Power: 10-Q, Delaware's Connectiv Corp
asked in the TimeBomb 2000 (Y2000) Q&A Forum
Conectiv Corp is a power company with headquarters in
Wilmington, Delaware. I've extracted the Year 2000 section
from their most recent SEC 10-Q and included it below. The
complete 10-Q can be read at:
sec.gov
I've avoid adding my own emphasis so as to let the 10-Q speak
for itself...
YEAR 2000
The Year 2000 issue is the result of computer
programs and embedded systems using a
two-digit format, as opposed to four digits, to
indicate the year.Computer and embedded
systems with this characteristic may be unable
tointerpret dates beyond the year 1999, which
could cause a system failure or other computer
errors, leading to disruption of operations. A
project team, originally started in 1996 by ACE,
is assisting line management in addressing the
issue of computer programs and embedded
systems not properly recognizing the Year 2000.
A Conectiv corporate officer, reporting directly
to the Chief Executive Officer, is coordinating
all Year 2000 activities. There are substantial
challenges in identifying and correcting the
many computer and embedded systems critical
to generating and delivering power, delivering
natural gas and providing other services to
customers.
The project team is using a phased approach to
managing its activities. The first phase is,
inventory and assessment of all systems,
equipment, and processes. Each identified item
is given a criticality rating of high, medium or
low. Those items rated as high or medium are
believed to put Conectiv's business operations
and customers at substantial risk and are then
subject to the second phase of the project. The
second phase is determining and implementing
corrective action for the systems, equipment and
processes, and concludes with a test of the unit
being remediated. The third phase is system
testing and compliance certification.
Additionally, the project team will be updating
existing outage contingency plans to address
Year 2000 issues over the next 12 months.
The following chart sets forth the current
completion percentage of the Year 2000 Project
by major business group, and for the
information technology systems used in
managing Conectiv's business. Conectiv expects
significant progress in remediation and testing
over the next two quarters based on work that is
in process and material that is being ordered.
Inventory and Corrective Testing and
Business Group Assessment Action Compliance
----------------------------- ------------- ------------ -----------
Business systems 95% 70% 60%
Power production 90% 0% 0%
Electricity distribution 90% 5% 5%
Energy and other services 75%-95% 0%-80% 0%-80%
Conectiv is also contacting critical vendors and
service providers to review remediation of their
Year 2000 issues. Many aspects of the Conectiv's
businesses are dependent on third parties. For
example, fuel suppliers must be able to provide
coal or gas to allow Conectiv's subsidiaries to
generate power.
Distribution of electricity is dependent on the
overall reliability of the electric grid. ACE and
DPL are cooperating with the North American
Electric Reliability Council and the PJM
Interconnection in Year 2000 remediation
efforts, and is accelerating its Year 2000 Project
timeline to be generally in-line with the
recommendations of those groups.
Conectiv has incurred approximately $3 million
in costs for the Year 2000 Project. Current
estimates of the costs for the Year 2000 Project
range from $10 million to $15 million. These
estimates could change significantly as the Year
2000 Project progresses.
Since the project team is still in the process of
assessing and correcting impacted systems,
equipment and processes, Conectiv cannot
currently determine whether the Year 2000 issue
might cause disruptions to its operations and
have impacts on related costs and revenues.
Conectiv assesses the status of the Year 2000
Project on at least a monthly basis to determine
the likelihood of business disruptions. Any
substantial disruption to the Conectiv's
operations could significantly impact its
customers and could generate legal claims
against Conectiv. Conectiv's results of
operations and financial position would likely
suffer an adverse impact if other entities, such
as suppliers, customers and service providers do
not effectively address their Year 2000 issues.
OK, now let me ask the $10,000 question. Does anyone else
except me see a very big problem here? Would any of you care
to invest based upon this statement?
-Arnie
Asked by Arnie Rimmer (arnie_rimmer@usa.net) on November 17, 1998.
Answers
Perhaps this should be a SAT type exam question. The major
problem with Connectiv Y2K progress is: A. the business
systems are 95% assessed and 60% remediated B. the power
generation segment has been assessed and thats all C. Connectiv
is a terribly confusing name for a singles bar. D. Power
distribution is 90% assessed, remediation/testing just begun E.
Who can understand "energy and other services" line?
Answer: (you can't peek!!) but buy that gen now!!
Answered by R. D..Herring (drherr@erols.com) on November 17, 1998.
The answer is B, and generators won't do you any good, order
another cord of wood Professor Herring.
Answered by Chris (catsy@pond.com) on November 17, 1998.
Sorry folks. this is a test question which will not pass the
regression analysis to be included in the next year as the correct
answer is A B D or any combination of same.
This is an amazing piece of work!! Any person (who is NOT
Y2K aware) simply reading it would say they are doing a
WONDERFUL job! Nobody looks at tables in these things, and
the verbiage doesn't include the data from the table. Cool job as
far as the PR company is concerned. They could have done a
great job for OJ in his custody fight!!
And they blame their suppliers for any problems!! COOL!!
Chuck
Answered by Chuck a Night Driver (rienzoo@en.com) on November 17,
1998.
C'mon, you guys! Look at how good they're doing on their
BUSINESS systems. Doesn't it give you warm fuzzies to know
they'll be able to send out correct bills to everyone? I think it's
wonderful.
Answered by Arewyn (nordic@northnet.net) on November 18, 1998.
Conectiv Corp is a merger of the former Delmarva Power and
Atlantic Power. It provides power to a lot of the New Jersey
coastal cities. It provides power to light houses (Cape May, and
others). Although ships shouldn't need light houses now, what
with modern navigation equipment, it sure will make the coast line
seem dark in mid-winter.
BTW. The only retreat from some of those areas on the
Delmarve Pennisula and NJ coast is to flee into.....gasp.....heavily
populated regions.
Which do you prefer, the frying pan or the fire?
Answered by rocky (rknolls@hotmail.com) on November 18, 1998.
Rocky, very, very prophetic...Since Frying Pan Shoals is just
south of N.J. Wow. A penny for your.. Charon
Answered by Charon (Thatplace@below.com) on November 18, 1998.
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