Making sure banks are ready for 2000 is important to the entire economy, as is Y2K readiness by utilities, especially electric companies. Nonetheless, the spending for Y2K will affect AEP financially, spokesman Pat Hemlepp noted. Even though the cost of Y2K is high for Ohio companies, it pales in comparison with some top Fortune 500 companies. Among the nation's biggest 25 companies, there are seven in addition to Citicorp that believe their Y2K costs will exceed half a billion dollars. The immediate effect of Y2K on the overall economy is debatable, experts say.
Some views are relatively optimistic.
Federal Reserve Governor Edward W. Kelley Jr. estimated, for instance, that the situation will shave only 0.1 percentage point from the nation's gross domestic product. Others are more concerned. Some economists worry that the computer industry may suffer next year because so many companies purchased hardware, software and services this year. Some predict the world economy could be thrown into a recession if there are widespread Y2K problems. A survey of top U.S. corporations by Weiss Ratings Inc., of Palm Beach Gardens, Fla., found that dozens of public companies had not provided complete Y2K data, and about a quarter still are lagging in their repairs.