The State of Texas and Office of Public Utility Counsel, Petitioners v. Public Utility Commission of Texas And…

Summary

The Texas Supreme Court held that the Public Utility Commission has authority under the Public Utility Regulatory Act (PURA) to allow utilities to defer costs incurred during the regulatory‑lag period, affirmed the appellate court’s judgment otherwise, and reversed and remanded the portion that barred deferral of post‑service carrying costs. Justice Spector dissented, arguing the deferral improperly expands rate‑base and harms ratepayers.