Tex. Codes » Utilities Code · TITLE 2. PUBLIC UTILITY REGULATORY ACT · SUBTITLE B. ELECTRIC UTILITIES · CHAPTER 36. RATES
Texas Codes

Tex. Util. Code § 36.003 (2026)

Just And Reasonable Rates

✓ current as of May 2026
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Sec. 36.003. JUST AND REASONABLE RATES. (a) The regulatory authority shall ensure that each rate an electric utility or two or more electric utilities jointly make, demand, or receive is just and reasonable.

(b) A rate may not be unreasonably preferential, prejudicial, or discriminatory but must be sufficient, equitable, and consistent in application to each class of consumer.

(c) An electric utility may not:

(1) grant an unreasonable preference or advantage concerning rates to a person in a classification;

(2) subject a person in a classification to an unreasonable prejudice or disadvantage concerning rates; or

(3) establish or maintain an unreasonable difference concerning rates between localities or between classes of service.

(d) In establishing an electric utility's rates, the commission may treat as a single class two or more municipalities that an electric utility serves if the commission considers that treatment to be appropriate.

(e) A charge to an individual customer for retail or wholesale electric service that is less than the rate approved by the regulatory authority does not constitute an impermissible difference, preference, or advantage.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.

Notes of Decisions
Cited in 19 cases, 1999–2015 · leading case: State, Off. of Pub. Util. Couns. v. Pub. Util. Comm'n of Texas, 131 S.W.3d 314 (Tex. App. 2004).
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State, Off. of Pub. Util. Couns. v. Pub. Util. Comm'n of Texas, 131 S.W.3d 314 (Tex. App. 2004). · cites it 2× “11 See Tex. Util. Code Ann. §§ 36.003 , .201 (West 1998).”
Texas Bldg. Owners & Managers Ass'n v. Pub. Util. Comm'n, 110 S.W.3d 524 (Tex. App. 2003). “1980); see also Tex. Util. Code Ann. § 36.003 (a), (b) (West 1998).”
Off. of Pub. Util. Couns. v. Pub. Util. Comm'n, 104 S.W.3d 225 (Tex. App. 2003). “See Tex. Util.Code Ann. § 36.003(a) (West 1998).”
Nucor Steel v. Pub. Util. Com'n of Tex., 168 S.W.3d 260 (Tex. App. 2005). “2d 493 (1995); see also Tex. UtiLCode Ann. § 36.003. Cost is not the only factor that is pertinent to the Commission’s decision; the Commission may also consider the purpose for which the service is received, the quantity received, the time of use, and the consistency and…”
Houston Lighting & Power Co. v. Auchan USA, Inc., 995 S.W.2d 668 (Tex. 1999). “See Tex. Util.Code § 36.003. It must provide service to all regardless of the potential liability that would be associated with a loss of power to a particular customer’s business.”
Corley v. Entergy Corp., 246 F. Supp. 2d 565 (E.D. Tex. 2003). “” Tex. Util.Code § 36.003. In making this determination, the PUC considers transactions with affiliates of the regulated entity.”
City of Abilene, Texas City of San Angelo, Texas & City of Vernon, Texas v. Pub. Util. Comm'n of Texas & West Texas Utils. Co. (Tex. App. 2003). · cites it 4× “See Tex. Util. Code Ann. § 36.003 (c) (West 1998) (a utility may not grant an "unreasonable preference or advantage concerning rates" or "subject a person in a classification to an unreasonable prejudice or disadvantage concerning rates").”
State of Texas, Off. of Pub. Util. Couns., & City of Houston v. Pub. Util. Comm'n of Texas (Tex. App. 2004). · cites it 2× “11 See Tex. Util. Code Ann. §§ 36.003 , .201 (West 1998).”
State of Texas, Off. of Pub. Util. Couns., & City of Houston v. Pub. Util. Comm'n of Texas (Tex. App. 2004). · cites it 2× “(11) See Tex. Util. Code Ann. §§ 36.003 , .201 (West 1998).”
Entergy Texas, Inc. v. Pub. Util. Comm'n of Texas, Off. of Pub. Util. Couns., & Texas Indus. Energy Consumers (Tex. App. 2015). · cites it 2× “22 Tex. Util. Code Ann. § 36.003 ...........”
Entergy Texas, Inc.// Off. of Pub. Util. Couns. & Pub. Util. Comm'n of Texas v. Pub. Util. Comm'n of Texas & Texas Indus. Energy Consumers// Off. of Pub. Util. Couns. & Entergy Texas, Inc. (Tex. App. 2015). · cites it 2× “14 Tex. Util. Code Ann. § 36.003 ...........”
Texas Bldg. Owners & Managers Ass'n, Inc. Bldg. Owners & Managers Ass'n Int'l Tanglewood Prop. Mgmt. Co. Emissary Grp. 5599 San Felipe, Ltd. & the Real Access All. v. the Pub. Util. Comm'n of Texas & the State of Texas (Tex. App. 2003). “(10) Here, the Statutes delegate authority to the Commission to enforce the right of a property owner to require a utility to pay "reasonable" and "nondiscriminatory" compensation when a utility gains access to the property.”
Show all 19 citing cases →
— Tex. Util. Code § 36.003(a) — 3 cases
State, Off. of Pub. Util. Couns. v. Pub. Util. Comm'n of Texas, 131 S.W.3d 314 (Tex. App. 2004). “11 See Tex. Util. Code Ann. §§ 36.003 , .201 (West 1998).”
Off. of Pub. Util. Couns. v. Pub. Util. Comm'n, 104 S.W.3d 225 (Tex. App. 2003). “See Tex. Util.Code Ann. § 36.003(a) (West 1998).”
Entergy Texas, Inc.// Off. of Pub. Util. Couns. & Pub. Util. Comm'n of Texas v. Pub. Util. Comm'n of Texas & Texas Indus. Energy Consumers// Off. of Pub. Util. Couns. & Entergy Texas, Inc. (Tex. App. 2015).
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