Southwestern Bell Telephone Co. v. Public Utility Commission

KIDD, Justice.

The Texas Legislature passed a tax bill that increased the franchise taxes for Southwestern Bell Telephone Company (“Southwestern Bell”). In order to recoup the resulting tax expense and pursuant to a legislative statute, Southwestern Bell petitioned the Public Utility Commission (the “Commission”) to approve the imposition of a franchise tax pass-through to its customer-ratepayers. Based on the interpretation of an earlier agreement by Southwestern Bell imposing a rate freeze, the Commission denied Southwestern Bell’s request. The district court affirmed the Commission’s order,…