Connecticut hires outside auditors to check state's utilities for Y2K compliance

greenspun.com : LUSENET : Electric Utilities and Y2K : One Thread

CT DPUC Press Release

DEPARTMENT OF PUBLIC UTILITY CONTROL NEWS RELEASE

January 26, 1999

DPUC Selects Auditor to Assess Utilities' Year 2000 Computer Readiness The Department of Public Utility Control announced today that it has selected RAY! Associates of Fairfield, CT, to monitor the state's major utilities' date sensitive computer systems to assure that they are ready for the changeover in the year 2000.

The Department began contacting the utilities in mid-1997 and has been monitoring the progress of the companies' plans on a regular basis. The purpose of the audit is to provide an independent assessment of Y2K readiness by information technology management experts.

RAY! Associates will review the plans of the state's nine largest regulated utilities, including: Yankee Gas Services, The Southern Connecticut Gas Company, Connecticut Natural Gas Corporation, The United Illuminating Company, The Connecticut Light and Power Company, BHC Company, The Connecticut Water Company, Connecticut-American Water Company and The Southern New England Telephone Company, which owns the Woodbury Telephone Company.

*snip*

If RAY! Associates finds significant issues during its investigation, it will contact the Department immediately so that appropriate measures may be taken; its final report is due by May 1, 1999. Concurrently, the Department will continue its monitoring of the utilities' efforts. If any further action is required, options include detailed monitoring reports on a regular basis, opening formal proceedings to take testimony regarding program plans or even hiring an outside firm to make the utility ready and then billing the cost of those services to the company.

*endsnip*

I wonder if they will publish this report? FWIW, a call to directory assistance found no business by that name in that town, so perhaps RAY! Associates is not exactly an internationally known consulting firm.

I thought the part about hiring an outside firm to make the utility ready and then billing the cost of those services to the company was intriguing. Can state or federal governments do that?

Maybe some of you can sniff around the utility regulating bodies in your states and see if this sort of thing exists elsewhere.

-- Anonymous, February 08, 1999

Answers

I have an acquaintance who is conducting a similar "audit" for a state public utility commission. Don't know if the costs will be passed back to the companies, but I'll check.

-- Anonymous, February 08, 1999

In Conn. the Department of Public Utility Control [DPUC] has extensive powers and does not fail when implementing them. What my research suggests is that the utility industry in CT is also busy with deregulation. In brief, If DPUC tells you to do something, Then it is at your cost or you cease and desist from your non compliant activity.

I will do some further research into RAY! Associates. It would seem to me that RAY! Associates must have quite a few people working for them if they are to monitor all the utilities mentioned in the DPUC article. I hope they do publish the report to the general public and I certainly hope that it will not be spin.

-- Anonymous, February 08, 1999


I find it interesting that the press release states that "RAY! Associates will review the plans of the state's nine largest regulated utilities".

What "plans" are those? Are we talking paperwork here? Or actually talking to people on site?

I also find it a little curious that the idea of "hiring an outside firm to make the utility ready" is proposed. The final report of this independent monitoring is due by May 1, and contracting for any outside remediation help would take a little time. That leaves at most six months for a company which is not familiar with the utility's systems to complete what the utility itself supposedly couldn't in the same time frame. And would this "outside firm" be held legally accountable for a successful remediation? What firm is going to take a contract like that?

This whole thing sounds to me like a bluff to increase pressure on the utilities and to provide a demonstration of "due diligence" for the DPUC itself. If they are really serious, I think they're being impractical about the outside hiring.

My husband is in Conn. this week and he's also going to ask about RAY! Associates. However it turns out, it's a fascinating article. Thanks, tesloid, for posting it! (By the way, does your e-mail addy relate to C.S. Lewis?)

-- Anonymous, February 08, 1999


The head y2k guy of the hartford MDC water sewer company told me that they began thier efforts in 98 oops, 1998. And as of december 98 they were not done with assessing the situation. And also at that dec. date they had completed NO fixes.

Maybe they picked the nine companies that had the best results to show.

-- Anonymous, February 08, 1999


Hello Everyone:

I received a phone call from Robert Granquist at the CT DPUC this A.M in reply to a voice mail I had left at the department yesterday. Mr. Granquist told me about RAY! Associates and that RAY! is made up of retired CIO's from Companies like Southern New England Telephone, Olin Corporation, United Illuminating etc. - noteworthy co's.

The conversation was upbeat and in Mr. Granquist's opinion "The Grid in the Northeast will be up and functional at the rollover. Mr. Granquist also indicated that the 'spinning reserve' will be increased from 15% to 25% and people in the utilities industry will be in standby mode on Dec. 31, 1999. He does not expect any catastrophy.

Mr. Granquist said that the nukes will be safe and so far CT utilities have encountered very little problems with embedded microchips. He also indicated that RAY! Associates are professional people and will make their report available to the public.

Mr. Granquist left me his Email address for future updates and progress reports concerning Y2K and CT utilities. He also left me his phone number (860) 827-2635.

It was good to have someone get back to me because of my inquiry about the Y2K problem and utilities. If any of you are interested in receiving updates as to RAY! Associates, the CT DPUC, and compliance issues in the CT utility industry send Robert (Bob) an email requesting updates and testimonies from utility officials. Better yet, give him a call since email can be so ambiguous, and it is more personable using the antiquated technology of the telephone.

As a further note, I do not beleive what he said to me was spin. Moreover, I asked him what he was doing to personally prepare for the rollover. His preparations included, extra gas in the car, some extra food, and some extra cash in case the ATM's don't work. Like preparing for a 3 day winter storm.

Now if only I can get my 1099's straightened out at the bank. That's another story.

-- Anonymous, February 10, 1999



Well I'm glad I plopped that press release down in this forum! You folks have helped alot with related information and commentary.

Steve, thanks for chasing down RAY! so thoroughly. Definately putting that in my "tickler" file.

Anyone find similar outside auditing efforts elswhere?

-- Anonymous, February 10, 1999


A follow up to this thread: PA and NJ to buy outside utility audits, also.

http://www.phillynews.com/inquirer/99/Feb/16/front_page/ELEC16.htm

*snip*

The Pennsylvania Public Utility Commission, which had expressed concern last summer about its licensees' preparedness, now expects no more than minor problems among the electric, telecommunications, water and gas utilities.

Nevertheless, both the PUC (Pennsylvania) and the New Jersey Board of Public Utilities are planning to hire a consultant to perform spot audits of the major utilities. "We'll trust but verify," said Dennis Buckley, Y2K coordinator for PUC Chairman John Quain.

*endsnip*

-- Anonymous, February 17, 1999


Moderation questions? read the FAQ