Opening Statement Sen. Bob Bennett (R-Utah), Chairman Special Committee on the Year 2000 Technology Problem Hearing on the risks of Y2K on the nation's power grid

Good morning, and welcome to the inaugural hearing of the Special Committee on the Year 2000 Technology Problem. This special committee was formed pursuant to Senate Resolution 208, introduced by the Majority and Minority Leaders of the Senate on April 2, 1998 and was passed unanimously by the Senate. The jurisdiction of the special committee extends beyond the public sector into the private sector.

As a result, this Committee will be hearing from the utility industry, specifically gas and electric utilities, today. Subsequent hearings will look into the year 2000 preparedness of health services, telecommunications, financial services, transportation, general government services, and general business. It will also look into the legal liability of firms who become the subject of court suits due to year 2000 technology problems.

I have some disturbing news to report this moring. In order to prepare for today's hearing, I directed Committee staff to conduct a survey. The survey was of modest proportions including ten of the largest electric, oil, and gas utility firms in the U.S. I wanted to know what the status of their Y2K preparedness is. While the survey is not statistically representative of the entire industry, it does include geographically dispersed firms engaged in all aspects of power generation, and gas and electricity transmission and distribution.

I had anticipated that I would be able to provide a positive report on the Y2K status of these public utilities. Instead, based on the results of this survey, I am genuinely concerned about the very real prospects of power shortages as a consequence of the millennial date change.

Let me share a few of the survey findings:

Only 20 percent of the firms surveyed had completed an assessment of their automated systems. One firm did not even know how many lines of computer code it had. Experts have testified before my banking subcommittee that a major firm that has not already completed its assessment cannot hope to become Y2K compliant by January 1, 2000.

None of the utilities surveyed was assured after making inquiries that their suppliers, venders, and servicers would be Y2K compliant. Utilities are highly dependent on servicers, suppliers, and other upstream activities to transmit, and distribute gas and electricity. In fact, many power distribution companies are ultimately dependent on foreign oil imports.

None of the firms surveyed had completed contingency plans for Y2K related eventualities. Even though all of these firms are required by their regulators to maintain emergency response plans, none had completed a Y2K contingency plan. My concern is that they probably don't know what contingencies to prepare for.

The last question on our survey asked for recommendations. One respondent, after making several recommendations made the following profound statement: "Whatever actions are taken by Congress, they must be done quickly, during this session, or they will have no impact on the Y2K problem."

I am personally concerned that the Y2K problem is receiving so little public attention. I am concerned that when it does become a matter of general public concern it will be too late to bring public pressure to bear on the timely correction of the many Y2K problems that exist. My greatest fear is that when it does become a matter of general public concern, it will bring with it a measure of panic that will be detrimental to effective and efficient remediation of the problems which will present themselves.

For the private sector, I define the Y2K problem in much broader terms than what I see generally discussed and reported in the trade press which is where many of the Y2K problems are reported. The problem is more than a computer's ability to function on January 1, 2000. It includes not only computers, it includes embedded systems, such as process control units.

I read a story recently about a major oil company that tested one of its oil refineries. They found that the refinery had 90 separate systems that somehow used a microprocessor. Many of these were key systems. Of the 90 systems, they were able to come up with detailed documentation on 70. Of these 70, they determeined that twelve had date dependent embedded chips. Of the 12, four failed a Y2K test and will have to be replaced. Had any of the four failed on January 1, 2000, they would either have completely shut down the plant or would have caused a high level safety hazard which would have caused other systems to shut it down.

What is really worrying the company's experts now is the other 20 systems. They don't know what functions the chips in these systems have and are leaning toward replacing them all. This happens to be a relatively modern plant.

On June 8th, U.S. News & World Report ran a story concerning a Midwestern electric generation facility that was taken off-line to test for Y2K compliance. When the test clock was rolled forward to January 1, 2000, a safety system mistakenly detected dangerous operating conditions and shut the generator down. After three days, they reran the test, only to have a different sector fail, shutting down the generators again.

Another area of the Y2K problem is interfaces. Interfaces sometimes exist between systems within a company, and sometimes exist between a servicer, supplier, vender, or customer. It is important that Y2K remediation corrections among these parties be compatible.

Infrastructure plays an important supporting role for almost any business. Utilities, for example, are dependent on transportation, telecommunications, water and sewer facilities; all of which are critical to continuous business operations.

