REPORT OF THE PREPARATION TO HANDLE THE YEAR 2000 PROBLEM

Form 57 (Y2K) Report of the preparation to handle the Year 2000 Problem The Electricity Generating Public Company Limited (EGCO) , a holding company, holds 99.99% stake in both the Rayong Electricity Generating Company Limited and the Khanom Electricity Generating Company Limited which generate and supply electricity to The Electricity Generating Authority of Thailand (EGAT) as well as holds shares in other subsidiaries and affiliated companies which do electricity related business and other business. The head office is located at 444 Olympia-Thai Tower 18th-19th Floor, Rachada pisek Road, Samsen-nok, Huaykwang, Bangkok 10320 Tel. 513-2330 Fax. 513-7335-6. EGCO would like to issue the preparation to handle the Year 2000 problem report No. 1 as of June 30th,1998 The preparation to handle the Year 2000 problem The EGCOs Board of Directors at its meeting dated May 18th,1998 passed a resolution to set up the Year 2000 Steering Committee consisting of the Managing Directors of EGCO and its subsidiaries. The committee is responsible for the definition of policy and methodology to solve the Year 2000 problem. The following are the committee members: 1.Mr. Worawit Khamkanist Managing Director-Electricity Generating Plc.(EGCO) 2.Mr. Prasart Payackapan Managing Director-Rayong Electricity Generating Co.,Ltd. (REGCO) 3.Mr. Anan Yee-em Managing Director-Khanom Electricity Generating Co.,Ltd. (KEGCO) 4.Dr. Siwanan Na Nakorn Managing Director-EGCO Joint Ventures and Development Co.,Ltd. (EGCOJD) 5.Mr. Surasak Suwintawong Managing Director-EGCO Engineering and Service Co.,Ltd. (ESCO) 6.Dr. Kamut Sirivadhna Managing Director-EGCO Mining Co.,Ltd. (EM) The Year 2000 Steering Committee passed a resolution to set up the Year 2000 working group consisting of representatives from EGCO and its subsidiaries. The following are the group members: 1.Mr. Kiatichai Siljitsong Representative from EGCO - Leader 2.Mr. Pasagorn Sasanawin Representative from REGCO 3.Mr. Mana Vitvaskul Representative from KEGCO 4.Mr. Chaiyan Laojumpon Representative from ESCO 5.Mr. Waiwit Naraballobh Representative from EM 6.Mrs. Jutatip Mahavera Representative from EGCO 7.Mr. Wutirat Chungsangsatiporn Representative from EGCO 8.Miss Prapapan Vanapongrungrueng Representative from EGCO - Coordinator The Year 2000 Steering Committee and working group are responsible for the preparation to handle the Year 2000 problem as follows: 1. The Year 2000 Problem Analysis The processes of analysis are defined as follows: 1)Investigate and complete an inventory of all computers, applications and embedded systems. 2)Perform systems assessment, prioritize the severity and importance of the problems. 3)Access existing capability and manpower for problem solving. 4)Classify type of problems which are affected. 2. The Impact of the Year 2000 Problem to Business 2.1)The possible impact to computer systems and internal operating systems in EGCO and subsidiaries (REGCO, KEGCO): +--------------------+--------------------------------------+---------+--------------+--------+ | System | Impact | Level of| Capability to|Priority| | | | Impact | Renovate | | +--------------------+--------------------------------------+---------+--------------+--------+ |Computer Systems | | | | | |-Computer Hardware | Impact on some applications to report| Medium | EGCO In-house| Medium | | | incorrect date or wrong calculation. | | | | |-Operating Systems | Impact on system management. | Low | EGCO In-house| High | |-Database Management| Impact on data management. | Low | EGCO In-house| High | |System | | | | | +--------------------+--------------------------------------+---------+--------------+--------+ |Office Automation | No significant impact. It may cause | Low | Require | Low | |System | confusion on the date. | | information | | | | | | from Inchcape| | | | | | NRG Thailand | | | | | | Co.,Ltd. | | +--------------------+--------------------------------------+---------+--------------+--------+ The systems which will not be affected by the Year 2000 problem are as follows: +--------------------+-------------------------------------+-----------------------------------------+ | System | Reason | Resposible Vendor | +--------------------+-------------------------------------+-----------------------------------------+ |-Data communication |No impact, accrording to documentary |Digital Equipment Corporation (Thailand) | |Network LAN,WAN |evident from vendor, such a system is|Co.,Ltd. | | |Y2K compliance | | +--------------------+-------------------------------------+-----------------------------------------+ |Business Application| | | |System | | | |Groupware System |No impact, accrording to documentary |Lotus Development International | |-Lotus Notes |evident from vendor, such a system is|Corporation Co.,Ltd. | | |Y2K compliance | | +--------------------+-------------------------------------+-----------------------------------------+ |Accounting System, |No impact, accrording to documentary |SAP Thailand. | |Plant Maintenance |evident from vendor, such a system is| | |System, Inventory |Y2K compliance. | | |Management System | | | |- SAP(Financial, | | | |Logistics, Plant | | | |Maintenance) | | | +--------------------+-------------------------------------+-----------------------------------------+ 2.2) The possible impact to core business of subsidiaries (REGCO, KEGCO) +-----------------+--------------------------------+--------+-------------------+----------+ | System | Impact |Level of| Capability to | Priority | | | |Impact | Renovate | | +-----------------+--------------------------------+--------+-------------------+----------+ |Power Generation |REGCO, KEGCO If the plant | High |REGCO outsource | High | |System |cannot generate power as | |consultants : Elsag| | | |specified in Power Purchase | |Bailey Co.,Ltd., | | | |Agreement, revenue will be | |CGEE Alstom | | | |affected and it may be fined. | |Co.,Ltd. and | | | | | |CEGELEC Co.,Ltd. | | | | | |KEGCO outsource | | | | | |consultants : Elsag| | | | | |Bailey Co.,Ltd. | | +-----------------+--------------------------------+--------+-------------------+----------+ |Plant Maintenance|REGCO, KEGCO No | Low |Utilize REGCO and | Low | |Systems |significant impact. Instruments | |KEGCO in-house | | | |and maintenance tools are | |capability | | | |controlled manually. From the | |respectively. | | | |investigation, most of them will| | | | | |function after Year 2000. | | | | +-----------------+--------------------------------+--------+-------------------+----------+ 2.3) The possible impact from external factors to subsidiaries (REGCO, KEGCO) +--------------------+---------------------------------------+--------+----------------+---------+ | System | Impact |Level of| Capability to | Priority| | | |Impact | Renovate | | +--------------------+---------------------------------------+--------+----------------+---------+ |Fuel Supply System |REGCO,KEGCO will be affected in | High |Up to capability| High | |(Natural Gas) |not being able to generate electricity.| | of The | | | | | |Petroleum | | | | | |Authority of | | | | | |Thailand (PTT) | | +--------------------+---------------------------------------+--------+----------------+---------+ |Transmission System |REGCO, KEGCO will be affected in | High |Up to capability| High | | |not being able to transmit the | |of EGAT | | | |generated electricity. | | | | +--------------------+---------------------------------------+--------+----------------+---------+ |External Information|There may be impact on data | Low |Up to capability| Medium | |System |exchange. | |of External | | | | | |Information | | | | | |Source : APEX, | | | | | |LEXIS-NEXIS | | +--------------------+---------------------------------------+--------+----------------+---------+ 3.Renovation Plan +------------------------+-----------------------------------+-------------------+-----------+-------------+ | System | Methodology | Responsible Unit |Number of | Expense | | | | |Responsible| (BAHT) | | | | |Persons | | +------------------------+-----------------------------------+-------------------+-----------+-------------+ |Computer Systems | | | | | |-Computer Hardware |- Replace old machines (486 |Renovated and | 4 |EGCO | | |model) by new models, and |Tested by EGCO | | 3,500,000 | | |upgrade/replace firmware of the | | |REGCO | | |middle age machines. | | | 3,000,000 | | |-Perform test | | |KEGCO | | | | | | 500,000 | +------------------------+-----------------------------------+-------------------+-----------+-------------+ |-Operating