Initiation Benefits Rec. Page Time (including Recommendation No. No. Frame $ estimates) Chapter III Corporate Governance – Rotate the external audit firm on a periodic basis or, at a Within III-1 minimum, ensure that the audit firm periodically rotates its 14 Medium 1 year audit manager and audit teams. Chapter IV Executive Management – None. Chapter V Affiliated Interests – None. Chapter VI Financial Management – VI-1 Establish a formal dividend policy. 36 30 days Medium Create a formal policy that documents the Company’s VI-2 36 30 days Medium operations and maintenance budgeting process. Fully and accurately complete all schedules in the Public 7 12 – VI-3 36 Medium Utility Commission Annual Report. months Chapter VII Customer Service – Complete implementation of mobile automated meter reading and enact additional measures as necessary to 3 6 – VII-1 minimize the number of meters not read within six months 52 Medium months and twelve months and that, at a minimum, customer supplied reads are acquired every six months. Accelerate efforts to relocate inside meters sets or, at a Within VII-2 52 Medium minimum, the associated regulators outside the structure. 1 year Strive to minimize write-offs of delinquent accounts Medium 3 6 – VII-3 receivable by exploring potential solutions to enhance the 52 $15,000 months collection efforts. Annual Savings Ensure that delinquent account collection agencies are achieving their performance goals, and as necessary, 3 6 – VII-4 52 Medium replace poor performing agencies with new collection months agencies. Chapter VIII Gas Operations – Strive to maintain the expedited replacement schedule of VIII-1 72 30 days High first generation pipe. Assess high levels of overtime by individual field operations employees and adjust overtime practices, call out 3 6 – VIII-2 72 High procedures, shift work, and/or stand by procedures as months needed. Expedite hiring of vacant operations related positions and timely conduct a study to determine needed staffing in Within VIII-3 72 Medium anticipation of expanded capital projects and field 1 year operations retirements.
Rec. No. Recommendation Page No. Initiation Time Frame Benefits (including $ estimates) Chapter III – Corporate Governance III-1 Rotate the external audit firm on a periodic basis or, at a minimum, ensure that the audit firm periodically rotates its audit manager and audit teams. 14 Within 1 year Medium Chapter IV – Executive Management None. Chapter V – Affiliated Interests None. Chapter VI – Financial Management VI-1 Establish a formal dividend policy. 36 30 days Medium VI-2 Create a formal policy that documents the Company’s operations and maintenance budgeting process. 36 30 days Medium VI-3 Fully and accurately complete all schedules in the Public Utility Commission Annual Report. 36 7 – 12 months Medium Chapter VII – Customer Service VII-1 Complete implementation of mobile automated meter reading and enact additional measures as necessary to minimize the number of meters not read within six months and twelve months and that, at a minimum, customer supplied reads are acquired every six months. 52 3 – 6 months Medium VII-2 Accelerate efforts to relocate inside meters sets or, at a minimum, the associated regulators outside the structure. 52 Within 1 year Medium VII-3 Strive to minimize write-offs of delinquent accounts receivable by exploring potential solutions to enhance the collection efforts. 52 3 – 6 months Medium $15,000 Annual Savings VII-4 Ensure that delinquent account collection agencies are achieving their performance goals, and as necessary, replace poor performing agencies with new collection agencies. 52 3 – 6 months Medium Chapter VIII – Gas Operations VIII-1 Strive to maintain the expedited replacement schedule of first generation pipe. 72 30 days High VIII-2 Assess high levels of overtime by individual field operations employees and adjust overtime practices, call out procedures, shift work, and/or stand by procedures as needed. 72 3 – 6 months High VIII-3 Expedite hiring of vacant operations related positions and timely conduct a study to determine needed staffing in anticipation of expanded capital projects and field operations retirements. 72 Within 1 year Medium
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