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