MINUTES
SENATE COMMITTEE ON BUSINESS & COMMERCE
Friday, August 13, 2004
10:00 a.m.
Senate Chamber
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Pursuant to a notice posted in accordance with Senate Rule
11.18, a joint public hearing of the Senate Committee on
Business & Commerce and the Senate Infrastructure Development
and Security Committee was held on Friday, August 13, 2004, in
the Senate Chamber at Austin, Texas.
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MEMBERS PRESENT: MEMBERS ABSENT:
Senator Troy Fraser, Chairman Senator Kim Brimer
Senator Kip Averitt, Vice Chairman Senator Craig Estes
Senator Kenneth Armbrister Senator Eddie Lucio, Jr.
Senator John Carona
Senator Mike Jackson
Senator Leticia Van de Putte
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A joint hearing of the Senate Business and Commerce Committee
and Senate Infrastructure Development and Security Committee was
held. Chairman Fraser and Chairman Staples shared presiding
duties.
Chairman Fraser called the Senate Business and Commerce
Committee to order at 10:20 a.m. Chairman Staples called the
Senate Infrastructure Development and Security Committee to
order at 10:20 a.m. The following business was transacted:
Chairman Staples laid out joint committee interim charge #1
relating to the security and stability of the Texas electric
system and whether a system failure in Texas could occur in a
manner similar to the blackout that occurred in the northeastern
United States.
Lieutenant Governor David Dewhurst addressed the Committee
regarding the joint interim charge. He asked the Committee and
all lawmakers to look over current security plans, find
shortfalls in the system, and make legislative recommendations for change.
Upon completion of Lieutenant Governor David Dewhurst's remarks,
at 10:40 a.m. Senator Averitt moved that both committees stand
at ease until 11:00 a.m.
At 11:14 a.m. Chairman Fraser called both committees back to
order. Chairman Staples then called the first invited witness,
Paul Hudson, Chairman, Public Utility Commission (PUC).
Chairman Hudson testified on electric system reliability;
Electric Reliability Council of Texas (ERCOT) reliability
advantages and challenges; PUC's role; and lessons from the
Northeast blackout.
During Chairman Hudson's testimony, Chairman Staples also called
Robert Manning, Vice Chairman, ERCOT and Sam Jones, Chief
Operating Officer and Executive Vice President, ERCOT, to
respond to members' questions. Mr. Manning advised that all
board members understand that the most critical functions at
ERCOT are grid security and reliability. Mr. Jones testified
concerning the back-up plan in place at ERCOT in the event of a
system failure.
Upon completion of the above witnesses' testimony, Chairman
Fraser then called John Fainter, President, Association of
Electric Companies of Texas, to testify and respond to members'
inquiries.
Following Mr. Fainter's testimony, Chairman Fraser opened public
testimony and asked if anyone present wished to testify; none
being heard, public testimony was closed.
There being no further business, at 1:14 p.m. Senator Averitt
moved that the Senate Business and Commerce Committee stand
recessed subject to the call of the Chairman. Without
objection, it was so ordered.
There being no further business, at 1:14 p.m. Senator Wentworth
moved that the Senate Infrastructure Development and Security
Committee stand recessed subject to the call of the Chairman.
Without objection, it was so ordered.
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Senator Troy Fraser, Chairman
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Tatum Baker, Clerk