Summary
The Supreme Court of Texas reviewed a utility ratemaking dispute involving Oncor Electric Delivery Company LLC and the Public Utility Commission of Texas. The court held that PURA's discount for certain state educational facilities did not apply to transmission and distribution utilities in deregulated areas, that the former tax provision did not require Oncor to adopt a corporate structure allowing consolidated-return treatment, and that the evidence supported certain municipal franchise charges as reasonable and necessary expenses. The court affirmed in part, reversed in part, and remanded to the Commission.
Holdings
- PURA section 36.351 does not require transmission and distribution utilities in deregulated areas to discount their charges because those utilities provide service and charge regulated delivery rates to retail electric providers, not directly to retail customers.
- Former PURA section 36.060(a) did not require Oncor's income-tax expense to be calculated as though it filed a consolidated return because, after its ownership change, Oncor was not a member of an affiliated group eligible to file a consolidated return.
- PURA section 33.008 permits utilities and municipalities to negotiate franchise charges different from the statutory per-kilowatt-hour charge, and such charges may be included in rates if the utility demonstrates that they are reasonable and necessary operating expenses.
Questions Presented
- Whether PURA section 36.351 requires a transmission and distribution utility in a deregulated area to discount charges associated with electricity delivered to state college and university facilities.
- Whether former PURA section 36.060(a) required Oncor's income-tax expense to be calculated as though it filed a consolidated federal income-tax return with its affiliates.
- Whether negotiated municipal franchise charges were reasonable and necessary operating expenses that could be included in Oncor's rates.
Disposition
reversed_and_remanded
Cases Cited (9)
- In re TXU Electric Co., 67 S.W.3d 130 (Tex. 2001) (per curiam)(followed)
- Thompson v. Texas Department of Licensing & Regulation, 455 S.W.3d 569 (Tex. 2014)(followed)
- Railroad Commission of Texas v. Texas Citizens for a Safe Future & Clean Water, 336 S.W.3d 619 (Tex. 2011)(followed)
- State v. Public Utility Commission, 883 S.W.2d 190 (Tex. 1994)(followed)
- Public Utility Commission v. GTE-Southwest, Inc., 901 S.W.2d 401 (Tex. 1995)(followed)
- Cities of Corpus Christi v. Public Utility Commission, No. 03-06-00585-CV, 2008 WL 615417 (Tex. App.—Austin Mar. 5, 2008, no pet.) (mem. op.)(followed)
- Suburban Utility Corp. v. Public Utility Commission of Texas, 652 S.W.2d 358 (Tex. 1983)(followed)
- State v. Public Utility Commission, 344 S.W.3d 349 (Tex. 2011)(followed)
- Gulf States Utilities Co. v. Public Utility Commission, 947 S.W.2d 887 (Tex. 1997)(followed)
Cited In (0)
No citing cases on record yet.
Court Document
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