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Technology Stocks : Discuss Year 2000 Issues

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To: John Mansfield who wrote (2712)10/15/1998 2:44:00 PM
From: John Mansfield  Read Replies (2) of 9818
 
'Houstoun Lighting & Power - y2k compliance

'From:
mlivius@ix.netcom.com (Marcus Livius Drusus)
19:40

Subject:
Houstoun Lighting & Power - y2k compliance

After lurking here for a few months, and thanks to all you posters,
mickey, Cory, Jo Anne, BOTH Tims, Alan, Frank, Bill, the Egans, and
yes, even bks and Milne, the variety of opinions and flames have
helped me find my own personal spot on the Eastabrook spectrum.

But I thought it was time to contribute to the signal in the group. So
this AM, I dialed up my local powerco's website. There on the
Homepage, a big, fat link to theirY2k page - a sexy animated GIF.
Exhaustive reading thereof - nothing of substance. For example:

</boilerplate mode on>
Houston Industries has been working on a company-wide resolution to
the Year 2000 issue since 1997. Some business units began to address
it even earlier. In a company as large as HI, there are many different
computer systems. To keep systems in operation, all critical computer
systems must be checked, corrected and tested.
</boilerplate mode off>

(from their website FAQ) houind.com

Houston Industries has developed three priorities:

Priority 1: Any activity that would immediately disrupt the
physical production and delivery of energy.

Priority 2: Any activity that impacts company financial, customer
service and operation (e.g. billing, payments, payroll and other back
office activities).

Priority 3: Any activity that causes an inconvenience or
productivity loss in normal business operations (e.g. air conditioning
systems and elevators).

All business units have completed an analysis of the above critical
systems that control the production and delivery of energy, as well as
corporate, departmental and personal systems. Testing and modification
of these systems, where necessary, is now underway and is scheduled
to be complete by the end of third quarter 1999.

How can I find out more about the Year 2000 issue?

All inquiries regarding the Year 2000 issue should be directed or
forwarded to Houston Industries' Year 2000 Team:

Phone :
(713) 207-6600
Fax :
(713) 207-9567
Address:
Project Year 2000
P.O. Box 9546
Houston, TX 77210-4567

(Why no email?)

So I called and asked the following questions. (N.B. All quoted
answers are accurate paraphrases - I don't type fast enough to
transcribe a conversation) I spoke with a pleasant lady named
Cheryl(sp? - didn't ask) Botts.

Why no email contact?

"The website's being redone"

What is your budget for y2k remediation?

"35-40 million."

The original budget?

"Originally 25 million."

Why the increase?

"It is due to new plants we purchased in South America"

Really? Will those plants be compliant?

"I have no information on that."

How much of this budget has been spent?

" I have no exact figure."

When *exactly* in 1997 did assessment commence?

"In the third quarter."

How many full time employees are at work on this?

" I have no exact figure. They were 'matrixed' (quotes mine -never
heard of this term before) in from other areas as needed."

So you primarily drew from your existing IS staff?

"Yes."

Did you bring in any outside consultants or contractors?

"Some. I don't know the exact number."

How many of those employees are programmers, as opposed to testers,
engineers, etc.?"

"No information on that."

How many lines of code was it necessary to examine?

"I don't know."

In what languages were these programs written?

"I don't know. I believe we are installing SAP."

So y'all (hey, this is Texas) are replacing all of the old COBOL code
with SAP?

"I believe so."

How many embedded systems were found in your inventory/assessment
phase?

"I have no exact number."

How many needed or still need replacement/remediation?

" No idea."

To date, how many of the embedded system vendors have replied to your
inquiries re Y2k compliance? How many have not? How many are no longer
in business?

"We are working very closely with vendors."

It's been my understanding from reading on the Net that this is one of
the thorniest problems for your industry. Have you been able to
contact all of those vendors?"

"Our embedded systems were puchased from one of our business partners,
we work very closely with them, and I can definitely say that they are
still in business."

When did testing commence?

"We are currrently testing now."

But when did testing commence?

"I don't know."

How many days worth of fuel will be stockpiled in case of supply
and/or delivery problems?

"I have no idea."

What are your contingency plans in case other PG's experience Y2k
related problems? Will HL&P be able to disconect from the grid as a
whole if there are problems?

"We are not on the the national grid."

Not on the grid? Don't you buy and sell power to other entities?

"Yes, we buy & sell power to other power companies, and even some of
our customers."

But you're not on the grid.

"No. We are on, I believe it is ERCOT, you can find it on the Net, I
forget what it stands for... "

It is my understanding that reliable telecommunications are needed in
order to operate modern power generating and distribution systems.
What contingency plans are in place if the telcos go down?

"We are currently working on that contingency plan."

What particular issues were discovered in relation to your nuclear
plants?

That plant is operated by South Texas Power Operating Company. I have
no information on that. I do know they'll have to prove compliance by
a certain date or they'll be shut down by the NRC."

You guessed my next question! Will they be able to prove compliance in
order to stay up after the mandated NRC shutoff date?

"You'll have to ask them."

Do those plants have an in-place coldstart capability? Do your fossil
fuel plants?

"You're asking me very techical questions now. I'd have to refer you
to someone else."

Will HL&P guarantee reliable power after 2000/01/01?

"I think nobody's guaranteeing anything at this point - we plan to be
finished by the 3rd quarter of 99. If we we have problem in making the
deadline we'll let everyone know, and make a new contingency plan."

On a personal note - are you making any personal preparations in case
there are problems?

"No, none. I don't really cook, and I've got natural gas, so if things
go out I can grill for a few days."

So what do YOU think will happen on 2000/01/01?

"I don't think anybody really knows."

So how can I get the information on the questions that you've not
been able to answer?

"I'll take your name and number and have someone get back to you."

OK, when can I expect to hear back from them?

"They're very busy in meetings, so it will be sometime next week."

While Ms. Botts was at all times very courteous, she seemed at times
skeptical of my motivations. I assured her several times that I was
just a plain old HL&P customer, not an attorney, etc.. She referred
several times to knowing that there were a lot of "alarmists" out
there, and at one point stated that it was obvious to her that I had
gotten the series of questions I was asking from some website. I
replied that, no, I was just concerned citizen that had been reading
the available info, and just created this list of questions so that I
could share in her tranquil outlook.

I'll not comment on her answers, but let the newsgroup go first. I see
a few *small* problems.

I'll investigate the nuke plant and ERCOT, and post a followup.

Later,

Marcus

(Note 2 self - get a cool sig)
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