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