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STATE v. PUBLIC UTILITY COM'N OF TEXAS

No. 08-0421.

344 S.W.3d 349 (2011)

The STATE of Texas, et al., Petitioners, v. PUBLIC UTILITY COMMISSION OF TEXAS, et al., Respondents.

Supreme Court of Texas.

Decided March 18, 2011.

Rehearing Denied June 10, 2011.

Attorney(s) appearing for the Case

Greg W. Abbott , Attorney General, Kent C. Sullivan , David S. Morales , Paul D. Carmona , Mary Taylor Henderson , Marlon Taylor Drew , Bryan L. Baker , Office of the Attorney General, Clarence Andrew Weber, Kelly Hart & Hallman LLP, Austin, Ruth Ruggero Hughs, Asst. Atty. General, Director of Defense Litigation, for the State of Texas.

John R. Hulme , Natural Resource Division, Elizabeth R.B. Sterling , Envtl. Prot. & Admin. Law. Div., Douglas Fraser , Office of the Attorney General of Texas, Suzanne Antley , Assistant Attorney General, Jeffrey L. Rose , Attorney General, David Preister , Office of the Attorney General, Austin, Brian Alan Prestwood , Asst. Atty. General, Kelly Hart & Hallman LLP, Austin, Barbara Bryant Deane , Assistant Attorney General, Nathan Myrick Bigbee , Assistant Attorney General, for Public Utility Commission of Texas.

Jonathan Day , Lino Mendiola , Caren Elizabeth Pinzur , Meghan E. Griffiths , Andrews Kurth LLP, Austin, for Texas Industrial Energy Consumers.

Robert J. Hearon Jr. , Ron H. Moss , Michael J. Whellan , Graves Dougherty Hearon & Moody, PC, Austin, Scott E. Rozzell , Harris S. Leven , CenterPoint Energy, Inc., Gregory S. Coleman , Christian J. Ward , Thomas R. Philips , Macey Reasoner Stokes, Baker Botts L.L.P., Jason M. Ryan , Ryan Glover LLP, Aaron M. Streett , Jeffrey James McNabb , Baker Botts L.L.P., Houston, for CenterPoint Energy Houston Electric, LLC.

Jonathan L. Heller , Reliant Resources, Inc., Houston, Kathleen M. LaValle , Patrick R. Cowlishaw , Michael Lee Jines , Jackson Walker LLP, Dallas, for other interested party Reliant Energy Retail Services LLC.

Lanetta M. Cooper , Assistant Public Counsel, Joel Don Ballard , James K. Rourke Jr. , Office of Public Utility Counsel, Austin, for Office of Public Utility Counsel.

James E. Cousar , Virginia Gaye White , Thomson & Knight LLP, Austin, for other interested party Air Liquide Large Industries U.S., LP.

Alton J. Hall Jr. , Tammy Renee Wavle , Epstein Baker Green Wickcliff & Hall, P.C., Houston, for City of Houston.

Kenneth L. Wiseman , Mark F. Sundback , Dennis N. Ryan , Andrews & Kurth LLP, for Houston Council for Health and Education.

James G. Boyle , Herrera & Boyle, PLLC, for other interested party Coalition of Commercial Ratepayers.

Richard P. Noland , Sutherland Asbill & Brennan LLP, for other interested party Occidental Power Marketing, L.P.

Thomas Lane Brocato , Geoffrey M. Gay , Lloyd Gosselink Rochelle & Townsend, P.C., for Gulf Coast Coalition of Cities.

Justice WILLETT delivered the opinion of the Court.

This complex case poses several vexing questions regarding Texas utility-deregulation laws and the Public Utility Commission's application of those laws. In short, numerous parties—the State of Texas, utility companies, municipal groups, consumer groups, and others—challenge the Commission's interpretations of various cost-recovery provisions in Chapter 39 of the Utilities Code. As detailed below, we...

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