Pennsylvania PUC submits response to gas well impact fee performance audit

Published on December 09, 2016 by Daily Energy Insider Reports

The Pennsylvania Public Utility Commission (PUC) submitted a response to the Pennsylvania Department of the Auditor General on Tuesday, following a performance audit of the PUC in relation to its handling of unconventional gas well impact fees.

Pennsylvania’s unconventional gas well impact fee program was launched five years ago, with the passage of Act 13 of 2012, which obligated the PUC to collect and distribute more than $1 billion in impact fees to counties, municipalities, and other organizations.

“I want to thank the Auditor General’s staff for their courtesy, open dialogue and professionalism throughout the entire audit process,” PUC Chair Gladys M. Brown said.

“Since the inception of this program, the PUC has been focused on the mission we were given – to oversee the collection and distribution of more than $1 billion in impact fees to counties, municipalities and other organizations across Pennsylvania as set forth in the Act. The work involved in calculating these annual distributions is complex, and, as noted in the Performance Audit findings, ‘PUC appears to have accurately distributed the impact fees to the conservation districts, state agencies, and counties in accordance with the law,’” she said.

The PUC submitted a letter to the auditor general containing a point-by-point response to the audit, indicating general agreement with the findings, and offering comment on specific recommendations with which the PUC disagreed.

“The commission’s primary mission regarding this program has been to correctly interpret Act 13 in order to ensure the accurate calculation and disbursement of Impact Fee funds,” Brown said.