MINUTES 
          
           SENATE SPECIAL COMMITTEE ON ELECTRIC UTILITY RESTRUCTURING 
                              Monday, March 1, 1999 
                                     9:30 am 
                                 Senate Chamber 
          
                                      ***** 
          
         Pursuant to a notice posted in accordance with Senate Rule  
         11.11, a public hearing of the Senate Special Committee on  
         Electric Utility Restructuring was held on Monday, March 1,  
         1999 in the Senate Chamber at Austin, Texas.   
          
                                      ***** 
          
         MEMBERS PRESENT:                        MEMBER ABSENT: 
         Senator David Sibley, Chairman          Senator Gonzalo  
                                                 Barrientos 
         Senator David Cain, Vice Chairman 
         Senator Kenneth Armbrister 
         Senator Teel Bivins 
         Senator Troy Fraser 
         Senator Jane Nelson 
          
                                      ***** 
          
         The Chairman called the meeting to order at 9:35 am.  There  
         being a quorum present, the following business was transacted.   
          
         Chairman Sibley advised that a proposal would be laid out for  
         the members concerning the air standards in the non-attainment  
         and near non-attainment areas of emissions from plants, an  
         issue relating to Senate Bill 7 pending in Committee.   
          
         The Chairman recognized Pat Wood, Chairman of the Public  
         Utility Commission, to speak to the members concerning this  
         issue.  Chairman Wood was joined by Commissioner Ralph Marquez  
         of the Texas Natural Resource Conservation Commission. 
          
         Upon completion of testimony by Chairman Wood and Commissioner  
         Marquez, Chairman Sibley advised that the Committee would  
         begin consideration of a proposed substitute to SB 7 which had  
         previously been delivered to the members.  The Chairman called  
         Karina Casari, Committee Director, to explain the major  
         differences between the bill as filed and the committee  
         substitute, as set forth in a side by side distributed to the  
         members. 
          
         Chairman Sibley called Kristie Flippo of Senator Cain's  
         office, and Craig Smith of Senator Sibley's office  who have  
         been working with David Anderson, General Counsel of the Texas  
         Education Agency, to testify on the school funding loss  
         mechanism in the substitute.  The Chairman also called David  
  
         Anderson to present his testimony.  The witnesses responded to  
         members' questions on the issue. 
          
         Upon completion of testimony by Mr. Anderson, Kristie Flippo  
         and Craig Smith,  Karina Casari continued with explanation of  
         the side by side. 
          
         Following completion of Ms. Casari's testimony, the Chairman  
         announced the procedure for members to submit committee  
         amendments to the substitute, and advised that members would  
         vote on the amendments at the next meeting of the Committee. 
          
         There being no further business, at 11:30 am Chairman Sibley  
         moved that the Committee stand recessed subject to the call of  
         the Chairman.  Without objection, it was so ordered.   
          
         _________________________ 
         Senator David Sibley, Chairman 
          
         _________________________ 
         Barbara Henderson, Clerk.