Audit of National Fuel Gas Distribution Co. management and operations to begin

The New York State Public Service Commission will conduct a management and operations audit of National Fuel Gas Distribution Corporation’s gas utility in western New York.

The audit will examine functions, processes, systems, and organizations, and past performance with the goal of improving future performance for the utility.

“The auditing of a utility’s management and operations is an essential part of our regulatory oversight,” Commission Chair John Rhodes said. In recent years, the commission has also instituted two statewide operations audits of other large investor-owned utilities in New York. “This management and operations audit will be thorough and it will focus on identifying improvements in the utility’s management and operational efficiencies for the benefit of its customers,” he added.

The commission will put out a Request for Proposals for an independent third party consulting firm to conduct the audit.

The commission says the consulting firm should analyze current and historical information to gain an understanding of the company. The goal is to drive better performance for customers.

The commission expects to select an auditor by February 2019. The field work is expected to begin in March 2019. A final report is anticipated in March 2020.

This is the second management and operations audit of NFG in the past five years. NFG serves roughly 530,400 natural gas customers in Western New York.