Public Utility Commission of Texas and Office of Public Utility Counsel, Petitioners v. Gulf States Utilities…

Summary

The Texas Supreme Court affirmed the appellate court, holding that the Public Utility Commission may not limit Gulf States Utilities' recovery of purchased power payments to avoided cost and that the Commission's 83% allocation of sale proceeds to ratepayers lacked substantial evidence. The Court ordered the Commission to allow recovery of payments above avoided cost when reasonable and to recompute the allocation using broader equitable factors. Justice Gonzalez and Justice Mauzy filed separate opinions dissenting in part and concurring in part.