Texas Utilities Electric Co. v. Sharp

JONES, Justice.

This is a dispute over franchise taxes the State Comptroller assessed against appellant, Texas Utilities Electric Company (“TUEC”). TUEC sued for a refund, and the trial court rendered summary judgment against TUEC. We will modify and affirm the judgment.

BACKGROUND

TUEC, an electric utility, leases gas combustion turbines in order to generate electricity. TUEC entered into certain operating lease agreements in 1987. The agreements obligate TUEC to pay semi-annual rentals for about twenty-seven years. TUEC does not have an ownership interest in the turbines; it simply has the…