Texas Governor-Elect Hinojosa Plans Emergency Electricity Freeze
Texas Democratic Gov.-elect Gina Hinojosa plans to freeze residential electricity rates on her very first day in office. She told the New York Post she will declare a high-cost emergency within an hour of taking the oath. Her goal is to stop rising bills for families across the state.
"On Day One as governor, I'll freeze residential electricity rates and make corporations finally pay their fair share," Hinojosa said. She also promised to suspend gas and diesel taxes immediately upon her inauguration. This move targets what she calls an affordability crisis facing regular voters.
Experts warn that this plan could backfire in Texas' unique energy market. New York Post reports that the state relies on free-market choice rather than strict government control. Nick Loris, president of C3 Solutions, says the Texas Disaster Act allows governors to suspend laws during real disasters.
But Loris doubts this price hike counts as a true disaster. "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. He believes energy providers will sue the state right away.
The state passed Senate Bill 7 in 1999 to open up retail choice for customers. This law lets people pick their own power plans and fuel sources. Loris compares it to shopping for cereal at a grocery store with many options. "It's like shopping at a grocery store for cereal for your retail electricity," Loris said.
Hinojosa faces a tough legal fight if she tries to override these market rules. Reason Magazine notes that retail providers, not regulators, currently set electricity prices in Texas. Her plan would force the Public Utility Commission to freeze rates for customers.
Hinojosa stated she wants to freeze rates "until we have laws to ensure that data centers and other high-load users pay for themselves." She also plans to use her budget influence "to push lawmakers toward her priorities." However, the New York Post warns this could create shortages if suppliers cannot adjust prices.
Loris expects the legal challenges to come from the companies affected by the freeze. He believes courts will have to decide if a price hike counts as a state emergency.
Some data shows residential prices rose 3.3 percent between August 2025 and August 2026. This rise is part of what drives her urgency to act immediately.
Hinojosa intends to act fast once she is sworn in as governor. She told the Texas Tribune she will issue an executive order "within an hour of taking the oath of office." This order would freeze rates and suspend certain taxes right away.
The plan raises big questions about whether a governor can change market rules so quickly. Reason Magazine points out that New Jersey Gov. Mikie Sherrill recently froze rate hikes in her state. That example shows other governors have tried similar emergency moves before.
Legal experts say the outcome depends on how courts view the definition of a disaster. If the courts block the order, Hinojosa will have to find another way to lower costs. For now, Texas families wait to see if the freeze will hold up in court.