Press Release

PUC Issues Management Efficiency Investigation Report for Duquesne Light

Published on 9/21/2023

Filed under: Electric

Report Tracks Duquesne Light’s Progress Implementing Recommendations Made During a Previous PUC Management and Operations Audit

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released a report on a Management Efficiency Investigation (MEI) of Duquesne Light, which provides electric services to approximately 610,000 customers in Allegheny and Beaver counties.

The Commission voted 5-0 to make the MEI report public, along with the publication of an implementation plan submitted by Duquesne Light.

This most recent report focuses on Duquesne Light’s progress in implementing 16 of the 18 original recommendations that were made as part of a 2019 Management and Operations Audit of Duquesne Light, along with the investigation of Duquesne Light’s compliance with PUC regulations regarding physical security, cybersecurity, emergency response, and business continuity plans.

PUC auditors found that Duquesne Light effectively or substantially implemented 14 of the earlier recommendations and has taken steps toward addressing the remaining two items.

Notable improvements highlighted in the audit report include:

• Increasing staffing for field operations.
• Enhancing the reporting of outage causes provided in electric reliability reports.
• Adding a financial expert, as defined by the Securities and Exchange Commission (SEC), to the Board of Directors’ Audit Committee for parent company DQE Holdings LLC.
• Developing and implementing a quality assurance and improvement program and formalized policies/procedures for the Internal Audit Department.
• Developing and implementing a formal budget variance policy.
• Increasing information technology maturity level by 10% and developing and implementing a plan for continued periodic internal review.
• Establishing individual goals and objectives for the chief executive officer which are specific, measurable, attainable, relevant, and time-based (SMART Criteria).
• Revising written documents used to engage contractors to consistently define safety procedures.

The MEI report also identified opportunities for further improvement, including:

• Implementing measures to balance workload and limit available overtime.
• Focusing on successful recruitment practices to further increase craftworker staffing levels.
• Analyze historical usage trends and obtain benchmarking data to establish an inventory turnover goal.
• Establishing and implementing net recovery performance goals for third-party collection activities while continuing to monitor monthly performance reports.

According to the implementation plan submitted by Duquesne Light, they agree with the four follow-up recommendations made by the PUC’s auditors, with implementation of most items expected to be completed within the next year.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram, and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: D-2023-3037425

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov