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RELIANT ENERGY v. PUBLIC UTILITY COM'N

No. 03-02-00001-CV.

101 S.W.3d 129 (2003)

RELIANT ENERGY, INCORPORATED and American Electric Power Company, Appellants, v. PUBLIC UTILITY COMMISSION OF TEXAS, Appellee.

Court of Appeals of Texas, Austin.

As Modified on Grant of Rehearing in part March 20, 2003.

Attorney(s) appearing for the Case

Ron Moss, Robert J. Hearon, Jr., Graves, Dougherty, Hearon & Moody, Austin, for Reliant Energy, Incorporated.

Chris Reeder, Carroll & Gross, LLP, Austin, for Alliance for Retail Markets.

Thomas Brocato, Office of Public Utility Counsel, and Kristen Pauling Doyle, Lloyd, Gosselink, Blevins, Rochelle, Baldwin & Townsend, PC, Austin, for Office of Public Utility Counsel.

John F. Williams, Dane McKaughan, Clark, Thomas & Winters, P.C., Austin, for American Electric Power Company.

Steven Baron, Asst. Atty. Gen., Austin, for Public Utility Commission of Texas.

Jonathan S. Day, Lino Mendiola, III, Karen P. Whitt, Andrews & Kurth, Mayor, Day, Caldwell & Keeton, L.L.P., Houston, for Texas Industrial Energy Consumers.

Amalija J. Hodgins, Bryan L. Baker, Asst. Attys. Gen., Austin, for The State of Texas.

Before Justices KIDD, B.A. SMITH and YEAKEL.

OPINION

BEA ANN SMITH, Justice.

In this direct appeal, we must determine whether the Public Utility Commission erred in promulgating a rule governing stranded-cost recovery for formerly regulated electric utilities. See Tex. Util. Code Ann. § 39.001(e), (f) (West Supp. 2003). Stranded costs represent prudently incurred expenditures made by the utilities during regulation—previously recoverable over time through regulated rates&...

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