Wwp, Eds Extend Computing Contract

Washington Water Power Co. has extended an agreement with the company that has provided information services for the last five years.

Electronic Data Services of Plano, Texas, took over most of WWP’s computer functions five years ago. No other U.S. utility had ever before handed responsibility for systems dedicated to customer information, financial and accounting to an outside vendor.

WWP officials said then the contract would trim computing costs substantially.

Controller Ron Peterson said Tuesday the savings have not met expectations. But the new agreement, he said, enables WWP to monitor market rates for data-processing and adjust its payments to EDS every two years accordingly. Those rates have dropped over time, he said.

Peterson said the value of the contract will depend on the types of services WWP requires from EDS. For example, workers will be added in Spokane to solve programming problems expected from the so-called “millenium bug.”

Normally, about 40 EDS employees are in Spokane, he said.

Payments under the existing contract have averaged $7 million to $8 million annually, Peterson said.

, DataTimes