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U.S. Secretary of Energy Bill Richardson today received a report from the North American Electric Reliability Council (NERC) detailing the status of electric industry preparations to operate reliably through the transition to the year 2000 (Y2K), which is now less than one year away. The report shows that the industry continues to make progress in progress in preparing for the Y2K transition.

"I am pleased that 98 percent of the more than three thousand entities that generate, transmit or distribute electric power within the United States are now taking part in the industry-wide assessment process," said Secretary Richardson. "NERC’s finding that there are no ‘showstoppers’ that would threaten the nation’s electricity supplies is also welcome news, particularly in view of the fact that Y2K readiness efforts have advanced significantly since the September 1998 report."

However, the report also notes that some entities are not on schedule to meet NERC’s suggested target date for Y2K readiness -- namely, achievement of full readiness of mission critical systems by the end of June. "This is a matter of significant concern -- in the Y2K readiness league, our goal must be to have a 1.000 batting average," said Secretary Richardson. "I applaud industry's intention to apply ‘peer pressure’ to advance the programs of those who may be falling behind and I am fully prepared to add my own voice to these efforts if necessary," he said.

The department, which has been assigned oversight responsibility for the electricity sector by the President’s Council on Year 2000 Conversion, plans to consult regularly with industry leaders and the States throughout 1999 to encourage Y2K preparations and contingency planning. Working in cooperation with NERC, the department will also support analyses of industry plans to operate extra generation and configure power flows on the grid in order to maintain reliable service even if unexpected problems arise.

Finally, the department will explore ways to collaborate with industry to pursue independent reviews of Y2K readiness on a sample of electricity market participants. "This effort, together with data from federal electricity entities and other federal agencies, and information derived in cooperation with state regulatory commissions, will help government to provide the reliable information that the public will undoubtedly be seeking as the year progresses," said Richardson.

Today’s NERC report is the second in a series responding to the department’s May 1998 request that NERC coordinate and assess the electric industry’s readiness for Y2K to ensure that the industry is taking the necessary steps to assure electric system reliability. The department has asked industry to provide assurances that all mission-critical systems are tested and Y2K ready by July 1999.