Ripple effects are an important concern. If foreign oil production is not Y2K compliant, or if oil tankers' navigation and propulsion systems are not Y2K compliant, what effect will that have on our electric generation facilities that are dependent on petroleum products to generate power?

Government services are frequently taken for granted, but are an area of significant concern. I know of no Federal data bases or information systems that are not computerized. We rely heavily on government services for mail delivery, transportation, financial services, water and waste treatment facilities, just to name a few. If, for example, the Coast Guard ships operating in the vicinity of the Alyeska Pipeline are not Y2K compliant, we could find timely shipments of Alaskan oil jeopardized?

I find these categories useful in evaluating the breadth of the Year 2000 problem. I would encourage our witnesses to consider them as they make their presentations today.

-- Susan Barrett (sue59@bellsouth.net), November 21, 1999

Answers

Susan, what was the date of these opening session remarks?

-- smfdoc (smfdoc@aol.com), November 21, 1999.

Susan:

You didn't include a date with this document, but I believe it is pretty old (by Y2K standards)--1 1/2 years or so. If you want us to remember him as a frank, honest teller of truth--well, he's "singing a different tune" now.

gator

-- gator (redfernfarm@lisco.com), November 21, 1999.

There are other old articles which state very clearly that the USA had lost the war against the Y2K bug, the government was going into an emergency mode to handle the people, that is when Kosky was hired, and he created the bogus Senate Committee which openly stated it's purpose would be to say things like, "The industry is fine" and its only reason for existence was to control the people from all thinking the exact same thought at the exact same time.

-- Paula (chowbabe@pacbell.net), November 21, 1999.

Y2K News is like a fine wine. It's gets better the older it is!

-- Butt Nugget (catsbutt@umailme.com), November 21, 1999.

I am not sure if the "Remember This Man Later" is to hang him or praise him but IMHO Senator Bennett and his Committee have done a pretty good job for what they were originally called to do.

If the press had properly reported the statements and hearings of Senator Bennetts Committee there would be a far more prepared America.

Either way, it is President Clinton who has the bully pulpit and he has failed miserably to use it properly.

As Senator Bennett has said many times, "Y2K is fluid". It is a work in progress and there has been progress but this hasn't stopped him or the committee from issuing statements of concern and warnings.

Here below, are just a few.

http://www.senate.gov/~y2k/news/pr980806.htm

August 6, 1998

WASHINGTON, D.C. -- "This one just won't fly," said Senator Bob Bennett (R-Utah), chairman of the Senate Year 2000 Committee, on claims by the Federal Aviation Administration (FAA) that it has completed Y2K renovation on 67 percent of its mission critical computers, claims made in spite of scathing reports from the General Accounting Office, as recent as this morning, that the agency is frighteningly behind schedule to be ready for the Year 2000.

"I wish I could say I'm confident in the claims of the FAA," said Bennett. "But given GAO's scathing reports, the FAA's assertions that it has made such tremendous progress are very questionable. Our committee's upcoming hearing on the transportation sector will not only include an in-depth review of Y2K flight readiness of the FAA, but other aspects of air, rail, shipping, and mass transit."

The Utah senator's skepticism was confirmed today in a hearing before the House Science, Subcommittee on Technology, chaired by Rep. Constance Morella (R-MD). The General Accounting Office testified that "it is doubtful that FAA can correct, test, and implement all of its mission critical systems in time."

"As I understand it," continued Bennett, "the FAA has found a silver bullet for the Y2K bug in many of their most important computers. However, given the millions of lines of microcode' that drive these computers, and their critical role in aviation safety, I won't be convinced until the renovated computers are fully tested and independently verified and validated. And as we know, testing is the hard part."

"While I do hope the FAA is doing as well as it says, experience has taught me to be suspicious of easy answers and quick fixes," he added. "One example is the recent overstatement by the Department of Defense, exposed when its Inspector General reported that 70 percent of the mission critical systems the department deemed to be Y2K compliant were, in fact, not."

