MINUTES SENATE SPECIAL COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING Monday, March 8, 1999 9:30 am Senate Chamber ***** Pursuant to a notice posted in accordance with Senate Rule 11.11, a public hearing of the Senate Special Committee on Electric Utility Restructuring was held on Monday, March 8, 1999 in the Senate Chamber at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator David Sibley, Chairman None Senator David Cain, Vice Chairman Senator Kenneth Armbrister Senator Gonzalo Barrientos Senator Teel Bivins 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 called U.S. Representative Joe Barton, Chairman of the subcommittee that will be considering the electric utility restructuring issue in Congress. Following his testimony, Representative Barton responded to members' questions. Senator Bivins requested time for questions on SB 7 as filed before the Committee proceeded with scheduled business. His questions were answered in part by Karina Casari, Committee Director. Senator Bivins sent up Committee Amendment 1. The Chairman called David Dewhurst, Commissioner of the General Land Office, to respond to questions on the amendment. Senator Bivins moved adoption. There was objection. The motion carried with a vote of 5 ayes, 1 nay, 0 present not voting, and 1 absent. At 10:35 am Senator Cain assumed the Chair. Senator Sibley sent up Committee Amendment 2 and moved adoption. The motion carried with a vote of 6 ayes, 0 nays, 0 present not voting, and 1 absent. At 10:37 am Senator Sibley resumed the Chair. Senator Armbrister sent up Committee Amendment 3 and moved adoption; without objection, the amendment was adopted. At 10:40 am Senator Cain assumed the Chair. Senator Sibley moved that Committee Amendment 4 be withdrawn. Without objection, it was so ordered. Senator Sibley sent up Committee Amendment 5 and moved adoption; without objection, the amendment was adopted. Senator Sibley sent up Committee Amendment 6 and moved adoption; without objection, the amendment was adopted. Senator Sibley sent up Committee Amendment 7 and moved adoption; without objection, the amendment was adopted. Senator Sibley moved that Committee Amendment 8 be withdrawn. Without objection, it was so ordered. Senator Sibley sent up Committee Amendment 8A and moved adoption; without objection, the amendment was adopted. Senator Sibley sent up Committee Amendment 9 and moved adoption; without objection, the amendment was adopted. Senator Sibley sent up Committee Amendment 10. The Chairman called Eric Craven, representing Texas Electric Cooperatives, as a resource witness on the amendment. Senator Sibley moved adoption; without objection, the amendment was adopted. Senator Barrientos requested to be shown as Present. At 11:07 am, Senator Sibley resumed the Chair. Senator Cain sent up Committee Amendment 11 and moved adoption; without objection, the amendment was adopted. Senator Cain sent up Committee Amendment 12. The Chairman called Rick Levy, representing the Texas AFL/CIO, as a resource witness on the amendment. Senator Cain then moved that the amendment be withdrawn. Without objection, it was so ordered. Senator Bivins sent up Committee Amendment 13 and moved adoption; without objection, the amendment was adopted. Senator Armbrister moved that Committee Amendment 14 be withdrawn. Without objection, it was so ordered. Senator Cain sent up Committee Amendment 15 and moved adoption; without objection, the amendment was adopted. Senator Bivins sent up Committee Amendment 16. The Chairman moved that the amendment be laid on the table subject to call of the Chair. Without objection, it was so ordered. Senator Bivins sent up Committee Amendment 17. The Chairman moved that the amendment be laid on the table subject to call of the Chair. Without objection, it was so ordered. Senator Nelson moved that Committee Amendment 18 be withdrawn; without objection, it was so ordered. Senator Armbrister sent up Committee Amendment 19 and moved adoption. Without objection, the amendment was adopted. Senator Cain sent up Committee Amendment 20. The Chairman called Pat Wood, Chairman of the Public Utility Commission, as a resource witness on the amendment. Senator Cain moved adoption; without objection, the amendment was adopted. At 11:45 am Senator Cain assumed the Chair. Senator Sibley sent up Committee Amendment 21. The Chairman called Pat Wood as a resource witness on