Texas Codes

Tex. Util. Code § 36.054 (2026)

Construction Work In Progress

✓ current as of May 2026

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Sec. 36.054. CONSTRUCTION WORK IN PROGRESS. (a) Construction work in progress, at cost as recorded on the electric utility's books, may be included in the utility's rate base. The inclusion of construction work in progress is an exceptional form of rate relief that the regulatory authority may grant only if the utility demonstrates that inclusion is necessary to the utility's financial integrity.

(b) Construction work in progress may not be included in the rate base for a major project under construction to the extent that the project has been inefficiently or imprudently planned or managed.

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

Notes of Decisions

Cited in 11 cases (1 in the last 5 years), 2007–2021 · leading case: CenterPoint Energy Houston Elec., LLC v. Gulf Coast Coalition of Cities, 252 S.W.3d 1 (Tex. App. 2008).

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CenterPoint Energy Houston Elec., LLC v. Gulf Coast Coalition of Cities, 252 S.W.3d 1 (Tex. App. 2008). · cites it 4× “” Tex. Util.Code Ann. § 36.054. In addition to the construction costs, utilities often had to pay other expenses relating to assets that might not be productive for years to come.”

AEP Texas Cent. Co. v. Pub. Util. Comm'n of Texas, 258 S.W.3d 272 (Tex. App. 2008). · cites it 2× “Tex. Util.Code Ann. § 36.054. [20] Section 39.”

Centerpoint Energy Houston Elec., LLC & Texas Genco, LP // Cross Gulf Coast Coalition of Cities, Houston Council for Health & Educ., City of Houston, Coalition of Cities v. Pub. Util. Comm'n of Texas, Off. of Pub. Util. Couns., Gulf Coast Coalition of Cities, City of Houston, Texas Indus. Energy Consumers, Houston Council for Health & Educ., State of Texas, Occidental Power Mktg., L.P. (Tex. App. 2007). · cites it 4× “" Tex. Util. Code Ann. § 36.054 . In addition to the construction costs, utilities often had to pay other expenses relating to assets that might not be productive for years to come.”

Centerpoint Energy Houston Elec., LLC & Texas Genco, LP // Cross Gulf Coast Coalition of Cities, Houston Council for Health & Educ., City of Houston, Coalition of Cities v. Pub. Util. Comm'n of Texas, Off. of Pub. Util. Couns., Gulf Coast Coalition of Cities, City of Houston, Texas Indus. Energy Consumers, Houston Council for Health & Educ., State of Texas, Occidental Power Mktg., L.P. (Tex. App. 2008). · cites it 4× “" Tex. Util. Code Ann. § 36.054 . In addition to the construction costs, utilities often had to pay other expenses relating to assets that might not be productive for years to come.”

Centerpoint Energy Houston Elec., LLC & Texas Genco, LP // Cross Gulf Coast Coalition of Cities, Houston Council for Health & Educ., City of Houston, Coalition of Cities v. Pub. Util. Comm'n of Texas, Off. of Pub. Util. Couns., Gulf Coast Coalition of Cities, City of Houston, Texas Indus. Energy Consumers, Houston Council for Health & Educ., State of Texas, Occidental Power Mktg., L.P. (Tex. App. 2007). · cites it 3× “” Tex. Util. Code Ann. § 36.054 . In addition to the construction costs, utilities often had to pay other expenses relating to assets that might not be productive for years to come.”

Centerpoint Energy Houston Elec., LLC & Texas Genco, LP // Cross Gulf Coast Coalition of Cities, Houston Council for Health & Educ., City of Houston, Coalition of Cities v. Pub. Util. Comm'n of Texas, Off. of Pub. Util. Couns., Gulf Coast Coalition of Cities, City of Houston, Texas Indus. Energy Consumers, Houston Council for Health & Educ., State of Texas, Occidental Power Mktg., L.P. (Tex. App. 2008). · cites it 3× “” Tex. Util. Code Ann. § 36.054 . In addition to the construction costs, utilities often had to pay other expenses relating to assets that might not be productive for years to come.”

Texas Indus. Energy Consumers, Cities Advocating Reasonable Deregulation, & Off. of Pub. Util. Couns. v. Pub. Util. Comm'n of Texas & Sw. Elec. Power Co. (Tex. App. 2021). “Tex. Util. Code § 36.054(a). The cost of constructing a new plant includes financing costs, i.”

AEP Texas Cent. Co. The State of Texas, by & Through the Off. of the Attorney Gen., Consum. Prot. & Pub. Health Div., Pub. Agency Representation Section// Pub. Util. Comm'n of Texa v. Pub. Util. Comm'n of Texas// AEP Texas Cent. Co. The State of Texas, by & Through the Off. of the Attorney Gen., Consum. Prot. & Pub. Health Div., Pub. Agency Representation Section (Tex. App. 2008). “Tex. Util. Code Ann. § 36.054 . 20. Section 39.”

— Tex. Util. Code § 36.054(a) — 1 case

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