__________________________________________________________

http://www.senate.gov/~y2k/news/pr980910.htm

September 10, 1998

Executive Summary

The Special Committee on the Year 2000 Technology Problem recently conducted a survey of large companies and service providers in the transportation sector. Representatives were selected from major airlines, airports, railroads, maritime shippers, trucking companies, and metropolitan transit authorities. Important items learned from the survey include:

Sixty-two percent of the respondents reported that they had not completed their Y2K assessment process. This is disturbing given only 16 = months until December 31, 1999. For reference, the Office of Management and Budget directed all Federal agencies to complete their assessments by June 1997. One hundred percent of the respondents reported they don't have completed contingency plans. What is even more disturbing is that just over half reported that they were not even working on contingency plans at this time. Ninety-four percent reported their total expected Year 2000 expenditures which at this time total over $650 million. 50 percent of the respondents reported that they anticipated being involved in litigation due to the Y2K problem. Ninety-four percent report they will finish their Y2K preparations on time. The committee staff feels this is overly optimistic given that most of them have not yet completed the process of fully assessing the scope of their Y2K problem Six of the eight which answered the question on what percent of their assessed systems are "Mission Critical" report 70 percent or more are Mission Critical.

__________________________________________________________ http://www.senate.gov/~y2k/news/pr990302.htm

March 2, 1999

"Progress is being made, but in various key sectors, remediation efforts for Y2K have fallen behind," said Bennett, whose report is the culmination of hearing testimony, survey data and government reporting on the Y2K problem. In 11 hearings since April 1998, the committee explored banking, telecommunications, government, health care, business, utilities, agriculture and transportation. "We're farther ahead than where we were a year ago, but behind where we should be," said Bennett

__________________________________________________________

http://www.senate.gov/~y2k/news/pr990315B.htm

March 15, 1999

Washington, D.C. - Senator Chris Dodd, D-Conn, Vice Chairman of the Y2K Committee, commended the release of a report today by the Chemical Safety and Hazard Investigation Board (CSB) on the Y2K readiness efforts of the chemical manufacturing and handling industry. The CSB report, prepared at the Committee's request, determined that while a large scale catastrophic failure is unlikely, the Y2K bug still poses significant problems for the industry.

"Ensuring the health and safety of our citizens is a paramount concern," Dodd said. "The Y2K bug has the potential to disrupt the operation, maintenance, and control activities at chemical facilities which we rely on to ensure our citizens enjoy a safe and healthy environment."

The report found vulnerabilities in control systems which, if left unremediated, have the potential to compromise safety. The report also raised concerns that small and mid-sized firms have so far taken less than appropriate action to prepare for potential Y2K problems. And while awareness of the Y2K problem in the industry is growing, significant gaps persist. __________________________________________________________

http://www.senate.gov/~y2k/news/pr990315.htm

March 15, 1999

BENNETT PRESENTS CHEMICAL SAFETY BOARD Y2K REPORT Report calls Y2K problem "significant" in chemical manufacturing and handling industries, calls for federal, industry action to prevent accidents

__________________________________________________________ http://www.senate.gov/~y2k/news/pr990420.htm

April 20, 1999

BENNETT, DODD: NATO SUMMIT SHOULD ADDRESS Y2K WASHINGTON, DC - On the eve of the North Atlantic Treaty Organization's 50-year anniversary celebration in Washington, D.C., U.S. Senators Robert F. Bennett (R-Utah), Chairman of the Senate Special Committee on the Year 2000 Technology Problem, and Christopher J. Dodd (D-Conn.), Committee Vice-Chair, today warned top NATO officials that inattention to the Y2K computer glitch could jeopardize on-going and future peacekeeping operations.

__________________________________________________________

http://www.senate.gov/~y2k/news/pr990427B.htm

April 27, 1999

WASHINGTON, DC - While most major water utilities are believed to be prepared for the year 2000, a report released today by the Senate Special Committee on the Year 2000 (Y2K) Technology Problem highlights a lack of information on the preparedness of the nation's 70,000 water utilities, citing slim state-level oversight of Y2K compliance efforts and an insufficient federal regulatory framework for addressing Y2K problems at drinking water and wastewater treatment facilities.

"Ultimately, there must be accountability at all levels of government for meeting the Y2K challenge, from the federal government on down," said Senator Robert F. Bennett (R-Utah), Committee Chair, who requested the report from the General Accounting Office (GAO) with Committee Vice-Chair Senator Christopher J. Dodd (D-Conn.) in November. "This report reaffirms that states, cities and towns must double their efforts to ensure that vital services -- water, electricity, and emergency services -- continue to function on January 1, 2000."

