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Disaster Prevention/Recovery

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What did it cost?

The Blackout of 2003

Costs, Comparisons, and Clues to Downtime Prevention

Thursday, August 14, 2003, 4PM EST - A cascading power failure occurs in eight U.S. states and one Canadian province. At last count, according to the Wall Street Journal, estimated costs due to the blackout total approximately $6 billion.

An estimated 50 million people in New York, Michigan, Ohio, New Jersey, Connecticut, Pennsylvania, Ontario province in Canada, and neighboring areas lost power for nearly 30 hours.

The costs to New York City, the most heavily populated city in the United States, totaled about $1.05 billion, or about $10,000 for each second of the outage, according to the NYC Comptroller’s office. Nearly $800 million of lost economic transactions and $250 million of ruined perishable goods make up the total.

Doomed to Repeat?

New York City itself is no stranger to power outages. Some have been recent:

July 6, 1999 – A blackout in the Washington Heights section of the city leaves 200,000 people above 155th St. without power for nearly 19 hours during a heat wave.

One particular 1965 blackout shares multiple similarities with this latest outage, leaving many to wonder what corrective, preventative actions have taken place over the past three decades.

November 9, 1965 – Over 80,000 square miles of the Northeast United States and Ontario, Canada lose power, affecting 30 million people.

Coast to Coast

Although the causes were vastly different, the recent Northeast outages have echoed those experienced in recent years on the West Coast in both scope and associated costs.

December 8, 1998 - A widespread power outage leaves nearly one million people in the San Francisco area without power, some for the entire workday.

January, 2001 - California Independent System Operator (ISO) orders rolling blackouts on seven days and declares 30 Stage 3 emergencies due to low power supplies. Many Silicon Valley manufacturers were affected.

According to a Silicon Valley Manufacturing Group (http://www.svmg.org) press release, “Two-thirds of Silicon Valley Manufacturing Group (SVMG) member company respondents were directly impacted by the rolling blackouts. The average blackout lasted 90 minutes in duration. More than 100,000 workers at SVMG companies were left idle. Immediate financial losses for Silicon Valley (were) estimated at the tens of millions of dollars, accounting for major effects like employee downtime, lost product and data, and the expense of retooling equipment."

According to a national survey conducted for Iomega Corporation (http://www.iomega.com) in 2001 by Bruskin Research, 57 percent of the Californian computer users surveyed fear loss of computer content due to a blackout or power failure. The survey indicates that 45 percent of computer users nationwide are concerned with losing data due to power problems.

The Price to Pay

Average downtime-related costs are different between various industries. An hour of downtime for one sector may range in hundreds of thousands of dollars, while at the high end of the scale can cost into the millions.

[source: Network Computing (http://www.networkcomputing.com), March 5, 2001]
and
[source: META Group, Inc.,"Quantifying Performance Loss: IT Performance Engineering and Measurement Strategies", November 22, 2000. Clients of META Group, Inc. can read the full Delta Summary here: http://www.metagroup.com/cgi-bin/inetcgi/jsp/displayArticle.do?oid=18750 
]

Get Legendary Reliability® For Your Electronics

Talk to us at R Solution Inc.  APC has the availability solutions you need to help ensure you stay up and running through any power-related problem, from surges and spikes to sags and blackouts.

article source: www.apcc.com

 

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