By now it is certain that all of our customers have heard the gloom and doom predictions regarding the coming of the year 2000 (also known as Y2K). Many stories have appeared on radio and television and in newspapers predicting that our critical services will fail as computers attempt to deal with the date 01/01/00. Since most of these stories include the prediction that electric power delivery will be one of those services that fail, we thought you might like a little information about what we are doing at the EPB to make sure that those predictions are incorrect.
First everyone must understand that we do not generate any electric power here in Glasgow. We normally purchase our power from the Tennessee Valley Authority. They generate power by many different means throughout the southeastern United States. We have been assured by them that the generation of electric power will continue reliably through the millennium date change. If this is true, our objective is then to assure that we will be able to continue purchasing the power from them at our normal delivery point and distribute it to everyone in Glasgow.
We have been focusing on that objective for over a year now. Most of the elements of our electric delivery system are manually controlled. No matter what sort of problems computers might have at the millennium change, 99% of the devices involved with keeping your power flowing will not be affected. There are, however, a few systems which we have identified as problematic in dealing with the date change. Those systems include our SCADA system (the computer system which passes us information about the performance of our substations and allows us to control them remotely), the cable television addressability system (this is the computer network which controls the converters on top of your television and keeps the time on them correct), some of our advanced metering systems that we use on our larger industrial customers and our billing software which makes sure you get billed for what you use every month.
All of these systems will be replaced or modified before the end of 1999. This procedure is not inexpensive. These upgrades will cost the people of Glasgow about $200,000. Every community in the country is facing expenses like these. Perhaps the real doom and gloom that we should be worried about here is the economic impact this change is going to have on all of us.
So, when you hear the next story about the year 2000 bringing all manner of disruption to our lives, you can rest assured that your team here at the EPB has already been hard at work making sure those predictions do not come to pass here in Glasgow. We are confident that your New Year's Day, 2000, will be a bright and warm one!
Billy
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As of the end of July, 99% of all mission-critical items being tracked in the agency-wide Year 2000 Program have been closed. The areas with 100% completion of their mission-critical items include hydro, nuclear, fossil, mainframe hardware, mainframe software and all desktop computers (hardware, operating system and the Microsoft Office suite), facilities and telecommunications.
The major accomplishments as of the end of July are:
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Michael H. Davis
Information Services
WT 7A-K
Special attention has been given to fixing and testing electronic devices and systems that control important equipment in nuclear and fossil power plants, flood control and power generation dams, the power transmission system and power supply operations.
TVA has notified the North American Electric Reliability Council declaring, with the exception of one system expected to be ready in August, our Year 2000 readiness as of June 30, 1999.
Hydro Operations has completed 100% of its mission-critical work at all 30 hydro plants. Seventy units at 11 hydro plants have undergone Year 2000 conversion and integrated site testing and are still running in Year 2000 mode.
Fossil Operations has completed 100% of its mission-critical work. All 59 fossil units at TVA's 11 fossil sites have been converted to Year 2000 dates and 55 units continue to generate power in the Year 2000 mode. The four units at Gallatin were reset to the current date to facilitate state reporting requirements.
TVA Nuclear has completed 100% of its mission-critical work on systems that allow TVA to safely and reliably operate its nuclear plants. Three systems that do not affect the plant's ability to generate electricity safely and reliably are scheduled to be Year 2000 ready in the fall. Onsite reviews by the NRC at all three nuclear sites indicate that Year 2000 computer issues should not affect the ability of TVA's nuclear plants to generate electricity safely and reliably as we enter the year 2000.
All transmission substations and switchyards containing microprocessor relays and programmable logic controllers have been converted and are transmitting power in the Year 2000 mode. The Transmission Program has closed 99% of all mission-critical items.
TVA is working with distributors of TVA power, interconnecting utilities and other customers to help mitigate the impact of service disruptions that might occur along the electricity supply chain. One-hundred percent of all TVA distributors and direct-served customers have indicated that they will be ready on or before December 31, 1999. TVA is also working with its vendors to avoid Year 2000 problems and is sharing information with electric utility industry groups on Year 2000 compliance.
Although TVA expects to continue to provide a reliable power supply, it is developing contingency plans to address potential Year 2000 problems, including a Business Partner Program with major customers and suppliers and a Business Continuity Program for its own operations.
