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City approves $204,750 Duquesne Light settlement, audits meters to centralize payments
Summary
Council authorized up to $204,750.33 to settle arrears on city-held Duquesne Light meters and approved moving utility payments into a p-card system after a citywide meter audit. Staff said the work will reduce invoices, consolidate accounts and unlock potential p-card rebates on $11—$15 million of annual utility spend.
Pittsburgh City Council on Oct. 22 approved an agreement authorizing the mayor and the director of Public Works to clear Duquesne Light account arrears not to exceed $204,750.33 and to consolidate city electric accounts as part of a broader effort to modernize utility payments.
Chris Hornstein, Public Works director, told the committee the department audited the city's electrical billing and meter accounts and identified roughly 98 metered city-owned accounts that needed reconciliation; when street lights and other accounts are included, that number grows to about 1,098. Hornstein said the department consolidated dozens of account "buckets" into eight accounts to reduce transaction volume and enable payment through the city's p-card system.
"We've actually audited every single account meter with Duquesne Light," Hornstein said. He told council that consolidating accounts and moving to p-card payments will reduce the staff time spent opening and processing hundreds of invoices each month and will enable the city to capture rebate revenue from p-card transactions on the city's sizable utility spend. Hornstein said the city's annual electric spend approaches the mid-to-high single-digit millions and that small improvements in procurement and payment can yield measurable savings.
Deputy director John Mudrick explained that some accounts accumulated late fees through administrative fragmentation and that the negotiated settlement clears arrears so the city can begin with zero-balanced accounts before transitioning to p-card payments. The department also reported work to map meter locations across city facilities, establish clearer billing categories with the utility, and pursue a regional procurement strategy through the Western Pennsylvania Energy Consortium.
Council approved the resolution on a voice vote. The agreement directs Public Works to conclude account audits and to implement consolidated billing and p-card payments; staff said they will return with further updates on procurement and expected rebate amounts.
