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), as amended by House Bill 3203, does not automatically permit an electric cooperative to create and own a for‑profit subsidiary unless the activity furthers a proper purpose under the Act. The Court also clarified that the ECCA does allow such ownership when it is necessary, convenient, or appropriate to effectuate the cooperative’s authorized purposes. Justice Hecht filed a concurring opinion.