Tex. Coast Utils. Coal. v. R.R. Comm’n of Tex. (Opinion)Annotate this Case
CenterPoint Energy Resources Corporation, a gas utility that distributes natural gas, sought to raise its rates. CenterPoint’s proposed rate schedule included a “cost of service adjustment” (COSA) clause. The Railroad Commission of Texas approved a rate increase, including a revised COSA clause that provided for automatic annual adjustments based on increases or decreases in CenterPoint’s cost of service. On judicial review, the district court held that the Commission lacked the statutory authority to adopt the COSA clause as part of CenterPoint’s rate schedule. The court of appeals reversed. The Supreme Court affirmed, holding that the Commission had the authority to enter the final order in this case, including the COSA clause. Remanded.