Cowles:
euy2k.com
A PERSONAL NOTE TO THE
ELECTRIC UTILITY INDUSTRY
At the outset of the fourth quarter, 1998, there are roughly 450
calendar days left to fix the Year 2000 problem in mission critical
systems. Yet many electric companies still seem to be engaged in
debating whether or not an issue truely exists. Yes, there really are
quite a few electric companies that are taking this thing seriously, and
are devoting significant resources to address Y2k. But for each
electric company that's deeply involved in the task at hand, there are
two peers who are struggling with either starting a program or
proceeding beyond Y2k inventory. The few industry progress reports
that are beginning to surface (such as the recent NERC report to
DOE)indicate that even companies who are fully engaged in the
problem don't understand the necessity of adequate documentation
and planning.
Over the past two years, I've spent a lot of time researching and
writing about the status of the electric utility industry's Year 2000
compliance efforts, as well as assisting various companies in a
consulting capacity. Much of the information presented on this
website has been gathered from consulting engagements or personal
interviews / correspondence with various industry insiders, industry
working groups, regulatory bodies, and other Y2K specialists. The
"party line" of the industry remains: everything's OK, this isn't a big
deal, we'll get it fixed. However, anyone in the industry who
understands the total scope of the problem, and who will speak off
the record, is scared to death.
Why? Do they know something that the rest of the world does not?
It's time for the non-IT sector of the electric utility business to get out
of denial, and start understanding and accepting the scope of this
problem. The Year 2000 issue within the electric utility industry is so
much deeper than financial control, customer service, billing, and load
forcasting systems. This problem has the potential to cut to the core
of your business: generating and distributing power. If your company
can not generate power, it can't generate revenue, either. If your
company can not distribute the electricity it buys or generates, it can't
distribute quarterly dividends. Here's what I'm trying to say: if your
business systems are functional, but your transmission and generation
assets are not, who cares? Business systems are useless if your
company can't generate and distribute its product. Your company
must start looking at its embedded controls and infrastructure now.
You can't wait until December, 1999 to begin this task. It's not an
issue of complexity, rather, it's an issue of scale.
There's even more to the Y2K issue than pipes, wires, automated
controls, and business systems! The regulators that control your
ability to generate and distribute electricity have become keenly
interested in how your company is addressing the Year 2000 topic.
Your state and federal regulators possess the power of life and death
over your operations. Yes, the administrative details of Y2K, such as
certifying your company's compliance to industry regulators (SEC,
state PUC's, NRC, etc.), are like thousands of fleas nipping at your
skin. Individually they won't kill you, but collectively they'll eventually
suck the lifeblood out of your organization.
Beyond the business and operational concerns that Y2k invokes,
there's a deeper issue.
As Ed Yourdon states in his book, Time Bomb 2000, "...reliable
electrical supply is the most basic lynch pin of a civilized, modern
society." Nothing works without it. Not telecommunications,
computers, air traffic control, or hot tub heaters. Most importantly,
electricity provides security in many forms; some tangible and some
more esoteric than others. The perception of security can be as basic
as having the ability to turn on the lights with the flip of a switch as
you come through the front door of your home. In the absence of that
feeling of security, social order breaks down in a hurry when the lights
go out, the beer gets warm, and people get cold. Whether it's
deserved or not, electric utility companies have an unspoken and
unbreakable contract with society to keep the power flowing.
My time in the industry introduced me to many fine individuals, from
meter readers and service technicians, to nuclear control operators
and CEO's. Every one of these people had a common bond - a
dedication to keeping the power flowing and a sense of social
responsibility that has no equal in any other industry. This sense of
dedication gives me the hope that the industry has the ability to meet
the Y2K challenge head-on and assure the reliability of electrical
supplies into the 21st century. Can it be done in the time remaining?
Is it worth your time (and possibly career exposure) to consider the
issues, expand your personal Y2k horizons, and sound a wakeup call
within your own company, if necessary? That is up to each electric
utility representative visiting this site to decide. A lot of lives are riding
on that decision. |
