Folks:

I wonder if anyone knowledgeable on interpreting SEC filings would like to share your thoughts on this power company's status. It seems to me that their timetable for repairs reflects that they are very behind and we in western New York (Buffalo) have much to be concerned about. Also, NIMO recently began selling some of their generating plants. I am a minister and would like some good feeback as we assess our local situation as a community.

Thank you.

http://www.nimo.com/whatsnew/Y2K-10ka.htm

-- Anonymous, January 19, 1999

Answers

COSTS The Company estimates that total program costs will approximate $40 million of which approximately $30 million will be expensed and $10 million will be capitalized. Total program costs incurred through September 30, 1998 are $4.8 million of which $3.7 million was expensed and $1.1 million was capitalized. The Company expects to fund the total program costs through operating cash flows.

Think about these numbers. They estimate they will spend $40 million. They only spent $4.8 million by the end of 3Q 98. So with a little over a year to go they need to spend 88% of the total amount budgeted. It means they started way late and are scrambling. Further, I may be wrong, but I believe they announced earlier in the year that they had to replace their SCADA/EMS and didn't expect to have that completed until 3Q 99.

-- Anonymous, January 19, 1999

Kevin, I'd say your own assessment is on target, and RD. has already provided you with very good points. I also live in an area serviced by NiMo and in the studies of publicly traded utility 10Qs I've done, unfortunately I consider Niagara Mohawk to be on the lower end of the scale as far as Y2K remediation progress. You can find my summary 10Q assessments in the Guest Commentary section on this site, and my recent commentary on the January NERC report on the CBN site at:

http://www.cbn.org/y2k/insights.asp?file=990114o.htm

We both are well aware of how cold it can get in January in our area, not to mention the possibility of weather related outages such as the recent northern New York/Canadian ice storm. I have installed a wood stove and purchased a good supply of cord word, besides taking other precautions as I am able. I believe preparing for possible electric outages is the practical, common sense thing to do for anyone living in a cold northern climate, and most especially with the uncertainty of Year 2000 looming. The Bible places great value on wisdom, and I wish you God speed in helping your community come to grips with the potential problems.

-- Anonymous, January 19, 1999