PITTSBURGH, Oct. 1 /PRNewswire/ -- Consolidated Natural Gas Company
(NYSE: CNG) said today its systems critical for the delivery of natural gas
are ready for the year 2000.
"We've worked long, hard and systematically to test our natural gas
delivery system and update it for the year 2000," said George A. Davidson,
Jr., CNG chairman and chief executive officer. "We are confident we can
deliver natural gas and continue to provide quality service as we begin the
year 2000."
CNG's four natural gas distribution companies serve 1.9 million customers.
The East Ohio Gas Company, headquartered in Cleveland, serves nearly
1.2 million customers in Ohio; The Peoples Natural Gas Company, headquartered
in Pittsburgh, serves 349,000 customers in western Pennsylvania; Virginia
Natural Gas, Inc., headquartered in Norfolk, serves 223,000 customers in
southeastern Virginia; and Hope Gas, Inc., headquartered in Clarksburg, W.Va.,
serves 116,000 customers in West Virginia. CNG Transmission Corporation,
headquartered in Clarksburg, W.Va., operates an interstate natural gas
transmission and storage system that serves the Northeast, Mid-Atlantic and
Midwest. CNG Producing Company, headquartered in New Orleans, explores for
and produces oil and natural gas in the Gulf of Mexico, the Appalachian region
and various other locations in the U.S. and Canada.
"Our natural gas delivery system can be operated manually, if necessary,"
said Gary Deschamps, vice president of system services. "Many of our process
control components are not automated or date-sensitive, and therefore not
susceptible to the Y2K problem."
In August, CNG held a Y2K simulation at 80 critical storage, transmission
and distribution facilities and verified that it could operate its gas
delivery system manually in case of computer failure. Rehearsals of backup
plans for other elements of CNG's operations and business systems will take
place in the next few weeks.
CNG is also making capital improvements to its system. Electric
generators are being added or improved so that CNG can generate its own power
if it is needed to run critical gas delivery systems. Generators can also
provide power to CNG's microwave telecommunications system, and CNG will have
radios and satellite communication systems as additional communications
backups.
"CNG already had extensive contingency plans and, by revisiting those
plans in the context of the Y2K scenario, we are now more prepared than ever
for emergencies," Deschamps said. "We will continue to work with suppliers,
electric utilities, telecommunications providers and other vital partners to
fine-tune our backup plans."
CNG's program has included testing and remediation of its software and
hardware systems, as well as special communications with its customers,
employees, suppliers and regulatory agencies. CNG's Y2K effort involved
hundreds of employees, including 30 full-time employees and consultants. The
company currently expects to spend about $16 million on the project, which is
under its budget of $20.1 million.
"Our employees responded well to a unique challenge," Deschamps said. "We
had to review all of our operations in a different way, and figure out how to
fix or work around potential computer problems."
Even though the company expects no Year 2000-related disruptions of
service, Deschamps said CNG will have extra personnel on duty during the date
changeover in case problems arise.
"We routinely encounter service calls during the middle of winter because
of weather conditions and the strain a heavy load puts on our system,"
Deschamps said. "We will be prepared for that, as well as for the possibility
of Y2K problems encountered by our business partners and suppliers."
The Year 2000 problem, also called the "millennium bug," is a result of
the inability of some computer and software systems to read dates beginning in
the year 2000. Many computers may malfunction or shut down if the date
problem is not resolved.
The Year 2000 statements made in this news release are intended to serve
as Year 2000 Readiness Disclosures within the meaning of the Year 2000
Information and Readiness Disclosure Act.
CNG's recent news releases are available 24 hours a day on the Internet,
by fax machine, or by voice recording. On the Internet, use CNG's Web site:
http://www.cng.com. For faxing, call 1-800-758-5804 on a touch-tone phone and enter
CNG's extension number, which is 203456. From a menu, you will then be able
to select releases that will be faxed to you immediately without charge. For
voice recordings, call 1-888-CNG-NEWS. This line is toll-free.
SOURCE Consolidated Natural Gas Company
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Related links:
http://www.cng.com
CONTACT:
Dan Donovan of Consolidated Natural Gas,
412-690-1370
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