Y2K Interagency Task Force newsletter [May. 1999]

Affairs Georgia Department of

Human Resources
DCA
Information Technology

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Interagency Task Force

A newsletter of the Georgia Department of Community Affairs May, 1999

Y2K Interagency Task Force Members
Association County Commissioners of Georgia Georgia Department of Community Affairs Georgia Department of Human Resources Georgia Department of Natural Resources/
Environmental Protection Division Georgia Department of Public Safety Georgia Emergency Management Agency Georgia Hospital Association Georgia Municipal Association Georgia Public Service Commission Georgia Water and Pollution Control Association Information Technology Policy Council
University System of Georgia Board of Regents
In This Issue...
Year 2000 Readiness Status ......................................... 1 Y2K Fraud Alert ............................................................ 3 Together, Georgia Prepares ........................................... 3 Safe Portable Generator Use ......................................... 4 Year 2000 Preparedness Survey ................................... 5 The Impact of Y2K on Utility Delivery Systems ............. 6 Limited Disruptions of Oil and Natural Gas Supply ....... 7 Y2K Myths & Truths for the Small Business .................. 7
Resources
Georgia State Y2K website www.year2000ga.org Information Technology Policy Council Mike Hale, Chief Information Officer 404.657.1328 Y2K Fraud Task Force Governor's Office of Consumer Affairs 1.800.869.1123 404.651.8600
Questions & Comments
If you have any questions or comments regarding the newsletter, please contact: Patty Williams, Department of Community Affairs 404.679.3147 e-mail: pwilliam@dca.state.ga.us

Where Are U on Y2K?
Contributed by the Georgia Municipal Association
We want to know where you stand with Y2K readiness and contingency planning in an effort to share this information with others. Please let us know what your organization has done so far to prevent Y2K disruptions, including any problems you encountered along the way or lessons learned that could help others.
Also, please let us know what contingency plans you've made just in case there are disruptions to your operations.
We will be publishing these stories in future issues, so that we can learn from each other's experience.
In addition, we are seeking individuals who have completed Y2K readiness and contingency planning to serve as mentors to others going through the process. If you are interested in serving in this capacity, please contact Tim Connell at DCA at (404) 679-0600 or email at tconnell@dca.state.ga.us.

State of Georgia Year 2000 Readiness Status
By Mike Hale, CIO State of Georgia, and State Y2K Project Manager
Georgia's Year 2000 project is making significant progress. This progress is characterized by improvements in agency completion rates and by reductions in the identified risk items. This positive turn of events can be attributed to the increased emphasis from the Governor and the hard work and commitment of agency Y2K personnel. Areas of real concern still remain. However, none of these are insurmountable, but do warrant continued attention.

The nature of any information technology implementation

is such that it can never be

guaranteed to be 100% free " We expect all of our most

of error, despite best efforts to do so. Such will be the

critical projects will be

case with the State's transi- completed in time

tion to the Year 2000. Problems will surface, some

for Year 2000 "

items will fail and some operations will be disrupted how-

ever slightly. To prepare for this possibility, the Y2K Project

Management Office issued contingency planning policies

and guidelines last year.

Toward finding the right solution, the PMO is working closely with GEMA and the Inter-Agency Task Force on preparedness issues.

