MINUTES
ELECTRIC UTILITY RESTRUCTURING LEGISLATIVE OVERSIGHT COMMITTEE
Tuesday, February 5, 2002
10:00 a.m.
Capitol Extension, Room E1.036
*****
Pursuant to a notice posted January 24, 2002, and in accordance
with Senate Rule 11.18, a public hearing of the Electric Utility
Restructuring Legislative Oversight Committee was held on
Tuesday, February 5, 2002, in the Capitol Extension, Room
E1.036, at Austin, Texas.
*****
MEMBERS PRESENT: MEMBERS ABSENT:
Senator Troy Fraser, Co-Chairman Senator Frank Madla
Representative Steven Wolens, Co-Chairman Senator John
Whitmire
Senator Teel Bivins Representative Kim
Brimer
Senator Jane Nelson Representative David
Counts
Representative Debra
Danburg
Representative Sylvester
Turner
*****
The Committee having been in recess, Co-Chairman Wolens called
the meeting to order at 10:21 a.m. The following business was
transacted. Representative Ruth McClendon Jones also attended
the hearing.
Co-Chairman Wolens advised that invited witnesses would be
heard, including representatives from the Electric Reliability
Council of Texas (ERCOT), commissioners from the Public Utility
Commission (PUC), and others. The Committee would be looking at
four issues identified by Co-Chairman Wolens and Co-Chairman
Fraser over the last month. These issues are:
1. How far have we advanced since the last meeting?
2. Diagnosis - what are the glitches now?
3. Prognosis - is there something out there that could
happen and are we prepared?
4. Miscellaneous, including subpoenas issued at the PUC;
the low-income program; Enron and the extent to which Enron
coming out of the market is affecting the electricity
market; reserve capacity margin in Texas; and other issues.
Co-Chairman Fraser made opening remarks, noting the fact that
Senator Sibley had resigned and that Senator Fraser has taken
over the responsibilities of Co-Chairman of the Committee. He
also thanked Senator Sibley for his work on the issue.
Following Co-Chairman Fraser's remarks, Co-Chairman Wolens
called the first invited witnesses, as follows:
Thomas E. Noel, CEO, ERCOT,
Cherie Broadrick, Manager, Retail Transactions, ERCOT,
William Bojorquez, Director, Settlements & Customer
Service, ERCOT, and
Sam Jones, Chief Operating Officer, ERCOT.
Mr. Noel discussed his letter of February 4, 2002, addressed to
the Co-Chairmen, which responded to the questions identified in
their letter of February 1, 2002. This letter had been
distributed to the members of the Committee, and was made
available to those interested.
Janee Briesemeister, representing Consumers Union, was called to
respond to a question concerning whether consumers are being
switched in a timely manner.
Mike Renfro, PUC, was called to respond to questions concerning
customer education and how it was handled at the PUC.
The following witnesses testified concerning preassigned
transmission congestion rights:
Parviz Adib, Director of the Market Oversight Division,
PUC,
Mark Zion, Texas Public Power Association, and
Susan Durso, Attorney, PUC.
At 12:40 p.m. Representative Wolens moved that the committee
stand recessed for a brief break; without objection, it was so
ordered.
At 1:10 p.m. the committee reconvened, and Co-Chairman Wolens
called the PUC Commissioners, Becky Klein and Brett Perlman to
testify regarding the following:
1. What are the successes and advances up to today?
2. Where are the glitches and how are they being
addressed?
3. What is the prognosis for the future - things that may
happen?
4. Other issues, including subpoenas, reserve capacity
margin, and others?
During testimony concerning consumer response delays, the
following additional witnesses were called:
Mike Renfro, PUC,
Patricia Dolese, PUC,
Lane Lanford, Executive Director, PUC,
Janee Briesemeister, Consumers Union, and
Randall Chapman, Texas Legal Services Center.
There being no further business, at 3:07 p.m. Co-Chairman Wolens
moved that the Committee stand recessed subject to the call of
the chairmen. Without objection, it was so ordered.
___________________________________
____________________________________
Senator Troy Fraser, Co-Chairman Representative
Steven Wolens,
Co-Chairman
__________________________________
Barbara Henderson, Clerk