METROPOLITAN EDISON COMPANY - Pennsylvania Public Utility ...

• Supply Chain revising its Opportunities database to include specificlanguage and buyer requirements on diversity opportunities in the SupplyChain pipeline. This change was made operational in the latter part of 2007and provides more transparency into sourcing opportunities for diversebusinesses.• FirstEnergy conducting discussions with the Minority Supplier DevelopmentCouncil of PA-NJ-DE to institute a formal corporate/MBE mentoring programstarting in 2008. This program provides more one-to-one interaction withPA-based minority business owners and FirstEnergy.FirstEnergy continues to work with the minority advocacy groups in Pennsylvaniato help identify potential suppliers, program improvements and best practices.However, FirstEnergy has been unable to achieve its diverse supplier goals for allBusiness Classes. Therefore, FirstEnergy should continue to make a good faith effortto meet its diverse supplier goals. Furthermore, it should be noted that FirstEnergyindicated that the 3% Minority Business goal is an aggressive (i.e., stretch) goal anddifficult to achieve. Also, the economic downturn that occurred in 2008 has hamperedFirstEnergy’s efforts to achieve its goals.Staff’s Follow-up Recommendation – Strive to achieve all FirstEnergy diversesupplier goals.Follow-up Finding and Conclusion No. XII-3 – The FE-PA Companies do not trackor annually report purchases made from persons with disabilities-ownedbusinesses.The FE-PA Companies are submitting an annual diversity report with the PUCthat conforms to the filing format of providing multi-year data for both human resourcesand procurement sections. However, although the FE-PA Companies track and reportpurchases made from minority owned and woman owned businesses and several othercategories (as detailed in Follow-up Finding and Conclusion No. IX-2), they do not trackor report on purchases made from persons with disabilities owned businesses as firstdirected by the Commission in April 1994.The Commission has encouraged utilities to proactively improve the diversity intheir workforces and purchasing efforts for over 18 years. On February 13, 1992, theCommission first approved a motion to make diversity an integral part of themanagement audit process and to direct utilities to file quarterly diversity status reports.Subsequent Commission motions and directives changed the filing requirements fromquarterly to semi-annual and in March 1997 to an annual diversity report including multiyeardata. Since 1994 the categories for procurement reporting have included minorityowned business enterprises, women owned business enterprises, and physicallychallenged or persons with disabilities owned business enterprises (DBEs). It took themajority of Pennsylvania utilities one to three years to modify their systems andprocesses to identify and track purchases in the DBE category which is not used by theOffice of Federal Contract Compliance Programs to whom they also submit reports. The- 94 -