Texas regulator grilled over data center costs
News ClipE&E News by POLITICO·TX·4/2/2026
Texas lawmakers grilled the Public Utility Commission (PUC) chair over rising electricity prices for residents, which they attribute to the influx of data centers. Lawmakers demanded sweeping changes to protect consumers, but the PUC chair did not commit to major transmission adjustments.
electricitygovernment
Gov: Public Utility Commission of Texas, Texas Senate's Business and Commerce Committee
Texas state lawmakers criticized Thomas Gleeson, chair of the Public Utility Commission (PUC) of Texas, for not committing to significant changes aimed at shielding residents from escalating power prices. This comes as a surge of data centers are establishing operations in the state.
During a committee hearing, members of the Texas Senate's Business and Commerce Committee, including Vice Chair Sen. Phil King, stated they are inundated with calls from constituents concerned about the impact of data centers on electricity costs and transmission line projects. King emphasized the need to assure constituents that action is being taken.
Gleeson, along with Pablo Vegas, CEO of the state’s main grid operator, detailed ongoing efforts to integrate data centers into the grid while simultaneously working to prevent price spikes for residential consumers. However, Gleeson refrained from promising to push through major transmission adjustments in 2026.