METROPOLITAN EDISON COMPANY - Pennsylvania Public Utility ...

• Developed and implemented formal access control procedures for gainingaccess to information technology/cyber assets which include an examinationand verification of the initial access authorized for selected users.While these accomplishments are commendable, the Audit Staff has identifiedfurther improvement opportunities in certain areas. In particular, the FE-PA Companiesneed to:• Conduct an analysis of overtime hours for each FE-PA Company and strive tomaintain overtime levels at less than 15% of straight time hours. Placinglinemen on different shifts and/or hiring additional line workers to offset theovertime could result in a net annual savings at Met-Ed, Penelec, and PennPower by approximately $1.2 million, $850,000 and $150,000, respectively.• Develop a process to track and trend historical budgeted staffing levels andcompare them to actual staffing levels while continuing to enhance theForecasting and Planning Process.• Strive to consistently achieve injury Incidence Rate goals by continuing toprovide and improve effective safety training to all employees.• Strive to correct all major deficiencies identified during infrared scans ofsubstations within seven days and all deficiencies identified within 30 days;and submit as an appendix to the Annual Reliability Report to theCommission, a list of deficiencies and major deficiencies not corrected withintheir respective time frames and the reasons they were not timely corrected.• Take additional actions on circuits that stay on the 5% worst performing circuitlist for more than a year, and where it is not cost effective to take immediateaction, develop multi-year action plans to improve overall reliability on thesecircuits.• Strive to answer at least 80% of calls within 30 seconds by fully leveragingthe technology investments made at the Reading Contact Center.• Complete the implementation of the previously approved revenue protectionstrategy or devise a new strategy and plan accordingly.• Complete the rerouting of the FE-PA Companies’ meter reading routes andexplore the benefits of expediting large scale deployment of smart metertechnology. Upon completion of the rerouting project, Penelec should be ableto achieve reductions in meter reading costs per residential meter similar toMet-Ed’s experience from 2005 to 2009, and therefore save approximately$971,000 annually.• Reduce the number of meters not read within 6 and 12 months to achievelevels comparable to other Pennsylvania electric distribution companies.• Modify FirstEnergy Service Company’s Internal Audit Department reportingstructure so that it no longer administratively reports to the FirstEnergy ChiefFinancial Officer.• Revise the Amended & Restated Mutual Assistance Agreement to include allaffiliates with whom the FE-PA Companies transact business and submit it tothe Commission for review and approval.- 4 -