Press Release

PUC Approves Agreement for Macquarie Consortium to Purchase Duquesne Light

Published on 4/24/2007

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission ( PUC) today  approved the settlement agreement for Macquarie Consortium to purchase Duquesne Light Co.

“Like with other mergers and acquisitions that have come before us for consideration, this Commission did everything possible to ensure that this settlement received a thorough and comprehensive review,” said Commission Chairman Wendell Holland in a statement.  “The settlement includes many provisions that will ensure customers are protected and this company continues to be a good neighbor in Pittsburgh. But be assured, we will continue with a full assessment of this company to make certain our decision is the best move for Pennsylvania customers.”

Vice Chairman Cawley also issued a statement saying that he was “particularly pleased that, under the joint settlement, all consumer groups should benefit, either through the rate base filing moratorium, the various future consumer rate protections from acquisition related costs, or through the Economic Development Program.”

The Commission voted unanimously to approve the acquisition, finding that the settlement was in the public interest because it affirmatively promotes the service, accommodation, convenience or safety of the public in some substantial way. 

The settlement places terms and conditions on the agreement to protect consumers such as the company will:        

• Not seek a base rate increase before 2010 and will not include the costs associated with the acquisition in any rate filing;
• Continue community commitments at least at current levels ($2.9 million for 2006);
• Create a Service Quality Index for residential and small business customers that will establish performance standards to ensure the service quality will not decline as a result of the acquisition;
• Form a Universal Service Collaborative Group that will work with the company in shaping its future plans for low-income and energy conservation programs;
• Continue with a shareholder match to customer contributions to the Dollar Energy Fund up to $375,000;

Other terms and conditions include:

• Maintaining corporate headquarters in Pittsburgh;
• Reporting annually to the Commission the status of all commitments under the settlement; and
• Establishing a competitively neutral economic development plan to attract new and support expanding Pennsylvania industrial employers.

The settlement agreement was reached between the companies and the parties who filed formal complaints against the proposal including the state’s Office of Consumer Advocate; the state’s Office of Small Business Advocate; the Commission’s Office of Trial Staff; the International Brotherhood of Electrical Workers; the Community Action Association of Pennsylvania, Dominion Retail Inc.; Duquesne Industrial Intervenors; the Retail Energy Supply Association; Strategic Energy LLC; and the Pennsylvania Large Energy Users Coalition.

On Sept. 6, 2006, Duquesne Light and Macquarie filed a joint petition for the acquisition with the Commission. Duquesne Light serves more than 580,000 customers in Allegheny and Beaver counties. Macquarie is one of the world’s largest owners and managers of infrastructure assets, managing over $25 billion in infrastructure equity around the world.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner. For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No. A-110150F0035 and A-311233F0002

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