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Technology Stocks : Year 2000 (Y2K) Embedded Systems and Utilities -- Ignore unavailable to you. Want to Upgrade?

To: C.K. Houston who wrote (86)	11/18/1998 4:54:00 PM
From: John Mansfield	Read Replies (1) \| Respond to of 89

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. Contribute an answer to "Power: 10-Q, Delaware's Connectiv Corp" greenspun.com