Systems |-Upgrade/Patching Correction |Renovated and | 4 | 2,000,000 | | |-Perform test |Tested by EGCO | | | +------------------------+-----------------------------------+-------------------+-----------+-------------+ |-Database Management |-Upgrade/Patching Correction |Renovated and | 2 | - | |System |-Perform test |Tested by EGCO | | | +------------------------+-----------------------------------+-------------------+-----------+-------------+ |-Data communication | -Perform test |Tested by EGCO | 3 | - | |Network LAN,WAN** | | | | | +------------------------+-----------------------------------+-------------------+-----------+-------------+ |Business Application | | | | | |System | | | | | |Groupware System | | | | | |Lotus Notes** | -Perform unit and system test |Tested by EGCO | 2 | - | +------------------------+-----------------------------------+-------------------+-----------+-------------+ |Accounting System, Plant| | | | | |Maintenance System, | | | | | |Inventory Management | | | | | |System | | | | | |-SAP**(Financial, | -Perform unit and system test |Tested by EGCO | 3 | - | |Logistics, Plant | | | | | |Maintenance) | | | | | +------------------------+-----------------------------------+-------------------+-----------+-------------+ |Office Automation | -Upgrade/Patching Correction |Renovated and | 2 | 10,000 | |System | -Perform Test |tested by vendor : | | | | | |Inchcape NRG | | | | | |(Thailand) | | | | | |Co.,Ltd. | | | | | |Re-tested by | | | | | |EGCO | | | +------------------------+-----------------------------------+-------------------+-----------+-------------+ |Power Generation System | REGCO |Renovated and | 10 | 45,700,000 | | | -Change some control equipments |tested by vendor : | | | | | to solve the Year 2000 problem |Elsag Bailey | | | | | and to replace the obsoleted ones.|Co.,Ltd., CGEE | | | | | -Replace/Upgrade some firmware |Alstom Co.,Ltd. | | | | | and software to solve the Year |and CEGELEC | | | | | 2000 problem and to replace |Co.,Ltd. | | | | | the obsoleted ones. | | | | | | -Perform unit and system test | | | | | +-----------------------------------+-------------------+-----------+-------------+ | | KEGCO |Renovated and | 4 | 9,000,000 | | | -Change some control equipments |tested by vendor : | | | | | -Replace/Upgrade some firmware |Elsag Bailey | | | | | and software |Co.,Ltd. | | | | | -Perform unit and system test | | | | +------------------------+-----------------------------------+-------------------+-----------+-------------+ |Plant Maintenance | REGCO |Renovated and | 4 | - | |Systems | -Upgrade/Replace some part of |Tested by REGCO | | | | | equipments | | | | | | -Perform unit and system test | | | | | +-----------------------------------+-------------------+-----------+-------------+ | | KEGCO |Renovated and | 1 | - | | | -Upgrade/Replace some part of |Tested by KEGCO | | | | | equipments | | | | | | -Perform unit and system test | | | | +------------------------+-----------------------------------+-------------------+-----------+-------------+ |Fuel Suppy System | REGCO , KEGCO- wait for test |Tested by PTT | - | - | |(Natural Gas) | result | | | | +------------------------+-----------------------------------+-------------------+-----------+-------------+ |Transmission System | REGCO , KEGCO- wait for test |Tested by EGAT | - | - | | | result | | | | +------------------------+-----------------------------------+-------------------+-----------+-------------+ |External Information | - Perform test |Renovated and | 1 | - | |System | |tested by vendor : | | | | | |Re-tested by | | | | | |EGCO | | | +------------------------+-----------------------------------+-------------------+-----------+-------------+ | Total expense | | | | 63,710,000*| +------------------------+-----------------------------------+-------------------+-----------+-------------+ * Budget expenses as of June 30th, 1998 ** Systems which are evaluated that there are no impact but they are required retesting. Steps to solve the Year 2000 problem 1) Awareness (1 month) : to be completed within June 1998. 2) Assessment (4 months) : to be completed within September 1998. 3) Renovation and Validation (5 months) : to be completed within December 1998. 4) Implementation (9 months) : to be completed within August 1999. (More)