Agenda Date:  March 24, 1999
Item Number:

Docket:   U-971835
    Administrative - General

Staff:    Jo Wadsworth, Year 2000 Project Coordinator
    Gene Eckhardt, Asst. Director, Water and Transportation

Recommendation:

Direct the Executive Secretary to sign a Memorandum of Understanding between 
the Commission and the Department of Health (DOH) to have the DOH coordinate 
Year 2000 issues for all water systems regulated by both agencies.

Discussion:

The Commission opened Docket U-971835 to address Year 2000 issues with all 
regulated utilities.  The Commission’s Year 2000 Steering Committee expressed 
in the May 27, 1998, memorandum to the Commissioners stated that water 
companies (and other regulated companies) are not expected to directly 
experience network related problems and the team would focus on the most basic 
and critical utility functions related to the continuing ability of the power 
grid, telecommunications networks and natural gas lines.  Subsequently, the 
Commission issued two orders, requiring electric, gas, and telecommunications 
utilities to report to the Commission on a quarterly basis using uniform and 
consistent formats and to submit contingency plans by June 30, 1999.  

In water, the Commission regulates less than 4% of the water systems that 
provide services to customers in Washington.  The Department of Health has 
authority and responsibility for water quantity and water quality for all water 
systems.  The Commission has 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 Memorandum of Understanding identifies Year 2000 issues 
specifically for coordination with 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.  The 
Department of Health will:

_Send letters directing water systems to make Year 2000 plans and take the 
necessary steps to correct and prepare all internal systems and connections,

Docket U-971835
March 24, 1999
Page 1


_Require all Commission regulated water systems (and others) to send a written 
affirmation of assurance regarding Year 2000 plans and readiness to the 
Department of Health,

_Send these affirmations to the Commission for compilation and posting for 
public information, and,

_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 information for the public regarding the affirmation of 
assurances provided by the Commission regulated water systems for Year 2000 
plans and readiness.

Therefore, the staff recommends that the Commission direct the Executive 
Secretary to sign the Memorandum of Understanding.


Attachment