Duquesne Light Successfully Integrated Into PJM

(Valley Forge, Pa. – Jan. 1, 2005) – Duquesne Light Company, a subsidiary of Duquesne Light Holdings (NYSE: DQE), and PJM Interconnection, the world's largest electricity grid operator, announced that at midnight (ET) PJM began managing the flow of wholesale electricity for the Pittsburgh, Pa., based electric utility. Duquesne Light serves 1.3 million people who live in 810 square miles of western Pennsylvania.

"Duquesne Light works hard to provide its customers a safe and reliable source of energy," said Morgan K. O'Brien, president and CEO of Duquesne Light. "PJM's market design, as well as access to the vast PJM marketplace, will provide our customers with the best choice for continued secure, reliable electric service. They join 44 million people who enjoy the benefits of a proven PJM energy market that stretches from the East Coast to Chicago."

Duquesne Light's integration into PJM involves transferring control, but not ownership, of the companies' transmission assets including 670 miles of high voltage transmission lines. With Duquesne Light, PJM increases the miles of transmission lines it manages to 49,970 miles, its peak load to 110,700 megawatts, its territory served to 138,510 square miles and its service to 45.3 million people in a dozen states plus Washington, D. C.

"The integration of Duquesne Light complements and enhances our existing services to western Pennsylvania and beyond to the Midwest," said Karl Pfirrmann, president of the PJM Western Region. "This addition further strengthens a grid that has been acknowledged as a pioneer in improving the way wholesale electricity is bought, sold and delivered. We are very pleased to have Duquesne Light on board."

Regional transmission organizations (RTOs) demonstrate that there are economies of scale to be gained with centralized management of a large grid, like PJM. RTOs also increase grid reliability by discouraging congestion through competitive wholesale electricity markets and through the redundancies of an expansive transmission infrastructure.

Source: PJM