TVA is keeping Congress, oversight agencies, customers and the public informed of its Y2K activities through a variety of means, such as congressional reports, its Internet homepage (www.tva.gov) and news media contacts. The projected cost of TVA's Year 2000 work is approximately $39.8 million.
Special attention is being given to fixing and testing electronic devices and systems that control important equipment in nuclear and fossil power plants, flood control and power generation dams, the power transmission system and power supply operations.
A major milestone in TVA's Y2K program occurred in November of 1998 when two of TVA's generating plants - the Gallatin Fossil Plant near Nashville, Tennessee, and the Chickamauga Dam near Chattanooga, Tennessee - were tested and operated with clocks set forward to year 2000 time, demonstrating the success of TVA's approach for achieving Y2K readiness. The Limestone 500 kV substation near Athens, Alabama, has also completed a successful system test.
TVA is working with distributors of TVA power, interconnecting utilities and other customers to help mitigate the impact of service disruptions that might occur along the electricity supply chain. TVA is also working with its vendors to avoid Y2K problems and is sharing information with electric utility industry groups on Y2K compliance.
TVA nuclear plants will meet TVA and Nuclear Regulatory Commission (NRC) regulatory requirements for Y2K readiness and an NRC review of Watts Bar Nuclear Plant found no significant Y2K program issues. TVA will submit a written response to the NRC confirming that its nuclear plants are Y2K ready by July 1, 1999.
Although TVA expects to continue to provide a reliable power supply, it is developing contingency plans to address potential Y2K problems, including a "Business Partner Program" with major customers and suppliers and a "Business Continuity Program" for its own operations.
TVA is keeping Congress, oversight agencies, customers and the public informed of its Y2K activities through a variety of means, such as congressional reports, its Internet homepage and news media contact.
The projected cost of TVA's Year 2000 work is estimated at approximately $38 million.
More information on TVA's Y2K program may be obtained from TVA's Internet homepage at www.tva.gov.
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Tennessee Valley Authority, 6045 Russellville Road, Bowling Green, Kentucky 42101-7319
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Mr. William J. Ray, Superintendent
Glasgow Electric Plant Board
Post Office Box 1809
Glasgow, Kentucky 42142-1809
Dear Billy:
Enclosed is an updated letter from TVA regarding our efforts toward resolving all Year 2000 issues that could affect the operation of the power system.
From time to time, your customers ask questions about TVA's actions and preparedness. Please feel free to share the enclosed letter with them. The general public is also welcome to use TVA's home page on the World Wide Web to get up-to-date information on Year 2000 issues at TVA. There is an icon for TVA's Year 2000 Readiness Disclosure and a copy of the disclosure is enclosed for your use. TVA's home page address is http://www.tva.gov. We will also continue to send you periodic updates throughout 1999.
Thank you for your support and understanding. Please call me at (502) 846-7041 if I can be of further assistance.
Sincerely,
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Myron N. Callaham
Senior Customer Service Manager
Kentucky
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Enclosures
Tennessee Valley Authority, 1101 Market Street, SP 3G, Chattanooga, Tennessee 37402-2801
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Dear Customer:
Thank you for your request concerning TVA's Year 2000 compliance status. TVA, like many companies today, is dealing with the challenging problem posed by computer systems that do not have the ability to recognize the year 2000 or following years. Our Year 2000 project office is aware of the issues and has already taken steps to ready TVA's information technology (IT) for the 21ST century. We are sharing and receiving information from other federal agencies and private sector companies.
Our Year 2000 project is in the process of working through a master plan that includes all business areas of TVA where dates are utilized. The master plan encompasses all forms of IT throughout TVA and the internal/external interfaces to that technology. Processes and standards have been modified or enacted to stop proliferation of Year 2000 issues at TVA. Vendor management steps have been taken to determine the date compliance status of all products and services coming into TVA.
TVA continues to make good progress toward Year 2000 readiness. A few examples of our results and actions are:
Thank you for your interest in TVA and the Year 2000 problem. If you have other questions or concerns about TVA's Year 2000 program, please give me a call at (423) 751-3209 or email tjdenson@tva.gov.
Sincerely,
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Tommy J. Denson
Manager, Year 2000 Project
Information Services
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To: TVA Customers, Business Partners and Valley Residents
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Year 2000 readiness, or Y2K, is perhaps the single largest challenge ever faced by the global business community. Without a reliable computer network, most companies as we know them today could not operate.