Funding State agencies and universities are being closely monitored to identify issues that may become critical to the State's success and have not been funded. The existing
funding level is $322M with $56M additional funding from the federal government. Georgia is spending more per capita on Y2K than any state in the U.S.
Status and Progress Currently, the Y2K PMO is tracking 366 projects through a GeorgiaNet-based Metrics and Status reporting system and through direct agency program/project reviews. These biweekly reports track both dollars and hours expended at the individual project level. The reports are utilized to track progress against the agency plan, as well as risk. Of the 366 projects, 133 have been identified by the Office of Planning and Budget, and confirmed by the Agencies themselves, as being of the highest criticality. For these 133 projects, progress is tracked by two metrics:
Project Test Completion: A total of 66% of the most critical projects are complete to the point of being fixed or replaced, systems and user acceptance testing completed and the systems ready for deployment. Looking back, on January 31, 1999, the State was at 43% complete for this measure.
Progress in completing testing: In terms of progress in testing (weighted according to project workload) the State, as a whole, is 62% complete. Looking forward with this metric, we will be 90% complete in July.
Agency Program Project Reviews Oftentimes numbers alone do not tell a complete story, therefore, a series of agency Program/Project reviews are conducted by the Y2K PMO. Reviews were generally attended by agency heads, key members of the agency's IT department, and representatives of the Governor. The following agencies have participated in program reviews:
Department of Revenue Department of Administrative Services Department of Technical and Adult Education Department of Education Department of Human Resources Merit System Department of Medical Assistance Department of Corrections Department of Transportation Department of Natural Resources Department of Public Safety
Agency reviews were based upon the following criteria: Risk to the State and their patrons.
The State's financial exposure and the magnitude of the Agency's Y2K funding.
Agency's Progress and Risk Report as reported to GeorgiaNet.
Size and complexity of projects undertaken by the agency.
2 Y2K Interagency Task Force

These reviews confirmed that agency heads are aware of the risks and progress associated with their mission critical projects and are working towards satisfactory resolution.
Following each review, action items were identified, documented and a letter forwarded to the respective agency head for follow-up. The Y2K PMO continues to monitor these action items as a part of the bi-weekly metrics review process.

Business Disruption and Contingency Planning

Central to the contingency planning policy here at the State

is the theme of business continuity; putting in place an

alternate process for getting the work done--regardless

of the form it takes.

Last year, the Gover- " Georgia is far ahead
nor directed that
agencies with mis- of most other states in the

sion critical information systems projects at risk for

scope and level of coordination of our Y2K activities "

Year 2000 related

failures develop contingency plans for the critical business

processes that rely on those information systems. The

Governor has expanded the focus to encompass Year 2000

business disruption planning.

Despite best efforts to thoroughly remediate, test and implement Year 2000 fixes for agencies' information systems, a potential exists that each agency's operations may still be seriously impacted by the Year 2000. Examples of Year 2000 factors outside the agency's remediated information systems that may impact business operations include the following:
Vital service disruptions--power, water, mail, transportation, communications, financial

Building system failures--HVAC, security

Data from external sources or third party dependencies may be interrupted or corrupted

If these risks materialize, they may affect a major portion of an agency's operation, not just the IT Department. In particular, they may affect an agency's ability to deliver essential services. Therefore, each agency has been requested to provide information to the Inter-Agency Task Force regarding status of Agency Business Continuity Planning. The Task Force will provide coordination and oversight of all State contingency planning activities.

Conclusion Given the large number of Year 2000-related projects currently being worked on, it is extremely difficult to assess which, if any, critical systems will fail or experience temporary disruptions. However, given this volume of activity and imminent time deadlines, it is currently reasonable to expect that some mission critical systems may experience Year 2000-related problems.
However, the State takes this problem very seriously and is far ahead of most other states in the scope and level of coordination of our Y2K activities.

