Advice-Sharing Pitch for Year 2000 Glitch

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By Stephen Barr

Washington Post Staff Writer

Wednesday, July 29, 1998; Page A19

Worried that small and medium-size companies and numerous foreign nations have not geared up to swat the "millennium bug," the White House yesterday began a campaign to promote information sharing and solutions to the massive Year 2000 computer problem.

The Clinton administration also sent Congress draft legislation, promised by the president two weeks ago, that would immunize businesses from lawsuits if they share information about Year 2000 computer glitches and fixes.

"It's clear that if every organization and every country dealing with this problem -- particularly those who come late to the issue -- have to reinvent the wheel, there's not enough time left to do that in the 521 days remaining to us," John A. Koskinen, the president's chief adviser on the Year 2000 problem, said yesterday at a National Press Club briefing. Without timely, effective and widespread sharing of data, some companies and nations "won't be able to make it," he said.

In particular, Koskinen stressed, governments and corporations need to provide information to the public to avert the possibility of panic as the clock ticks from 1999 to 2000.

"We all have an obligation to be candid with the public and provide them information over the next year, year and a half, not only about what will work, but about where the problems are and what won't work, because the way the public will repond appropriately to this problem is if they have real information," Koskinen said. "If they don't have real information, there's a risk that we'll get an overreaction."

But information seems to be missing from much of the current debate about the challenges and risks presented by the Year 2000 -- popularly known as Y2K -- problem. The impact of the problem is unclear, with some economic and industry experts predicting electronic disruptions that would lead to a global recession. Other experts say that enough time remains to fix or patch around computer problems and that any disruptions will result in minor, if annoying, inconveniences.

The Y2K problem stems from the fact that many computer systems recognize only the last two digits of a year, assuming that 1 and 9 are the first two digits of the year. Without specialized reprogramming, the systems will recognize "00" not as 2000 but as 1900, a glitch that could cause the computers either to shut down or malfunction.

To promote awareness of the problem, the White House set up the President's Council on Year 2000 Conversion, chaired by Koskinen, this year. The council has spawned 34 working groups, organized around major economic sectors such as telecommunications, financial services, transportation and energy.

Yesterday's briefing focused on the power grid, with Koskinen joined by Elizabeth Moler, the acting energy secretary, and Michael Gent, president of the North American Electric Reliability Council (NERC), which represents electric utilities.

NERC is conducting a series of surveys to determine the Y2K readiness of the electric power industry for the transition to 2000 and has developed a three-phase program that will provide status reports on Y2K progress to the Energy Department, develop a checklist of Y2K compliant equipment and coordinate industry-wide contingency planning.

Asked if the nation could face a catastrophic power blackout because of Year 2000 system failures, Gent replied, "We will not lose the country." In a worse-case scenario, he said, some parts of the nation might face periods of reduced power, but "the lights would stay on most places."

But Koskinen indicated NERC has found some power companies reluctant to swap information on Y2K repairs because they fear liability if their information "turns out not to be 100 percent correct."

The administration's proposed "Year 2000 Information Disclosure Act," which Koskinen said was drafted with the help of industry groups, has been designed to promote open sharing of data by giving companies that act in good faith a guarantee that they will be protected from liability claims.

More controversial issues, such as limiting liability for product or service failures or for statements made in marketing to consumers, are not addressed by the proposal.

Koskinen indicated he hopes Congress will not change or broaden the administration's measure and make it controversial, saying, "I hope the Hill will understand this is a unique problem that needs unique legislation."

Sen. Robert F. Bennett (R-Utah), who chairs the Senate special committee on Year 2000 issues, and Rep. Stephen Horn (R-Calif.), a House leader on Y2K, said they would work with the administration on a bill. Senate staff members, under the direction of Sen. Jon Kyl (R-Ariz.), will meet with administration officials during the August congressional recess, Bennett said.

"I agree it's important that something gets passed this year," he said.