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Texas Justices OK Electric Companies’ Pollution Exemptions

The Texas Supreme Court on Friday determined that the Texas Commission on Environmental Quality did not have the authority to deny a property tax exemption for electric companies that operate heat recovery steam generators, which are devices the Legislature has deemed “pollution control property.”

The state’s high court issued opinions in two cases that asked it to determine whether the commission overreached in denying the exemptions sought by nine electric companies. Brazos Electric Power Cooperative and eight other power plants argued that under Subsection K of Texas Tax Code Section 11.31, which outlines properties the Legislature has already determined are pollution-control properties and which includes heat recovery steam generators, or HRSGs, they should be provided at least a proportional exemption for pollution control.

Ennis, Wise, Midlothian and Hays are represented by Kevin D. Collins and Whitney L. Swift of Bracewell LLP.

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