Central Power and Light Company v. John Sharp, Comptroller of Public Accounts of the State of Texas And Dan Morales, Attorney General of the State of Texas
Central Power and Light Company (CP&L) appealed a summary judgment in favor of the Comptroller regarding the interpretation of a provision within the Franchise Tax Act, specifically concerning the computation of a company's surplus. CP&L challenged the Comptroller's interpretation of "generally accepted accounting principles" to include Financial Accounting Standards, arguing it resulted in unequal taxation by requiring utilities to capitalize AFUDC-equity while not requiring private companies to do so. CP&L also claimed the interpretation resurrected the