At TVA, we are taking the year 2000 very seriously. We are striving to make sure that your electric service is not interrupted due to Year 2000 problems. With proper planning and execution, we believe Year 2000 is manageable.
Our Year 2000 Project Office has been addressing the issue since April 1996. We are tracking closure on approximately 20,000 mission critical items - from transmission lines to telephone systems. In addition, we are working closely with other federal agencies, distributors of TVA power, private companies and TVA vendors to make sure that a Year 2000 problem elsewhere does not affect our ability to produce and deliver power. Our goal is to be operationally ready by July 1999.
As America's largest wholesale electric power producer, TVA has a history of providing reliable electric power to the Tennessee Valley region. You can be sure we are using those same skills and experience to ensure that you have top quality service in the year 2000 and beyond.
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Norman A. Zigrossi
Chief Administrative Officer and Executive Vice President
Business Services
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YEAR 2000 (Y2K) PROGRAM UPDATE
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TVA's Y2K Program has been in operation since April 1996 to ensure that we will be able to meet our responsibility to our customers on and after January 1, 2000. Our Y2K Program mission is to fix all mission-critical components prior to December 31, 1999. We had an internal goal to complete a majority of the work by December 31, 1998, and spend calendar year 1999 in validation testing and risk management planning. Overall, we are tracking closure on approximately 20,000 mission-critical items. I am glad to report that as of the end of December 1998, we have completed closure on 79 percent of that work.
In most respects, TVA faces the same Y2K challenge as every other industry. The electric industry's greatest concern has been the pervasiveness of the Y2K bug in embedded chips. These chips are used in communication devices and numerous power system controllers. Fortunately, we have found that less than three percent of the devices tested in our transmission system use a time/date function in a manner that could result in a Y2K problem. We have successfully converted one fossil plant, six hydro plants and a 500-kV substation to the Y2K by advancing the dates beyond January 1, 2000 and they are continuing to generate and transmit power in that mode.
TVA has completed 100 percent of the Y2K repairs in mainframe hardware, mainframe software, telecommunications and networked desktop computers. Also, 99 percent of facilities has been completed. The majority of the work at the generating facilities has been completed. Integrated system testing will be completed in conjunction with scheduled maintenance outages in the spring of 1999.
TVA is participating with its customers to develop a comprehensive set of operating, restoration and emergency preparedness plans to mitigate the risk of service interruptions. TVA is sharing equipment and test information with the Tennessee Valley Public Power Association, which will participate with TVA at the North American Electric Reliability Council (NERC) in interconnection drills during 1999. We are working with the NERC and other regional utilities to share information and develop contingency operating plans for uninterrupted power system operation. Our contingency planning efforts and readiness drills will also include state and local governments as well as other emergency preparedness organizations.
TVA is working with its external business partners to learn whether they might have a Y2K problem that might impact our ability to produce and deliver power. We have reviewed and prioritized our mission-critical suppliers, customers and vendors. Approximately 720 business entities have been asked to verify their Y2K readiness.
TVA is reporting Y2K Program status to NERC and the Office of Management and Budget on a regular basis. The General Accounting Office has conducted an onsite assessment with no negative findings. The Nuclear Regulatory Commission has conducted an onsite review at our Watts Bar Nuclear Plant and found no significant issues with either our site or corporate Y2K programs. In addition, TVA has commissioned self-evaluations by consultants from the Gartner Group and Booz, Allen & Hamilton, Inc. to identify any opportunities to improve and strengthen our program.
We are participating with a number of electric utility industry groups to share information and build upon each other's experiences. Currently, we are working with the Electric Power Research Institute, the Nuclear Energy Institute and the Nuclear Utility Software Management Group. We have also participated in a number of distributor meetings sponsored by TVA's Customer Service & Marketing organization to share our Y2K experiences with our customers.
In summary, TVA is taking the Y2K issue very seriously. We have a multi-faceted, proactive program supported by TVA management and executed by the dedicated workforce at TVA. We are cooperating with others in the industry to identify and manage risks in order to mitigate service interruptions.
I hope this information has been helpful to you in understanding what TVA is doing to meet the Y2K challenge. We want all of our stakeholders to feel confident that TVA is taking the appropriate steps to serve the Tennessee Valley region. I plan to provide monthly updates on our Y2K program during 1999 to communicate our progress toward operational readiness and a smooth transition into the 21st century.
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Michael H. Davis
Information Services
WT 7C-K
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