Centerpoint Energy Entex v. Railroad Commission
This opinion addresses an appeal brought by CenterPoint Energy Entex concerning the Texas Railroad Commission's authority to conduct retroactive prudence reviews of gas charges passed through a purchased gas adjustment (PGA) clause and to order refunds. Entex also challenged whether such a review constitutes a 'ratemaking proceeding,' which would entitle the City of Tyler to expense reimbursement. The court affirmed the Commission's authority to conduct retroactive prudence reviews and order refunds, concluding it does not violate the filed rate doctrine or the rule against retroactive ratemaking. However, the court reversed the district court's decision regarding expense reimbursement, ruling that a prudence review is not a 'ratemaking proceeding' for the purpose of municipal expense recovery.