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DUQUESNE LIGHT CEO PREDICTS GREATER UTILITY CONSOLIDATION

 HERSHEY, Pa., Sept. 22 /PRNewswire/ -- The chief executive officer of DQE, Inc. (NYSE: DQE), the parent company of Duquesne Light Co., suggested here today that two electric companies could do the job of providing electric utility service to Pennsylvania's 12 million citizens, businesses and industries.
 Wesley W. von Schack, chairman, president and chief executive officer of DQE, in his welcoming remarks to the 86th Annual Meeting of the Pennsylvania Electric Association (PEA) stated that competition developing in the electric utility industry "will dictate the necessity for economy of scale benefits that come with consolidation."
 Von Schack pointed out that the 89 percent of the electricity serving 10 million citizens of Belgium is produced by one company. Japan, he added, has but 10 private electric companies serving a population of 124 million.
 "If we are seeking efficiency, economy and excellence, we have to honestly ask ourselves the question: How many electric utilities are really needed to service Pennsylvania's 48,000 square miles and 12 million people?" von Schack stated, adding that Southern California Edison serves nearly 11 million customers in a 50,000-square-mile service territory, and that Pacific Gas & Electric serves more than 12 million in 94,000 square miles.
 The DQE CEO also warned PEA, the trade association of the 11 investor-owned electric utilities in Pennsylvania, that it faced an uncertain future in an environment that will make electric utilities rivals and competitors.
 "I believe the pressure definitely is on to see if the PEA has a useful role to play in an industry that is competitive and no longer homogeneous in its interests."
 At present, the 11 PEA member companies provide electric service to about 95 percent of the population of Pennsylvania and supply about 98 percent of the electric energy consumed in the commonwealth.
 /delval/
 -0- 9/22/93
 /CONTACT: Harold R. Piety, director of public information of PEA, 717-257-5865/
 (DQE)


CO: DQE, Inc.; Duquesne Light Co.; Pennsylvania Electric Association ST: Pennsylvania IN: OIL SU:

CD-JM -- PG015 -- 4884 09/22/93 17:04 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
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