I was e-mailed and asked about the SEC form 10Q. Since it will probably be one of our most relaiable sources of y2k utility information in the next 12 months I'll expand on it.

The SEC 10Q is a report, written by all public companies, to the Securities and Exchange Commission, that gives the SEC and stock/bond holders the quarterly status of the corporation. Starting this quarter, the 10Q report must include detatiled information on the corporation's y2k status. You can access a utility or any other public corp 10Q report form the EDGAR archives:

http://www.sec.gov/cgi-bin/srch-edgar

Type the name of the utility in the search box and look for the most recent 10Q report (dated after October 98)

These 10Q reports are just now coming out. If you find some important data on a utility please let this forum know.

-- Anonymous, November 03, 1998

Answers

Ahhhh, yes, the good old 10Q. Everything you wanted to know about a company but they were afraid to tell you. These should be very informative, given the SEC's ability and willingness to inflict punishment on scalawags, ruffians and 'ner-do-well's (I got those names from the movie "Muppet Treasure Island"-if you've got kids, you'll understand).

For maximum coverage, maybe we can all pick a favorite large utility and review the 10Q for general posting. What say ye?

Ron

-- Anonymous, November 03, 1998

Here's my power company's extremely informative statement--

The Company has spent considerable time and effort over the past several years on the issue of the year 2000 software compliance, and the effort is continuing. Certain software has already been made year 2000 compliant by upgrades and replacement, and analysis is continuing on others, in accordance with a schedule planned to permit the Company to process information in the year 2000 and beyond without significant problems. Expenditures for the software modifications and upgrades are not expected to have a material impact on the Company's results of operations or financial position.

Off to buy more lamp oil....

-- Anonymous, November 03, 1998

Here is part of what my utility company's statement:

Despite testing and remedial work preparing for the advent of year 2000, the Company may experience random, widespread and simultaneous failures in its generation, distribution and information systems during January 2000. Contingency plans for any known or reasonably anticipated risk of interruption to the generation or distribution of energy are being developed to either eliminate the risk or plan for resources needed to be put in place to reduce the potential outage period to a minimum.

Does this make anybody want to have a contigency plan of their own?

-- Anonymous, November 04, 1998

Here is what my electric utility company had to say in their August 10Q:

"GPU is addressing the year 2000 issue as it relates to its business, operations and operating systems, and its business dealings with third parties including customers, banks, partners, vendors, suppliers and service providers. Comprehensive reviews of all computers, equipment, systems and applications are being performed; remediation plans are being developed; and certain corrective actions have begun. GPU's remediation plans include, among other things, the upgrade or replacement of computers, equipment and computer software. Management currently believes that adequate resources are being allocated to this project and anticipates that GPU's remediation efforts will, in all material respects, be completed by the end of 1999. However, if GPU or critical third parties on which GPU relies are unable to successfully correct their year 2000 issue on a timely basis, certain computers, equipment, systems and applications may not function properly, which could have a material adverse effect on GPU's operations and financial condition. Among other things, GPU's operations could be affected by a temporary inability to process transactions, send bills or operate electric generating stations, as well as by interruptions of electric service and reduced customer service. There can be no assurance as to the outcome of this matter."

Kind of scary that they have not completed assesment and are just starting their remediation plans. This is amusing to me since in the bill I received from them today there was a Y2K insert. The insert said (in part):

"Here at GPU Energy, we have been proactive in our approach to handling the so-called Millennium Bug. We are testing our computers, software and applications as well as the embedded technology located in our operating systems. GPU Energy is developing amd implementing strategies to ensure that these systems function properly into and beyond the Year 2000. We are also encouraging our key suppliers and partners to do the same. ............. You (can) contact manufacturers and inquire about their products and the Y2K problem. Obtaining similiar assurances from other product and service providers may offer additional reassurance."

Is this double speak or what?

This utiltiy handles most of northern New Jersey - which includes service to AT&T's Network Operating Center among many other companies.....

-- Anonymous, November 04, 1998

This is the report from Nipsco in northern Indiana. I am missing something or is Nipsco just getting started? I do not see any references to remediation or testing just the word modify.

