectiveness and operating efficiency to be
     investigated. The management efficiency investigator shall
     provide an annual report to the commission, the affected
     utility, the Office of Trial Staff and the Office of Consumer
     Advocate detailing the findings of such investigations.
        (c)  Use of independent auditing firms.--The commission may
     require an audit under subsection (a) or (b) to be performed by
     an independent consulting firm. When the commission, under
     either subsection (a) or (b), orders an audit to be performed by
     an independent consulting firm, the commission, after
     consultation with the utility, shall select the firm and require
     the utility to enter into a contract with the firm providing for
     payment of the firm by the utility. The terms of the contract
     shall include all reasonable expenses directly related to the
     performance of the audit or to the management efficiency
     investigation activities of independent consulting firms at the
     utility, as well as their preparation and presentation of
     testimony in any contested litigation which may be undertaken as
     a result of the audit findings under subsection (a) or (b). That
     contract shall require the audit firm to work under the
     direction of the commission.
        (d)  Other powers of commission unaffected.--This section is
     not intended to alter or repeal any existing powers of the
     commission.
     (Dec. 21, 1984, P.L.1240, No.234, eff. 60 days; July 10, 1986,
     P.L.1238, No.114, eff. imd.)

        Cross References.  Section 516 is referred to in sections
     523, 2204 of this title.