Accordingly, we expect all of our most critical projects will be completed in time for Year 2000 and that our citizens will not experience serious disruptions in their government services.
Y2K Fraud Alert
Contributed by the Office of Consumer Affairs
What form will Y2K consumer fraud take? The Governor's Office of Consumer Affairs (OCA) advises that consumer fraud scams including telemarketing fraud, internet fraud, identity theft and even home repair fraud have already begun to take on a Y2K "spin". Y2K fraud may include offers of "specialized" consumer goods and services ranging from a year supply of vacuum-packed food, special space-age home storage units, or business investment opportunities involving the sale of such products, to services to protect your credit cards and bank accounts and the sale of home improvements such as secure shelters or long term food storage facilities. Additionally, since no one can truly know what will happen at the turn of the century, con artists utilize scare tactics to make money by committing fraud against those who are unaware of or who fear the unknown. Just as con artists often target disoriented, frightened victims in the wake of a disaster, so too will they target consumers who want to protect themselves from any potential Y2K disaster-like circumstances.
Credit Card Fraud OCA has been tracking the development of Y2K scams and is aware that Georgians have been contacted, via telephone and through the internet, about Y2K issues. One elder Georgian was telephoned by an individual who informed her that her Visa card was not Y2K compliant. The elderly woman was told that she could obtain magnetic strips which would protect her credit card, and herself, from financial disaster. Unlike the typical fraudulent telemarketing calls, this caller did not seek money from the elderly woman. Instead, the caller would send the "free" magnetic strips to her once she "confirmed her identity" by providing her credit card number. Providing such personal financial information could have resulted in thousands of dollars in unauthorized charges on the woman's credit card, or worse, the exchange could have resulted in identity theft: the woman's identity could have been taken over by a con artist who could seriously damage her credit rating and put her in debt until the theft was eventually discovered.
Bank Fraud Another documented Y2K scam involves a telephone call from an individual claiming to be a bank representative. The caller claimed that the bank was not yet Y2K ready and, that to best protect the consumer's life savings, a special bond account had been set up to house the money through the Y2K transition. To activate the account the consumer need only provide authorization and bank account information for the transfer of funds to the Y2K secure account.
These savvy consumers did not fall for the scams and in fact they went one step further - they reported the attempt. In addition to Georgia's Y2K Interagency Task Force, OCA is involved in nationwide and statewide Y2K fraud task

forces which focus on information sharing, education and fraud prevention. OCA and other task force members are committed to investigating and prosecuting those committing Y2K fraud. OCA has criminal authority in situations involving telemarketing fraud, home repair fraud, internet fraud and identity theft. Con artists who use any of these means to defraud Georgians can receive prison sentences ranging from one to ten years.
OCA encourages Georgia consumers to be aware that fraud rip-off artists will not pass up the well-publicized Y2K opportunity to play upon people's vulnerabilities. We actively seek and monitor information relative to Y2K scams nationwide. A proactive approach to prevention is education. As the State becomes aware of Y2K scams the information will be disseminated to protect the interests of our Georgia consumers as they deal with Y2K issues. To report a scam or to inquire about Y2K fraud issues consumers can contact OCA at (800) 869-1123 or in the Atlanta area at (404) 651-8600.
OCA also has a critical need for current, up-to-date information from all members of the Task Force in order that OCA and its Administrator, Barry W. Reid, can be adequately prepared to provide real facts to the public as these scam artists heat up their Y2K scare tactics.
Together, Georgia Prepares
Contributed by the Georgia Emergency Management Agency
Georgians need to prepare for Y2K, just as for any other emergency. During the past two years, the Georgia Emergency Management Agency has sponsored an initiative called, "Together, Georgia Prepares". Through this statewide initiative, communities have been encouraged to better prepare for an emergency or disaster. This initiative is being expanded to also address potential effects arising from the turn of the century on January 1, 2000. In Georgia, under the leadership of Governor Barnes, both technology and contingency planning are been extensively addressed to avoid any major problems. Please note that serious disruptions are not anticipated at this time and the following information is only provided as a guide for those individuals and families who desire to take extra precuations.
Check with manufactures of essential computercontrolled equipment to determined potential effects. This may include fire and security systems, program mable thermostats, garage door openers, electronic locks, appliances and other electronic equipment in which an "embedded chip" may control operations;
Stock emergency/disaster supplies to last severa days to a week for you and other individuals in your home. This may include nonperishable foods, stored (distilled) water, prescription and non-prescription medications which are normally used in your household;
Have some extra cash or traveler's checks in case ATM cards, credit cards and the like cannot be processed for a few days. Keep your money in a safe place and withdraw small amounts of money from your bank well in advance of December 31;

