Philip R. Sharp, former 10-term congressman from Indiana, has been named director of the Institute of Politics at Harvard University's John F. Kennedy School of Government. Sharp assumes the...
Texas Court Ruling Opens Door on Tax Cost Recovery
Texas Utilities Electric Co. and Gulf States Utilities are looking to an April 13 Texas Supreme Court decision (involving GTE-Southwest) that says the state PUC need not employ the actual taxes paid method in setting utility rates. Gulf States will now amend its appeal of a March 20 Texas PUC order forcing a $52.9-million rate reduction, which had included a $25.8-million actual taxes paid component. Texas Utilities had put its faith in legislative relief, but saw its hopes dashed in late April when a Texas state senate committee defeated a proposal to take up the matter. Under the actual taxes paid method, Texas Utilities might have to pay the IRS up to $1.3 billion, and lose up to $100 million annually of accelerated tax depreciation.
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