No. 03-14-00709-CV

IN THE

THIRD COURT OF APPEALS

AT AUSTIN

ENTERGY TEXAS, INC.,

 Appellant,

v.

PUBLIC UTILITY COMMISSION OF TEXAS,

 Appellee.

Appeal from the 53rd Judicial District Court, Travis County, Texas

The Honorable Amy Clark Meachum, Judge Presiding

________________________________________________________________

APPELLANT ENTERGY TEXAS, INC.’S 

ORAL ARGUMENT EXHIBIT

_________________________________________________________________

John F. Williams

State Bar No. 21554100

jwilliams@dwmrlaw.com 

Marnie A. McCormick

State Bar No. 00794264

mmccormick@dwmrlaw.com

DUGGINS WREN MANN & ROMERO, LLP

600 Congress Ave., Ste. 1900 (78701)

P. O. Box 1149

Austin, Texas 78767-1149

(512) 744-9300

(512) 744-9399 fax

 ATTORNEYS FOR APPELLANT

 ENTERGY TEXAS, INC. 

May 2015

ACCEPTED

03-14-00709-CV

5166900

THIRD COURT OF APPEALS

AUSTIN, TEXAS

5/6/2015 8:46:45 AM

JEFFREY D. KYLE

CLERK

 FILED IN 3rd COURT OF APPEALS AUSTIN, TEXAS 5/6/2015 8:46:45 AM JEFFREY D. KYLE Clerk
CERTIFICATE OF SERVICE

As required by Texas Rule of Appellate Procedure 9.5, I certify that on the

6th day of May, 2015, the foregoing document was electronically filed with the 

Clerk of the Court using the electronic case filing system of the Court, and that a 

true and correct copy was served on the following lead counsel for all parties listed 

below via electronic service:

Elizabeth R. B. Sterling

Megan M. Neal

Environmental Protection Division

Office of the Attorney General

P.O. Box 12548

Austin, TX 78711-2548

Counsel for the Public Utility Commission of Texas

Rex VanMiddlesworth

Benjamin Hallmark

Thompson & Knight LLP

98 San Jacinto Blvd., Ste. 1900

Austin, TX 78701

Counsel for Texas Industrial Energy Consumers

Sara J. Ferris

Office of Public Utility Counsel

1701 N. Congress Ave., Ste. 9-180

P.O. Box 12397

Austin, TX 78711-2397

Counsel for Office of Public Utility Counsel

 /s/ Marnie A. McCormick 

Marnie A. McCormick
The CGS Statute as Enacted

... The tariffs subject to this subsection may not be considered to offer a 

discounted rate or rates under Section 36.007, and the utility's rates shall be set, in 

the proceeding in which the tariff is adopted, to recover any costs unrecovered as a 

result of the implementation of the tariff. ...

Tex. Util. Code Ann. § 39.452(b) (emphasis added).

The CGS Statute as Interpreted by the PUC

... The tariffs subject to this subsection may not be considered to offer a 

discounted rate or rates under Section 36.007, and the utility's rates shall be set, in 

the proceeding in which the tariff is adopted, to recover any costs unrecovered as a 

result of the implementation of the tariff. ...

The Energy Efficiency Statute

at Issue in CenterPoint, 354 S.W.3d 899 (Tex. App. – Austin 2011, no pet.)

(b) The commission shall provide oversight and adopt rules and procedures to 

ensure that the utilities can achieve the goal of this section, including:

(1) establishing an energy efficiency cost recovery factor for ensuring timely and 

reasonable cost recovery for utility expenditures made to satisfy the goal of this 

section;

...

(b-1) The energy efficiency cost recovery factor under Subsection (b)(1) may not 

result in an over-recovery of costs but may be adjusted each year to change rates to 

enable utilities to match revenues against energy efficiency costs and any 

incentives to which they are granted. The factor shall be adjusted to reflect any 

over-collection or under-collection of energy efficiency cost recovery revenues in 

previous years.

Tex. Util. Code Ann. § 39.905 (emphasis added).