May, 1999 3

Fill your vehicle with gasoline, just as you would prepare any other emergency;
Plan for alternate cooking devices in accordance with manufacture's instructions (Do not use open flames or charcoal grills in doors.)
Secure extra blankets and coats, hats and gloves to keep warm, if needed. (Do not use gas-fueled appliances like an oven, wood-burning or liquid-fueled heating devices not designed for residential structure, camp stoves and heaters indoors.) If you obtain an alternate-heating device, make sure it is useable indoors and listed with Underwriters Laboratories (UL).
Obtain flashlights and extra batteries. (Do not use candles for emergency lighting.)
Plan to evacuate to a shelter for warmth and protection during a prolonged power outage, if requested by local government officials. (Listen to a battery operated radio for information on such shelter openings.)
Secure power generators directly to "what you want powered". (Do not connect a generator to your electrical system, and keep it in a well-ventilated area, not inside your home.) In addition to American Red Cross recommendations, it is suggested that a certified electrician install the generator, the power company be notified that you have a generator and children, pets and livestock be keep away from it.
In order to be state specific, the above list has been adapted from the American Red Cross to meet Y2K and other emergency needs in Georgia. Additionally, if you have, live with or know someone with a special need, ensure that all accommodations and needs for an emergency are considered. This includes preparations from caregivers to relocation, if necessary.
The Georgia Emergency Management Agency is working diligently with communities and at the state level to prepare contingency plans that will be effective in meeting Y2K potential needs. This effort is not unlike preparations for any type of emergency such a tornado, hurricane or flood. Together, Georgia will be prepared!
Guidelines for Safe Portable Generator Use
Contributed by the Georgia Emergency Management Agency
The following article is only intended to offer tips on the proper and safe method for installing a house generator. The article is not intended to recommend or encourage the purchase of a house generator.
With the possibility of widespread electric power blackouts and brownouts resulting from Y2K problems many homeowners are purchasing portable electric generators. However, homeowners need to be aware of how to operate these generators safely. Improper use or installation of an electric generator can cause property damage, serious injury and even death. To protect yourself, your family and your property read and follow the safety instructions contained in every generator operations manual.
4 Y2K Interagency Task Force

When using a generator you want to make sure you have a TRANSFER SWITCH installed. This is a device that isolates your generator power from the power lines coming from the pole. You do not want to be responsible for electrocuting someone who might be in contact with wires connected to your house! Your ELECTRICIAN will handle this for you.
Think Safety First! Installation of an emergency generator, disconnect and transfer switch gear MUST be performed by a qualified electrical contractor.
Do NOT attempt to install these devices to your electrical panel, it is EXTREMELY DANGEROUS!!! NOT a do-it-yourself job!
ALWAYS check and follow State, Local and National Fire and Electrical Codes.
NEVER run an electric generator inside a building, especially in a building attached to a dwelling. It is AGAINST ALL FIRE/SAFETY CODES!
ALWAYS store Gasoline in approved containers only!
NEVER fuel an electric generator when the generator is running!
EXTINGUISH all flames or cigarettes when handling Gasoline!
ALWAYS insure proper ventilation and air flow around the generator!
ALWAYS have a fully charged, approved Fire Extinguisher located near the generator!
ALWAYS properly disconnect from your utility service BEFORE starting your backup generator! (See First Safety Tip above)
ALWAYS store fuel containers out of reach of children.
When using extension cords ALWAYS check for exposed wires and frayed shielding. REPLACE if damaged!
NEVER remove or tamper with safety devices.
NEVER attempt to repair an electric generator, only a qualified serviceman should perform repairs!
Many engine parts are very HOT during operation, severe burns may result if touched! KEEP children, pets and livestock AWAY from generators at all times!
How Do I Decide Which Generator To Buy? 1. Identify essential appliances or devices.
2. Determine the required wattage.
3. Total the required wattage of items that will operate simultaneously.
4. Choose a generator that meets or exceeds this total wattage requirement.

5. Electric motors may need twice the running watts to start (or more).
6. Does it have automatic shut down if there is low oil pressure?
7. Can the generator operate on fuel other than gasoline?

