City of Sherman, Texas, Petitioners v. Public Utility Commission of Texas, Respondents

Summary

The Texas Supreme Court affirmed the trial court, holding that the Public Utility Commission lacks jurisdiction over the City of Sherman's municipally‑owned water utility groundwater production and that the doctrine of exhaustion of administrative remedies does not bar review because the agency was acting beyond its statutory authority. The Court also held that section 60 of the Public Utility Regulatory Act does not apply to the City because it is not a public utility.