MINUTES
ELECTRIC UTILITY RESTRUCTURING LEGISLATIVE OVERSIGHT COMMITTEE
Tuesday, June 18, 2002
9:30 a. m.
Capitol Extension, Room E1.036
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Pursuant to a notice posted on June 11, 2002, and in accordance
with Senate Rule 11.18, a public hearing of the Electric Utility
Restructuring Legislative Oversight Committee was held on
Tuesday, June 18, 2002, in the Capitol Extension, Room E1.036,
at Austin, Texas.
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MEMBERS PRESENT: MEMBERS ABSENT:
Senator Troy Fraser, Co-Chairman Senator Frank Madla
Representative Steven Wolens, Co-Chairman Senator Jane Nelson
Senator Teel Bivins Representative Kim
Brimer
Representative David Counts
Representative Debra Danburg
Representative Sylvester Turner
Senator John Whitmire
*****
Co-Chairman Fraser called the meeting to order at 9:50 a.m.
There being a quorum present, the following business was
transacted. Representatives Chuck Hopson, Tommy Merritt, Joe
Nixon and Debbie Riddle also attended and participated in the
hearing.
Co-Chairman Wolens made opening remarks, speaking about the
progress of electric restructuring in Texas. He stated that SB
7 was a good bill and some of the bumps are being worked out.
Rather than hear testimony from the Executive Director of the
Electric Reliability Council of Texas (ERCOT), Mike Green, the
new ERCOT Chairman of the Board, would be testifying before the
Committee at this hearing.
Co-Chairman Fraser also made opening remarks, mentioning the
need to continue looking forward, solving problems as they
occur. The Committee needs to concentrate on the things that
are happening in Texas and to make sure that problems which have
occurred in other places don't occur in Texas.
Following a statement by Representative Sylvester Turner,
Co-Chairman Wolens called Jack Hawks, former ERCOT Chairman of
the Board, to testify. Mr. Hawks was not present and the
Co-Chairman then called Mike Greene, the new ERCOT Chairman of
the Board, to present his testimony. Mr. Greene testified about
his role at ERCOT, as well as the function of the Board of
Directors.
Upon completion of Mr. Greene's testimony and members'
questions, Co-Chairman Wolens called Monte Jones, consultant
with the Feld Group, to testify. The Co-Chairman explained that
ERCOT had hired the Feld Group to look at their computer setup
and switching, as well as governance at ERCOT.
Following Mr. Jones' testimony and response to members'
questions, at 11:57 a.m. the Co-Chairmen recessed the hearing
for a brief lunch break.
At 12:37 p.m. the Committee reconvened. Co-Chairman Wolens
called Becky Klein, Chairman of the Public Utility Commission
(PUC); Brett Perlman, Commissioner, PUC; and Parviz Adib,
Director of the Market Oversight Division, PUC.
Testimony began with Mr. Adib, who discussed the analysis
prepared by his division concerning gaming strategies. PUC
Chairman Becky Klein, Commissioner Brett Perlman, and Susan
Durso, Attorney, PUC, testified and responded to members'
questions.
The following witnesses also testified and responded to members'
questions:
Barry Huddleston, Senior Director, Market Structure,
Dynegy, Inc., Houston,
Steve Ponder, FPL Energy, LLC, Sacramento, California,
Neil Eddleman, Vice President, ExoLink Corporation,
Lewisville, Texas,
Keith Mueller, Accenture LLP, Reston, Virginia,
John Stout, Senior Vice President Wholesale Energy, Reliant
Resources, Houston,
Charles Griffey, Vice President Regulatory, Reliant
Resources, Houston, and
Tom Noel, ERCOT, Austin.
There being no further business, at 4:20 p.m. Co-Chairman Fraser
moved that the Committee stand recessed subject to the call of
the co-chairmen. Without objection, it was so ordered.
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_____________________________
_______
Senator Troy Fraser, Co-Chairman Representative
Steven Wolens,
Co-Chairman
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Barbara Henderson, Clerk