Utilities Told to get Y2K backup plan By Doug Sword/staff writer

Concerned that basic utility services could blink out at the first second of the new millennium, a state regulator is ordering all Indiana Utilities to have emergency plans in place by Oct. 1, 1999. The Indiana Utility Regulatory Commission voted Thursday to investigate whether electric, gas, telephone, water and sewer companies are doing enough to ensure service won't be interrupted because of year2000 computer problems. "As much as I would have like to have kept it low key, the issue's just too big," said commission chairman WIlliam McCarty. The commisions low-key approach was to survey Indiana utilities this summer about their preparations, but some of the responses raised concerns. It wasn't just smaller companies that prompted worries that there wasn't enough being done, said commission spokesman Mike Leppert. Basically, the commission is looking for assurances from utilities that they have done everything possible to make sure their mission critical systems don't stop working because of computer software and hardware problems, Leppert said. Those assurances, though, may not be enough, because utilities are so interconnected. Indiana electric companies are part of a large midwestern grid, and if one company in the grid has a problem, it can affect others. Indianapolis Power & Light, for instance, says one of the reasons it can't promise that there will be no power interruption is that it can't guarantee whether the systems of other companies on the same power grid will continue to work. IPL says it plans to spend up to 4 million updating and testing for year 2000 compliance. In letters to customers, though, the electric company says it "cannot provide assurances" there won't be a power interruption. If a business, such as a hospital, has a critical need for a continuous power supply, it should consider having it's own backup system, the letter says. Federal regulators are studying issues related to the midwestern grid. Indiana's efforts to make sure it's utilities are taking the necessary steps will be an important part of making federal plans work, Lippert said. THe worry is a little different for telephone companies, says Dennis McCabe, a spokesman for Ameritech Indiana.By January Ameritech will be able to guarantee that it's system won't be brought down by year 2000 problems, he said. So, local phone customers can expect to get a dial tone and be able to reach other Ameritech customers, McCabe said. But, Ameritech, which serves more than 2 million lines in Indiana, can't guarantee the systems of other phone companies, so it can't promise calls will go through phone lines operated by someone else, McCabe said. The commission's action Thursday requires regulated utilities to file information by Dec. 15 on steps they've taken to get ready, or in the issue's jargon, to be Y2K compliant. These utilities will have to file updates throughout next year and submit contingency plans by Sept. 1, 1999, on what they will do if a critical system fails. By Oct. 1,1999, utilities must have "all mission criical systems operational for the turn of the century",the commission said.

-- Anonymous, November 15, 1998

Answers

Wow, a regulatory commission that is going to take action. How about if this meessage gets forwarded to the regulatory commission in each state.

Perhaps some regulatory commission investigations will lead to a few utility CEOs being replaced by executives who take real action.

Is it possible that our bigger problem lies with inactive regulatory commissions?

Or does the problem lie with me! Here I am spending my time on the internet. Perhaps I should be demonstrating in front of a regulatory commission office building or at least writing them letters.

-- Anonymous, November 15, 1998

It is indeed encouraging that a regulatory commission is taking action. This should have at least some impact on those regulated. However, unless the commission does something proactive during this next twelve months to ensure the new requirement is met by all utilities, the impact of the commission's pronouncement is pretty limited.

After all, if a naughty utility does not comply, what is the penalty? A fine? Closure of the utility?

All commissions should follow the model provided by the FDIC, which is auditing its member institutions every quarter to get a status update so action can be taken.

-- Anonymous, November 17, 1998

It's a good thing that regulatory commissions are stepping up to the plate. However, the average citizen needs to be reminded of something. No matter how much pressure is put on a utility, or business, if the time left before 2000 is not sufficient to do the work which needs to be done, then all the pressure in the world will not change the outcome.

If someone threatens your child, and the only way to safety is for you to run 5 miles in an hour, you'll likely do it. If you have to run that 5 miles in 5 minutes, you may burst your heart trying, but the outcome is assured before you ever start. At this point, it's not corporate awareness that is the problem. It's that there is a finite time frame to accomplish what needs to be done. Setting deadlines may make citizens feel comforted, but in reality it's pointless if you just can't get from here to there in the time left.

This is why so many computer experts and others are telling people to make personal preparations to enable them to withstand disruptions. There can be a gung-ho effort at Y2K fixes and it still won't be enough if the project wasn't started in time. (And a lot of them weren't.) There IS enough time left for individuals to take personal responsibility for their own safety. Begin now.

-- Anonymous, November 17, 1998