Fears of Y2K electrical loss lead to increased power generator sales

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Fears of Y2K electrical loss lead to increased power generator sales

By Dewanna Lofton

The Commercial Appeal

Concern about the possibility of homes and businesses being plunged into darkness when Jan. 1, 2000, rolls in has boosted sales of power generators.

Despite assurances from area utility companies such as Memphis Light, Gas & Water Division, businesses and individuals are spending big bucks to make sure they have an alternative source of power just in case the Y2K bug has not been eradicated.

Some people believe systems that contain software or computer chips might read dates containing the year 2000 as 1900 and malfunction.

One Mid-South company has seen a 100 percent increase in sales of generators to companies, while others are reporting 10 percent to 15 percent increases directly attributed to Y2K concerns.

"Ninety-nine percent of our sales since the first of October have been Y2K related,'' said Keith Coleman, president of Mid-America Engines in Olive Branch, Miss. "Typically, we ship five to 10 sets a week, but for the last 45 days we've been doing eight to 10 a day.''

Mid-America Engines sells large industrial units to corporate customers such as office towers, hospitals and nursing homes.

"People in the critical care industry, telecommunications and other businesses that rely on data processing or computing are really concerned about a power failure,'' Coleman said.

Sales increases have not been dramatic at Generator Power Systems near downtown Memphis, but there has been greater demand, said Steve Ebbers, sales manager.

"There are a lot of people who have thought about buying generators for a variety of reasons,'' Ebbers said. "Y2K gives them a deadline. It's been more of a contributing factor than any other single reason to go out and buy one.

"There hasn't been a run on generators, but we've probably sold a lot more because of Y2K,'' Ebbers said. "Only a 10 percent to 15 percent increase is probably related directly to Y2K.

A fired-up economy and the normal demand brought on by cold weather are bigger factors in increased generator sales at Thompson Power Corp., said Johnny O'Daniel, general sales manger.

"Most of our sales have been to businesses such as health care facilities and Federal Express,'' O'Daniel said. "They are buying them for all kinds of reasons, Y2K is just one of them.''

Thompson Power, a Caterpillar dealer, has seen about a 10 percent increase in sales. Caterpillar, a manufacturer of stationary and portable units, estimates that 20 percent of its sales worldwide are directly related to Y2K, O'Daniel said.

While generator purchases among businesses may be brisk, individual consumers are "just kinda kickin' the tires,'' said Jerry Ballard, area manager of Nixon Power Services in Bartlett. "We've gotten a lot of calls from people saying they want to keep the lights, heater and freezer on. You give them a price and they back off. Our primary customers are businesses, nursing homes, jails and some upper income people.''

The cost of a generator for residential use can range from $400 to $2,300 at Home Depot to several thousand dollars or a couple of million dollars for large industrial units.

"At this time of the year, we normally sell a lot of generators because of the weather,'' said Joe Moss, assistant manager of the Home Depot in Cordova. "The supply usually runs out before the demand. I don't think Y2K has been a factor because our sales are normal for this time of year.''

Y2K readiness has been a priority for MLG&W since 1995 and officials have said systems that deliver electric, gas and water services, as well as those that allow the company to conduct business with customers, are Y2K ready.

"We have a high level of confidence that we will be effectively delivering light, gas and water on Dec. 31'' and going into Jan. 1, said Mark Heuberger manager of corporate communications for MLG&W.

Fixing the Y2K bug, which could shut down older computers unable to recognize the difference between the year 2000 and 1900, has cost public utility companies $2.5 billion, according to the Edison Electric Institute, an industry trade group.

"Everything is fine. The lights will be on,'' said Eugene Gorzelnik, spokesman for the North American Electric Reliability Council, the group charged with ensuring the reliability of the grid serving customers across the United States and Canada.

-- Uncle Bob (UNCLB0B@AOL.COM), December 28, 1999

Answers

Just a word on generators. Living in So. Calif., where "The Big One" could happen at any time, generators and being prepared is a way of life.

During the last jolt a few months back 7.6, electric went out for several hours. First thing, light the kerosene lamps and wait. However, the neighbor down the road immediately started the generator. I heard the noise in the distance. When I went outside, there it was, his place was lit up like the Vegas Strip.

In the event there's a power outage, and there may be looters or whatever prowling around. Don't advertise yourself and the generator by being the only beacon for miles around. Use the generator during the daylight hours, yes, it will be heard, but it won't be seen. If there's no electricity for a number of days, and things get bad, remember that there are going to be those out and about looking for whatever they can take. You don't need to put up a Neon Sign, Here I am!

-- Richard (Astral-Acres@webtv.net), December 28, 1999.


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