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CITIES FOR FAIR UTILITY RATES v. PUC

No. 94-1237.

924 S.W.2d 933 (1996)

CITIES FOR FAIR UTILITY RATES and The State of Texas, Petitioners, v. PUBLIC UTILITY COMMISSION OF TEXAS and Houston Lighting & Power Company, Respondents.

Supreme Court of Texas.

Decided June 28, 1996.

Attorney(s) appearing for the Case

James G. Boyle, Rupaco T. Gonzalez, Dan Morales, Richard A. Muscat, Austin, for petitioners.

Robert J. Hearon, Selden Anne Wallace, Hugh Rice Kelly, Austin, George W. Schalles, III, Houston, Steven Baron, Elizabeth R.B. Sterling, Mary A. Keeney, Austin, for respondents.

HECHT, Justice, delivered the opinion for a unanimous Court.

The principal question in this appeal from an order of the Public Utility Commission is whether an electric utility's costs of construction work in progress, CWIP, including an allowance for funds used during construction, AFUDC, can be included in its rate base as plant held for future use, PHFU, when construction has halted but the project remains viable. We agree with the PUC, the district court, and...

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