MINUTES 
                                   JOINT HEARING 
                                           
                      SENATE COMMITTEE ON BUSINESS & COMMERCE 
                           Wednesday, September 29, 2004 
                                     10:00 a.m. 
                           Capitol Extension, Room E1.036 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Business &  
         Commerce was held jointly with the House Committee on Regulated  
         Industries and the Electric Utility Restructuring Legislative  
         Oversight Committee on Wednesday, September 29, 2004, in the  
         Capitol Extension, Room E1.036, at Austin, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Troy Fraser, Chairman           Senator Kenneth  
                                                 Armbrister 
         Senator Kip Averitt, Vice Chairman      Senator John Carona 
         Senator Kim Brimer                      Senator Craig Estes 
         Senator Eddie Lucio, Jr.                Senator Mike Jackson 
         Senator Leticia Van de Putte 
                                           
                                       ***** 
                                           
         A joint hearing of the Senate Committee on Business and  
         Commerce, House Committee on Regulated Industries, and the  
         Electric Utility Restructuring Legislative Oversight Committee  
         was held.  Chairman Fraser and Chairman King shared presiding  
         duties.  At 10:10 a.m. Chairman Fraser called the Senate  
         Committee on Business and Commerce and the Electric Utility  
         Restructuring Legislative Oversight Committee to order.   
         Chairman King called the House Committee on Regulated Industries  
         to order.  The following business was transacted:  
          
         Chairman Fraser welcomed Representative Burt Solomons, Chairman  
         of the Sunset Commission, and everyone to the hearing.  The  
         Chairman made opening remarks and advised that the Committee  
         would hear testimony regarding ongoing investigations concerning  
         the Electric Reliability Council of Texas (ERCOT). 
          
         Upon completion of Chairman Fraser's opening remarks, Chairman  
         Fraser called Mike Greene, Chairman of ERCOT, Tom Schrader, CEO  
         of ERCOT, and Paul Hudson, Chairman of the Public Utility  
         Commission of Texas (PUC), to testify before the Committees.   
         Mr. Greene testified about the investigations currently taking  
         place at ERCOT and advised that there are seven audits in  
         progress at the present time.  Mr. Schrader also testified and  
         responded to members' questions.  Chairman Hudson testified that  
  
         documentation will be provided showing a checklist of results of  
         the various audits.  Barry Smitherman, Commissioner, PUC and  
         Julie Parsely, Commissioner, PUC,  both joined the panel to  
         testify and respond to members' questions.   
          
         Chairman Fraser moved that the Committees stand at ease at 12:09  
         p.m. 
          
         At 12:30 p.m. the Committees reconvened. 
          
         Maxine Buckles, CFO, ERCOT, joined the panel to respond to  
         members' questions. 
          
         Following the above invited witnesses' testimony, Chairman  
         Fraser called Paul O'Malley, CEO of TXU Energy.  Mr. O'Malley  
         testified on the issue of bad debt and the use of credit  
         information to set electric utility rates. 
          
         Upon completion of Mr. O'Malley testimony, Chairman Fraser  
         opened up public testimony.  Bob King, President of Good  
         Company, was called by Chairman Fraser.  Mr. King testified and  
         responded to members' questions. 
          
         At the conclusion of Mr. King's testimony, Chairman Fraser  
         closed public testimony. 
          
         There being no further business, at 3:00 p.m. Chairman Fraser  
         moved that the Senate Committee on Business and Commerce and the  
         Electric Utility Restructuring Legislative Oversight Committee  
         stand recessed subject to the call of the Chairman.  Without  
         objection, it was so ordered. 
          
         There being no further business, at 3:00 p.m.  Chairman King  
         moved that the House Committee on Regulated Industries stand  
         recessed subject to the call of the Chairman.  Without  
         objection, it was so ordered. 
          
         ________________________________ 
         Troy Fraser, Chairman 
          
         _________________________________ 
         Tatum Baker, Clerk 
          
                                    SENATE COMMITTEE ON BUSINESS & COMMERCE 
                                                                    Minutes 
                                              Wednesday, September 29, 2004 
                                                                      page   3 
                                                                            
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