MINUTES 
          
           SENATE INTERIM COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING 
                             Thursday, May 28, 1998 
                                     9:30 am 
                                 Victoria, Texas 
          
                                      ***** 
          
         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 Thursday, May 28,  
         1998 at the Johnson Symposium Center, Victoria College, in  
         Victoria, 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 
          
                                      ***** 
          
         The Chairman called the meeting to order at 9:40 am.  There  
         being a quorum present, the following business was transacted.   
          
         Chairman Sibley advised that the Committee would focus on  
         stranded costs at this meeting, and thanked Senator Armbrister  
         for hosting the Committee in Victoria.  Senator Armbrister  
         welcomed the members to Victoria and expressed his  
         appreciation to Dr. Jimmy Goodson, President of Victoria  
         College, and Dr. Marylynn Fletcher, Auditoriums Manager, for  
         making it possible for the Committee  to meet at Victoria  
         College. 
          
         Chairman Sibley called the first invited witness, Eric Hirst  
         of Oak Ridge National Laboratory in Oak Ridge, Tennessee, to  
         speak to the members concerning stranded costs.  Following Mr.  
         Hirst's testimony and response to members' questions, the  
         Chairman called the next invited witness, Pat Wood, Chairman  
         of the Public Utility Commission of Texas, to discuss the 1998  
         update report on Potentially Strandable Investment (ECOM). 
          
         At 12:00 Noon, upon completion of  Chairman Wood's testimony  
         and response to Committee members' questions, Chairman Sibley  
         recessed the hearing for thirty minutes. 
          
         At 12:45 p.m. the Committee reconvened, and the Chairman  
  
         called the next invited witnesses, Steve Schaeffer and Marc  
         Moseley, representing the Association of Electric Utilities of  
         Texas, to testify and respond to members' questions. 
          
         Chairman Sibley advised that some of the Committee members  
         would be leaving the hearing early and any witness unable to  
         remain at the hearing today would have an opportunity to  
         testify at a future Committee meeting.  However, Senator  
         Armbrister would remain at this meeting to hear any witness  
         wishing to be heard. 
          
         Invited testimony continued with Mark Zion, representing Texas  
         Public Power Association. 
               
         Robert Bryant, replacing scheduled  invited  witness, Mike  
         Williams, representing the Association of Texas Electric  
         Cooperatives, advised that he would defer his testimony until  
         a future hearing. 
          
         The next invited witnesses were: 
          
              Suzi Ray McClellan, Office of Public Utility Counsel 
              Bob Reilley, Enron Corporation 
              Stephanie Kroger, Texas Coalition for Competitive  
         Electricity 
              Janee Breisemeister, Consumers Union 
               
         At 3:15 p.m. Senator Armbrister assumed the Chair and invited  
         testimony continued: 
          
              Mark White, Alliance for Consumer Choice of Energy Supply  
         Sources 
              Chris Albrecht, Texas Retailers Association 
          
         Invited witnesses, Joseph Kearney, representing PG&E  
         Corporation, and Tom "Smitty" Smith, representing Public  
         Citizen's Texas office, were unable to remain at the hearing  
         until called.  Mr. Kearney submitted written testimony. 
          
         Following the invited witnesses' testimony and response to  
         members' questions, the Chairman called for public testimony.   
         James A. Wingo, rancher, representing himself, Sweet Home,  
         Texas, testified. 
          
         The following public witnesses were unable to remain at the  
         hearing until called: 
          
              Bob Bolen, representing T. U. Shareholders Alliance, Fort  
         Worth, Texas 
              Chip Dence, representing Victoria Association of  
         Builders, Victoria, Texas 
          
         Leroy Wieting, Wieting Consulting, representing himself,  
         Portland, Texas, registered but did not wish to testify. 
          
         There being no further business, at 4:00 pm Senator Armbrister  
         moved that the Committee stand recessed subject to the call of  
         the Chairman.  Without objection, it was so ordered.   
          
         _________________________ 
         Senator David Sibley, Chairman 
          
         _________________________ 
         Barbara Henderson, Clerk