Section 15-522. MANAGEMENT AUDITS

 

522.1The Commission shall periodically (but not less often than every six (6) years) have a full-scale management and operations audit of the company to determine the quality of the performance of management and identify areas for productivity to improvement.

 

522.2A major purpose of the audit shall be to ensure that PEPCO's efforts to optimize fuel costs and improve its fuel-related operations are not resulting in unjustifiably higher capital equipment or other non fuel expenditures (e.g., maintenance) which offset fuel economies or improvements in generating system productivity.

 

522.3The audit shall include a thorough evaluation of the company's management of the fuel procurement process. In particular, the audit shall address the following PEPCO requirements:

 

(a)Planning for fuel requirements;

 

(b)Internal structure and organization of personnel and how their assignment facilitates the continuing assessment of fuel prices and conditions;

 

(c)Fuel source selection procedures;

 

(d)Negotiation and contracting procedures;

 

(e)Incentives for efficient and economical fuel procurement and utilization;

 

(f)Impacts of changing environmental policies and standards on fuel procurement planning and fuel utilization;

 

(g)Research efforts to ensure an effective future fuel procurement strategy;

 

(h)Review of interchange arrangements; and

 

(i)Strategies for identifying and developing cost-effective productivity improvement objectives.

 

522.4The Commission may, in its discretion, conduct an evidentiary proceeding to consider the results and recommendations of the audit.

 

522.5The company shall also submit a copy of any statutorily required annual management audit of PEPCO's fuel procurement policies and procedures. The company shall also file with the Commission copies of any other audits of its operations conducted by any regulatory body.

 

source

Final Rulemaking published at 29 DCR 5130, 5140 (November 19, 1982); as amended by Final Rulemaking published at 42 DCR 5540 (October 6, 1995).