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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Patrese who wrote (16949)5/14/1998 8:42:00 PM
From: RAVEL  Read Replies (2) of 31646
 
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Y2K Glitch Impact On Power Sector Uncertain, Congress Told

17:52:44, 14 May 1998


Dow Jones International News Service via Dow Jones

WASHINGTON (Dow Jones)--The U.S. electric power industry may not be taking the year 2000 computer glitch (Y2K) seriously enough, witnesses told a congressional panel Thursday.

But no one has adequately assessed whether the computer problem will pose electricity grid reliability problems when the clock hits 2000, the witnesses suggested.

"The consequences of not fully understanding the seriousness of the problem is the problem," said Kathleen Hirning, chief information officer for the U.S. Federal Energy Regulatory Commission.

John Laakso, executive director of the Public Utility Commission of Texas, presented the results of a survey of 176 Texas utilities conducted by the commission, which produced 77 responses, representing 44% of those contacted.

Of the state's seven large investor-owned utilities, which serve 85% of the state's customers, all said significant resources were in place to address the problem, Laakso reported.

But smaller utilities, such as municipal systems and rural electric cooperatives, were less prepared, the survey found.

Richard Cowles, director of Year 2000 Industry Solutions with TAVA/R.W. Beck, a control systems integration partnership based in Seattle, Wash., also said smaller utility systems are more at risk.

"My best estimate is that only 60% to 70% of the (electric) companies are fully aware of the magnitude of the Y2K issue and are marshaling the necessary resources to address the issue," Cowles said.

Cowles noted that of the more than 7,800 companies that generate or distribute electricity in the U.S., only 70 were represented at a recent national meeting sponsored by the Electric Power Research Institute, which is spearheading the industry response to the problem.

A framework document giving guidelines on nuclear utility year 2000 readiness, prepared by the institute and reviewed by the U.S. Nuclear Regulatory Commission, was distributed last year, said Hugh Thompson, deputy executive director for regulatory programs at the NRC.

(MORE) Dow Jones Newswires 14-05-98

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(AP-DJ-05-14-98 2156GMT) :SUBJECT: EUTL CONG DI7 DI1 DI4 DI3 DI2 USA

Dow Jones International News Service via Dow Jones

The document gives nuclear plant operators an "acceptable approach" for addressing the problem, Thompson said, noting the NRC has an oversight program in place to ensure nuclear utilities are adequately prepared.

Kenneth Cohn, manager of computer systems for Potomac Electric Power Co., estimated the company's response to the year 2000 problem will ultimately cost $10 million.

The testimony came during a Thursday hearing of the technology subcommittee of the U.S. House Science Committee.

Rep. Constance Morella, R-Md., the panel's chairman, said the hearing would determine to what extent, if any, the federal government should become involved with ensuring the year 2000 problem doesn't disrupt the U.S. power sector.

"The year 2000 problem, if left unaddressed, has the potential to short circuit our nation's power sources and severely disrupt the delivery of energy to the American public through systematic power failures," Morella said.

The NRC's Thompson noted that nuclear plants have adequate safety precautions in place to ensure safe plant shutdowns in the event of a grid failure.

"We don't want people getting concerned about something that we are working very hard on and are confident we will be able to manage," said David Swanson, senior vice president for energy and environmental activities at the Edison Electric Institute, in a telephone interview.

The EPRI-led effort aims to root out potential problems for grid reliability, and the Department of Energy recently enlisted the North American Electric Reliability Council, the industry group that sets grid reliability standards, to oversee a coordinated industry response to the computer problem, Swanson noted.

By Bryan Lee; 202-862-6647

(END) Dow Jones Newswires 14-05-98

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