MINUTES ELECTRIC UTILITY RESTRUCTURING LEGISLATIVE OVERSIGHT COMMITTEE Thursday, December 12, 2002 11:00 a.m. Capitol Extension, Room E1.036 ***** Pursuant to a notice posted on December 5, 2002, and in accordance with Senate Rule 11.18, a public hearing of the Electric Utility Restructuring Legislative Oversight Committee was held on Thursday, December 12, 2002, in the Capitol Extension, Room E1.036, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Troy Fraser, Co-Chairman Representative Steven Wolens, Co- Senator Teel Bivins Chairman Representative Kim Brimer Representative David Counts Representative Debra Danburg Senator Frank Madla Senator Jane Nelson Representative Sylvester Turner Senator John Whitmire ***** Co-Chairman Fraser called the meeting to order at 11:15 a.m. The following business was transacted: Co-Chairman Fraser thanked everyone for attending the meeting which would be the last hearing of the year. Throughout the interim, the Committee meetings were focused on market structure and market mechanics with the purpose of ensuring a successful transition to electric deregulation. At this hearing, the Committee would hear testimony on competitive market experiences from various groups. Following the invited testimony, public testimony would be heard. The Co-Chairman then called the first panel to present their testimony. The panelists were: Richie Jackson, Executive Vice President/CEO, Texas Restaurant Association, Chris Szaniszlo, Chief Financial Officer, Texas Association of School Boards, Scott Norwood, Electric Utility Consultant, Texas Association of School Boards, Scott Hart, President, Texas Commercial Energy, and Jon Hockenyos, Managing Director, Texas Perspectives, Inc. Following testimony by Panel One, Co-Chairman Fraser called Panel Two. The panelists were as follows: Tim Morstad, Policy Analyst, Consumers Union Southwest Regional Office, Suzi McClellan, Public Utility Counsel, Carol Biedrzycki, Texas Ratepayers Organization to Save Energy, and Randy Chapman, Texas Legal Services Center. Rebecca Klein, Chairman of the Public Utility Commission, was called to answer questions which arose during Suzi McClellan's testimony concerning price increases based on rising fuel costs which are not decreased when fuel prices drop. Upon completion of invited testimony, the Co-Chairman advised that public testimony would commence. The following witnesses testified as a panel on the System Benefit Fund and weatherization: Carol Biedrzycki, Texas Ratepayers Organization to Save Energy, Karen Swenson, Community Action Agencies, Nacogdoches, Texas, and Stella Rodriguez, Texas Association of Community Action Agencies. Co-Chairman Fraser then called the witnesses listed below who testified regarding the development of new technology: Robert King, Consultant, Good Company Associates, Paul Wattles, Good Company Associates, Ward Camp, Vice President, Distribution Control Systems, Inc., Hazelwood, MO, Jeffrey Trucksess, Consultant, Ridge Energy Storage, and Chris Herbert, Executive Director, Fuel Cells Texas. The remaining public testimony was presented by: Vanus Priestley, Constellation New Energy/Alliance for Retail Markets, Matthew Berke, Lower Power Bill, Energy Consultants, Dallas, Geoffrey Gay, Cities Aggregation Power Project and South Texas Aggregation, and Brett Perlman, Commissioner, Public Utility Commission. There being no further business, at 3:02 p.m. Co-Chair Fraser ELECTRIC UTILITY RESTRUCTURING LEGISLATIVE OVERSIGHT COMMITTEE Minutes Thursday, December 12, 2002 page 3 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