NEWS

THE NEW YORK POST

WHEN THE MILLENNIUM BUG BITES

By NILES LATHEM


Scenario of a computer-dominated world going bonkers

Beware the Millennium Bug.

Experts warn it could wreak havoc on Jan. 1, 2000 - triggering a worldwide paralysis that would dwarf the chaos depicted in the old science-fiction movie "The Day the Earth Stood Still."

Instead of an extraterrestrial invader shutting down transportation, banking, business and government worldwide, the culprit is two measly digits at the end of a computer code.

Those two numbers, experts say, could bring the Information Age, and modern society, to its knees.

It's the Year 2000 problem, the Millennium Bug - or Y2K (Y for year and 2K for 2000) in cyberspeak.

Our computers - which keep track of our money, operate countless devices in our homes, target our weapons, purify our water, administer our government, keep our aircraft from colliding, diagnose health problems and manufacture products - are on a collision course with the millennium.

The problem is this:

Back in the dark ages of the computer era - the 1950s - programmers saved precious space by dropping the first two numbers of all years. That meant that the year 1998 became 98.

Fine - until you get to the year 2000, or "00."

Many computers - and even the microcomputers embedded in everyday devices - either read "00" as 1900, or are programmed to reject it altogether as an invalid date.

And dates appear in billions of lines of computer codes.

Business and government have been trying for years to correct the problem, with estimates on how many programs will be fixed in time ranging from 30 to 70 percent.

So, what will happen when the dreaded "00" begins?

The Post asked a panel of experts.

Among those interviewed were Sen. Bob Bennett (R-Utah) and Rep. Stephen Horn (R-Calif.) who chair special congressional panels on the Year 2000 problem; Councilman Andrew Eristoff (R-Manhattan) who is monitoring the city's readiness; and Canadian cyberscholar and lecturer Peter deJager.

Also, Lou Marcoccio, research director of the Gartner Group, which is consulting with Fortune 500 companies on the issue; and Michael Higgins, president of Century Services, which is installing software for companies to make their computer systems Year 2000 compliant.

They all agree the Year 2000 problem is emerging as the most expensive in human history and that government and business have been slow to respond to the looming crisis.

What follows is a fictional account of the Millennium based on their predictions.

FRIDAY, Dec. 31, 1999

11:59:00 p.m. - Times Square. Hundreds of thousands of revelers cheer wildly as the ball starts dropping, ushering in the new millennium.

SATURDAY, Jan. 1, 2000

12:00:30 a.m. - Under the East River. A tiny embedded computer chip, one of millions in the Con Ed system, reacts to new signals set off by the dreaded numbers 00. Despite the millions spent by Con Ed to update its codes, the Year 2000 Bug has struck. The tiny piece of silicon sends out conflicting messages and malfunctions - setting off a chain reaction that shuts down the power grid for most of Midtown Manhattan.

12:00:33 a.m. - Times Square. The crowd oohs and ahhs as the neon lights welcoming in the millennium flicker, fizzle and crackle. Everything goes dark.

12:00:44 a.m. - Aboard BudgetAir Flight 2000. The pilot high-fives his co-pilot as the millennium arrives and passes and the computerized navigation systems in the cockpit continue to work. The redesigned Boeing 737, now on its approach to Kennedy Airport following a trouble-free flight from Cleveland, is one of the few planes in the air - most airlines rescheduled or canceled their regular overnight flights to avoid any possible 00-related disasters.

12:00:50 a.m. - Radar Approach Center, Ronkonkoma, L.I. An air traffic controller sits at his radar screen, bored and feeling sorry for himself for having to work a double shift on this historic day. BudgetAir Flight 2000 suddenly disappears from his screen.

12:01:00 a.m. EST - Nuclear Power Plant 3, Smolensk, Russia. Computer chips controlling security, radiation monitoring and accumulated burn-up calculations malfunction at one of the reactor sites nine hours after the internal computer clocks strike the dreaded 00. Alarms go off. Workers, who haven't been paid in four months, scramble to locate - and solve - the problem.

12:02 a.m. - National Security Agency, Fort Meade, Md. A U.S. Air Force captain sits at a console reviewing data coming in from the ultra-secret COBRA platform - a space-based system monitoring all electronic communications in Iraq. Systems in the agency's code-breaking CRAY computer suddenly reboot - one to 1969, another to 1900. Decades of code-breaking data is erased. Communications between Iraqi National Guard commanders in Basra and Baghdad become gibberish.

