Atmos Energy Corp. v. Cities of Allen
353 S.W.3d 156
Tex.2011Background
- GRIP amendment (Tex. Util.Code § 104.301) allows interim rate adjustments for gas utilities between rate cases if a rate case occurred within the prior two years.
- GRIP filings are processed under the GRIP rule (16 Tex. Admin. Code § 7.7101) by the Commission as the regulatory authority, with potential municipal involvement.
- Atmos Energy filed GRIP adjustments; many municipalities denied them as unjust or unreasonable.
- The Commission approved some GRIP filings; Cities challenged and sought intervention, arguing lack of adjudicatory hearings and broader review.
- A district court found GRIP rule subsections void only to the extent they allowed certain actions by the Commission; court of appeals affirmed ministerial review as sufficient, and held certain subsections void only to that extent.
- Texas Supreme Court held that the Commission has appellate jurisdiction under § 102.001(b) over municipal denials, but only to review compliance with GRIP statutory requirements and the GRIP rule.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the Commission have appellate jurisdiction over municipal GRIP denials under § 102.001(b)? | Cities claim no appellate review for GRIP denials. | The Commission has exclusive appellate jurisdiction over municipal orders/or–dinances under § 102.001(b). | Yes; Commission has appellate jurisdiction over GRIP denials. |
| What is the scope of the Commission's appellate jurisdiction over GRIP denials? | Cities warrant evidentiary hearings and substantive review of reasonableness/prudence. | GRIP reviews are ministerial compliance checks; substantive review occurs in the next rate case. | Jurisdiction is limited to compliance with GRIP statute and rule; no evidentiary or prudence review in this stage. |
Key Cases Cited
- R.R. Comm’n of Tex. v. Tex. Citizens for a Safe Future & Clean Water, 336 S.W.3d 619 (Tex. 2011) (statutory construction and de novo review guidance)
- City of Marshall v. City of Uncertain, 206 S.W.3d 97 (Tex. 2006) (statutory interpretation; careful consideration of text and purpose)