Tuesday, April 27, 2004 
                                     8:30 a.m. 
                      Betty King Committee Hearing Room, 2E.20 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Business &  
         Commerce was held on Tuesday, April 27, 2004, in the Betty King  
         Committee Hearing Room, 2E.20, at Austin, Texas. 
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Troy Fraser, Chairman           None 
         Senator Kip Averitt, Vice Chairman 
         Senator Kenneth Armbrister 
         Senator Kim Brimer 
         Senator John Carona 
         Senator Craig Estes 
         Senator Mike Jackson 
         Senator Eddie Lucio, Jr. 
         Senator Leticia Van de Putte 
         Chairman Fraser called the meeting to order at 8:40 a.m.  There  
         being a quorum present, the following business was transacted:   
         The Chairman welcomed Senator John Carona, who is returning as a  
         member of the Senate Business and Commerce Committee. 
         Chairman Fraser made brief opening remarks and advised that the  
         committee would be discussing Interim Charge #5 regarding the  
         on-going implementation of SB7.  Because of the importance of  
         this charge and the fact that the Public Utility Commission  
         (PUC) will be going through Sunset in the upcoming session, the  
         Chairman had invited Senate members of the Electric Utility  
         Restructuring Legislative Oversight Committee and of the Sunset  
         Commission to the hearing.  
         Upon completion of Chairman Fraser's opening remarks, the  
         Chairman called the first witness, Paul Hudson, Chairman of the  
         Public Utility Commission.  Chairman Hudson presented an  
         overview of electric competition in Texas.  Chairman Hudson's  
         testimony covered the retail market, price to beat, industry activity, customer protection, non-ERCOT (Electric  
         Reliability Council of Texas) areas, and issues that will be  
         facing the state in the future.  During Chairman Hudson's  
         testimony, Jess Totten of the PUC was called to respond to  
         members' questions.  
         Following the above invited witnesses' testimony, Chairman  
         Fraser called for 
         Commissioner Julie Parsley, representing the PUC, to present her  
         testimony.  Commissioner Parsley gave an overview of the ERCOT  
         Wholesale Market and Security-Constrained Economic Dispatch.    
         Jess Totten was called again to respond to members' questions. 
         Upon completion of Commissioner Parsley's testimony, Chairman  
         Fraser called Barry Smitherman, the newly appointed Commissioner  
         of the Public Utility Commission.  Senator Jackson formally  
         introduced Commissioner Smitherman, who is from Senator  
         Jackson's district. 
         There being no further business, at 10:43 a.m.  Senator Jackson  
         moved that the Senate Business and Commerce Committee stand  
         recessed subject to the call of the Chairman.  Without  
         objection, it was so ordered.   
         Senator Troy Fraser, Chairman 
         Tatum Baker, Clerk