the amendment. Senator Sibley moved adoption; without objection, the amendment was adopted. At 11:47 am Senator Sibley resumed the Chair. Senator Bivins sent up Committee Amendment 22. The Chairman moved that the amendment be laid on the table subject to call of the Chair; without objection, it was so ordered. Senator Armbrister sent up Committee Amendment 23. The Chairman moved that the amendment be laid on the table subject to call of the Chair; without objection, it was so ordered. Senator Bivins sent up Committee Amendment 24 and moved adoption. There was objection. The motion carried with a vote of 5 ayes, 1 nay, 0 present not voting, and 1 absent. At 11:55 am Senator Cain assumed the Chair. Senator Sibley sent up Committee Amendment 25 and moved adoption; without objection, the amendment was adopted. At 11:56 am Senator Sibley resumed the Chair. Senator Barrientos sent up Committee Amendment 26. The Chairman called Chairman Pat Wood, Public Utility Commission, as a resource witness on the amendment. Senator Barrientos moved adoption; without objection, the amendment was adopted. At 12:00 pm Senator Cain assumed the Chair. Senator Sibley sent up Committee Amendment 27 and moved adoption; without objection, the amendment was adopted. At 12:05 pm Senator Sibley resumed the Chair. Senator Barrientos sent up Committee Amendment 28. The Chairman called Pat Wood as a resource witness on the amendment. Senator Barrientos then moved adoption. The motion failed by a vote of 1 aye, 6 nays, 0 present not voting, and 0 absent. At 12:10 pm Senator Cain assumed the Chair. Senator Bivins sent up Committee Amendment 29. The Chairman moved that the amendment be laid on the table subject to call of the Chair; without objection, it was so ordered. Senator Sibley moved that Committee Amendment 30 be laid on the table subject to call of the Chair; without objection, it was so ordered. Senator Sibley moved that Committee Amendment 30A be laid on the table subject to call of the Chair; without objection, it was so ordered. Senator Sibley sent up Committee Amendment 31. The Chairman called Pat Wood to testify as a resource witness on the amendment. Senator Sibley moved adoption of the amendment. Without objection, the amendment was adopted. At 12:15 pm Senator Sibley resumed the Chair. Chairman Sibley recalled Committee Amendment 23 from the table. Senator Armbrister moved that the amendment be withdrawn; without objection, it was so ordered. Senator Nelson sent up Committee Amendment 32 and moved adoption; without objection, the amendment was adopted. Senator Armbrister moved that Committee Amendment 33 be withdrawn; without objection, it was so ordered. Senator Cain sent up Committee Amendment 34 and moved adoption; without objection, the amendment was adopted. Senator Barrientos sent up Committee Amendment 35 and moved adoption; there was objection. The motion failed by a vote of 1 aye, 5 nays, 0 present not voting, and 1 absent. Senator Cain moved that Committee Amendment 36 be withdrawn; without objection, it was so ordered. Senator Armbrister sent up Committee Amendment 37. The Chairman moved that the amendment be laid on the table subject to call of the Chair; without objection, it was so ordered. Senator Barrientos sent up Committee Amendment 38. The Chairman moved that the amendment be laid on the table subject to call of the Chair; without objection, it was so ordered. Senator Cain moved that Committee Amendment 39 be withdrawn; without objection, it was so ordered. Senator Cain sent up Committee Amendment 39A and moved adoption; without objection, the amendment was adopted. At 12:35 pm Senator Cain assumed the Chair. Senator Sibley moved that Committee Amendment 40 be laid on the table subject to call of the Chair. Without objection, it was so ordered. At 12:36 pm Senator Sibley resumed the Chair. Senator Fraser sent up Committee Amendment 41 and moved adoption; without objection, the amendment was adopted. Senator Cain moved that Committee Amendment 42 be withdrawn; without objection, it was so ordered. Senator Cain sent up Committee Amendment 42A. The Chairman called Jim Boyle, representing the City of Greenville, as a resource witness on the bill. Senator Cain then moved adoption of Amendment 42A. There was objection. The motion failed by a vote of 3 ayes, 3 nays, 0 present not voting, and 1 absent. Senator Cain moved that Committee Amendment 43 be