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