Year 2000 Costs- Industries has several major projects underway to modify portions of its systems for proper functioning in the year 2000. These include a project to evaluate Industries' proprietary software and to work with each of Industries' software vendors to assure that appropriate steps are being take to mitigate the problem in each vendor's software or, in some cases, to replace software with year 2000 compliant software; a project to identify and mitigate any problems wherever they exist in Industries' systems ranging from equipment used in Northern Indiana's generating stations to Industries' phone system that have date information embedded within them; and an initiative to assure that each entity that electronically receives information from Industries or sends information to Industries is aware of the steps that Industries is taking and is taking appropriate steps of its own to address the problem. Consistent with its plan, Industries expects to be year 2000 compliant with some systems as early as the third quarter 1998 and other systems no later than the third quarter of 1999. Industries is currently in the process of structuring its contingency plans with respect to the potential nonperformance of certain of its information systems and embedded systems as a result of year 2000 problems, and estimates that those plans will be complete by the third quarter of 1999. Industries is currently working with utility industry groups to evaluate the potential impact of the Year 2000 computer problems on the interconnected national electric grid and pipeline network. Industries estimates that costs to become year 2000 compliant will be approximately $17-$26 million, including acquisition costs of new systems which will be capitalized consistent with Industries' accounting policies. Costs related to maintenance or modification of Industries' systems have been and will be expensed as incurred. Industries does not anticipate the related costs will have a material impact on its results of operations, nor does Industries currently anticipate any disruption of its ability to deliver service as a result of the year 2000 issue.

-- Anonymous, November 04, 1998

Answer to David Auld re: Nipsco

David, you are not missing anything; you are right on. They are just getting started.

-- Anonymous, November 04, 1998

You all are lucky, I looked up Central Hudson, the Utility that provides power for much of New York State above New York City, along the Hudson River, and couldn't find any mention about Y2K in the 10Q. Is it a specific section to look for or is it usually listed in Other Information.

-- Anonymous, November 04, 1998

[Since my Utility didn't have any info on Y2K I looked at New York City's. Con Ed, CONSOLIDATED EDISON< has finished inventory and assesment and estimates that it will be finished with remediation at year end of 1998. Testing throughout 1999. The verbage is practically the same as some of the other utilities posted, either by design or just lawyer verbage. And states that anything can go wrong.]

YEAR 2000 ISSUES AND CONSEQUENCES In 1995 Con Edison began a program to address its Year 2000 issues. An inventory and assessment of Con Edison's company-developed systems, vender-developed systems, technology infrastructure and telecommunications infrastructure has been completed. Con Edison expects that necessary changes to company-developed systems that are critical to providing energy service to its customers and an inventory and assessment of the embedded technology in its equipment, machinery and operating systems will be completed by year-end 1998. Con Edison plans that any necessary changes to its other systems, infrastructure and embedded technologies will be completed by June 1999. Con Edison intends to continue to test its Year 2000 readiness throughout 1999. Con Edison estimates that the cost of its Year 2000 program will be approximately $27 million, of which approximately $20 million has been incurred. The cost is being funded from internally-generated funds and expensed as incurred.

Con Edison is contacting entities, such as energy, service or material suppliers, that are critical to providing energy service to its customers to determine the Year 2000 readiness of these entities. Con Edison has also sent inquiries regarding Year 2000 readiness to 4,500 suppliers. No third party has indicated to Con Edison that it has a Year 2000 problem that will have a material adverse effect on Con Edison's business.

Con Edison expects that its program will be adequate to address its Year 2000 issues, but nevertheless intends to develop a contingency plan in early 1999. There can, of course, be no assurance as to whether the contingency plan will successfully address any contingencies that arise. In the event that Con Edison is unsuccessful in addressing its Year 2000 issues, there could be a material adverse effect on Con Edison's financial condition, results of operations and liquidity.

This Year 2000 discussion includes forward-looking statements, which are statements of future expectation and not fact. Words such as "expects," "plans," "intends," "estimates" and similar expressions identify forward-looking statements. Actual results or developments might differ materially from those included in the forward-looking statements because of factors such as unforeseen Year 2000 issues affecting Con Edison's systems, any inaccuracy in the inventory and assessment of Con Edison's systems, infrastructure or embedded technologies, the failure of Con Edison's consultants and venders to successfully complete necessary changes to Con Edison's systems, infrastructure and embedded technologies, the failure of other entities to address their Year 2000 problems, the interrelationship of Con Edison's systems with those of other entities and other presently unknown or unforeseen factors.

-- Anonymous, November 04, 1998

Can somebody help me find the 10-Q report for Alliant-energy? Did they file a report for August?

-- Anonymous, November 05, 1998

David (Auld), on Alliant's home page it states they are a "new" company, having merged IES Industries, Interstate Power, and WPL Holdings. WPL Holdings filed with the SEC as late as 4/1998, so it may be that Alliant hasn't gotten a filing in yet. I don't know what the time frame is for the filings of newly merged companies, I only offer this as a possible explanation for your difficulty in locating info. Perhaps someone else can offer more information to help you. Best wishes!

