Public Utility Commission of Texas v. Texas Industrial Energy Consumers (Opinion)
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The Supreme Court reversed the judgment of the court of appeals reversing the judgment of the trial court upholding the determination of the Public Utility Commission that Southwestern Electric Power Company (SWEPCO) met its burden of establishing that its decision to build a power plant was a prudent one and allowing SWEPCO to include the plant's construction costs in its utility rates, holding that the court of appeals erred.
In reversing, the court of appeals concluded that the Commission had used an improper standard for assessing SWEPCO's decision to complete construction of the plant and that, because SWEPCO did not produce independent expert testimony, the Commission's decision was without a proper basis. The Supreme Court reversed, holding (1) the Commission properly applied its standard in evaluating SWEPCO's decision to complete construction; and (2) substantial evidence supported the Commission's decision.
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