MINUTES
ELECTRIC UTILITY RESTRUCTURING LEGISLATIVE OVERSIGHT COMMITTEE
Thursday, August 22, 2002
10:00 a.m.
Capitol Extension, Room E1.016
*****
Pursuant to a notice posted on August 9, 2002, and in accordance
with Senate Rule 11.18, a public hearing of the Electric Utility
Restructuring Legislative Oversight Committee was held on
Thursday, August 22, 2002, in the Capitol Extension, Room
E1.016, at Austin, Texas.
*****
MEMBERS PRESENT: MEMBERS ABSENT:
Senator Troy Fraser, Co-Chairman Senator Frank Madla
Representative Steven Wolens, Co-Chairman Senator Jane Nelson
Senator Teel Bivins Representative Sylvester
Turner
Representative Kim Brimer
Representative David Counts
Representative Debra Danburg
Senator John Whitmire
*****
Co-Chairman Fraser called the meeting to order at 10:20 a.m.
There being a quorum present, the following business was
transacted. Representatives Debbie Riddle and Delwin Jones also
attended and participated in the hearing.
Co-Chairman Fraser welcomed everyone to the hearing and stated
that the intent for the meeting was to hear invited testimony on
the non-ERCOT areas of Texas.
Co-Chairman Wolens advised that when the committee met on
September 7, 2001, they looked at the non-ERCOT areas of the
state. At that time Entergy said they would be ready to get
into deregulation beginning January 1, 2002; and AEP said they
would be ready to implement full customer choice by January 1,
2002. However, customer participation in these two areas
remains a zero - no participation; no competition; and
everything has been put on hold for good reason. Co-Chairman
Wolens stated that almost a year later, the committee would
perform a check-up for the corners of Texas that are outside the
ERCOT area to determine the readiness for competition. Then the
committee would hear testimony from ERCOT; there had been a
number of positive changes in ERCOT's governance. Finally, the
committee would hear from the PUC about market oversight, as
well as hear an update from ERCOT on switching.
The Co-Chairman then called Becky Klein, Chairman, Public
Utility Commission (PUC), and Jess Totten, Director, Electric
Division, PUC, to discuss the Federal Energy Regulatory
Commission standard market design, and to offer some input on
the non-ERCOT areas of Texas.
Co-Chairmen Fraser and Wolens welcomed Speaker Laney to the
hearing.
The following witnesses discussed the Midwest Independent
Systems Operator (MISO) and how it compares to ERCOT, as well as
the Southwest Power Pool (SPP) - MISO merger and how that might
affect Texas.
Jim Torgerson, MISO, Carmel, IN, and
Richard Dillon, SPP, Little Rock, AR.
Other panel members, as listed below, discussed the status of
competition in non-ERCOT areas of Texas:
Terry Bassham, El Paso Electric Company, El Paso, TX,
Frank Gallaher, Entergy Gulf States, New Orleans, LA,
Stewart Solomon, American Electric Power, Columbus, OH,
Gary Gibson, Southwestern Public Service Co., Amarillo, TX,
Robert Bryant, Golden Spread Electric Cooperative,
Amarillo, TX,
David Hudson, SPS/Xcel, Amarillo, TX,
Brett Perlman, Commissioner, PUC, and
Audrey Zibelman, Translink Corporation, Minneapolis, MN.
Co-Chairman Wolens called the second panel to discuss
developments, retail mechanics, and governance at ERCOT. The
panelists were:
Michael Greene, ERCOT,
Monte Jones, Consultant, ERCOT, and
Tom Noel, CEO, ERCOT.
Sam Jones, Chief Operating Officer for ERCOT, and Brian Lloyd,
Director Retail Market Oversight at the PUC, also responded to
ELECTRIC UTILITY RESTRUCTURING LEGISLATIVE OVERSIGHT COMMITTEE
Minutes
Thursday, August 22, 2002
page 3
members' questions.
Upon completion of the ERCOT testimony, the Co-Chairman called
the following witnesses to discuss market oversight at the PUC:
Becky Klein, Chairman, PUC,
Parviz Adib, Director of Market Oversight, PUC, and
Brett Perlman, Commissioner, PUC.
During testimony on PUC market oversight, Janee Briesemeister,
representing Consumers Union, responded to a question.
There being no further business, at 4:22 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.
_________________________________
_____________________________
_______
Senator Troy Fraser, Co-Chairman
Representative Steven
Wolens, Co-Chairman
________________________________
Barbara Henderson, Clerk