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Cities of Allen v. Railroad Commission of Texas

Texas Utility Code �104.301 does not contemplate either adjudicative hearings or a substantive review at the time of the gas reliability infrastructure program filing. Rather, the legislature intended to encourage investment in new infrastructure by creating a streamlined method of allowing utilities to immediately begin recovering on new investments without having to wait for the completion of a costly and time-consuming rate case. A ministerial review for compliance with the statute is all that is required. Austin Court of Appeals, No. 03-06-00691-CV, 02-05-2010

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OPINION

Fifty-one Texas cities*fn1 (collectively, “the Cities”) brought a declaratory-judgment action against the Railroad Commission (“the Commission”), challenging the validity of Commission Rule 7.7101. See 16 Tex. Admin. Code § 7.7101 (2009) (Tex. R.R. Comm’n, Interim Rate Adjustments); see also Tex. Gov’t Code Ann. § 2001.038 (West 2008) (allowing parties to challenge validity of agency rule by declaratory-judgment action). CenterPoint Energy Resources Corporation (“CenterPoint”), Atmos Energy Corporation (“Atmos”), and Texas Gas Services Company (“Texas Gas”) intervened in support of the validity of the Commission’s rule. The trial court issued a final judgment denying the Cities’ request for declaratory relief, but issued findings of fact and conclusions of law stating that certain subsections of the Commission’s rule were void. We affirm the judgment of the trial court.

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