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Commission Approves Utility Phase I Draft RFP Management Audit
The District of Columbia Public Service Commission issued an order approving Pepco’s management audit first phase draft RFP with the modification that the audit should: (1) evaluate Pepco’s: (i) “financial performance, including an evaluation of the source of all over and/or under- earnings during the audit period”; (ii) “capital and operational budgeting processes, including an evaluation of performance to include an evaluation of performance compared to Pepco’s construction budget and the Company’s Long-Range Plan during CY 2023 and CY 2024 and an examination of variances exceeding a 10% threshold where the budget exceeds $1 million and a review of internal incentives to control costs and whether rigorous cost-benefit analyses were performed”; (iii) “system planning, to include an evaluation of internal system load forecasting process and its reasonableness”; and (iv) “governance and internal controls, to include the effectiveness of accounting controls”; (2) “evaluate whether and to what extent any duplicative costs are borne by Maryland and the District of Columbia customers”; and (3) “include a field verification of capital installations through a limited number.”
FC1176 (04/13/2023)
(Pepco Electric Distribution Rate Case)
