As, always, . . .
Om
K
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  Subj:  Two VERY SERIOUS Articles Re The POWER GRID: MUST READS!
  Date: 99-01-08 14:54:10 EST
  From: [EMAIL PROTECTED] (John Hammell)
  To:   [EMAIL PROTECTED]

  IAHF LIST:

  I just read the 80 page report of the North American Reliability Council
  (NERC) which submitted a report to the US Dept. of Energy entitled
  "Preparing the Electrical Power Systems of N.America for Transition to the
  Year 2000"

  I've also read Roleigh Martin's carefully considered criticisms of this
  report which can be found in two "MUST READ" articles that the site won't
  let you cut and paste due to how its formatted. Having read the NERC report
  and Martin's criticisms, I am even MORE glad that I'm actively preparing to
  get entirely clear of Miami.

  For:

  1) How Confidant Are We Now That We Will Have Electrical Power in 2000? Go
to:
      http://www.y2ktoday.com/modules/home/default.asp?id=372&feature=&type=

  Also read:

  2) "Critical But Peripheral Issues With the NERC Report" Also by Roleigh
Martin
      http://www.y2ktoday.com/modules/home/default.asp?feature=true&id=484

  You can get to the NERC report off a link from these articles. You will
  need Acrobat reader to view. It can be downloaded for free if you don't
  already have it.

  **************************************************************
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================================
Roleigh Martin:
How Confident Are We Now That We Will Have Electricity in 2000?
10/1/98
Author: Roleigh Martin

On August 17, 1998, the North American Reliability Council (NERC) submitted a
report to the U.S. Department of Energy, entitled "Preparing the Electric
Power Systems of North America for Transition to the Year 2000: A Status
Report and Work Plan."  Reviews of the NERC report have been made by Rick
Cowles, Dick Mills and Sheri L. Garris.  I personally did not find any
additional items of encouragement from the report, so you will have to read
these other reviews to hear their few words of praise.  If one only researches
Y2K by talking to Y2K project managers or Y2K public relation officials, one
is led to believe that, for the most
part, there will be no problems.  However, the track record of finished large
scale projects by government and corporate entities leads me to believe there
is no justification in accepting the conclusion that there will be no major
problems.  Those who have this attitude should read the Y2K books of Capers
Jones and Ed Yourdon, two of the best known project management analysts in
Information Technology history.

I want everyone to think back to their own days in school. We all can
remember the mandatory deadlines for turning in tough assignments. These
deadlines often resulted in people turning in poorly done assignments
that were given too little time and attention. Just because everyone
turned in the assignment on time, does not mean that everyone received a
passing grade.

When we hear Y2K utility project managers give their project presentations at
legislative or Public Utility Commission hearings what they essentially are
telling us is "how far are we are on our homework."  Not one of the utilities
in any of the hearings I have attended have told the audience how well they
are being graded by a teacher (an outside consultant whose job it is to grade
them).  We all know that in
international testing, Americans are notorious for over-rating their test
successes as they leave the testing room.  Nevertheless, self-grading does not
make a utility a Y2k success.  We are 100 percent in the dark as to how well
any of our utilities are doing from a teacher's scoring standpoint.

The Most Blatant Alarm Raised In The NERC Report

Across the board, the project managers have started late, if at all, on the
Y2k problem. The utility industry is outrageously, poorly managed. We all know
how to count to 2000, yet the utility industry has abandoned Y2K compliancy,
and are instead going for Y2K readiness. (see the latest North American
Reliability Council (NERC) Y2K report

According to page 25 in the NERC report:
    "Y2K Ready means a system or component has been determined to be suitable
for continued use into the Year 2000. Note that this is not necessarily the
same as Y2K Compliant, which implies fully correct date manipulations.

Consistent with practices across other industries, the NERC assessment process
has adopted the term Y2K Ready and does not use the term Y2K Compliant."

