Nevada utilities say they're ready for 2000

Nevada's energy and telecommunications utility companies say they'll be ready for the Year 2000 computer bug six months before it arrives.

Consumers, meanwhile, maintained an air of skepticism as Y2K experts from five companies fielded questions about what will happen when the calendar turns from Dec. 31, 1999, to Jan. 1, 2000.

Some experts have predicted disaster. Others have said early efforts to be ready will pay off. But each of the companies -- Nevada Power, Southwest Gas, Nevada Bell, Sprint and MGC Communications -- are spending millions of dollars to head off economic turmoil some say will occur when computer systems crash when they perceive "00" to mean 1900 instead of 2000.

While Public Utilities Commissioner Tim Hay kicked off the 2 1/2-hour session joking that customers "don't want to get bills for a whole century," it was clear the 50 consumers who attended the meeting were serious about learning more about the utility companies' contingency plans in a worst-case scenario.

PUC staff members said the turnout was about 10 times greater than the number that usually speak out on controversial rate increases. Among those in attendance: bankers who may have their own mayhem on their hands as they try to convince customers their institutions' computers are Y2K compliant and money on deposit is safe.

Hay gave each utility an opportunity to summarize what they're doing to prepare for Y2K.

Most are in the midst of developing an inventory of systems and retiring or repairing them as they find them. Some have set up a schedule of testing that includes other critical dates in addition to Jan. 1, 2000.

Sprint, for example, is testing Sept. 9, 1999 (9/9/99) and Feb. 28 through March 1, 2000, since it's a leap year.

The most common means of fixing the computers is through field expansion -- turning "98" into "1998" -- or by "windowing" two-digit systems.

In 60-40 windowing, computer operators set up their systems to recognize 60 through 99 as 1960-1999 and 00 through 59 as 2000-2059.

Each utility offered a compliance timetable that predicted a complete fix by mid-1999.

But utility company representatives cautioned that no amount of in-house preparation may ready them for problems that could occur if their suppliers and customers aren't compliant.

Most of the consumer questions were directed to Nevada Power and many of them sought answers on whether the company could provide electricity to the state if the entire western power grid collapses.

Randy Ranck, director of management information systems for Nevada Power, said there are too many variables to predict whether electrical service could be maintained if the grid falters. The reason: the company's natural gas-powered plants could be affected by suppliers' own computer problems.

Ranck said coal-fired plants have about 30 to 45 days of fuel on site if transportation links are crippled by faulty computers. Natural gas, on the other hand, is delivered as needed through pipelines that could be affected.

Ranck said he wasn't surprised that Nevada Power was in the spotlight at the consumer meeting.

"We're a main source in the supply chain," Ranck said. "People want to be assured that we're ready."

He said that Y2K has grown from a computer problem to a communications and business problem. Complicating the issue of determining whether suppliers will be reliable on Jan. 1, 2000, is that some businesses are afraid to say too much, fearing they'll be found responsible and sued for an unforeseen problem.

Hay said communication on Y2K matters should ease since President Clinton signed a bill this week that relaxes regulations on corporate collaboration.

"It relieves some concerns that competitors can share information on this issue," Hay said.

The PUC now will monitor utility companies' Y2K progress and commissioners expect to get periodic updates on computer test results.

"We should get notification on anomalies and any information should be provided to us in rapid order," Hay said.

The commission, meanwhile, will work to meet other Jan. 1, 2000, deadlines involving Nevada Power.

Next month, the PUC will conduct hearings on the company's proposed merger with Sierra Pacific Resources Inc., of Reno. A decision is expected in early 1999 and if that occurs, executives with the company hope to win federal approval and complete the deal by late 1999.

Commissioners also are working toward restructuring the electric utility industry and have a series of hearings next month. The target date for implementation: Jan. 1, 2000.

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