Request for Proposal No. U07-FA-4
REQUEST FOR PROPOSAL NO. U07-FA-4
FINANCIAL AUDIT of the
VECTREN ENERGY DELIVERY COMPANY, INC.
On November 20, 2007, Vectren Energy Delivery of Ohio, Inc. (VEDO, Applicant, or Company) filed an application for an increase in its gas distribution rates in Case Nos. 07-1080-GA-AIR and 07-1081-GA-ALT. Vectren is a natural gas company as defined in Section 4903.03(A)(6), Revised Code, and a public utility as defined in Section 4905.02, Revised Code. As such, Vectren is subject to the jurisdiction of the Public Utilities Commission (PUCO or Commission). According to Section 4909.19, Revised Code, after a company has requested an increase in rates, the Commission shall cause an investigation to be made of the facts and exhibits set forth in the Company’s application. In order to complete this investigation in a timely manner, the Commission finds that portions of the investigation should be conducted by a qualified independent auditing firm.
VEDO has requested a test year from June 1, 2007 though May 31, 2008 for examination. The Commission is seeking proposals from independent firms to verify and attest to the Company’s financial information and to file a report with the Commission. The statutory framework that the auditor selected must follow in verifying the Company’s filing is set forth in Sections 4909.15 and 4909.18 Revised Code, and the Standard Filing Requirements contained in Appendix A of Rule 4901-7-01, Ohio Administrative Code (O.A.C.). The auditor selected will be required to conduct such audit and will be responsible for submitting a report which is based upon those statutory requirements.
In order to demonstrate the ability to perform the audit according to the RFP, the proposal must show, in detail, the auditor’s understanding of the project and the work required. Each proposal must address, with specificity, how it will handle all of the issues in the staff’s RFP. The auditor must demonstrate that it will be able to perform the required audit, showing its clear understanding of the tasks to be completed, the experience and qualification of the personnel who will perform the work, and the anticipated breakdown of costs and timing. The auditor shall perform the audit between mid-January 2008 and mid-April 2008. It will submit a draft audit report to staff by April 11, 2008, and file its final audit report concurrently with the Staff Report.
All proposals are due by January 9, 2008 and the Commission intends to select an auditor by January 16, 2008.
Commission Entry on the Docketing Information System