Pepco Holdings, Inc. (ticker: POM, exchange: New York Stock Exchange (.N))
News Release -
Pepco Power Plants and Energy Delivery Systems Y2K Ready
WASHINGTON, June 23 -- Potomac Electric Power Company's
(NYSE: POM - news) Year 2000 preparations are complete for all critical systems
needed to produce and deliver electricity to its customers in the District of
Columbia and suburban Maryland communities when computers roll over their
clocks to Jan. 1.
Pepco reported to the North American Electric Reliability Council today
that 100 percent of its ``mission-critical'' systems are Y2K ready following a
lengthy process to identify, update and test components and systems that could
be vulnerable to a computer glitch.
``This has been a top priority for us,'' said Kenneth Cohn, vice president
and Chief Information Officer.
``We completed our mission-critical readiness
ahead of schedule with the understanding that electricity is the underpinning
of our economy, and that a lot of folks depend on us.''
Pepco worked toward a goal of June 30 to complete its Y2K readiness
program for 50 separate categories defined by NERC as critical to the
generation and delivery of power.
These included electric generating units,
the energy management system, the supervisory control center and data
acquisition system, telecommunications, substation controls, electric system
protection devices, distribution components that route electricity to
customers, and various business systems.
Within the generating systems alone, more than 3,000 components were found
to contain tiny microprocessors referred to as embedded chips.
were considered critical, fewer than 4 percent required upgrading.
Fourteen of Pepco's 16 major generating units underwent control system
upgrades and extensive testing.
The remaining two are run with analog
controls and required no upgrades.
Pepco's computerized energy management system, which monitors and controls
the flow of electricity on Pepco's grid, began operating with Y2K-ready
software installed June 3.
The system and its back-up were tested by setting
the date forward to make certain that the system processed correctly the
rollover from Dec. 31 to Jan. 1, 2000.
Cohn said the company's Y2K readiness program also included a review of
all suppliers of critical services or materials, including the major fuel and
transportation companies on which Pepco is dependent to keep its power plants
All have advised they are either Y2K ready or will be within an
acceptable time frame prior to Dec. 31.
``We haven't found anything that could cause a major problem,'' he said. ``We
are encouraged by our findings and are confident that we will provide our
customers with the same high standard of
reliable service they are accustomed
Recognizing, however, that no company
can make absolute guarantees about
something as complex as Y2K, Cohn noted Pepco has in place contingency plans
to address potential problems caused by Y2K.
These plans will continue to be
tested through the remainder of the year.
In addition, Pepco is coordinating
Y2K drills with regional emergency management agencies, the Pennsylvania-New
Jersey-Maryland power pool and NERC.
NERC is an independent group that works with utilities nationwide to
insure electric reliability and was requested by the U.S. Department of Energy
to monitor utilities' Y2K readiness.
Pepco's Year 2000 Task Force will remain in place well into the year 2000
to further manage and monitor the company's critical systems.
continue to assess potential challenges and focus on providing reliable
electric service in the new millennium,'' Cohn said.
This is a Year 2000 Readiness Disclosure in accordance with the Year 2000
Information and Readiness Disclosure Act.