-- Anonymous, November 05, 1998

Text from the Unicom August 14th '98 report including Commonwealth Edison:

Year 2000 Conversion. Unicom, including ComEd, uses various software, systems and technology throughout its businesses that will be affected by so- called "Year 2000 Issues." The issues concern the ability of electronic processing equipment (including microprocessors embedded in other equipment), which have been programmed to track only the last two digits of a date, to recognize properly the date change to 2000 (as opposed to 1900) or to recognize "00" as valid. A failure to correct any such processing problems prior to January 1, 2000 could result in material operational and financial risks if the affected systems either cease to function or produce erroneous data. Such risks could include an inability to operate ComEd's nuclear or fossil generating plants, disruptions in the operation of its transmission and distribution systems and an inability to access interconnections with the systems of neighboring utilities. Since July 1996, Unicom has been working to identify and address Year 2000 issues. It has been reviewing all systems and is contacting software vendors, equipment suppliers and customers as well as neighboring utilities. To date, approximately 50% of the software applications and 15% of the embedded systems have been analyzed for Year 2000 compliance status. Once issues have been identified, Unicom's approach to them has been to upgrade or remediate software, systems and technology that are not Year 2000 compliant and that are not otherwise being replaced in accordance with Unicom's business plans. In accordance with its business plans, Unicom has replaced certain of its financial, human resources and customer service and billing software, and is planning to replace its payroll system in early 1999, with new software that is Year 2000 compliant. Unicom is upgrading or remediating certain embedded technology systems in its nuclear and fossil electricity generation, its transmission and distribution, and its supply management business units. Overall, Unicom estimates that implementation of Year 2000 compliant software and systems is approximately 30% complete as of July 31, 1998 and that such efforts will be over 50% complete by the end of 1998. The total cost of remediating or upgrading software that is not being replaced, in accordance with business plans, is estimated to be $20 million, and the total cost of upgrading or remediating embedded technology systems is estimated to be approximately $20-$40 million. Such costs are expensed as incurred. An independent consultant has been engaged to assist Unicom in the assessment of the process being used to address the Year 2000 issue. All Unicom systems and software are expected to be Year 2000 ready by the end of 1999. In addition to the steps described above, Unicom is working with various industry groups including NERC, the EPRI and EEI to coordinate electric utility industry Year 2000 efforts with the Clinton Administration's Year 2000 Conversion Council, the DOE and Congress. The DOE has requested from NERC a status report and coordination plan by September 1998, and a full status report by July 1999, as to the measures that are being taken to prepare electric power supply and delivery systems for transition into the Year 2000. Unicom has identified, and has started a process to develop contingency plans to address, various worst case scenarios that could occur in the unlikely event that various Year 2000 issues are not resolved in a timely manner. Contingency plans are also being developed to address the impact on Unicom if Year 2000 remediation efforts of other parties, such as suppliers, surrounding utilities and interfacing regulatory, governmental and financial institutions, are not successful. The failure of such parties to resolve Year 2000 issues could result in significant disruptions in Unicom's operations.

Notice in the last paragraph they leave themselves the familiar out "we'll be compliant, but if any of our suppliers are not then there will be problems."

Shall we head for the hills?

-- Anonymous, November 06, 1998

My power company is Entergy, a fairly large company. They provide electricity and gas for Missippi, Lousiana, Arkansas and East Texas. Their statement says right out that they plan to continue y2k repairs through the middle of 2000. So, apparently they don't even plan to complete prior to 2000. This is part of the eastern US grid. Can the grid stay up without East Texas, Lousiana, Arkansas and Missippi? I am not an expert, but, from every think I have read,

I don't think so!

I anyone knows, please respond.

-- Anonymous, November 06, 1998

Pulled up the 10Q for DTE Energy (parent company of Detroit Edison). The Y2K statement follows

BEGIN EXERPT YEAR 2000 As discussed in Part II, Item 7 - Management's Discussion and Analysis of financial Condition and Results of Operations in the Company's Annual Report on Form 10-K, the Company has been involved in an enterprise-wide program to address Year 2000 issues. A program office was established in mid-1997 to implement a rigorous plan to address the impact of Year 2000 to hardware and software systems, embedded systems (which include microprocessors used in the production and control of electric power), and critical service providers. The emphasis has been on mission critical systems that support core business activities or processes. Core business activities/processes include safety, environmental and regulatory (Federal Energy Regulatory Commission and Nuclear Regulatory Commission) compliance, product production and delivery, revenue collection, employee and supplier payment, and financial asset management.

