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CPUC Releases Audit of PG&E Rule 20A Undergrounding Program


Six Quotes from the Audit Report

"The [Audit] revealed lack of controls, evidence of inconsistent or failure in implementation of existing controls, operating ineffectiveness, and lack of proper integration of the system of controls necessary for proper the PG&E Rule 20A Program. function and management of the PG&E Rule 20A Program ... evidence this finding included missing documentation, failure to perform reconciliations, failure to timely identify and correct errors, inconsistent application of internal protocols, ability to overwrite documents figures necessary to maintain for reporting and review.."


"PG&E underspent significantly on the Rule 20A Program compared to the expenditures imbedded in PG&E rates"


"Lack of spending on Rule 20A Program was due to the reprioritization of funds to other PG&E programs."


"PG&E's reprioritization of funds and resources led to delays and increased costs which were not tracked by the Company and is likely ta contributing factor to the relatively high overall conversion costs per mile that PG&E demonstrated during the audit period."


"Conversion costs per mile of Rule 20A projects demonstrates that the costs to ratepayers of PG&Es Rule 20A Program were high relative to industry standards, and were increasing over the audit period."


"Performance of the Rule 20A Program during the audit period declined and purported process improvement initiatives by PG&E have not increased program performance."


To read the full audit report open the "Major References" Tab at BCUU's website: berkeleyundergrounding.com and click on the button labeled: "PG&E Audit Report". 

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