Texas High Court Upholds Utility's Rate-Hike Provision

Law360, Houston (January 17, 2014, 3:46 PM EST) -- The Texas Supreme Court said Friday that the state’s oil and gas regulatory body had acted within its authority when it allowed CenterPoint Energy Resources Corp. to include an automatic cost-of-service-adjustment clause in its gas utility rate schedule.

Rejecting an appeal by the Texas Coast Utilities Coalition, which argued the Texas Railroad Commission lacked authority to approve the so-called COSA clause under the Gas Utility Regulatory Act, the high court said that the pricing escalator fell within the agency’s rate-making powers.

“By including the COSA clause...
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