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Public Utility Commission of Texas v. Cities of Harlingen

In one issue, the Public Utility Commission of Texas erred in determining that it was prohibited from granting the cities' request for reimbursement of their ratemaking proceeding expenses. Therefore, the judgment of the district court is affirmed as to its remand of the case to the commission for its reconsideration of whether to reimburse the cities for their expenses. As to the remainder of appellees' claims, this court found no error in the commission's final order. Austin Court of Appeals, No. 03-08-00793-CV, 03-26-2010

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OPINION

This case involves an administrative appeal challenging an order of the Public Utility Commission of Texas approving the application of Electric Transmission Texas, LLC (ETT) for regulatory approval of (1) ETT’s formation transactions, (2) the transfer to ETT of certain transmission equipment held under another utility’s certificate of convenience and necessity (CCN), and (3) ETT’s initial rates. Prior to the administrative proceeding, ETT did not possess a CCN under which it could provide service to the public as an electric utility pursuant to the Public Utility Regulatory Act (PURA).*fn1 Following the Commission’s order, ETT was approved to become an electric utility that provided only transmission-related services.

The district court found that the Commission exceeded its statutory authority by granting a CCN to ETT, and reversed the Commission’s order. The district court also found that the Commission erred by denying the municipalities that had intervened in the proceeding any of their expenses, and the court remanded the case to the Commission for a redetermination of the municipalities’ reasonable expenses pursuant to PURA section 33.023.

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