Texas Supreme Court
Hilco Electric Cooperative, Petitioners v. Midlothian Butane Gas Company, Inc., D/b/a Midtex Lp Gas, Et…
July 3, 200346 Tex. Sup. Ct. J. 909
Summary
The Texas Supreme Court affirmed the Court of Appeals' reversal of the trial court, holding that the Electric Cooperative Corporation Act (ECCA), even as amended by House Bill 3203, does not automatically permit a nonprofit electric cooperative to create and own a for‑profit propane subsidiary; such ownership must be shown to be necessary, convenient, or appropriate to the cooperative’s authorized purposes. The Court remanded for further proceedings to determine whether HILCO’s propane business meets that requirement, and noted that the one‑subject constitutional issue was not reached. Justice Hecht filed a concurring opinion agreeing with the remand.