MINUTES 
                                           
           ELECTRIC UTILITY RESTRUCTURING LEGISLATIVE OVERSIGHT COMMITTEE 
                            Wednesday, December 5, 2001 
                                     9:00 a.m. 
                              Capitol Extension E1.030 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted November 27, 2001, and in accordance  
         with Senate Rule 11.18, a joint public hearing of the Electric  
         Utility Restructuring Legislative Oversight Committee and the  
         Public Utility Commission of Texas was held on Wednesday,  
         December 5, 2001, in the Capitol Extension E1.030. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator David Sibley, Co-Chairman       Senator Frank Madla 
         Representative Steven Wolens, Co-Chairman    Representative  
                                                 David Counts 
         Senator Teel Bivins 
         Senator Jane Nelson                      
         Senator John Whitmire                    
         Representative Kim Brimer 
         Representative Debra Danburg 
         Representative Sylvester Turner 
          
         PUBLIC UTILITY COMMISSION OF TEXAS: 
         Max Yzaguirre, Chairman 
         Becky Klein, Commissioner 
         Brett Perlman, Commissioner 
          
                                       ***** 
                                           
         Co-Chairman Sibley called the meeting to order at 9:17 a.m.   
         There being a quorum present, the following business was  
         transacted.  Senator Troy Fraser was also present and  
         participated in the meeting. 
          
         Chairman Yzaguirre then called the Public Utility Commission of  
         Texas to order, and made opening remarks.  Co-Chairman Wolens  
         welcomed the Public Utility Commission (PUC) Chairman and  
         Commissioners to the joint meeting. 
          
         PUC Chairman Yzaguirre advised that the PUC had prepared some  
         handouts for distribution to the committee members; in  
         particular, a Retail Market Opening Punch List of five items for  
         discussion.  Co-Chairman Wolens then called the panel of invited  
         witnesses from the Electric Reliability Council of Texas (ERCOT)  
         as follows: 
              Thomas Noel, Chief Executive Officer, ERCOT, 
              Sam Jones, Chief Operating Officer, ERCOT, 
  
              William Bojorquez, Director, Settlements & Customer  
         Service, ERCOT, 
              Cherie Broadrick, Customer Registration Manager, ERCOT, and 
              Shirley A. Whyte, Independent Third Party Testing  
         Administrator (ITPTA). 
          
         Following a portion of the testimony by the ERCOT panelists,  
         Co-Chairman Sibley called members of Panel 2 to respond to  
         members' and PUC commissioners' questions relating to certain  
         ERCOT functions as they affect customers and retail electric  
         providers (REPs).  These panelists were: 
          
              Kathleen Magruder, The New Power Company, 
              Tom Baker, TXU, 
              Steve Schaeffer, Reliant Energy, 
              Paul Thomas, Green Mountain Energy Company, and 
              Janee Briesemeister, Consumers Union. 
          
         At 12:00 Noon, Co-Chairman Sibley moved that the Committee stand  
         recessed for thirty minutes; without objection, it was so  
         ordered.  At 12:35 p.m., the Committee reconvened, and testimony  
         by the members of Panel 2 resumed.  Patricia Dolese, Public  
         Utility Commission of Texas, was called to respond to questions. 
          
         Upon completion of testimony by Panel 2, and response to members'  
         and PUC commissioners' questions, Co-Chairman Sibley recalled  
         the ERCOT panelists to continue with their testimony and to  
         address the remaining items on the PUC punch list. 
          
         Following the ERCOT panelists' testimony, Co-Chairman Wolens  
         called the following witnesses from PricewaterhouseCoopers, the  
         auditing and consulting firm engaged to perform audits of ERCOT  
         and the ERCOT systems.  These witnesses responded to questions  
         by Committee members and PUC commissioners regarding the  
         "Summary of Certain PricewaterhouseCoopers 2001 Audit Services  
         to ERCOT." 
          
              Sean Barry, Accountant, and 
              Michael Hurle, Consultant. 
          
         There being no further business, at 2:30 p.m. Co-Chairman Sibley  
         moved that the Committee stand recessed subject to the call of  
         the chairmen.  Without objection, it was so ordered.   
          
         __________________________________      
         ______________________________________ 
         Senator David Sibley, Co-Chairman           Representative  
                                                 Steven Wolens,  
                                                 Co-Chairman 
          
         __________________________________ 
         Barbara Henderson, Clerk