Texas Justices Back PUC On Coal Plant Rate Hike

Law360 (March 26, 2021, 7:00 PM EDT) -- The Texas Supreme Court reversed a lower court Friday to uphold a Texas Public Utility Commission ruling that Southwestern Electric Power Co. acted "prudently" when it finished construction of a coal plant despite falling natural gas prices, returning the case to a lower court to decide whether an $83 million base rate hike was warranted.

The high court held a Third Court of Appeals in Austin panel in 2018 wrongly imposed a higher standard of review on the PUC when it found the commission's ruling to be arbitrary and capricious because it didn't consult expert witnesses when reviewing SWEPCO's actions. The justices...

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