Texas regulator grilled over data center costs

By Shelby Webb | 04/02/2026 06:42 AM EDT

State lawmakers pressed the Public Utility Commission chair Wednesday to make major changes that could benefit residential consumers.

A view of high-voltage transmission towers in Houston.

A view of high-voltage transmission towers in Houston, which is Texas' largest city. State officials are discussing ways to protect Texas customers from rising electric bills. Justin Sullivan/Getty Images

Texas lawmakers on Wednesday blasted the state’s top electricity regulator for not committing to make sweeping changes this year that could help protect residents from rising power prices as data centers flock to the Lone Star State.

Members of the Texas Senate’s Business and Commerce Committee said they receive daily calls on everything from how data centers affect manufacturers’ electricity plans to how regulators decide on transmission line projects.

“Everywhere we go, people are asking us about data centers, and costs, and all these things,” Vice Chair Sen. Phil King, a Republican, said during a committee hearing. “We need to be able to tell our constituents it’s getting done.”

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Thomas Gleeson, chair of the Public Utility Commission of Texas, and Pablo Vegas, CEO of the state’s main grid operator, described how they’re working to bring data centers online while trying to avoid price spikes for residential consumers. But Gleeson did not commit to pushing through big transmission adjustments in 2026.

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