New Performance Audit Urges Public Utilities Commission of Ohio to Make Better Use of Data to Improve Rate-Making, Other Processes

Press Release • Ohio Auditor of State

COLUMBUS - The agency responsible for regulating utilities in the state is not fully gathering data on its operations or leveraging the data it does collect to ultimately benefit the Ohioans affected by its decisions, a recent state audit determined.

The Public Utilities Commission of Ohio (PUCO) also does not have formal plans in place related to strategy, finance or staffing, making it more difficult to ensure the work it is doing aligns effectively with its operational goals.

"PUCO is making decisions each and every day that affect the pocketbooks of Ohioans," Auditor of State Keith Faber said. "There's too much at stake for the commission to disregard the analytical tools that are readily available to it."

The findings were outlined in a performance audit of PUCO, which included a review of the Ohio Power Sitting Board. The report released Tuesday includes recommendations for improving PUCO's operations.

PUCO regulates companies that provide utilities to the public, including electricity, natural gas and telecommunications services. The agency reviews applications for new facilities and infrastructure, analyses utility rates, and conducts other monitoring and enforcement activities.

Under a provision included in the latest biennial state budget, the Ohio Auditor of State's Ohio Performance Team completed a performance audit to review PUCO's operations and offer recommendations to improve the agency's efficiency and effectiveness.

Among other recommendations, Tuesday's report urges PUCO to expand and make better use of the data it collects, noting, "Once PUCO has implemented an effective data collection and monitoring system, the information could be leveraged to better inform a formal strategic plan and to develop specific staffing plans across PUCO's various functions that are based on established, data-driven workload metrics."

The report also notes that the civil penalties related to gas pipeline safety violations are at risk of falling out of sync with standards set in federal regulations, which could lead to future restrictions in PUCO's authority to conduct service monitoring and enforcement activities.

Among other observations, Tuesday's report urges consideration of the consolidation of motor carrier safety and compliance activities under a single agency. PUCO and the Ohio State Highway Patrol currently work together on those issues.

"We should do everything possible to increase safety for motorists," Auditor Faber said. "It's worth exploring whether a single-agency approach to motor carrier safety and compliance would be an improvement."

The full report is available online at https://ohioauditor.gov/auditsearch/search.aspx.

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The Auditor of State's Office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,900 state and local government agencies. Under the direction of Auditor Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government.

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