Deregulation and Y2k

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This question is for Rick Cowles. By the way how are you enjoying your new relationship with TAVA/R.W. Beck. I saw the good news about Africa, congrats.

OK, here is the question. I read an article (http://www.pilotonline.com/business/bz0713eyk.html) on Y2k and in it a representative of Virginia Power was discussing the Y2k issue. They mentioned that they have been working on the problem for some time and expect to spend '$100 to $150 million' on the problem, but they also say they expect to spend half that if the sale of East Midlands Electric goes through. What concerns me is that this statement says that if a utility sells (or plans on selling) a generation plant (or any other division) between now and 2000 they will not worry about Y2k for that plant. I have attended several presentations by a large utility and when questioned about this we got the usuall sidestep answer (these guys are as slippery as politians). With deregulation of the industry there is alot of jockying to get out of the generaton business by most large utilities, is this an area were something can and/or will fall through the cracks? Also, in your testamonies and contacts in the industry has this topic been addressed?

Thanks in advance and happy bug hunting.

-- Anonymous, July 23, 1998

Answers

I wrote a Westergaard column back in December of 1997 regarding this topic. You can find it at:

Fire Sales - Avoiding the Y2k Problem

Thanks for the TAVA/R.W. Beck good wishes - it's been a very interesting experience, and promises to get even more interesting in the next few months.

-- Anonymous, July 24, 1998


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