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November 17, 1999

PGW puts computer snafu cost at $30M

Hayllar tells City Council consumers won't suffer

by Mark McDonald Daily News Staff Writer

Last week, PGW President Ben Hayllar revealed that the price tag of the company's flawed customer billing system had jumped from $10 million to $25 million, a 150 percent increase.

Yesterday, as the Gas Commission approved the company's annual spending plan, almost three months into the new fiscal year, Hayllar reported the computer software cost has jumped again, now topping an estimated $29 million.

He pledged that a team of computer consultants would correct the problems by the end of the year.

That won't be soon enough for Melissa Burns, a PGW ratepayer who lives in Mount Airy. Since moving to her home in July, she hasn't received a PGW bill, though she's repeatedly asked for one.

Burns told the commission that she was afraid the city-owned utility might dump a large bill on her and then might turn around and shut off her service if she couldn't pay, she said.

Hayllar said Burns' testimony has the ring of truth, that about 7,600 new connections were made to the system over the summer and none received a gas bill. Now, all but 2,100 customers are in the billing system.

The company is manually putting the new accounts into the system while technicians try to iron out the software bugs that have confounded company technology specialists since the system went on line in July.

City Council members Marian Tasco, who chairs the commission, and Joan Krajewski wanted to know whether the company would charge customers interest or penalties for failing to pay incorrect or late bills.

Hayllar said customers who have been harmed by the rogue software system will not face late charges and need not fear shutoffs for non-payment.

In a notice the company started to send to customers last week, PGW apologizes for the problems that have developed during the conversion process from a 15-year-old system to the new one.

"Naturally, no finance charge or late fees will be imposed on errors caused by the conversion," the notice says.

But Tasco said that effort was inadequate, that customers needed more information about billing errors and assurances that they will be held harmless from the software snafu.

Meanwhile, a commission hearing examiner criticized the company budget for carrying out little belt-tightening and for increasing its cash shortage and need for more short-term loans.

And within two years, PGW is warning of a need to fill a $20 million hole with some combination of cost reductions, new gas sales or a rate increase.

-- Homer Beanfang (Bats@inbellfry.com), November 17, 1999

Answers

Thanks Homer, I've noticed that you post a lot of germaine links. Complex computer systems require a lot of work. I liken the two digit date problem to a caltrops that finally works its way up to the surface due to the erosion of time.

-- Guy Daley (guydaley@bwn.net), November 17, 1999.

Homer-- Thanks, love the "rogue software" line!!

-- Y2K rogue (karlacalif@aol.com), November 17, 1999.