Chart for Determining Electrical Load for Generator
Remember: 1kW = 1000 watts , 2kW = 2000 watts etc... Wattage Formula: Volts x Amps = Watts Example: An appliance nameplate states 3 amps at 120 volts.
3 amps x 120 volts = 360 watts
Typical Electrical Wattages

Device

Running Watts

Starting Watts

Light bulb (100w) Radio AM/FM Radio, CB Fan Television Microwave Oven Air Conditioner (12,000 BTU) Furnace Fan (1/3 hp) Vacuum Cleaner Sump Pump (1/3/ hp) Refrigerator/Freezer Deep Freezer Circular Saw Floodlight Drill _" Electric Toaster Coffee Maker Skillet Well Pump (1/2hp) Hot Plate (per burner) Table Saw 10" Water Heater Battery Charger 12V

100 50-200 50 200 300-400 700 3250 600 600 700 800 500 1000-2500 1000 1000 1200 1200 1200 1000 1500 2000 5000 120

100 50-200 50 600 300-400 1000 5000 1800 750 2100 2400 1500 2300-4600 1000 1000 200 1200 1200 3000 1500 6000 5000 120

It is recommended when using a supplemental generator to connect what you want to power directly to the generator.

Do not connect the generator to your home's electrical system.

Notify your power company if the generator is connected to your home's electrical system.

Note: Information was compiled from various World Wide Web pages including www.gohonda.com and www.badgermart.com.

Year 2000 Preparedness Survey
Contributed by the GeorgiaNet Authority
The GeorgiaNet Authority has been working closely with the Y2K Interagency Task Force to develop an electronic version of the Year 2000 Preparedness Survey that can be accessed through the Internet.

Organizations can complete their Year 2000 Preparedness Survey by visiting Georgia's Y2K web site at www.year2000ga.org. There they can click on "Survey" to take them to a page requesting the user's survey access code.
After successfully entering the access code provided with the survey mailing, a survey identical to the paper survey mailing will be displayed. The survey site also includes links to pertinent state and federal legislation and a list of contact information for the state agencies involved in the survey.
"Our goal in allowing the survey to be completed on line is to provide convenience through 24 hour a day, 7 day a week access", said Tom Bostick, Executive Director of the GeorgiaNet Authority. "We hope that a substantial number of organizations will take advantage of this option."
Once the survey information has been completed, users are urged to print a copy of their completed survey for their records and then click on "submit" to complete the survey process.
GeorgiaNet will continue to work with the Year 2000 Interagency Task Force to provide similar access to all future surveys.

Year 2000 Preparedness Survey Recipients Between April 15th and July 27th, approximately 8000 Year 2000 Preparedness and Essential Services Survey will be mailed. Following is a breakdown of the entities to whom a survey has or will be sent:

Name of Agency/Company Number of Recipients

Georgia Public Service Commission:

Incumbent Local Exchange (telephone companies) 36

Competitive Local Exchange (telephone companies) ~98

Interexchange Carriers/Other Common Carriers

36

IOU (investor owned) Electric Companies

2

EMCs (Electric Membership Corporations)

42

Municipal Electric Systems

50

IOU Local Distribution Companies (LDCs-natural gas) 2

Municipal Gas Systems

81

Natural Gas Marketers

~19

SUBTOTAL

366

Department of Human Resources: X-Ray Machine Users (hospitals, doctors, etc.) Ambulatory surgical treatment centers Clinical laboratories EMS Services HMOs Home health agencies Hospices Hospitals ICF/MRs

1679 132 530 280 23 117 77 258 10

May, 1999 5

Private Home Care Providers (nursing services)

277

Nursing Homes

378

Birthing Centers

1

Traumatic Brain Injury Facilities

4

End Stage Renal Disease Centers

*161

Day Care Centers Serving Medically Fragile Children *3

SUBTOTAL

3930

Georgia Emergency Management Agency: Local Emergency Management Agencies GEMA staff and CPM Team Law Enforcement 911 Services Fire Services
SUBTOTAL

161 32
598 151 696
1638

Department of Natural Resources: Drinking Water (Utilities) Wastewater Facilities Air Pollution Facilities Hazardous Waste/Toxic Radioactive Materials
SUBTOTAL

212 524 535 541 222
2034

GRAND TOTAL

7968

~ Estimated * These facilities will be asked to participate voluntarily in the Y2K
survey in light of the "at risk" populations they serve.

