METROPOLITAN EDISON COMPANY - Pennsylvania Public Utility ...

Enhance the systems and tools for prioritizing, tracking and reportingRevenue Protection Services (RPS) cases. System tools for prioritizing,tracking and reporting vendor assigned accounts were developed for thevendor pilot program using an Access database. However, after the pilotprogram ended, the use of the database was discontinued. The Director,Revenue Operations indicated that the contractor pilot program identifieditems that Company processes had already identified. It was expectedthat the pilot program would uncover theft of FirstEnergy’s services, butonly one finding of theft was identified. Based on this single theftdiscovery, FirstEnergy decided that use of the contractor was not costjustified.Evaluate meter tampering technology and vendors to identify Commercialand Industrial losses and issues for all states and all companies. A pilotprogram to identify and evaluate meter tampering technology via use of anoutside vendor was initiated, developed and tested. The project leadmonitored the effectiveness of the program and made recommendationsfor changes as necessary. Although the pilot program ended duringMarch 2009, the FE-PA Companies are conducting field audits to identifymeter and billing discrepancies and irregular conditions are beingevaluated for the appropriate rebilling or adjustment opportunities.FirstEnergy admitted that prior to the revenue protection assessment in2006 processes were highly fractured, decentralized and inconsistent, and that ittook steps to make processes more consistent to enhance the RevenueProtection process. FirstEnergy believes that it has evolved towards a lesscentralized, but still consistent, approach to provide revenue protection that reliesless on a dedicated workforce (i.e., the hiring of two corporate coordinators) andmore on fully leveraging existing staff and processes. This is consistent withFirstEnergy’s revenue protection policies and procedures.It is the responsibility of all FirstEnergy employees to work together toidentify and follow up on suspected cases of tampering, theft of service, fraud,and all potential deceptive acts. FirstEnergy’s policies and procedures addresshow employees should report cases of tampering, theft of service, fraud, anddeceptive acts by defining reporting roles, functions and processes relative toMeter Reading, Revenue Operations, and Meter Services, as well as proceduresfor handling alleged identity theft/fraud.FirstEnergy expressed an intention to continue to evolve the revenueprotection processes in an effort to leverage the greatest benefit from the leastlevel of cost. The Director, Revenue Operations indicated that FirstEnergy seesthe deterring of meter tampering as more of a day-to-day issue and that theCompany must weigh the costs of any specific solution against the benefits to bederived. FirstEnergy assesses each problem as it arises, mindful of the costbenefitratio. Toward that end, the Company indicated that FirstEnergy changedthe locking device on meters, upgraded meter locking rings and employed alocking device allowing a bank of meters to be secured, such as in an apartment- 82 -