Duquesne Light Company Management and Operations Assessment

This report summarizes the assessment conducted by Vantage of the management and operations processes within Duquesne Light Company (DLC), and provides a summary of findings and recommendations in each area evaluated. The Vantage approach to conducting the stratified management and operations assessment for DLC consisted of two phases: Phase I, Diagnostic Review and Phase II, In-depth Analysis of Pre-Identified Areas.

The Phase 1, Diagnostic Review assessed the condition of all areas of the Company, with the exception of power generation and fuel management, against appropriate criteria in sufficient depth to ensure that significant issues, if any, are identified and defined for subsequent focused review. The Diagnostic Review is limited to determining whether DLC has appropriate management controls, systems, and processes within each of its major business areas, and is not designed to do a detailed analysis of the area. The task areas defined by Vantage included:

Executive Management
Customer Services
Electric Operations
Human Resource Management
Financial Management
Support Services

The Phase II, In-depth Analysis of Pre-Identified Areas provided an in-depth analysis of the four major areas pre-identified by the PPUC listed below. The purpose of the pre-identified area review is to examine all facets of these areas, and to ensure that management processes, systems, and controls are identified; opportunities for improvements are investigated and confirmed; detailed recommendations are developed; and the projected costs and benefits, if any, are defined.

Telephone Center Operations
Distribution Operation and Maintenance
Affiliated Relations
Diversity and Equal Employment Opportunity

In addition, Vantage provided a comparative analysis as a source of basic information on the operations of DLC and a panel of comparable utilities within Pennsylvania and the region. Vantage has provided a summary of the information, which details financial performance, statistical information, and performance ratios between the utilities for comparative purposes. The panel members included the following companies:

Detroit Edison
Illinois Power Company
Jersey Central Power & Light
Ohio Edison
Union Electric
Metropolitan Edison Company
Pennsylvania Electric Company
Pennsylvania Power & Light
PECO Energy Company
UGI Utilities, Inc.
West Penn Power Company


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