Press Release

    HARRISBURG, Pa. ¾ The vast majority of Pennsylvania’s utility suppliers are prepared for Y2K, and the public should feel secure that the delivery of safe, reliable utility service will continue into the new millennium, says a motion adopted and released today by the Public Utility Commission (PUC).

    "At this point I want to assure the public that the Y2K challenge is being met," said PUC Chairman John M. Quain. "Our investigation concludes that the lights will stay on, heat will be provided, the telephones will work and natural gas and water supplies will flow."

    Today’s motion follows eight months of formal proceedings by the PUC during which jurisdictional utilities had to demonstrate that they would be Y2K compliant or have contingency plans ready by March 31, 1999. More than 700 entities supplied information to the PUC. The investigation concluded with a report issued by the PUC Office of Administrative Law Judge (OALJ). The motion today resulted from a review of the OALJ report.

    Among the utility groups, the PUC commended the natural gas and water industries in particular for their responsiveness. The PUC directed that several small water companies be monitored through the second and third quarter of the year. While the companies meet Y2K standards, many deal with vendors which are not subject to PUC jurisdiction but whose services may have Y2K-related challenges.

    The report also warned that if the natural gas industry is deregulated, suppliers wanting to compete in the state will be required to demonstrate that they are Y2K compliant before receiving a license.

    Electric utilities fared well in the OALJ report and met the PUC’s deadline. However, the PUC has directed them to increase their customer education efforts.

    "A substantial part of the Y2K challenge is the emerging issue of public confidence," said Quain. "We recommend that all utilities, especially electricity providers, be more open with their customers in coming months."

    Despite the overall positive result, the PUC concluded that some utility work must still be completed. In particular, several telecommunications utilities must still submit contingency plans to the PUC. Other utilities were granted limited and specific extensions on the March 31, 1999, deadline to conduct final Y2K preparations. The PUC directed these utilities to file two updates on their progress toward Y2K compliance on July 1 and October 1. The PUC also added that utilities that have not demonstrated good cause for missing the March 31, 1999, deadline may be subject to enforcement proceedings.

    Quain said the PUC would remain proactive in monitoring and reviewing the Y2K situation. He noted that the PUC has hired an independent expert consultant to verify that the testimony submitted by the utilities is accurate. Those verifications are currently underway.

    "Based on our investigation, the PUC concludes that the vast majority of Pennsylvania’s utility suppliers are, as of this date, Y2K compliant, or that they have filed satisfactory contingency plans establishing that they are Y2K ready," he said.

    For additional press releases or more information about the PUC, visit our Internet home page at: http://puc.paonline.com.

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Y2K Terms

Mission-critical system ¾ Any utility system necessary to the continued provision of safe, reliable utility service.

Y2K compliant ¾ The utility has met the PUC’s March 31, 1999, Y2K compliance date, and all of its mission-critical systems have been upgraded, repaired, or replaced so that they will work without further intervention on and after Y2K.

Y2K compliance ¾ This is what the utility must strive to achieve. It is the verb form of "Y2K compliant." Saying, "We are attaining Y2K compliance," is vastly different from saying, "We are Y2K compliant."

Y2K ready ¾ The utility’s mission-critical functions are ready for Y2K. Some of the systems might NOT be Y2K compliant, but the utility can still run its mission-critical functions through Y2K compliant systems or through non-compliant systems that can be adjusted in some way (such as through a clock-roll back) to stay operational.