12:03 a.m. - The Rainbow Room, Manhattan. A cocky 26-year-old stockbroker hosts a party of 20 at one of the most exclusive millennium celebrations in town. He's jubilant. Although the Dow's been down for months and the economy is teetering towards recession, he earned huge bonuses in 1999 by identifying the companies behind in defeating the Year 2000 Bug and advising clients to sell short.

When required mid-year Security and Exchange Commission reports came out detailing which companies were behind, he made a windfall.

After a full-course meal and lots of champagne, the broker whips out his credit card to pay the bill. Moments later he's told his American Express card has "expired."

12:04 a.m. - Times Square. The party's over. Confusion has replaced revelry. A drunken 18-year-old picks up a garbage can and hurls it through the window of an electronics supply store. Several fights break out simultaneously. Women begin to scream. Cops move in to keep the peace.

12:05 a.m. - Greenwich, Conn. Bizarre things are happening on tree-lined streets and in stately homes. Computerized sprinkler systems are going off in the frigid January night, turning lawns and streets into sheets of ice.

Date functions in thermostats shut down the heat in homes. Microwave ovens with embedded chips in them stop working. People watching movies have trouble working their home VCRs. It's almost impossible to get on the Internet.

12:07 a.m. - Aboard Flight 2000. Increasingly concerned about his inability to communicate with air traffic control, the pilot asks a flight attendant to find a passenger with a cell phone.

12:08 a.m. - Rainbow Room. The embarrassed broker leaves his guests to find an ATM so he can get money to pay his tab. He waits for an elevator, but none comes - embedded computer chips in the GE Building's elevator system have sent a signal that it's time to shut down for maintenance. The elevators are all inactive, sitting in the basement. The exec walks down 65 floors.

12:09 a.m. - Flight 2000. Communication between the pilot and New York TRACOM is restored - with the air traffic controller using a cell phone to talk the pilot into his Kennedy Airport approach. It's a clear night and the 737 touches down without incident.

12:11 a.m. - Rockefeller Center. The broker finds an ATM, but it rejects his card, flashing the message, "Sorry you have entered an improper security code." Desperate to find an ATM that works, he gets into his car and turns the key. It doesn't work. The computer system in his Mercedes has malfunctioned.

12:12 a.m. - Times Square. The power is back on, but the surge triggers outages in Harlem and TriBeCa. Other outages hit sections of Staten Island and The Bronx.

Police and EMS crews can't get to the problem areas - they're stuck in massive tie-ups. Traffic lights everywhere are blinking - their computerized timing controls have gone haywire.

12:13 a.m. - Brooklyn. A Park Slope housewife hangs up after a short New Year's call to her mother on Long Island. In a month, she'll get a bill for $1,345,599. The computerized statement will indicate her phone call lasted 100 years and 13 minutes.

12:14 a.m. - Rockefeller Center. The harried stockbroker stops at a pay phone to call his friends still waiting for him at the Rainbow Room. He dials 411 for directory assistance and gets a recording stating that it is not in service. Bell Atlantic, over the past two years, had spent most of its resources redesigning its software to ensure that everyone would get a dial tone in the new millennium. Other services will have to wait.

SUNDAY, Jan. 2, 2000

8:00 a.m. - White House Situation Room. Red-eyed President Clinton and President-elect Gore co-chair an emergency Cabinet meeting.

Reports of Y2K problems have been coming in from all parts of the world. There are regional blackouts throughout the country. Hawaii is totally without power. The water filtration system in Washington, D.C., isn't working. Communication with a British nuclear submarine in the North Atlantic has been lost. Brazil's phone system is out.

The president's economic advisers are making dire predictions about what lies ahead when businesses reopen after the holiday weekend. A decision is made to keep the stock markets closed until Wednesday - one more day than previously planned.

8:01 a.m. - Columbia Presbyterian Medical Center, Manhattan. The internal clock in the admitting office's computer system has changed the year from 1999 to 1900 - which means all patient records are lost and the hospital cannot access or record medical histories and insurance information.

Harried administrators have spent the night turning away patients or having them wait. The chief resident spots emergency patients lying on gurneys in a hallway and demands that they be treated - processing be damned.

Angry clerks are now preparing admissions forms by hand. Billing is a nightmare that will just have to wait.