=================================
Peripheral but Critical Issues with the NERC Report
11/2/98
Author: Roleigh Martin

Missing from the NERC report are examples of failures that have occurred in
some power plants which have performed integrated plant-wide system simulation
of Year 2000 tests.  Also missing are typical cost reasons why the electric
utility industry did not choose to go with the Y2K compliancy option.

Two paragraphs from the anonymous source I quoted in the Year/2000 Journal
article and in Westergaard Year 2000 suggest how significant such information
would be.  These paragraphs are from a utility insider who attended a state-
wide session on Y2K and embedded systems in electric utilities in a Mid-West
state in 1997.  I have confirmed most of what this individual relayed to me
via email correspondence with others who also attended that session.  He
reported that a leading electric utility engineering firm official and a
leading Y2K expert with a leading electric utility industry group told the
utilities the following:

In the testing of two coal-fire power plants (which were currently offline and
being used as "hot spares") for year 2000 compliance, the clocks were
simultaneously rolled over to the year 2000, causing immediate plant failure.
In an attempt to better understand the failure, the roll over test was
repeated. In the second test, the plants again failed, but a different
embedded controller was determined to be at fault.  The roll over test was
repeated a third time in hopes of replicating one of the previous failures.
In this test, the plants failed from yet a different embedded controller.  It
was determined that this last failure would have caused a grid-wide failure
had the plants
been online.  It took 13 days in order to restore the plants to working
condition from the last failure.

OFF THE RECORD:

The discussions that took place in the meetings really scared the hell
out of me. It seems that the power utilities that have not yet
recognized the embedded systems problems are already too late. It was
said to take about 21 months and $30-40 mil to make one generation plant
compliant. The utility companies at this meeting expressed the opinion
that compliance would not be possible due to budgetary and time
constraints. "The only thing we can be certain about the year 2000 is
that we won't be able to fix everything." The opinion was expressed that
complete Y2K remediation is an insurmountable task, therefore utilities
should just attempt to make the steps necessary to prove due diligence
in the court of law.



According to this official, the money that all utilities report they are
spending for Y2K is outrageously low. The problem is that the current
tax accounting laws encourage the utilities to only publicize their
software Y2K budget --because those costs have to be expensed out in
that year, not depreciated over many years. Thus many utilities who are
trying to be diligent are reportedly lumping the bulk of their Y2K
equipment replacement and/or upgrade expenditures into normal equipment
upgrade costs. Consequently, this data is hidden amongst non-Y2K costs
and neither the public nor the regulators can distinguish if they are
doing a first class job or a really cheapskate, risky one. I've talked
with both Y2K tax attorneys and managers at utility companies and I know
this is happening, to my great frustration.



I have also been told by managers working inside these utilities that
they do not want their shareholders to panic over the full amount of
money they are spending on Y2K upgrades. Personally, I would think
educated shareholders would be more willing to hold onto their utility
stock during the Y2K crisis if they knew the utilities were spending
more on the problem, but apparently the utilities feel otherwise.


Consequently, it is impossible for an outside Y2K expert to grade these
utilities on the quality of their Y2K work simply by reading their SEC
reports and by hearing their Y2K presentations. Most of us studying the
Y2K utility problem are totally in the dark and that includes the
regulators. How frustrating! I do know that some utilities are
reportedly taking a FOF approach (Fix On Failure) and that really
concerns me due to the 13 day downtime incident illustrated above. (Yes,
I've had a few Y2K utility project insiders write me and tell me the
management is engaged in type testing or plan to include use of the FOF
approach. This might actually be acceptable for non-mission critical
equipment, but one Y2K project manager felt too much was being excluded
from testing at his company.)

Other Articles by Roleigh Martin:

Contrasting the NERC Report: National and Local Perspectives, Part II

Contrasting the NERC Report: National and Local Perspectives, Part I

Utilities and System Testing: Where Are They Now?

How Confident Are We Now That We Will Have Electricity in 2000?


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