MINUTES 
                                           
           ELECTRIC UTILITY RESTRUCTURING LEGISLATIVE OVERSIGHT COMMITTEE 
                             Friday, September 7, 2001 
                                     9:00 a.m. 
                           Capitol Extension, Room E1.036 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted August 30, 2001, and in accordance  
         with Senate Rule 11.18, a public hearing of the Electric Utility  
         Restructuring Legislative Oversight Committee was held on  
         Friday, September 7, 2001, in the Capitol Extension, Room  
         E1.036, at Austin, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator David Sibley, Co-Chairman       Senator Teel Bivins 
         Representative Steven Wolens, Co-Chairman    Senator Frank Madla 
         Senator Jane Nelson                     Representative Debra  
                                                 Danburg 
         Senator John Whitmire 
         Representative Kim Brimer 
         Representative David Counts 
         Representative Sylvester Turner 
                                           
                                       ***** 
                                           
         Co-Chairman Sibley called the meeting to order at 9:10 a.m.   
         There being a quorum present, the following business was  
         transacted.  Senator Troy Fraser, Senator David Cain and  
         Representative Tommy Merritt were also present and participated  
         in the meeting. 
          
         Co-Chairman Wolens welcomed the members and others attending the  
         meeting.  He stated that the Committee needs to check on the  
         status of the implementation of electric utility restructuring  
         prior to the beginning of deregulation in January 2002.  
          
         Co-Chairman Wolens then called the following invited witnesses  
         to present an update to the Committee on the  progress of the  
         Electric Reliability Council of Texas (ERCOT): 
          
              Tom Noel, President and CEO, ERCOT, Austin, Texas, 
              Sam Jones, Chief Operating Officer, ERCOT, Austin, Texas,  
         and 
              William Bojorquez, Director, Settlements and Customer  
         Service, ERCOT, Austin, Texas. 
  
         Keith Mueller, representing Accenture, Reston, Virginia, also  
         testified regarding the role of Accenture at ERCOT. 
          
         Brett Perlman, Commissioner, Public Utility Commission, and  
         Connie Corona, Director of Policy Development at the Public  
         Utility Commission, were called to respond to members' questions  
         on issues relating to ERCOT. 
          
         Vanus Priestley, Vice President of AES New Energy, Inc., Austin,  
         Texas, testified on issues regarding the Independent Third Party  
         Test Administrator. 
          
         At 1:00 p.m. Co-Chairman Wolens moved that the Committee stand  
         recessed for a fifteen minute break. Without objection, it was  
         so ordered.   
          
         At 1:25 p.m. the Committee reconvened. 
          
         Max Yzaguirre, Chairman of the Public Utility Commission,  
         presented an update to the members on the status of electric  
         utility restructuring.  Also testifying and responding to  
         members' questions were: 
          
              Becky Klein, Commissioner, Public Utility Commission, 
              Paula Mueller, Deputy Executive Director, Public Utility  
         Commission, 
              Susan Durso, General Counsel, Public Utility Commission,  
         and 
              Mike Renfro, Director, Customer Protection, Public Utility  
         Commission. 
          
         The Co-Chairmen then called the following witnesses for a panel  
         discussion on East Texas (Non-ERCOT) Systems: 
          
              Frank Gallaher, President, Fossil Operations &  
         Transmission, Entergy, New Orleans, LA, 
              Stuart Solomon, American Electric Power, Columbus, Ohio,  
         and 
              Nick Brown, Senior Vice President, Southwest Power Pool,  
         Inc., Little Rock, Arkansas. 
          
         In closing, Co-Chairman Sibley stated that he was very  
         encouraged.  He commented that if ERCOT systems are up and  
         running as has been reported at this meeting, everyone signed up  
         from June to the present will have had the process started by  
         the end of September.  As suggested by Co-Chairman Wolens,  
         additional hearings will be well-advised. 
          
         There being no further business, at 3:40 p.m. Senator 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