aining a copy of theApproach to the Y2K Problem, distributed by the federal government. This approachsuggests a plan of attack and an inventory of all systems that might be affected. A teamshould be formed with a leader to assess the problems. This team should assess andprioritize possible problems. At that point, the team must prepare a list of all assessmentsmade. This leads the team to the testing phase of the operation. After testing, correctionsshould be made, and a reassessment needs to be done. Utilities are just a small portion ofthe testing that will be done.Utility companies are spending more than $2 billion to test and prepare theircomputers and replace software in order to successfully meet the Y2K challenge. At thistime, there is no evidence that the Y2K problem will create power failures within thenationwide electrical power-service grid. Electric companies plan to have a dressrehearsal in September, 1999, to gauge how utilities will react to a simulation of the Y2Kscenario.The inability of some equipment and computers with date-sensitive components todistinguish the correct year after the year 2000 has now become a widely recognized andaccepted problem. The utility company Cinergy began an active response to this dilemmain 1996 with a review of several million lines of computer software application code in acampaign to locate and correct date-sensitive fields. Most of that code has since beenexamined, corrected, tested, and returned to operation. All such remaining systems are onschedule for completion by March, 1999.Cinergy, like most owners of information systems, will be required to modifysignificant portions of its systems to accommodate new local, state, and federalrequirements brought about by the Y2K problem. During 1997, Cinergy incurred costs ofapproximately $8 million. Maintenance or modification costs will be absorbed as theyoccur, while the costs of new software will be capitalized and amortized ...