The Impact of Y2K on Utility Delivery Systems
National Regulatory Research Institute
No systems are more critical to the maintenance of the state and national infrastructures than the systems that deliver public utilities to consumers. Without electricity, gas, telecommunications, and water, the efforts of public agencies and private companies to mitigate other potential Y2K problems will be of no use.
Public utilities are delivered to the public through sophisticated, often-interrelated systems. Y2K mitigation remediation are particularly difficult in these utility systems due to the following factors:
No single entity is responsible for utility service delivery from start to finish. Utility delivery systems depend on one another during critical periods. As a result, the Y2K efforts of each of the components of the service delivery system must be coordinated to ensure service delivery.
Utility service delivery, with some exceptions, represent the ultimate in just-in-time inventory systems. Utility service cannot be stockpiled. As a result, the complex ity of service delivery is significantly compounded.
The control systems that govern these vast, complex, and interconnected systems are largely automated. Embedded chips and automated control systems abound.
Significant cross-sectoral interdependence exists.
Utility delivery systems are also dependent on large numbers of outside suppliers.

6 Y2K Interagency Task Force

The Georgia PSC survey clearly indicated that much work is underway to mitigate the impact of Y2K on the Georgia utilities. It also, however, identified that much additional work needs to be undertaken, particularly with respect to the interdependence of utility service providers and the development of seamless contingency plans. There is clearly a role here for government in general and for the Georgia PSC in specific.
In addition, Y2K clearly presents some unique challenges and an array of issues for public policy makers that extend beyond Y2K itself. They include:
Y2K requires policy makers to deal with uncertainty.
Y2K is the first electronic crisis of an automated society. Y2K may cause us to reexamine the pivotal position we have allowed computers to assume and the safeguards we have placed upon them.
Y2K makes apparent the fragmentation of essential service delivery systems.
Y2K is an issue that requires maintenance of public confidence. Public confidence cannot be maintained if government cannot respond to public requests for information or if the public concludes that government is not providing accurate information.
Y2K may require a reevaluation of the role of government. Y2K will require a partnership between the public and private sectors.
Roles Georgia State Government Might Play in Y2K The figure below lists six functions that government might consider.

Awareness
Coordination/ Mobilization

Assessment

Policy Making

Government

Preparedness

Public Information

They include: increasing awareness of Y2K so that all companies make Y2K mitigation and remediation a high priority; assessing the Y2K situation by collecting and evaluating information about Y2K readiness; making policies that allow companies to focus on Y2K mitigation and remediation and on maintenance of mission critical functions; coordinating government and utility efforts including establishing cross-sectoral (e.g., telecommunications to electric) communications; coordinating and encouraging the development of contingency plans that include contingency plans for government agencies as well; and providing accurate information to the public. At the core of those government functions is providing leadership, a somewhat scarce commodity, in these difficult times.

Limited Disruptions of Oil and Natural Gas Supply
Report by the American Petroleum Institute.
While there may be some minor interruptions in the flow of oil from other countries, the possibility of major disruptions to U.S. consumers is extremely low, according to the API report.
The industry has made an intensive effort to find solutions to the Y2K problem. As reported earlier, the U.S. oil and natural gas industry is on course to have its computers systems ready for 2000 before the end of 1999. In fact, a January 1999 survey of the industry's readiness released by API and the Natural Gas Council shows that 94 percent of the companies responding will be Y2K ready by September 30. These companies provide 88 percent of the oil and natural gas the nation consumes.
One of the main reasons for the optimism is the nature of the U.S. oil and natural gas industry, which relies heavily on careful planning and sophisticated technology to deal with potential disruptions. The paper cites an earlier study describing the system's ability to withstand stresses. That study explains that despite "repeated stress" over the past 50 years, "no serious petroleum shortages have occurred at the consumer level except gasoline lines in the era of [government-mandated] price and allocation controls."
Other reasons for its optimistic predictions: The United States is largely self-sufficient in natural gas, relying on imports for less than 14 percent of its supply.
While the nation imports more than half of its crude oil, the U.S. Department of Energy reports that the four largest exporters of petroleum to the U.S. Venezuela, Canada, Saudi Arabia and Mexico expect all critical systems to be Y2K-compliant by the end of the year.
Although little is known about the Y2K readiness of Nigeria, Angola and Iraq the next four largest suppliers of U.S. crude oil the U.S. Department of Energy points out that major international oil companies operating there have system-wide programs in place to counter the Y2K problem.
All exporting nations have a large economic incentive to see that their flow of oil to the United States is not disrupted for any significant length of time.
There is ample crude oil production capacity in the world and if one country cannot export, another may be able to compensate for it. In addition, crude oil and petroleum product imports would not stop instantaneously January 1 because there is always some oil on its way to the United States aboard tankers and because of the reserves held in company inventories.

