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.