What happened
Texas Gov.-elect Gina Hinojosa announced plans to freeze residential electricity rates within an hour of taking the oath of office on Jan. 19, 2027. She described the move as a response to an affordability crisis and said she would declare a high-cost emergency in Texas before issuing an emergency executive order.
Hinojosa, a Democrat, defeated three-term incumbent Greg Abbott in the Nov. 3 gubernatorial election.
Nick Loris, president of C3 Solutions, a conservative coalition focused on energy, environment and agriculture policy, told Fox News Digital that the plan raises legal concerns. He said the Texas Disaster Act allows a governor to declare disasters and suspend existing regulatory laws and statutes, but questioned whether electricity prices qualify as a disaster warranting such action.
Loris also warned that freezing rates could conflict with Texas’ competitive energy structure. Under Senate Bill 7, passed in 1999, most of the state opened to retail electric choice beginning in 2002, allowing customers to select from more than 100 retail electric providers. The law states that electric services and prices should generally be determined by customer choices and competition rather than rate regulation.
Loris said price signals help suppliers manage fluctuating supply, and that preventing providers from adjusting prices could leave them worse off and more vulnerable to inadequate power delivery. He expects legal challenges from affected energy providers if the order is issued.
Hinojosa’s office did not immediately respond to questions about how the administration would respond if the rate freeze contributed to an energy shortage.
