Texas Codes

Tex. Util. Code § 36.052 (2026)

Establishing Reasonable Return

✓ laws through the 89th Legislature (2025)
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Sec. 36.052. ESTABLISHING REASONABLE RETURN. In establishing a reasonable return on invested capital, the regulatory authority shall consider applicable factors, including:

(1) the efforts and achievements of the utility in conserving resources;

(2) the quality of the utility's services;

(3) the efficiency of the utility's operations; and

(4) the quality of the utility's management.

Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 405, Sec. 24, eff. Sept. 1, 1999.

Notes of Decisions
Cited in 5 cases, 2008–2009 · leading case: Pioneer Nat. Resources USA, Inc. v. Pub. Util. Comm'n, 303 S.W.3d 363 (Tex. App.—Austin 2009).
Pioneer Nat. Resources USA, Inc. v. Pub. Util. Comm'n, 303 S.W.3d 363 (Tex. App.—Austin 2009). “Tex. UtiLCode Ann. § 36.052. Pioneer contends that the Commission’s failure to reduce the rate of return on equity demonstrates that the Commission failed to consider the factors required by section 36.”
Cities of Corpus Christi // AEP Texas Cent. Co. v. Pub. Util. Comm'n of Texas // Cities of Corpus Christi, No. 03-06-00585-CV, 2008 WL 615417 (Tex. App.—Austin Mar. 5, 2008). · cites it 3× “To establish a reasonable rate of return, the Commission considers several factors, including the efforts of the utility in conserving resources, the quality of the utility's service, the efficiency of the utility's operations, and the quality of the utility's management.”
Cities of Corpus Christi // AEP Texas Cent. Co. v. Pub. Util. Comm'n of Texas // Cities of Corpus Christi, No. 03-06-00585-CV (Tex. App.—Austin Mar. 5, 2008). · cites it 3× “To establish a reasonable rate of return, the Commission considers several factors, including the efforts of the utility in conserving resources, the quality of the utility’s service, the efficiency of the utility’s operations, and 8 the quality of the utility’s management.”
Pioneer Nat. Resources USA v. Pub. Util. Comm'n of Texas & Cap Rock Energy Corp.// Pub. Util. Comm'n of Texas & Pioneer Nat. Resources USA, Inc., No. 03-07-00730-CV (Tex. App.—Austin Dec. 31, 2009). “Tex. Util. Code Ann. § 36.052 . Pioneer contends that the Commission's failure to reduce the rate of return on equity demonstrates that the Commission failed to consider the factors required by section 36.”
Pioneer Nat. Resources USA v. Pub. Util. Comm'n of Texas & Cap Rock Energy Corp.// Pub. Util. Comm'n of Texas & Pioneer Nat. Resources USA, Inc., No. 03-07-00730-CV (Tex. App.—Austin Dec. 31, 2009). “Tex. Util. Code Ann. § 36.052 . Pioneer contends that the Commission’s failure to reduce the rate of return on equity demonstrates that the Commission failed to consider the factors required by section 36.”
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