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

CLERKCERTIFICATE OF SERVICE

As required by Texas Rule of Appellate Procedure 9.5, I certify that on the
6 th day of May , 201 5 , 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 Divi sion 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 In dustrial 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. McCormickThe CGS Statute as Enacted

... The tariffs subject to this subsection may not be considered to offer a
disc ounted 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) (emphas is 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 t he 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 r ecovery 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).