HARRISBURG, PA — Pennsylvania regulators say an investigation into PECO Energy Company’s operations found improvements in some areas but also identified ongoing problems with billing systems, customer service performance, and employee overtime levels that could affect customers.
What This Means for You
- Regulators say PECO customers experienced billing delays and long call wait times after a new billing system launched.
- The utility has implemented several efficiency improvements but still faces operational concerns.
- State regulators say they will continue monitoring PECO’s progress.
The Pennsylvania Public Utility Commission voted 5-0 during its Thursday public meeting to release the results of a Management Efficiency Investigation reviewing PECO’s progress implementing recommendations from a 2022 management and operations audit.
The investigation examined whether the Philadelphia-based utility improved efficiency, reliability, and customer service following the earlier audit.
Billing System Problems Identified
Auditors found ongoing issues with PECO’s customer information system — the internal platform used to manage customer accounts and billing.
Technical problems linked to the system have contributed to delayed bills, billing errors, and other customer service challenges for some customers, according to the report.
PUC Chairman Steve DeFrank said the system’s launch in 2024 was followed by a sharp increase in customer call wait times.
“After the system was implemented in 2024, call wait times rose dramatically — reaching more than 200 seconds compared to a goal of 18 seconds — and some customers experienced delayed or irregular billing,” DeFrank said. “Those outcomes are unacceptable.”
Auditors recommended that PECO continue identifying and correcting technical problems in the billing platform and strengthen oversight of billing operations.
Overtime and Operating Cost Concerns
The investigation also raised concerns about high overtime levels among certain employees.
Auditors said excessive overtime can increase operating costs and raise safety risks for workers.
“I am also deeply concerned about the excessive overtime identified in this investigation,” DeFrank said. “Employees working extreme hours raises safety concerns and can increase operating costs that ultimately affect ratepayers.”
The report recommends that PECO evaluate staffing levels, improve workforce planning, and consider limits on maximum overtime hours to reduce those risks.
Areas Where PECO Showed Progress
Despite the concerns, regulators said the company has made measurable progress since the original 2022 audit.
Among the improvements identified in the investigation:
- Electric system reliability improved, with performance metrics exceeding PUC benchmarks.
- Outages caused by equipment failures declined.
- The company established a surcharge credit returning revenue from fiber assets to electric customers through the end of 2025.
- New initiatives were introduced to improve retention among customer service employees.
Additional Recommendations and Oversight
The investigation reviewed 19 recommendations from the original audit and found that PECO had fully or substantially implemented nine of them while taking action on the remainder.
The report also issued 18 follow-up recommendations aimed at improving operations and internal oversight.
These include strengthening cost allocation practices between PECO and affiliated companies, improving mapping and location data for underground gas infrastructure, enhancing safety programs, and reducing vehicle accidents.
Auditors also reviewed PECO’s compliance with regulations covering cybersecurity, physical security, emergency response planning, and business continuity.
Background on the Utility
PECO provides electric service to about 1.67 million customers and natural gas service to about 537,000 customers across seven counties in southeastern Pennsylvania.
The PUC conducts management and operations audits of major utilities to identify opportunities for operational improvements and better service for customers.
The full investigation report is available at:
https://www.puc.pa.gov/pcdocs/1917812.pdf
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