MINUTES 
                                           
           ELECTRIC UTILITY RESTRUCTURING LEGISLATIVE OVERSIGHT COMMITTEE 
                             Tuesday, November 30, 1999 
                                     10:00 a.m. 
                           Capitol Extension, Room E1.036 
                                           
                                       ***** 
          
         Pursuant to a notice posted November 19, 1999, and in accordance  
         with Senate Rule 11.18, a public hearing of the Electric Utility  
         Restructuring Legislative Oversight Committee was held on  
         Tuesday, November 30, 1999, in the Capitol Extension, Room  
         E1.036, at Austin, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator David Sibley, Co-Chairman       Senator Frank Madla 
         Representative Steven Wolens, Co-Chairman 
         Senator David Cain 
         Senator Jane Nelson 
         Senator John Whitmire 
         Representative Kim Brimer 
         Representative David Counts 
         Representative Debra Danburg 
         Representative Sylvester Turner 
                                           
                                       ***** 
                                           
         Co-Chairman Wolens called the meeting to order at 10:05 a.m.   
         There being a quorum present, the following business was  
         transacted:   
          
         Co-Chairman Wolens welcomed the members of the Committee, as  
         well as members of the House State Affairs Committee who are not  
         members of the Legislative Oversight Committee.  Co-Chairman  
         Sibley called for opening remarks from any member, and invited  
         any member of the Senate Special Committee on Electric Utility  
         Restructuring, not a member of the Legislative Oversight  
         Committee, to attend the hearings. 
          
         Co-Chairman Sibley then called the first invited witness, Pat  
         Wood, Chairman of the Public Utility Commission (PUC), to  
         present his testimony on the status of the implementation of  
         Senate Bill 7. Following a thorough discussion of SB 7  
         implementation, as well as various timelines set forth in SB 7  
         and SB 86, Chairman Wood responded to members' questions. 
          
         Co-Chairman Sibley then called Jeff Saitas, Executive Director  
         of the Texas Natural Resource Conservation Commission (TNRCC).   
         Mr. Saitas advised that his testimony would address the  
         environmental provisions of SB 7 and that he would discuss  
         TNRCC's status in implementing those provisions.  Mr. Saitas  
         would then discuss the issues that TNRCC would need to be aware  
  
         of in proceeding with implementation. 
          
         Following Mr. Saitas' testimony and response to Committee  
         members' questions, Co-Chairman Wolens called Sam Jones,  
         Director of the Electric Reliability Council of Texas (ERCOT)  
         Independent System Operator (ISO), to present an update of ISO  
         activities and ERCOT's actions to comply with SB 7.  PUC  
         Chairman Wood joined Mr. Jones to respond to members' questions. 
          
         Upon completion of Mr. Jones' testimony and response to members'  
         questions, Co-Chairman Sibley called a panel of witnesses for a  
         discussion on capacity and transmission constraints.  The  
         panelists testifying were: 
          
              Steve Schaeffer, representing the Associated Electric  
         Companies of Texas 
              Jim Tramuto, representing PG&E Corporation 
              Frank McCamant, representing the Lower Colorado River  
         Authority. 
          
         PUC Chairman Pat Wood was also called to join the panel in  
         responding to Committee members' questions. 
          
         The final invited witness, called by Co-Chairman Wolens, was  
         Bill Burchette, representing Brickfield, Burchette & Ritts, and  
         general counsel for East Texas Cooperatives.  Mr. Burchette  
         presented testimony concerning renewable energy mandate  
         rulemaking activity and responded to members' questions. 
          
         At the conclusion of invited testimony, Co-Chairman Wolens  
         called Representative Danburg.  Representative Danburg advised  
         that she had heard some concerns from parties wishing to be  
         heard on the issues that were important to them, and she asked  
         that a future meeting be planned to hear these concerns.   
         Co-Chairman Wolens requested that those wishing to testify at a  
         future meeting contact the Committee Clerk, who would record the  
         appropriate information.  Parties also wishing to be advised of  
         future hearings were to give this information to the Clerk as  
         well. 
          
         There being no further business, at 1:30 p.m. Co-Chairman Sibley  
         moved that the Committee stand recessed subject to the call of  
         the chair.  Without objection, it was so ordered.   
          
         _______________________________               
                                                      ____________________ 
                                                      _______________ 
         Senator David Sibley, Co-Chairman            Representative  
         Steven Wolens, Co-Chairman 
          
         _______________________________ 
  
         Barbara Henderson, Clerk