Duquesne Light Response to PUC Ruling on 2005-2010 Energy Supply Plan

Considering Options, Including Appeal

Aug 19, 2004, 01:00 ET from Duquesne Light

    PITTSBURGH, Aug. 19 /PRNewswire-FirstCall/ -- The Pennsylvania Public
 Utility Commission today announced its decision rejecting Duquesne Light
 Company's (NYSE:   DQE) plan to supply a secure source of electricity for
 customers from 2005 through 2010.
     While deferring full reaction until it receives and reviews a copy of the
 official order, Duquesne Light officials expressed disappointment with initial
 reports of the decision and will consider a full range of options to protect
 the interests of its customers and shareholders.
     "No customers in the state have benefited more than Duquesne Light's as a
 result of the innovative steps we have taken since the deregulation of
 electric generation in Pennsylvania," said Morgan K. O'Brien, president and
 chief executive officer. "In developing our supply proposal, we've, once
 again, worked very hard with the Office of the Consumer Advocate, the Office
 of Small Business Advocate and the Duquesne Industrial Intervenors to provide
 what our customers have said they wanted -- a reliable, secure energy source
 at reasonable prices -- for a six-year period.  The administrative law judge,
 who presided over the case and weighed considerable testimony from a variety
 of parties, agreed with our amended proposal. Today's decision by the PUC
 commissioners to reject that consensus plan -- approved by its own
 administrative law judge -- jeopardizes our ability to do that.  In addition
 to potentially exposing our customers to an uncertain energy marketplace in
 2008, limiting our supply plan to three years likely will prevent us from
 providing service at the rates outlined in the PUC news release."
     About Duquesne Light
     Duquesne Light Company is a leader in the transmission and distribution of
 electric energy, offering superior customer service and reliability to more
 than half a million customers in southwestern Pennsylvania.

SOURCE Duquesne Light