Revised Agenda Date: March 24, 1999 Item Number: Docket: U-971835 Company Names: Administrative - General Staff: Jo Wadsworth, Year 2000 Project Coordinator Gene Eckhardt, Asst. Director, Water and Transportation Recommendations: Direct the Executive Secretary to sign a Memorandum of Understanding(MOU) between the Commission and the Department of Health(DOH). The MOU stipulates that the DOH will coordinate Year 2000 issues for all water systems including those regulated by Washington Utilities and Transportation Commission. Discussion: The Commission issued two orders in Docket No. U-971835 related to Year 2000 preparedness for regulated electric, gas, and telecommunications utilities. The utility companies are required to provide quarterly Year 2000 progress reports and contingency plans. The purpose of these orders was to encourage regulated utilities to take steps to ensure uninterrupted services during and after the Year 2000. Water companies were not included in the two orders. Discussions have taken place with the DOH to initiate action to encourage all state water companies and systems to take steps to ensure services continue uninterrupted in the Year 2000. In the area of water regulation, the Commission regulates fewer than 4% of the water systems that provide services to customers in Washington. The Department of Health has the authority and responsibility for water quantity and water quality for all water systems. Already in place is a Memorandum of Understanding with the Department of Health, Water Program to coordinate agency efforts. The Memorandum of Understanding states the Department of Health is the lead agency for all water systems in the areas of water quantity and water quality. This proposed MOU identifies Year 2000 issues specifically for coordination between the Department of Health and the Commission and states the Department of Health is the lead agency for sending information and follow-up requests to all water systems operating in this State. Docket U-971835 March 24, 1999 Page 2 The Department of Health will: •Send letters directing water companies/systems to make Year 2000 plans and to take the necessary steps to correct and prepare all internal systems and connections; •Require all WUTC regulated water systems (and others with more than 100 connections) to send a written affirmation of assurance regarding Year 2000 plans and readiness to the DOH; •Send the regulated water systems’ affirmations to the WUTC for compilation and posting for public information; •Provide follow-up actions to the initial letter to ensure that water systems send back the affirmations. This is a different approach than the Commission has taken with the electric, gas, and telecommunication utilities but it would provide for a uniform approach by two state agencies for all water systems in Washington and it would give the Commission and thus the public information regarding the status of regulated water systems Year 2000 plans and readiness. Therefore, the staff recommends that the Commission direct the Executive Secretary to sign the Memorandum of Understanding. Attachment