MINUTES 
                                           
           ELECTRIC UTILITY RESTRUCTURING LEGISLATIVE OVERSIGHT COMMITTEE 
                              Friday, November 2, 2001 
                                     9:00 a.m. 
                           Capitol Extension, Room E1.036 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted October 10, 2001, and in accordance  
         with Senate Rule 11.18, a public hearing of the Electric Utility  
         Restructuring Legislative Oversight Committee was held on  
         Friday, November 2, 2001, in the Capitol Extension, Room E1.036,  
         at Austin, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator David Sibley, Co-Chairman       None 
         Representative Steven Wolens, Co-Chairman 
         Senator Teel Bivins 
         Senator Frank Madla 
         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 9:11 a.m.   
         There being a quorum present, the following business was  
         transacted.  Senator Troy Fraser, Senator Leticia Van de Putte,  
         and Representative Tommy Merritt were also present and  
         participated in the meeting. 
          
         Co-Chairman Wolens advised that as indicated on the posting, the  
         hearing would be recessed for the members to go into a closed  
         session to hear invited testimony on the security of the grid,  
         security of water that serves generation, and security of the  
         nuclear power plant. A list of the aforementioned witnesses had  
         been provided in the posting.  At 9:15 a.m. Co-Chairman Wolens  
         moved that the Committee stand recessed for about one hour. 
          
         The Committee reconvened at 10:52 a.m.  Co-Chairman Wolens  
         advised that while the Committee was in closed hearing, they  
         heard testimony from witnesses listed in the posting, although  
         some did not testify.  The witnesses had been requested to  
         prepare documents that could be distributed publicly; two had  
         been prepared and would be made available. 
         Co-Chairman Sibley presented his statement concerning  
  
         deregulation, mentioning the promises the Legislature had made  
         to the citizens of Texas when the electric restructuring bill  
         was passed in 1999.  He enumerated the consequences of not going  
         forward with deregulation as scheduled, and stated his  
         conviction that competition is going to happen on January 1,  
         2002. 
          
         Following Co-Chairman Sibley's statement, Co-Chairman Wolens  
         called invited witnesses to present testimony on progress of the  
         transition to a retail market.  Witnesses testifying were: 
          
              Thomas Noel, President and CEO, Electric Reliability  
         Council of Texas (ERCOT) 
              William Bojorquez, Director, Settlements & Customer  
         Service, ERCOT 
              Sam Jones, ERCOT 
              Shirley Whyte, Independent Third Party Testing  
         Administrator (ITPTA) 
              Cherie Broadrick, Manager Customer Registration, ERCOT 
          
         At 12:45 p.m. the Committee recessed for a short break.  The  
         Committee reconvened at 1:00 p.m. and Ms. Broadrick's testimony  
         continued. 
          
         Suzanne Bertin, Director of Government Affairs, The New Power  
         Company, and Dan Jones, Director of Market Policy at City Public  
         Service in San Antonio, were also called to respond to questions  
         by members. 
          
         Upon completion of ERCOT's testimony, the following witnesses  
         presented their testimony, and responded to members' questions: 
          
              Max Yzaguirre, Chairman, Public Utility Commission of Texas 
              Brett Perlman, Commissioner, Public Utility Commission of  
         Texas 
              Rebecca Klein, Commissioner, Public Utility Commission of  
         Texas 
              Thomas Baker, President, TXU Electric & Gas 
              Susan Durso, General Counsel, Public Utility Commission of  
         Texas 
              Brian Lloyd, Director Costing & Pricing, Public Utility  
         Commission of Texas 
          
         Upon completion of testimony and response to members' questions,  
         there was discussion about the need for another hearing.   
         Co-Chairman Sibley stated that although he was still confident  
         that competition would go forward on January 1, 2002, he agreed  
         that another hearing should be held in December. 
          
         There being no further business, at 3:41 p.m. Co-Chairman Wolens  
         moved that the Committee stand recessed subject to the call of  
         the chairmen.  Without objection, it was so ordered.   
          
         _________________________________             
         ____________________________________ 
         Senator David Sibley, Co-Chairman            Representative  
         Steven Wolens, Co-Chairman 
          
         _________________________________ 
         Barbara Henderson, Clerk