Texas Governor-Elect Gina Hinojosa Vows to Freeze Electricity Rates on Day One
Texas Democratic Gov.-elect Gina Hinojosa says she will freeze residential electricity rates as soon as she takes office, setting up a possible legal battle over how far a governor's emergency powers can reach.
Hinojosa, who defeated Republican Gov. Greg Abbott in last week's election, has pitched the plan as an emergency answer to rising household costs. Her win came as Texas voters elected Democrats to federal and statewide offices for the first time in decades.
"On Day One as governor, I'll freeze residential electricity rates and make corporations finally pay their fair share," Hinojosa said while discussing her energy agenda.
She has given an even more specific timeline. "Within an hour of taking the oath of office, I will declare a high-cost emergency in the state of Texas and issue an emergency executive order to … freeze electricity rates," she told The Texas Tribune.
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How Long the Freeze Would Last
Hinojosa is set to be sworn in on Jan. 19, 2027. Her campaign has said the freeze would stay in place until lawmakers pass policies requiring data centers and other heavy power users to cover more of the costs tied to their huge energy demand.
"As Governor, Gina will direct the Public Utility Commission to freeze the rates residential customers pay until we have laws to ensure that data centers and other high-load users pay for themselves," her campaign platform states.
Whether a Texas governor has the authority to impose such a freeze without the Legislature's approval is an open question. Critics also warn that government price freezes tend to throw supply and demand out of balance, leading to shortages and less investment.
A Deregulated Market
Texas largely deregulated its electricity market through Senate Bill 7, a 1999 law that opened much of the state to retail competition starting in 2002. State law says prices in competitive areas should generally be set by consumer choice and normal market forces, not government rate regulation.
More than 100 retail electricity providers now compete for customers in the deregulated parts of the state. Hinojosa appears ready to rely on emergency powers rather than ordinary utility regulation to carry out her plan.
Nick Loris, president of the conservative energy and environmental group C3 Solutions, questioned whether high electricity prices would legally count as a disaster that allows a governor to use those powers.
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"The Texas Disaster Act lets the governor declare disasters and suspend the regulatory laws and statutes that are in existence," Loris told Fox News Digital. "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 said the electricity companies affected by any order would be among the most likely to sue. "I would imagine if there were legal challenges, it would come from those affected parties," he said.
Limits on Emergency Powers
A disaster declaration generally expires after 30 days unless the governor renews it, and the Legislature can end one through legislation. The Texas Disaster Act lists an "energy emergency" as a trigger, but the law defines it mainly as a temporary shortage of petroleum, natural gas or liquid fuels.
Hinojosa has not said which specific law she believes gives her the power to freeze competitive residential prices. She could also face pushback at the Capitol, where Democrats won the Texas House but Republicans kept control of the state Senate.
Republican state Rep. Brian Harrison has already urged Abbott to call lawmakers into a special session before he leaves office to limit the governor's emergency powers.