Summary

This audit focused on the inspection and evaluation processes utilized by the Commission for electric, gas, and telecommunication utilities.  Our audit also included a review of the Commission’s cost allocation process and the use and assignment of cell phones and other wireless devices.  Our audit included the period July 2005 through February 2007 and selected actions taken through June 2007.  Our audit disclosed:

Inspections of Electric Utilities

Finding No. 1:     Improvements were needed related to the methodology used for electric utility inspections.

Finding No. 2:     The E-Safe Program, utilized by the Commission to track electric utility work order inspections, did not contain sufficient edit checks to ensure accurate data input.  Also, procedures relating to the timely recording of inspections into E-Safe needed improvement.

Inspections of Gas Utilities

Finding No. 3:     For gas utility inspections, the Standard Operating Procedures (SOPs) and inspection checklists contained incorrect legal citations, and in some instances, did not reflect current inspection practices.

Service Quality Evaluations of Telecommunications Companies

Finding No. 4:     Documentation supporting the Commission’s conduct of service quality evaluations was not always on file.

Allocation of Commission Operating Costs

Finding No. 5:     Improvements should be made in the methodology used to allocate Commission costs to the industries it regulates.

Wireless Communication Devices

Finding No. 6:     The Commission did not have policies and procedures in place to document the business use of wireless communication devices.

The Commission's response is included as Appendix B of this report.