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To: Karl Drobnic who wrote (5751)11/10/1997 12:12:00 PM
From: C.K. Houston  Read Replies (3) | Respond to of 31646
 
<If the embedded chip problem is as complex as we believe...>

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ELECTRIC UTILITIES & Y2K WEB SITE
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MUST Read - An Open Letter to Utilitity Industry (Excerpts):

The "party line" of the industry remains: everything's OK, this isn't a big deal, we'll get it fixed. However, everyone I've personally interviewed in the industry who is knowledgable about Y2K, and who will speak off the record, is scared to death. Words like "5 alarm panic", and "not a snowball's chance in h*ll" come immediately to mind. I've spoken to industry leaders who are buying generators, for God's sake .... WHY? Do they know something that the rest of the world does not?

Over the past year, I've spent a lot of time researching and writing about the status of the electric utility industry's Year 2000 compliance efforts. Much of the information presented on this website has been gathered from personal interviews or correspondence with various industry insiders, industry working groups, regulatory bodies, and other Y2K specialists ... My time in the industry introduced me to many fine individuals, from meter readers and service technicians, to nuclear control operators and CEO's. MORE....
Written By: Rick Cowles (rcowles@waterw.com)
accsyst.com
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UTILITIES & EMBEDDED CONTROLS
accsyst.com

Within a typical electric utility, embedded logic control is prevalent in every facet of operation; from load dispatch and remote switchyard breaker control to nuclear power plant safety systems and fossil plant boiler control systems. Whole generating units (generally, gas turbines)are controlled from miles away by personnel adjusting system loads in response to peak demands. Embedded logic control is the dirty little Y2K secret of all production facilities (manufacturing and utilities) that has the most significant potential to bring whole companies to their knees.

Embedded logic is really the wildcard in the whole Y2K scheme of things for any industry where process control is utilized. No one knows or can even guess how much embedded control has the potential for failure on 01/01/2000. And even if all non-compliant embedded logic and controls were identified in every industrial process that used them, there's absolutely no assurance that the controls industry or chip manufacturers would be able to meet demands for upgrades or replacements. Even getting support from the vendor who installed your system(s) is going to be a crapshoot.........
Written By: Rick Cowles
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John Catterall is the Y2K Program Manger for Western Power. In an early November, 1997 letter, he expressed a tremendous amount of concern with the Y2K embedded controls issue within his company. Here's an excerpt from the letter:

"Automated systems are indeed widespread throughout power utilities. Exposure to the industry would in my opinion rate as extreme. At Western Power, our IT compliance project (cost around $3 million and employing 35 Full time employees) is trivial in comparison to the issues we face on the control and embedded systems front."
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Pop Quiz (and maybe a future case history):
A major electric company spends lots of time and money fixing their mainframe computers, internal LAN's, customer service systems, and purchasing systems to make sure these systems are Y2K ready. This electric company was absolutely certain they were ready for the century change. However, in the days following 01/0/2000, this company finds its power delivery infrastructure quickly collapsing. Distribution systems fail, generating stations trip offline, and dispatch systems cease to function. Explain: With all of the advance preparations this apparently proactive company undertook, how did this happen?

Answer:
They failed to consider embedded logic exposures during the course of their Y2K program.



To: Karl Drobnic who wrote (5751)11/10/1997 12:13:00 PM
From: Jack Zahran  Read Replies (1) | Respond to of 31646
 
I recall they were also trying to consolidate and secure a line of credit as well. With the revenues expected in 98 and 99, a loan today would be understood. In addition, what about one of their alliance partners buying a stake in them? Like Microsoft did to Apple.



To: Karl Drobnic who wrote (5751)11/10/1997 2:58:00 PM
From: jan m.  Respond to of 31646
 
Karl---Being that I'm a contractor, I know a little about the bid and contract process. I agree that a poorly conceived contract would be the last thing we want---but I'm hoping that management will be smart enough to take on any giant manufacturer with a well thought out schedule of work to be performed. One immediate benefit to the company would be cash, if they work on percentage draws as is customary in the contracting business. Normally the work is billed on a monthly basis which gives the company a steady stream of income to pay operating expenses,suppliers and employees. Hopefully at the end of the job, there is a nice sum of money left that can be pocketed as profit. I don't know if this is the method they use but it is one way to look at a large contract as being beneficial for the immediate needs of operation. Jan