MINUTES 
          
           SENATE INTERIM COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING 
                           Wednesday, February 4, 1998 
                                     9:00 am 
                                 Senate Chamber 
          
                                      ***** 
          
         Pursuant to a notice posted in accordance with Senate Rule  
         11.11, a public hearing of the Senate Interim Committee on  
         Electric Utility Restructuring was held on Wednesday, February  
         4, 1998 in the Senate Chamber at Austin, Texas.   
          
                                      ***** 
          
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator David Sibley, Chairman          None 
         Senator Kenneth Armbrister 
         Senator Gonzalo Barrientos 
         Senator Teel Bivins 
         Senator David Cain 
         Senator Troy Fraser 
         Senator Jane Nelson 
          
                                      ***** 
          
         Chairman Sibley called the meeting to order at 9:15 am.  There  
         being a quorum present, the following business was transacted.   
          
         The Chairman advised that the Committee would focus first on  
         customer protection and called the invited panel to address  
         this issue.  The panelists were: 
          
              Barbara Alexander, Consumer Affairs Consultant 
              Suzi McClellan, Office of Public Utility Counsel 
              David Mintz, Texas Coalition for Competitive Electricity 
              Bob Reilley, Enron Corporation 
              Tom Baker, Association of Electric Companies of Texas 
              Janee Briesemeister, Consumers Union 
          
         Upon completion of the panelists' presentations and response  
         to members' questions, Chairman Sibley called the second panel  
         to address environmental and renewable energy issues.  These  
         panelists were: 
          
              Jeffrey A. Saitas, Office of Air Quality, Texas Natural  
         Resource Conservation Commission 
              John Hoffner, Texas Renewable Energy Industries  
         Association 
              Tom "Smitty" Smith, Public Citizen's Texas Office 
              Ed Feith, Association of Electric Companies of Texas 
              Karl Rabago, Environmental Defense Fund 
  
              Randy Eminger, Center for Energy and Economic Development 
              Jane Pulaski, State Energy Conservation Office 
          
         At 12:40 p.m. Senator Armbrister assumed the Chair, and at  
         1:00 p.m., Senator Sibley resumed the Chair. 
          
         Following the second panelists' testimony and response to  
         members' questions, Chairman Sibley advised that public  
         testimony would commence.  Due to the number of public  
         witnesses registering to speak, the Chairman moved that each  
         person limit testimony to three minutes; without objection, it  
         was so ordered.  Chairman Sibley then called the first  
         witness.  All witnesses, including panelists, are listed in  
         order of their testimony. 
          
              Barbara Harwood, representing herself, Carrollton, Texas 
              Ron Purpora, representing American Lung Association of  
         Texas, Austin, Texas 
              Susan Pitman, representing American Lung Association of  
         Texas, Austin, Texas 
              Roland Duty, representing himself, Waco, Texas 
              Mary Duty, representing Children's Advocacy Center, Waco,  
         Texas 
          
         The next witness, Johnette Hicks, representing Equal  
         Opportunity Action Committee, Waco, Texas, submitted a  
         petition Supporting Universal Electricity Service.  The  
         petition was circulated by Texas Association of Community  
         Action Agencies and requested that all Texas households have  
         affordable electricity; and that all utilities should offer a  
         special low-income rate for customers living in poverty, a  
         low-income weatherization program, and other programs to help  
         low-income customers prevent termination of electricity  
         service.  Public testimony then resumed. 
          
              Boyce Vardiman, representing himself, West, Texas 
              Bruce Allen, representing himself, Waco, Texas 
              W. F. Barrett, representing himself, Valley Mills, Texas 
              Randall Chapman, representing himself, Austin, Texas 
          
         At 3:25 p.m. Senator Barrientos assumed the Chair, and at 3:45  
         p.m. Senator Sibley resumed the Chair while public testimony  
         continued. 
          
              James Fitzpatrick, representing American Association of  
         Retired Persons, Austin, Texas 
              Alan Rose, representing JC Penney Company & Texas  
         Retailers Association, Dallas, Texas 
              Jerome Vacek, representing consumers, Corsicana, Texas 
              Carol Biedrzycki, representing Texas Ratepayers  
         Organization to Save Energy, Austin, Texas 
              Karen Swenson, representing low income households,  
         Nacogdoches, Texas 
              Peter Altman, representing the SEED Coalition, Austin,  
         Texas 
  
              Dwayne Anderson, representing Clean Water Action, Austin,  
         Texas 
              Robert King, representing National Association of Energy  
         Service Companies, Austin, Texas 
              Chris Strand, representing himself, Austin, Texas 
              Ju Vega, representing Sheltering Arms Senior Services,  
         Houston, Texas 
              Marjorie Wood, representing herself, Abilene, Texas 
              Bob Manning, representing HEB Grocery Company, San  
         Antonio, Texas 
              Brooks Hickerson, representing himself, Austin, Texas 
               
         Chairman Sibley commended the next witness, Kirtley Wienbroer,  
         representing Students for Earth Awareness at UT, Austin,  
         Texas, for keeping his testimony under three minutes.  Public  
         testimony then resumed as follows: 
          
              Bill Medaille, representing himself, Austin, Texas 
              Tommy Benavides, representing himself, Austin, Texas 
              Kim Phillips, representing herself and the Texas PTA,  
         Austin, Texas 
              Karin Ascot, representing herself, Austin, Texas 
              Mike Sloan, representing himself, Austin, Texas 
              Todd Cypert, representing himself, Meadow, Texas 
              Michael Aaron, representing himself, Austin, Texas 
              Dr. Bob Farmer, representing himself, Gatesville, Texas 
              Nancy Lockhoof, representing herself, Austin, Texas 
              C. C. Bowman, representing himself, Marshall, Texas 
              Tim Curtis, representing himself, Dale, Texas 
          
         The following persons registered to testify but were unable to  
         remain at the hearing until they were called: 
          
              Herb Williams, representing Texas Natural Resource  
         Conservation Commission, Austin,      Texas 
              Bill Tilney, representing himself, Austin, Texas 
              Leonard McLaughlin, representing himself and Lost Creek  
         MUD, Austin, Texas 
              Frank Arredondo, representing Texas Association of  
         Community Action Agencies, San  
                 Marcos, Texas 
              Karen Heikkala, representing herself, Austin, Texas 
              J. D. Porter, representing himself, Austin, Texas 
              Enrique Valdivia, representing himself, San Antonio,  
         Texas 
              Tara Tune, representing Public Citizens members, Austin,  
         Texas 
              Tom Romberg, representing Texas Air Conditioning  
         Contractors Association, Austin, Texas 
              Kevern Joyce, representing TNP Enterprises and Texas New  
         Mexico Power Company, Fort 
                 Worth, Texas 
          
         The following persons registered but did not wish to testify: 
          
              Adan Martinez, representing Texas General Land Office,  
         Austin, Texas 
              Richard Walker, representing Central & South West Corp. &  
         AECT, Tulsa, Oklahoma 
              Robert L. Wright, representing Texas Energy Coordination  
         Council & Union Carbide,  
                 Victoria, Texas 
              Jim Walker, representing himself as a member of the  
         Sustainable Building Coalition, 
                 Austin, Texas 
              Dr. Yvonne M. Hansen, representing herself, Austin, Texas 
          
         There being no further business, at 5:50 pm Chairman Sibley  
         moved that the Committee stand recessed subject to the call of  
         the Chair.  Without objection, it was so ordered.   
          
         __________________________ 
         Senator David Sibley, Chairman 
          
         __________________________ 
         Barbara Henderson, Clerk