withdrawn; without objection, it was so ordered. Senator Cain sent up Committee Amendment 43A and moved adoption; without objection, the amendment was adopted. At 12:48 pm Senator Cain assumed the Chair. Senator Sibley sent up Committee Amendment 44 and moved adoption; without objection, the amendment was adopted. At 12:49 pm Senator Sibley resumed the Chair. Senator Armbrister moved that Committee Amendment 45 be withdrawn; without objection, it was so ordered. At 12:50 pm Chairman Sibley moved that the Committee stand recessed until 30 minutes after adjournment of the Senate. Without objection, it was so ordered. At 2:35 pm the Committee reconvened . Senator Armbrister assumed the Chair and recalled Committee Amendment 40 by Senator Sibley. The Chairman called Senator Wentworth to explain the amendment. Senator Sibley moved adoption; without objection, the amendment was adopted. Senator Sibley sent up Committee Amendment 46 and moved adoption; without objection, the amendment was adopted. Senator Sibley sent up Committee Amendment 47 and moved adoption; without objection, the amendment was adopted. Senator Sibley sent up Committee Amendment 48 and moved adoption; without objection, the amendment was adopted. Senator Sibley sent up Committee Amendment 49 and moved adoption; without objection, the amendment was adopted. Senator Sibley sent up Committee Amendment 50 and moved adoption; without objection, the amendment was adopted. At 2:51 pm Senator Sibley resumed the Chair. Senator Nelson sent up Committee Amendment 51 and moved adoption; without objection, the amendment was adopted. Senator Fraser sent up Committee Amendment 52. The Chairman called Pat Wood, Chairman of the Public Utility Commission, as a resource witness on the amendment. Senator Fraser sent up an amendment to Amendment 52. Senator Armbrister moved that the amendment be incorporated into Committee Amendment 52; without objection, it was so ordered. Senator Fraser then moved that the amended Committee Amendment 52 be adopted; without objection, the amendment was adopted. At 3:10 pm Senator Armbrister assumed the Chair. Senator Sibley sent up Committee Amendment 53. The Chairman called Pat Wood, Public Utility Commission, and Carol Biedrzycki, Texas Ratepayers Organization to Save Energy, as resource witnesses on the amendment. Senator Sibley moved adoption of Committee Amendment 53; without objection, the amendment was adopted. At 3:15 pm Senator Sibley resumed the Chair. Senator Armbrister sent up Committee Amendment 54 and moved adoption; without objection, the amendment was adopted. Senator Nelson sent up Committee Amendment 18A and moved adoption; without objection, the amendment was adopted. Senator Bivins sent up Committee Amendments 16A, 17A, 22A and 29A. The Chairman called Julie Blunden, representing Green Mountain Energy Resources, to explain the amendments. Senator Bivins then moved adoption of Committee Amendments 16A, 17A, 22A and 29A. There was objection. The amendments failed to adopt by a vote of 1 aye, 6 nays, 0 present not voting, and 0 absent. At 3:45 pm Senator Cain assumed the Chair and recalled Committee Amendment 30 by Senator Sibley. Pat Wood, Public Utility Commission, and Dan Eden, TNRCC, testified as resource witnesses on the amendment. Senator Sibley moved adoption; without objection, the amendment was adopted. The Chairman recalled Committee Amendment 30A. Senator Sibley moved adoption; without objection, the amendment was adopted. At 3:55 pm Senator Sibley resumed the Chair. Senator Armbrister sent up Committee Amendment 37A and moved adoption; without objection, the amendment was adopted. Senator Cain requested unanimous consent to incorporate the amendments into a committee substitute; without objection, it was so ordered. Senator Armbrister then moved that the new committee substitute be adopted; without objection, it was so ordered. Senator Cain moved that SB 7 do not pass but that CSSB 7 be reported back to the Senate with the recommendation that it do pass and be printed. The motion carried with a vote of 7 ayes, 0 nays, 0 present not voting, and 0 absent. Chairman Sibley thanked the members of the Committee for their work on SB 7, as well as the members' work during the interim on the Senate Interim Committee on Electric Utility Restructuring. There being no further business, at 4:00 pm 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