123 FERC ¶ 61,221
UNITED STATES OF AMERICA
FEDERAL ENERGY REGULATORY COMMISSION
Before Commissioners: Joseph T. Kelliher, Chairman;
Suedeen G. Kelly, Marc Spitzer,
Philip D. Moeller, and Jon Wellinghoff.
Duquesne Light Company
Docket No. IN07-27-000
ORDER APPROVING STIPULATION AND CONSENT AGREEMENT
(Issued May 29, 2008)
The Commission approves the attached Stipulation and Consent Agreement
(Agreement) between the Office of Enforcement (Enforcement) and Duquesne Light
Company (DLC). This order is in the public interest because it resolves all issues relating
to a non-public, formal investigation conducted by Enforcement, pursuant to Part 1b of
the Commission’s regulations, 18 C.F.R. Part 1b (2007). Enforcement concluded that
DLC violated the cost allocation procedures, the electric quarterly report (EQR) filing
requirement, and the standards of conduct.
DLC is a public utility that purchases, transmits, and distributes electricity in an
800-square mile service territory in southwestern Pennsylvania. DLC agreed it
committed the acts in question, but neither admitted nor denied that its acts constituted
violations. However, as part of a settlement DLC agreed to pay a $250,000 civil penalty,
develop and implement a comprehensive regulatory compliance plan at a minimum cost
of $1,000,000 and implement other remedies.
This matter originally commenced as an audit, conducted by the Division of
Audits (DOA), who then referred it to the Division of Investigations. As a result of the
investigation, Enforcement identified several violations, described below.
Enforcement found that DLC violated the Commission’s cost allocation
procedures1 by not charging affiliates for the actual time DLC employees spent working
on affiliate tasks. DLC billed the affiliates for prorated portions of shared employees'
salary, overhead and fringe benefits based on budget estimates collected