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SOUTHEAST TEXAS RECORD

Thursday, May 2, 2024

Texas Supreme Court to hear oral arguments in Public Utility Commission of Texas case

State Court
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Texas Supreme Court | SCOTX

AUSTIN - Oral arguments have been slated in Public Utility Commission of Texas v. RWE Renewables America, a case currently before the Texas Supreme Court. 

Court records show PUC filed a petition for review on July 17, which states that the suit seeks judicial review on direct appeal of an order of the commission approving Nodal Protocols of the Electric Reliability Council of Texas (ERCOT). 

It was a direct appeal by RWE and TX Hereford Wind. A court of appeals reversed the order and remanded the case to PUC, leading the commission to file a petition for review with the Texas Supreme Court.

According to the petition, ERCOT followed the process outlined in its protocols and adopted amendments to help ensure accurate market prices for electricity when load is being shed during an emergency. RWE participated in that process. PUC then issued an order approving those amendments and allowing them to take effect. Rather than challenge the amendments through the avenues provided by the Nodal Protocols and Commission rules, REW and TX Hereford purported to appeal the Commission’s order directly to the Third Court of Appeals.

In its response, RWE argues that the Legislature mandates wholesale electric prices be set by the competitive market, not government regulators. 

“During Winter Storm Uri, the PUC ordered the price of electricity be artificially-inflated and fixed at the $9,000 cap, instead of allowing price to continue being set by the market,” the response states. “After Storm Uri, the PUC quickly adopted the same approach from the February orders as a new price-setting rule for future load shed events.” 

The high court set arguments for March 19. Each side has been allotted 20 minutes. 

Supreme Court case No. 23-0555

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