EX-10.19



 






Exhibit 10.19




Duquesne Light Holdings, Inc.

Description of Executive Benefits



Executive officers of Duquesne Holdings, Inc. and Duquesne Light Company (together, the “Company”)
are eligible to receive the following compensation-related benefits:




     Annual Cash Incentive. Executive officers are eligible to receive incentives based on the
accomplishment of performance objectives. Performance criteria focus on the achievement of
agreed-upon and documented strategic goals. Performance targets may include, among other things,
measures of financial performance, the ability to meet budget levels, individual or group
performance objectives, and other corporate performance measures. The amount of incentive payment
can vary above and below the target based upon the results achieved. When targets are met, the
incentive amount may be as much as 100% of the target. When targets are exceeded or are not
reached, the incentive amount may be proportionately more or less than the target (between 50% and
150% of target). The Compensation Committee may make appropriate upward or downward adjustments
if, after taking into consideration all of the facts and circumstances of the performance period,
it determines that adjustments are warranted.



     Currently, the Chief Executive Officer is eligible for an annual incentive payment of 65%
of his base salary; the other top four-paid executive officers are eligible for annual
incentive payments of 40% of their base salaries.



     Enhanced
Death Benefit. As part of every nonunion employee’s benefit package, the
Company provides a basic life insurance plan. If the employee dies from any cause, the plan pays a
cash benefit of one and one-half times the employee’s base pay at the time of death, rounded up to
the next higher $1,000. An independent insurance carrier currently provides this benefit.



     Certain key employees (including executive officers) are provided with an additional cash
benefit of one times their base salary. This enhanced benefit is self-insured by the Company
(there is no policy with an independent insurance carrier). No premiums are paid for this
benefit.



     Long Term Disability Insurance. As part of every nonunion employee’s benefit package,
the Company provides long-term disability insurance if the employee becomes totally disabled due to
illness or injury. Normally, an individual is treated as “totally” disabled if he or she cannot
perform any occupation by reason of education, training or experience. However, for certain key
employees (including the executive officers) the term “totally” disabled is defined as “the
inability to perform the material duties of his or her regular occupation for the entire period of
the disability.” In addition, executives are eligible for a supplemental long-term disability
policy, which increases the base monthly benefit from 60% of salary to 75% of income, up to a
maximum monthly benefit of $25,000. In order to calculate the benefit, the plan factors in the
base salary, plus an average of the last two year’s incentive pay, less Group Long-Term Disability
coverage.



     Enhanced Business Travel Accident Insurance. As part of every nonunion employee’s benefit
package, the Company provides a business travel accident insurance protection value of $300,000 if
the employee should die or suffer a serious injury while traveling on business (including while
commuting directly between the employee’s residence and a place of regular employment). An
independent insurance carrier currently provides this benefit.



     Certain key employees (including executive officers) are provided with an additional $100,000
of coverage. This enhanced coverage has no material effect on the group premium paid by the
Company.



     Investment Counseling. Executive officers are eligible to receive financial and tax planning
services from an investment counselor. The Company pays the counselor’s fees on
behalf of the participating executive officers. Because the payment for such services is
considered taxable to the participants, the Company grosses their income up to cover related income
taxes.



     Car Allowance; Parking. Executive officers receive an annual car allowance. The Company pays
parking fees for certain key employees (including executive officers).



     Club Fees. The Company pays club initiation fees and a portion of the monthly membership dues
for certain executive officers.