The city of College Station files a lawsuit against the Texas Public Utility Commission (PUC).
The lawsuit, filed in Travis County, seeks to reverse a PUC order for the city of College Station to refund over $26 million dollars in electric transmission revenue.
City officials say the revenue, dating back to 1996, was approved by prior PUC board members.
And city officials say the current PUC board ignored most of the recommendations made in an opinion by an administrative judge from the state office of administrative hearings (SOAH).
Click HERE to read and download the SOAH judge opinion, provided by the city of College Station.
At the next College Station city council meeting (September 26), the agenda will include approve paying the refund ordered by the PUC. City officials say that is to avoid paying an additional $7 million dollars in interest and to allow their lawsuit against the PUC to proceed.
The refund, while ordered by the PUC, will go to 34 other electric companies.
City officials also say this will not change current electric rates. If the city loses the lawsuit, then it will have an impact on future electric department projects.
College Station mayor John Nichols and city manager Bryan Woods says College Station is the first of what could be multiple city owned electric companies who could face similar monetary penalties from the public utility commission.
PUC members are appointed by the governor. Woods says the PUC order being contested in court has been communicated to the governor’s office, the state senator representing Brazos County who chairs a committee that oversees the PUC, and those running for the two Texas House seats representing Brazos County.
As of September 20, the PUC has not filed a response to the city of College Station’s lawsuit.
Click below to hear comments from College Station councilman Dennis Maloney, mayor John Nichols, and city manager Bryan Woods: