This subchapter provides a number of tools to an electric utility to mitigate stranded costs. Each electric utility that was reported by the commission to have positive "excess costs over market" (ECOM), denoted as the "base case" for the amount of stranded costs before full retail competition in 2002 with respect to its Texas jurisdiction, in the April 1998 Report to the Texas Senate Interim Committee on Electric Utility Restructuring entitled "Potentially Strandable Investment (ECOM) Report: 1998 Update," must use these tools to reduce the net book value of, otherwise referred to as "accelerate" the cost recovery of, its stranded costs each year. Any positive difference under the report required by Section 39.257(b) shall be applied to the net book value of generation assets.
Tex. Util. Code § 39.254
USE OF REVENUES FOR UTILITIES WITH STRANDED COSTS
Known as the Public Utility Regulatory Act
The act spans §§ 11–66 (1,170 sections).
Applied in 4 court decisions — leading case CenterPoint Energy Houston Electric, LLC v. Gulf Coast Coalition of Cities (2008)
Most recently applied in State v. Public Utility Com'n of Texas (March 2011)
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff
How often courts cite this section
Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.