HB 2676

                                                 PRINTER'S NO.    3719
                THE GENERAL ASSEMBLY OF PENNSYLVANIA
                    HOUSE BILL
                    No. 2676
                                           Session of
                                             2026
INTRODUCED BY PUGH, M. JONES, OLSOMMER AND WALSH, JUNE 29, 2026
REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND
   UTILITIES, JUNE 29, 2026
                                AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2    Consolidated Statutes, in powers and duties, further
3    providing for audits of certain utilities.
4    The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6    Section 1.    Section 516(a), (b) and (c) of Title 66 of the
7 Pennsylvania Consolidated Statutes are amended to read:
8 § 516.   Audits of certain utilities.
9    (a)   General rule.--The commission shall provide for
10 comprehensive audits of any electric, gas, telephone or water
11 utility whose plant in service is valued at not less than
12 $10,000,000[. The audits shall include an examination of
13 management effectiveness and operating efficiency. The
14 commission] and shall establish procedures for comprehensive
15 audits of the operations of utilities as provided in this
16 section. [Audits] The following apply:
17(1)   Comprehensive audits shall be conducted at least
18    once every [five years unless the commission finds that a
1    specific audit is unnecessary, but in no event shall audits
2    be conducted less than once every eight years.] three years
3    and shall include an assessment of:
4(i)    management performance, effectiveness and
5organizational structure;
6(ii)    operating efficiency and cost-control measures;
7(iii)    internal accounting and financial controls;
8(iv)    capital investment planning and project
9management;
10(v)    customer service performance and billing
11accuracy;
12(vi)    compliance with commission regulations and
13previous audit recommendations; and
14(vii)    any other metric determined by the commission
15as needed.
16(2)   A summary of the comprehensive audits mandated by
17    this subsection shall be released to the public, and a
18    complete copy of the comprehensive audits shall be provided
19    to the Office of Trial Staff and the Office of Consumer
20    Advocate.
21    (b)   Management efficiency investigations.--In addition to
22 the comprehensive audits mandated by subsection (a), the
23 commission shall appoint a management efficiency investigator
24 who shall [periodically], at least once every three years,
25 examine the management effectiveness and operating efficiency of
26 all utilities required to be audited under subsection (a) and
27 monitor the utility company responses to the comprehensive
28 audits required by subsection (a). For the purposes of carrying
29 out the periodic audit required by this subsection and for
30 carrying out the monitoring of comprehensive audits required by
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1 subsection (a), the commission is hereby empowered to direct the
2 management efficiency investigator to conduct such
3 investigations through and with teams made up of commission
4 staff and/or independent [consulting firms] qualified auditors;
5 further, the commission may designate specific items of
6 management effectiveness and operating efficiency to be
7 investigated. The management efficiency investigator shall
8 provide an annual report to the commission, the affected
9 utility, the Office of Trial Staff and the Office of Consumer
10 Advocate detailing the findings of such investigations.
11    (c)   Use of independent auditing firms.--The commission [may]
12 shall require an audit under subsection (a) or (b) to be
13 performed by an independent [consulting firm] qualified auditor.
14 When the commission, under either subsection (a) or (b), orders
15 an audit to be performed by an independent [consulting firm]
16 qualified auditor, the commission, after consultation with the
17 utility, shall select the [firm] auditor and require the utility
18 to enter into a contract with the [firm] auditor providing for
19 payment of the [firm] auditor by the utility. The terms of the
20 contract shall include all reasonable expenses directly related
21 to the performance of the comprehensive audit or to the
22 management efficiency investigation activities of independent
23 [consulting firms] qualified auditors at the utility, as well as
24 their preparation and presentation of testimony in any contested
25 litigation which may be undertaken as a result of the audit
26 findings under subsection (a) or (b). That contract shall
27 require the [audit firm] independent qualified auditor to work
28 under the direction of the commission.
29    * * *
30    Section 2.   This act shall take effect in 60 days.
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