Texas governor-elect's plan to freeze electricity prices raises questions over legal authority
"On Day One as governor, I’ll freeze residential electricity rates and make corporations finally pay their fair share," Hinojosa said in an interview with a local energy data group.
Key points
- GREG ABBOTT EFFECTIVELY PAUSES NEW DATA CENTER PROJECTS PENDING STATEWIDE GRID AUDIT As a result of the law, Texas largely operates its own independent energy grid and runs an energy-only wholesale market in which generators are paid primarily for the electricity they produce rather than for standing capacity.
- "The Texas Disaster Act lets the governor declare disasters and suspend the regulatory laws and statutes that are in existence.
- "If the electricity suppliers are not covering the costs that they incur, that's going to leave them worse off and make it more vulnerable for them to adequately provide that power," Loris said.
On her first day in office, Texas Democratic Gov.-elect Gina Hinojosa plans to freeze residential electricity rates in response to what she described as an affordability crisis.
Additional details
- However, he warned that a utilities freeze undermines that competitive environment, causing providers to shoulder the burden of fluctuating supply.
- AI'S MASSIVE APPETITE FOR POWER, WATER IGNITES FIGHT IN HIGH-STAKES TEXAS SENATE RACE "Price signals really kind of act like a traffic light.
- In 1999, the state passed Senate Bill 7 — a piece of legislation that opened most of the state to retail choice, allowing customers to pick their preferred retail electric providers (REPs), beginning in 2002.
- But I think there is a high degree of skepticism, both from courts but also from state policymakers, that this warrants such a claim — and that it is such a disaster," Loris told Fox News Digital.
- He expects the emergency declaration will face legal challenges almost immediately from energy providers.
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