MINUTES SENATE INTERIM COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING Tuesday, September 29, 1998 9:30 am College Station, 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 Tuesday, September 29, 1998 in the Presidential Conference Center, Bush Presidential Library, College Station, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator David Sibley, Chairman Senator Gonzalo Barrientos Senator Kenneth Armbrister Senator David Cain Senator Teel Bivins Senator Troy Fraser Senator Jane Nelson ***** The Chairman called the meeting to order at 9:35 am. There being a quorum present, the following business was transacted. Chairman Sibley thanked Senator Steve Ogden for hosting the Committee hearing in College Station. Senator Ogden welcomed the Committee and thanked the Chairman and members for holding the hearing in College Station. The Chairman advised that no further hearings are planned to take testimony, although a Committee meeting may be held later for discussion purposes only. Chairman Sibley then advised that the Committee would hear some hold-over testimony on Stranded Costs from the May 28 hearing. Several invited witnesses were unable to testify at the May 28 hearing. These witnesses were: Mark White, Alliance for Consumer Choice of Energy Supply (ACCESS) Bob Bolen, Texas Utilities Shareholders Alliance The following witnesses also testified on Stranded Costs: Mike Williams, Texas Electric Cooperatives Robert W. Bryant, Golden Spread Electric Cooperative Tom "Smitty" Smith, representing Texas Public Citizen members Upon completion of Stranded Costs testimony and the witnesses' response to Committee members' questions, the Chairman called Panel 1 on Governmental Units. The panelists were: Tobin Harvey, General Services Commission Tom Merka, Texas Department of Criminal Justice Charles Sippial, Texas A&M University Ed White, Texas Youth Commission Ray Werth, School Business Administrator, Brenham School Districts The following persons registered as resource witnesses on Governmental Units but did not wish to testify: Charles W. Richards, Texas Youth Commission, Austin, Texas Art Hinojosa, Texas Youth Commission, Austin, Texas Following the panelists' testimony and response to members' questions, at 11:55 a.m. the Chairman recessed the hearing until 12:45 p.m. At 12:55 p.m. the Committee reconvened, and Chairman Sibley called Panel 2 to testify on System Reliability. These panelists were: Sam Jones, Electric Reliability Council of Texas Judy Walsh, Commissioner, Texas Public Utilities Commission Dan Wilkerson, Bryan Utilities Tom Baker, Texas Utilities Upon completion of the panelists' testimony and response to Committee members' questions, the Chairman called Panel 3 on Property Tax Issues. The members of Panel 3 were: Dennis Deegear, Capitol Appraisal Group, Inc. B. Tab Weaver, Deloitte & Touche Property Tax Services Marc Moseley, Texas Utilities Following testimony from Panel 3 and response to Committee members' questions, the Chairman advised that public testimony would commence and called the first witness. All witnesses, including invited witnesses, are listed in the order of appearance. Phillip Johnson, Assistant Professor, Texas Tech University, Lubbock, Texas Kathleen Magruder, representing Enron Corp., Houston, Texas Stephanie Kroger, representing Texas Coalition for Competitive Electricity, Midland, Texas Tom "Smitty" Smith, representing Texas Public Citizen members, Austin, Texas The following witnesses registered to testify but were unable to remain at the hearing until called: Erbin Keith, representing National Association of Energy Service Companies, Houston, Texas A. D. Patton, Professor/Consultant, representing himself, College Station, Texas Monte Akers, representing Texas Municipal League, Austin, Texas Rick Levy, representing Texas AFL-CIO, Austin, Texas Robert L. Wright, representing Texas Industrial Energy Consumers, Victoria, Texas, and Steve Schaeffer, representing Houston Lighting & Power, Houston, Texas, registered as resource witnesses but did not wish to testify. There being no further business, at 4:40 p.m. Chairman Sibley 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