The MRI, CT Scan and IV machines appear to be working. But in the average hospital, there are 29 mission-critical systems and more than 15,000 medical devices that depend on computers. And that doesn't include the 5,000 personal computers and computers that control the hospital infrastructure.

It will be months before all the problems are identified.

8:02 a.m. - Kennedy Airport. Chaos reigns. Although the air traffic control system is back to normal and most aircraft appear to be safe and operational, the complex and time-sensitive reservations systems of most major airlines have shut down.

Long lines are forming. People showing up with confirmed reservations are being turned away. Port Authority cops have detained two who became violent when they were told their $1,200 tickets to California were invalid - after a three-hour wait.

The big board announcing arrival and departure times isn't functioning.

Three morning flights are canceled when their crews don't show - the computers that schedule them are down.

Two planes almost collide when they're sent to the same gate.

8:03 a.m. - City Hall, Manhattan. A weary Mayor Giuliani meets with 43 department heads.

The city's 687 mission-critical computer systems - updated with Year 2000 codes - appear to be functioning. Most essential services have continued uninterrupted.

The subways, with their antiquated signal system, seem to be running on time and without incident. Con Ed expects power to be restored to most areas of the city within a week.

But there are problems.

The fire commissioner reports elevators in 35 percent of the city's buildings aren't operating. And the comptroller reveals that computers are automatically canceling all city contracts.

Officials warn that there will be huge overtime bills for cops, firemen and emergency workers who have been working round-the-clock handling Year 2000-related problems.

As the meeting disbands, a grim-faced political aide tells the mayor there's "one more problem" - Board of Elections computers have erased the lists of signatures, essentially wiping out the city's record of registered voters. "This could mean we can't hold an election next year," he says.

The mayor, whose term expires in a year, is silent for a moment and then shouts, "Get me Garth."

12:00 p.m. - White House TV Studio. Although the inauguration is weeks away, it's Gore not Clinton who addresses the nation from the TV studio in the Old Executive Office Building.

The president-elect is upbeat and reassuring. He points out that most U.S. government mission-critical systems are operating, no nuclear missiles have gone off accidentally and the Armed Forces of all NATO countries are functioning.

"There will be no interruption in services provided by Social Security, IRS, Medicare, Medicaid, Welfare, the Nuclear Regulatory Commission, FBI, FEMA and here at the White House."

He adds that the Federal Reserve and the Treasury Department have "contingency plans" to address expected "disruptions in the business community in the coming weeks."

Acknowledging "significant inconveniences for many of you in the days and weeks ahead," he urges Americans to pull together and return to the "pioneering spirit of our forefathers."

Throughout the speech, Gore appears to be curiously furtive, frequently looking down at his desk. It's later learned that the word processor controlling his TelePrompTer malfunctioned and he had to read from his notes.

2:00 p.m. - Attica State Prison, Attica, N.Y. A near-riot has just been quelled in Cell Block D of this maximum security prison. The computer system that controls rows of cells opened the doors an hour early and it took three hours for guards to restore order.

Upstairs, an associate warden is trying to put out another fire. On his desk are 1,575 release orders for hardened criminals - all of whom are supposed to serve lengthy sentences. The reason for the mixup: an 00-related glitch in the clock in the prison computer that made them eligible for release.

MONDAY, Jan. 3, 2000

9:00 a.m. - First Tokyo Bank, Tokyo. An accounts manager begins the first business day of the new millennium with a routine transaction - an American customer wants 135 billion yen converted into U.S. dollars and transferred to his account in New York.

A few clicks of his computer mouse and he's finished. What the accounts manager doesn't know is that one of the three dozen computer programs that must interface in carrying out the transaction is not Year 2000 compatible. It records the transfer as having been made in 1900. The other programs do not accept that data - $100 million disappears into cyberspace.

10:00 a.m. - Lippo Bank, Singapore. Riot police arrive at the bank, where a crush of frenzied customers is waiting outside to make withdrawals. Rumors circulated all weekend that data on all bank deposits, loans and transactions would be erased by the millennium bug. Though not true, the customers refuse to believe bank officials, who are trying to decide whether to open their doors.

10:30 a.m. - Royal Malaysia Bank, Kuala Lumpur. The loan department is in disarray. The computers that calculate interest have gone crazy. Last year, they subtracted 98 from 99 to figure a year's interest on business loans, but now they're subtracting 99 from 00.

