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