State v. Public Utility Com'n of Texas

This complex case poses several vexing questions regarding Texas utility-deregulation laws and the Public Utility Commission’s application of those laws. In short, numerous parties — the State of Texas, utility companies, municipal groups, consumer groups, and others — challenge the Commission’s interpretations of various cost-recovery provisions in Chapter 39 of the Utilities Code. As detailed below, we affirm the court of appeals’ judgment in part, reverse it in part, and remand to the PUC for further proceedings consistent with this opinion.

I. Background

A. Overview of Chapter 39 1

The…