METROPOLITAN EDISON COMPANY - Pennsylvania Public Utility ...

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XII. DIVERSITY & EEOBackground – The Stratified Management and Operations Audit of Metropolitan EdisonCompany (Met-Ed), Pennsylvania Electric Company (Penelec), and PennsylvaniaPower Company (Penn Power) (collectively referred to as the FirstEnergy PennsylvaniaCompanies or FE-PA Companies), conducted by the consulting firmBarrington-Wellesley Group, Inc. (BWG), released by the Pennsylvania Public UtilityCommission (PUC or Commission) on March 1, 2007, at D-05MGT002, D-05MGT003and D-05MGT004, contained two recommendations in the Diversity and EqualEmployment Opportunity chapter. BWG rated this functional area as needing minorimprovement. In this chapter, two prior recommendations and prior situations arereviewed and two follow-up findings and two recommendations are presented.Prior Recommendation – Identify the employment areas that are below parity anddevelop feasible approaches for making the FE-PA Companies’ employee mix matchthat of the respective service territory.Prior Situation – BWG found that opportunities existed to increase utilization ofminorities and females throughout FirstEnergy’s workforce. An analysis of 2005employment data showed that only Met-Ed came close to employing a representativeportion of the relevant population. The goal for all three FE-PA Companies was to havetheir workforce closely mirror the communities that they serve; however, BWG did notsee any significant effort, beyond that which would normally be expected, to increasethe percentage of minority and female employees at any of the FE-PA Companies.Moreover, BWG stated that it did not find any concrete evidence that there was anyinternal recognition or rewards to individual managers for meeting diversity goals.Follow-up Finding and Conclusion No. XII-1 – Met-Ed’s, Penelec’s, and PennPower’s workforces do not have proportional representation of women and minorities inseveral job categories.Exhibits XII-1, XII-2 and XII-3 show the underutilization of women and minoritiesat Met-Ed, Penelec and Penn Power, respectively for 2009, which was the most recentdata available at the time of the Audit Staff’s field work. Underutilization results whenthe percentage of women and minorities employed in a particular job group is less thanwould be reasonably expected given their availability within the applicable labor market.Although the Company has expressed a commitment to utilize a diverse workforce andhas programs in place, underutilization is still occurring. There are four methods thatcan be used to determine if underutilization is occurring in a given job group:1. The "any difference" rule (underutilization exists if there is any differencebetween the availability of women or minorities, compared to their percentages inthe employer's actual workforce).2. The "one person" rule (underutilization exists if the difference between availabilityand actual employment equals one person or more).- 86 -
3. The "four-fifths" rule (underutilization exists if the actual employment ofwomen or minorities is less than four-fifths of their availability).4. A "two standard deviations" analysis (underutilization exists if the differencebetween availability and actual employment exceeds two standard deviations,a common measure of statistical significance).FirstEnergy uses a two standard deviations analysis to demonstrate a standardof reasonableness for placements. The two standard deviations analysis is based onthe observation that if the employer pays no attention at all to sex or race in placingpeople in jobs, there would be some natural degree of departure from perfect parity,both above and below, and that only extreme departures below parity should beconstrued as evidence of possible discriminatory practices. If the difference betweenactual utilization and the availability percentages results in two points from the mean,then the difference may be significant and a goal should be set.Exhibit XII-1Metropolitan Edison CompanyUnder-Utilization by EEO CategoryFor the 2009 Plan YearMetropolitan EdisonCompany Total Female Minority Under-RepresentedEEO Category # % Availability # % Availability Female MinorityManagers 24 1 4.17% 14.43% 3 12.50% 7.13% 2 0Supervisors 62 5 8.06% 10.73% 4 6.45% 8.59% 1 1Sr. Prof. - Engineering 9 1 11.11% 9.02% 1 11.11% 5.05% 0 0Prof. - Engineering 4 0 0.00% 3.81% 0 0.00% 4.99% 0 0Sr. Prof. - Business 8 2 25.00% 46.35% 0 0.00% 7.74% 1 0Prof. - Business 10 9 90.00% 64.66% 3 30.00% 14.46% 0 0Sr. Tech. - Engineering 32 7 21.88% 22.37% 4 12.50% 8.79% 0 0Tech. - Engineering 18 5 27.78% 20.98% 1 5.56% 5.79% 0 0Sr. Tech. - Other 38 3 7.89% 24.35% 3 7.89% 8.33% 6 0Tech. - Other 9 3 33.33% 52.90% 1 11.11% 8.21% 1 0Sr. Clerical 17 17 100.00% 81.39% 3 17.65% 32.12% 0 2Clerical 1 0 0.00% 81.39% 0 0.00% 32.12% 0 0Meter Readers 80 15 18.75% 9.40% 9 11.25% 5.46% 0 0Sr. Craft 294 10 3.40% 3.91% 25 8.50% 9.10% 0 0Entry Craft 83 4 4.82% 9.18% 10 12.05% 10.74% 3 0Operatives 16 4 25.00% 13.02% 2 12.50% 6.88% 0 0Service Workers - Other 1 0 0.00% 34.96% 0 0.00% 5.34% 0 0Totals 706 86 12.18% 69 9.77% 14 3Source: Data Request Nos. DIV-1, DIV-2- 87 -
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METROPOLITAN EDISON COMPANYPENNSYLV
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• Support Services• Human Resou
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• Developed and implemented forma
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FIRSTENERGY PENNSYLVANIA COMPANIESM
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III. AFFILIATE INTERESTSBackground
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In addition, subsidiary or related
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BWG recommended that a detailed, wr
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management. Other potential uses of
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IV. CORPORATE GOVERNANCEBackground
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V. FINANCIAL MANAGEMENTBackground -
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the internal audit was to determine
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Committee citing the internal contr
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VI. ELECTRIC RELIABILITYBackground
Page 42: Exhibit VI-1Metropolitan Edison Com
Page 45 and 46: provide additional details to the C
Page 47 and 48: Exhibit VI-6FirstEnergy Pennsylvani
Page 49 and 50: All three FE-PA Companies have had
Page 51 and 52: FirstEnergy is following the right
Page 53 and 54: Company, and The Toledo Edison Comp
Page 55 and 56: technicians. These strategies are u
Page 57 and 58: VIII. EMERGENCY PREPAREDNESSBackgro
Page 59 and 60: Routine periodic updating of the em
Page 61 and 62: Follow-up Finding and Conclusion No
Page 63 and 64: old excess inventory. Spare invento
Page 65 and 66: controls were automated. Moreover,
Page 67 and 68: Exhibit IX-6FE-PA CompaniesPercenta
Page 69 and 70: FE-PA Companies were unable to iden
Page 71 and 72: Staff’s Follow-up Recommendation
Page 73 and 74: Exhibit X-6Metropolitan Edison Comp
Page 75 and 76: Prior Recommendation - Develop a co
Page 77 and 78: Therefore, BWG suggested that First
Page 79 and 80: XI. CUSTOMER SERVICEBackground - Th
Page 81 and 82: Exhibit XI-2FE-PA CompaniesPercenta
Page 83 and 84: Exhibit XI-5FE-PA Companies Compare
Page 85 and 86: Exhibit XI-7FE-PA Companies Compare
Page 87 and 88: Follow-up Finding and Conclusion No
Page 89 and 90: uilding, in an effort to protect re
Page 91: Companies would submit a supplement
Page 95 and 96: Met-Ed has female underutilization
Page 97 and 98: Exhibit XII-4Page 1 of 2FirstEnergy
Page 99 and 100: The number of years that FirstEnerg
Page 101 and 102: FE-PA Companies do track purchases
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