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R.R. COM'N OF TEXAS v. RIO GRANDE VALLEY GAS

No. 14164.

683 S.W.2d 783 (1984)

RAILROAD COMMISSION OF TEXAS, et al., Appellants, v. RIO GRANDE VALLEY GAS COMPANY, Appellee.

Court of Appeals of Texas, Austin.

Rehearing Denied January 30, 1985.

Attorney(s) appearing for the Case

Jim Mattox, Atty. Gen., Jo Campbell, Asst. Atty. Gen., B.D. St. Clair, Brook Bennett Brown, McGinnis, Lochridge & Kilgore, Austin, for appellants.

M. Frazier King, Jr., San Antonio, Rex H. White, Jr., O'Neill, Haase & White, Austin, for appellee.

Before PHILLIPS, C.J., and POWERS and GAMMAGE, JJ.

PHILLIPS, Chief Justice.

The main issue in this case (as was agreed upon by all parties in oral argument) is the meaning of Section 41(c)(1) of the Public Utility Regulatory Act (PURA)1, which, in general, and with an exception discussed below, disallows, for the purpose of rate setting, payments made by a utility to affiliate interests. Appellee, Rio Grande Valley Gas Co., a subsidiary of Valero Energy Co., contended in the court below...

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