The result: On some loans, nothing is being charged; on others 99 years of interest is being charged.

The bank's managers confer and decide to keep a lid on the problem while they try to fix it. If they can't correct the error, the bank will lose its major source of income and could fail in a matter of weeks.

6:00 a.m. EST - General Motors Plant A, Detroit. Managers send workers home. The production line isn't functioning.

Despite $500 million spent to make all GM factories and labs Year 2000 compliant, half the robotic devices at the plant won't turn on and there are problems with the computerized metal cutters.

There's word that another plant didn't open because no one could get inside - the dreaded 00 sent security systems haywire.

GM officials confide they anticipate computer-related problems with shipment of parts and materials in the weeks ahead - and that 1999 models may have to remain on the showroom floor for the foreseeable future. UAW leaders are bracing for a new round of layoffs.

9:00 a.m. - Bloomingdale's, Manhattan. Credit department staffers breathe a collective sigh of relief. For years there had been rumors that anything purchased with a credit card during the final three days of 1999 would not be recorded. The prospect of freebies had triggered a wild weekend-long buying binge at the store.

The rumors proved unfounded - the store's computers recorded every purchase.

Staffers in other departments of the store are fuming. An expected shipment of expensive leather handbags - advertised in Sunday newspapers - hasn't arrived and the phones in Sao Paolo aren't working.

Also overdue is a shipment of dresses from India. According to the latest computerized delivery notice, they won't be delivered for another century.

9:30 a.m. - A & P, Great Neck, L.I. The manager is being bombarded with complaints - there's no 2% milk, no tomatoes, fresh bread or chicken legs. The ground chuck looks old and brown and the oranges look old and moldy.

"What's this, downtown Moscow?" snaps one housewife.

The frazzled manager posts a notice about delivery delays caused by the millennium bug.

10:00 a.m. - Federal Aviation Administration headquarters, Washington, D.C. Faced with lengthy flight delays at most airports in the United States because of computer malfunctions, the FAA announces all major air carriers have agreed to a voluntary 25 percent cutback in services until the computer glitches are corrected.

10:10 a.m. - White House. President-elect Gore, flanked by Fed Chairman Alan Greenspan, announces that trading on most exchanges will be suspended for the rest of the week.

He explains that while American banks have had "relatively minor problems" with the Year 2000 bug, financial institutions in Europe, Asia and Latin America are experiencing "disruptions" that " could have a "ripple effect" here.

Greenspan announces new steps to expand the money supply to help U.S. banks cope with global problems. That means a quarter-percent hike in the prime rate.

10:30 a.m. - Wall Street. The nation's leading economists hold an emergency meeting to discuss global millennium problems and their impact on the U.S. economy.

Edward Yardeni of Deutsche, Morgan, Greenfell predicts that we face a recession that will rank "somewhere close" to the 1974-1975 downturn, which was the second-worst economic slump since World War II when unemployment reached 8.5 percent.

11 a.m. - MGM-Grand, Las Vegas. Grim casino managers meet to discuss the news that the major airlines are cutting flights by 25 percent. They're dismayed because 76 percent of the people in town at any given time have flown in. Business is going to be down, way down.

12 p.m. - Saatchi & Saatchi offices, Manhattan. Notices are sent to all ad agency staffers to advise them that many of them won't be paid for a while.

The notice explains that weekly paychecks sent to employees' direct deposit accounts aren't being recorded because the computer company hired to make the company's software Year 2000 compliant didn't get the job done in time.

It's expected to take at least two weeks to find and fix the problem and credit employee accounts.

1:00 p.m. - Poplar Street, Hackensack, N.J. Surprise, surprise. The mail arrives on time.

A 90-year-old great-grandmother gets a notice from the local school district that it's time to enroll in kindergarten.

Down the street a new mother gets a Social Security check for her month-old child.

3:00 p.m. - Jones & Jones, Manhattan. Partners of this Wall Street law firm hold a planning session to discuss pending Year 2000 litigation involving their clients. Members of Congress have estimated the problems caused by the 2000 bug will result in a trillion dollars worth of litigation - and they want a share.

5:00 p.m. - Saatchi & Saatchi. Some frustrated employees get slammed again. Those who drove cars to work are stunned when they put their receipts into the automated machines at their parking garage and find they're being charged for parking for 100 years and a day.


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