Public Utility Commission of Texas v. Cities of Harlingen

This case involves an administrative appeal challenging an order of the Public Utility Commission of Texas approving the application of Electric Transmission Texas, LLC (ETT) for regulatory approval of (1) ETT’s formation transactions, (2) the transfer to ETT of certain transmission equipment held under another utility’s certificate of convenience and necessity (CCN), and (3) ETT’s initial rates. Prior to the administrative proceeding, ETT did not possess a CCN under which it could provide service to the public as an electric utility pursuant to the Public Utility Regulatory Act (PURA).*fn1 Following the Commission’s order, ETT was approved to become an electric utility that provided only transmission-related services.

The district court found that the Commission exceeded its statutory authority by granting a CCN to ETT, and reversed the Commission’s order. The district court also found that the Commission erred by denying the municipalities that had intervened in the proceeding any of their expenses, and the court remanded the case to the Commission for a redetermination of the municipalities’ reasonable expenses pursuant to PURA section 33.023.