How the Electric Utility Industry Works
Contributed by the National Rural Electric Cooperative Association
The National Rural Electric Cooperative Association (NRECA) is the national service organization dedicated to representing the national interests of cooperative electric utilities and the consumers they serve.
How Electric Co-ops Get Power to the People There are two distinct types of electric cooperatives: generation and transmission cooperatives (G&Ts) and distribution cooperatives.
Generation and Transmission Cooperatives As their name implies, G&Ts generate and/or transmit electric power on the bulk, or wholesale, level of the market. G&Ts are cooperatives whose members are electric distribution cooperatives. Those members are the owners of the G&Ts. Most G&Ts own transmission lines and substations. Some own or operate electric generating plants. Almost all buy and sell power on the wholesale level to ensure that electric power flows to ultimate customers safely and reliably.
Distribution Cooperatives Distribution cooperatives ensure that electric power gets delivered locally. Their members are families, individuals, and businesses of every size and type, from campgrounds to doctors' offices to automobile manufacturers. Distribution cooperatives build and maintain the electric lines that reach to homes and businesses, ensure that rights-of-way stay clear of growth that could affect power distribution, ensure that power flows from a G&T or another source to the distribution system's delivery points and on to consumers, meter and bill for the service.
How the Electric Utility Industry Works There are three broad components: generation, transmission and distribution.
Generation Facilities Generation facilities generate electricity using a variety of fuels -- the power of flowing water (hydroelectric facilities), nuclear power, thermal plants that burn some type of fuel (coal, natural gas, diesel, biomass), or renewable resources such as wind. Electricity cannot effectively be stored in large quantities. It must be created in real time, to meet immediate needs. Generation facilities are designed with differing capacities to compensate for variations in electric demand.
Transmission Facilities Transmission facilities are wires that conduct electricity from generating plants to substations and other delivery points. Their voltages range from about 115 kV to 500kV. They are designed to carry large volumes of electricity, often over long distances. Transmission lines and substations are often referred to as "the grid." Actually there are four (4) regional grids in North America -- the Eastern Interconnection, the Western Interconnection, the Texas Interconnection and the Quebec Interconnection.

May, 1999 7

Y2K Essential Services Preparedness Assessment Schedule
Version April 21, 1999

Preparedness Surveys Mailed
April 15 July 15 October 15 January 15 April 14

Survey Response Due
May 19 August 16 November 15 February 15
May 15

Assessment to Citizen Task Force
May 31 August 30 November 30 February 28
May 30

Report to Gov. Barns
June 15 September 15 December 15
March 15 June 15

Year
1999 1999 1999 2000 2000

Utilities within each grid buy and sell bulk power on both the spot market and through longer-term contacts to ensure a reliable supply of electricity to their customers. Transmission systems within each grid are interconnected to facilitate such transactions. The 4 grids have limited direct current (DC) interties and isolated back-to-back ACDC-AC interties to help facilitate elasticity between the large regions.
Distribution Systems Distribution systems generally operate at voltage below transmission voltages, stepping the voltage down gradually through a series of transformers until it is suitable

and safe for end-use. Distribution systems receive electricity at transmission or sub-transmission voltages at substations and pass it along to the distribution wires, either overhead or underground, that deliver the electricity to the customer. Distribution systems often have load management capabilities installed at substations or end-user facilities including Supervisory Control and Data Acquisition (SCADA) systems and peak shaving systems.
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