eBook details
- Title: Nucor Steel v. Public Utility Commission of Texas
- Author : In The Court Of Appeals For The Seventh District Of Texas At Amarillo Panel D
- Release Date : January 23, 2005
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 75 KB
Description
This is an appeal by Nucor Steel of a contested case proceeding, held before the Public Utility Commission, regarding the design of TXU Electric Deliverys transmission and distribution rates. Nucor, an industrial TXU customer located in a non-municipal area, claims that the rate design ordered by the Commission unfairly imposes charges on non-municipal customers for costs incurred wholly within the municipality. Specifically, Nucor asserts that TXU should not be permitted to pass along its "franchise charges" as part of its base rates for non-municipal customers because those charges are calculated only on sales of electricity to municipal customers. Appellees--the Commission, TXU, the Texas Industrial Energy Consumers, and the Steering Committee of Cities Served by TXU Electric Company--counter that it is reasonable to collect these charges from non-municipal customers because both municipal and non-municipal customers benefit from the purpose served by the franchise charge, which is TXUs ability to locate its electric lines on municipal streets, alleys, and public rights-of-way in order to provide electric service to all of its customers. Nucor also challenges the Commissions order on the grounds that it improperly allocates the franchise charges based on the volume of sales, as measured in kilowatt hours, rather than on the sales revenue, as was historically done. Appellees contend that it was reasonable to base the allocation on kWh because it tracks the 1999 amendments to the Public Utilities Regulation Act.