MINUTES
JOINT ELECTRIC UTILITY RESTRUCTURING LEGISLATIVE OVERSIGHT
COMMITTEE
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 Electric Utility Restructuring
Legislative Oversight Committee was held jointly with the Senate
Committee on Business and Commerce and the House Committee on
Regulated Industries on Wednesday, September 29, 2004, in the
Capitol Extension, Room E1.036, at Austin, Texas.
*****
MEMBERS PRESENT: MEMBERS ABSENT:
Senator Troy Fraser, Co-Chairman Senator Jane Nelson
Representative Phil King, Co-Chairman Senator John Whitmire
Representative Harold Dutton, Jr. Representative Todd
Baxter
*****
A joint hearing of the Electric Utility Restructuring
Legislative Oversight Committee, the Senate Committee on
Business and Commerce, and the House Committee on Regulated
Industries was held. Chairman Fraser and Chairman King shared
presiding duties. At 10:10 a.m. Chairman Fraser called the
Electric Utility Restructuring Legislative Oversight Committee
and the Senate Committee on Business and Commerce 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,
ELECTRIC UTILITY RESTRUCTURING LEGISLATIVE OVERSIGHT
Minutes
Wednesday,
September 29, 2004
page
2
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's testimony, Chairman Fraser
opened 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 Electric Utility Restructuring Legislative
Oversight Committee and the Senate Committee on Business and
Commerce 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.
_______________________________
Senator Troy Fraser, Co-Chairman
________________________________
Representative Phil King, Co-Chairman
________________________________
Tatum Baker, Clerk
ElecElectric Reliability Council of Texas,
Council of