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Centerpoint Energy Houston Electric LLC v. Public Utility Commission of Texas

In this direct appeal, appellant CenterPoint Energy Houston Electric LLC contends that Public Utilities Regulation Act §39.905 requires that the Public Utility Commission include a "lost-revenue adjustment mechanism" in rule 25.181 and that the Commission's failure to do so renders the rule invalid. PURA does not permit, much less require, the Commission to adopt a lost-revenue adjustment mechanism as part of the authorized energy efficiency cost recovery factor. The rule is valid and is affirmed. Austin Court of Appeals, No. 03-10-00633-CV, 11-10-2011.

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OPINION

In this direct appeal, we consider a challenge to the validity of a rule promulgated by the Public Utility Commission governing electric utilities’ implementation of statutorily mandated energy-efficiency programs designed to reduce electricity consumption. See 16 Tex. Admin. Code § 25.181 (2011) (Pub. Util. Comm’n, Energy Efficiency Goal).*fn1 Appellant, CenterPoint Energy Houston Electric, LLC (“CenterPoint”), contends that section 39.905 of the Public Utilities Regulation Act (“PURA”) requires that the Commission include a “lost-revenue adjustment mechanism” (“LRAM”) in rule 25.181 and that the Commission’s failure to do so renders the rule invalid. See Tex. Util. Code Ann. § 39.905 (West Supp. 2010). CenterPoint alternatively contends that rule 25.181 is invalid because the Commission’s failure to include an LRAM as part of rule 25.181 resulted from the Commission’s erroneous interpretation of its own authority to do so under PURA. We will affirm.

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