__________________________________________________________

http://www.senate.gov/~y2k/news/pr990804.htm

August 4, 1999

22 NUCLEAR POWER PLANTS WILL PUSH Y2K READINESS ENVELOPE WASHINGTON, DC -- "Setting a late deadline for Y2K readiness in a nuclear power plant may not allow enough time to address unforseen problems in such an immensely complex and potentially dangerous facility," said U.S. Senator Robert F. Bennett, Chairman of the U.S. Senate Special Committee on the Y2K Technology Problem. "Total Y2K readiness of the nation's nuclear power plants is vital to keeping the lights on in certain areas, and is absolutely necessary to guarantee public safety during the millennium date change."

"Nuclear power plants shouldn't play Russian roulette when it comes to Y2K - where they wait until the last minute and then hope for the best," said U.S. Senator Christopher J. Dodd, Vice-Chairman of the Senate Y2K Committee. "It is essential that there be adequate time left so systems can be tested in order to assure a safe and continuous power supply." __________________________________________________________

http://www.senate.gov/~y2k/news/pr990913.htm

September 13, 1999

BENNETT, DODD WELCOME RETURN OF RUSSIAN PARTICIPATION IN JOINT Y2K COMMAND CENTER WASHINGTON, DC -- U.S. Senators Robert F. Bennett (R-Utah), Chairman of the Senate Special Committee on the Year 2000 Technology Problem and Christopher J. Dodd (D-Conn.), committee Vice-Chair, today praised Russian officials for a commitment to join U.S. military personnel in a Colorado Springs missile command center designed to detect false alarms during the millennium date change.

The greatest Y2K danger comes not from the threat of an accidental launch, but from the threat of Y2K glitches being misinterpreted by personnel on either side of the Atlantic, said Bennett. To successfully weather Y2K, we must cooperate to avoid human errors that could have unintended, deadly consequences. The establishment of the Colorado Springs center is a well-written insurance policy against Y2K-induced conflict among the preeminent nuclear powers. __________________________________________________________

http://www.senate.gov/~y2k/news/pr991021.htm

October 21, 1999

STUDY SAYS SMALL CHEMICAL BUSINESSES NOT Y2K READY, BENNETT, DODD URGE EPA, FEMA TO HELP PREPARE COMMUNITIES

WASHINGTON, DC - U.S. Senators Robert F. Bennett (R-Utah), Chairman of the Senate Special Committee on the Year 2000 Technology Problem, and Christopher J. Dodd (D-Conn.), Committee Vice-Chair, today released new data - first referenced in the Committee's September 22 A100-Day Report - that provides an unprecedented look at the lack of Y2K readiness among small and medium-sized chemical businesses.

"In the past, we have had very little information about small chemical handlers and manufacturers, and the assumption was made that they were not prepared for Y2K, said Bennett. "To a large degree, that assumption has been confirmed by this in-depth, independent report."

Based on the new findings, Bennett and Dodd said they are urging Federal Emergency Management Agency (FEMA) head James Lee Witt and Environmental Protection Agency (EPA) administrator Carol Browner to alert State Emergency Managers, State Emergency Response Commissions and Local Emergency Planning Committees

My personal notes from the May 25, 1999 Y2K Senate Hearing on Community Preparedness:

"Don't depend on the U.S. Senate to take care of you. Take responsibility for yourself, your community....Take care of your own Y2K situation. Y2K will cause interruptions in our ability to function, to what extent, we just don't know." -- Senator Bob Bennett (a few quotes he made that I combined together)

"Y2K Is No Joke" -- Senator Richard Dodd

So what do you say Mr. Koskinen? Mr. President? Any members of the press care to explain why most Americans never heard these things?

-- the Virginian (1@1.com), November 21, 1999.

Check out htis thread:

http://www.greenspun.com/bboard/q-and-a-fetch-msg.tcl?msg_id=001owe

for a blended transcript of the last brainstorm Conference Review.

there are a LOT of folks who are NOW admitting that the message from the TOP was designed to avoid concern.

Chuck

-- Chuck, a night driver (rienzoo@en.com), November 21, 1999.

At the time he said these words, they were accurate.

IF at that time, we (nationally) had begun acting responsibly and cautiously, we would likely face disruptions of various kinds - as we do now - but would be prepared to handle anything that would come up. International problems would be serious, but certainly better than now.

The opportunity was missed, and a deliberate spin campaign focusing on banks and a few systems in the federal government was instituted instead. The result?

Instead, we (collectively) are not ready and more self-reliant against disruptions of any kind, but most are forced to run to mother government for relief......perhaps the intended consequence anyway, if the proper scapegoats have been prepared.

-- Robert A. Cook, PE (Marietta, GA) (cook.r@csaatl.com), November 22, 1999.