The Company's plan for addressing Year 2000 is divided into several phases including: raising general awareness of Year 2000 throughout the company, maintaining an inventory of systems and devices, performing an assessment of inventoried systems and devices, performing compliance testing of suspect systems and devices, remediation of non-compliant systems and devices through replacement, repair, retirement, or identifying an acceptable work around, testing and remediation of systems and devices in an integrated environment and preparing business continuity plans. The inventory and assessment of known systems and devices has been completed. Compliance testing and remediation for mission critical and other systems and devices are in process. Completion of remediation and integration testing/remediation of mission critical systems is expected by the end of calendar year 1999. To support the program phases, the program office has been working with major utility industry associations and organizations, customers and vendors to gather and share information on Year 2000 issues. The program office has contacted vendors critical to Company operations to determine their progress on Year 2000. Based upon information to date, the Company and Detroit Edison anticipate that abnormal operating conditions may be experienced within the Detroit Edison production, transmission, and distribution systems as a result of Year 2000 conditions. These conditions could result in temporary interruption of service to customers. Abnormal operating conditions may also be experienced in other affiliates of the Company of a magnitude not determined at this time. To address these issues, a business continuity program is being developed to be operational in the fourth quarter of 1999. The business continuity program is expected to provide short and long-term solutions to Year 2000 related issues. The Company and Detroit Edison believe that with all Year 2000 modifications and business continuity plans in place, the Year 2000 will not have a material effect on their financial position, liquidity and results of operations. However, despite all efforts, there can be no assurances that Year 2000 issues can be totally eliminated. In addition, no assurances can be given that the systems of vendors, interconnected utilities, and customers will not result in Year 2000 problems.

The Company and Detroit Edison estimate that Year 2000 costs will aggregate between $50 and $75 million, with $13 million expended between January 1, 1998 and September 30, 1998. Operating cash flow is expected to be sufficient to pay Year 2000 modification costs with no material impact on operating results or cash flows END OF EXERPT

Well, at least they admitted that they could go down. With remediation slated for completion at the END of 1999, they don't seem to have much room for errors, vendor backups, or unexpected problems which may crop up in testing. I'm still storing my food, fuel, and water for an extended outage. January gets mighty cold in Michigan! Hope this helped All Success Keith

-- Anonymous, November 08, 1998

This is PEPCO (Potomac Electric Power Company which supplies DC and some suburbs) Y2K statement in their SEC 10-Q filing as of Aug. 1998. I have included my comments in square brackets [].

"The Company has implemented a 4-phase approach to accommodate the Year 2000. All of these activities are coordinated through a Corporate Year 2000 Task Force comprised of representatives from each Business Unit. The phases being addressed are as follows:

1. Corporate Applications (Information Technology) Readiness: Corporate Applications are those large core systems such as Customer Information, Human Resources and General Ledger, for which the Company's Computer Services Group (CSG) has responsibility. Year 2000 modifications to these systems are being analyzed, programmed and tested by CSG.

2. Embedded Systems (Non-Information Technology Processes): This category includes such items as meters, power plant operating and control systems, telecommunications and facilities-based equipment (e.g. elevators). These products are being evaluated and modified as required by the appropriate end-user areas. This activity is being conducted in coordination with the vendors of these products.

3. End-User Computing Systems (Non-Core Business Systems): Many areas outside of CSG have developed systems, data bases, spreadsheets, etc. that contain date calculations. These products are being evaluated and modified as required by appropriate end-user areas.

4. Business Partners' Systems and Vendor Supply-Chain Verification: The Company contracts with many vendors who provide products and services to the Company. The Company is seeking to obtain Year 2000 assurances from suppliers. This effort is being jointly undertaken by the Company's Materials Group and appropriate end-user areas.

The Corporate Year 2000 Task Force continues to meet regularly to monitor the status of the efforts of the Company's assigned staff and contractors in identifying, testing and remediating Year 2000 related issues. The Task Force is addressing additional Year 2000 related issues including, but not limited to, testing procedures and business continuation and other contingency planning.

As of August 11, 1998, approximately 80% of the 110 corporate Information Technology systems (7,891 programs) have been re-programmed, and 50% have been regression tested and placed into production. "Time Machine" testing using a portion of the mainframe computer system partitioned for Year 2000 full- cycle testing has commenced. A parallel LAN (local area network) Year 2000 testing facility has been established."

[This is good news and good progress. 80% of 110 is 88 systems and, if the programs were distributed evenly, 6313 programs. That leaves 22 systems or 1578 programs to go. (I'm going on the assumption that anything re-programmed by now should have plenty of time to be tested before 2000)]

"In conjunction with equipment vendors, evaluation of available alternatives for many embedded systems has been undertaken. Many of these evaluations have been completed. The remainder of the major appraisals are scheduled to be completed by the end of the third quarter 1998. Remediation activities are underway for many embedded systems and associated components. Test scheduling is more complex for embedded systems because of the difficulty inherent in scheduling power plant outages to accommodate the testing. Much of the testing will be accomplished in the spring of 1999 during regularly scheduled outage periods. At that time, at least one typical unit of each type will be tested, and the requirement for further testing will be determined."

[Oops! This practice of testing "typical units" and extrapolating the results to the rest is full of pitfalls. Embedded systems may be the same "type" but use different chips with different firmware. Even manufacturers may outsource. It seems that embedded systems remediation is a really tough challenge. Good luck to them, they will need it.]

"Presently, no Year 2000-impacted processing components have been identified that cannot be upgraded or modified within acceptable time frames. The Company is participating in an Electric Power Research Institute sponsored consortium of approximately 85 investor-owned utilities to coordinate vendor contacts and product evaluation. Because many embedded systems are similar across utilities, this type of concentrated effort should help to reduce total time expended in this area and help to ensure that the Company's efforts are consistent with the efforts and practices of other investor-owned utilities."

[This is good news, if it means what I think it means. It doesn't guarantee success, but it shows that they are on the right track.]

"End-user systems comprise a relatively small percentage of the required modification both in terms of number and criticality. All of these activities remain on schedule to be completed in mid-1999.

The Company has sent letters and accompanying Year 2000 surveys to over 1,800 vendors and suppliers. Over 800 responses have been received as of August 11, 1998. These responses outline to varying degrees the approaches vendors are undertaking to resolve Year 2000 issues within their own systems. Follow-up letters will be sent to those vendors who have not responded or whose response was inadequate."

[The vendor issue is going to be another big challenge for them. That's an abominally low response rate--"over" 44%--although it's better than the 28% response the county govt got to their vendor questionnaire. How can they possibly know what they're dealing with?]

"The target date for completion of all Year 2000 related activities remains at mid-1999. This target date may be impacted by the integration testing plans and scheduled generation/electric system outage decisions inherent in embedded system processing."

[In other words, if they have to take down a power plant to test it, they want to do it when the plant is scheduled to be offline. That may not fit with when they actually remediate the system.]

"Major challenges remain in three primary areas:(1) maintaining sufficient human resources to complete Year 2000 tasks; (2) scheduling integrated testing for many embedded systems, taking into account planned outages and operational needs; and (3) completing contingency planning for the variety of scenarios which might occur. There are two potential areas of resource constraints. First, as other companies and government agencies gear up their Year 2000 programs, the competition for trained personnel (e.g. programmers) is becoming stronger. This affects both in-house staff as well as contract personnel. As of August 11, 1998, the Company has been able to continue to operate effectively in the employment and contracting marketplace, and is thus far maintaining the required level of resources. Second, the availability of vendor resources to both complete embedded system assessments and produce in volume any required component upgrades may become problematic."

[These are major issues EVERY utility will no doubt face.]

"Contingency and business continuation planning are in various stages of development for critical and high-priority systems. The Company's existing storm response plan and computer contingency plan are being modified for use in the event of any Year 2000-related electric service disruption. The cost or consequences of a material incomplete or untimely resolution of the Year 2000 problem could adversely affect future operations, financial results or financial condition of the Company.

The costs of expected modifications will be approximately $14 million, and will be charged to expense as incurred; through June 30, 1998, $3.5 million has been charged to expense. Approximately $1.3 million and $2.2 million have been expensed in the three and six months ended June 30, 1998, respectively."

[This means they've spent about 25% of their expected Y2K budget already. Does that mean only 25% of the work is done? Was some of the prior work covered by their main IT budget? Or will the last bits will be increasingly expensive? And concurrently, more difficult to do?]

"Approximately 70% of the total cost will be spent in 1998, and the remainder in 1999. These estimates may change as additional evaluations are completed and remediation and testing progresses."

[So in the first 2 quarters of 1998 they spent 25% of their budget, but in the last 2 quarters of 1998 they are going to spend 45% of their budget? Hm. We'll see. This statement seems more thorough than some others, but like most Y2K statements, this is a real good news/bad news mix. Will we have electric power in 2000? I think I'd bet that this utility will probably be generating electricity, but I'm not so sure about the rest of the grid. Stay tuned...]

-- Anonymous, November 11, 1998