What our commercial energy brokers in Texas are tracking in 2025

Energy has been a hot topic lately in regard to Trump's recent tariffs and Canada/Mexico's response. While talks are on pause for the next 30 days, the energy market surged up as the stock market came crashing down.

Here are other news items that our team at Fourth Day Energy is keeping an eye on as there is a significant issue that is driving electricity rates higher in Texas: power demand outpacing generation.

Energy Grid Reliability & Power Generation Capacity

• Electricity demand in Texas continues to rise as Texas continues to experience rapid population and economic growth

• The Electric Reliability Council of Texas (ERCOT) may need to double generation capacity by 2030 to maintain reliability.

• Lawmakers are prioritizing new power plant construction, particularly dispatchable generation (natural gas, nuclear, and storage).

• Proposed legislation could require at least 50% of power generation from dispatchable sources, impacting renewable energy growth.

Renewable Energy & Market Regulations

• Texas leads the U.S. in wind and solar capacity, but there are new proposed policies that could slow expansion.

• Proposed policies include:

  • Environmental impact studies and public hearings for wind & solar projects.

  • Distance requirements from property lines.

  • Fees for facility cleanup funds.

• Offshore wind faces additional scrutiny over potential disruptions to shipping, tourism, and wildlife.

• Battery storage, which helps manage renewable energy fluctuations, may see new permitting rules aimed at safety concerns.

Abandoned & Orphaned Oil & Gas Wells

• Texas has nearly 7,400 orphaned wells, many leaking methane and contaminating groundwater.

• The state Railroad Commission requested $100 million to plug the most hazardous wells, acknowledging prior funding was insufficient.

• Proposed solutions include increasing surety bond requirements on oil and gas companies to prevent future orphaned wells.

Methane Emissions & Flaring Regulations

• The Biden administration introduced federal methane regulations, requiring oil and gas companies to upgrade equipment.

• Texas lawmakers may attempt to block these regulations, arguing they increase operational costs.

• The Texas Oil & Gas Association claims methane emissions in the Permian Basin dropped 26% from 2022 to 2023, but stricter monitoring may still be introduced.

Texas Energy Fund Expansion

• In 2023, Texas created a $5 billion state-backed loan program for new natural gas plants.

• Demand exceeded expectations, with $39 billion in loan requests.

• Lawmakers are considering doubling the fund to $10 billion to accelerate power plant development.

• Discussions are emerging about establishing a Texas Nuclear Energy Fund to support advanced nuclear reactors by 2035.

Final Thoughts

This legislative session will determine the trajectory of Texas energy policy for years to come. Whether you’re a business owner, energy investor, or residential consumer, staying informed on these developments is crucial because some decisions have a stronger impact on the electricity rates in your specific zone of Texas.

Equipped with a team of energy experts and veteran electricity brokers, our team is dedicated to help our partners mitigate risk and keep energy costs to a minimum in a volatile market.

Want to know what other strategies that businesses are doing to address these changes in energy policy? Curious on what your options are given your current energy plan?

Give us a call (1-844-607-7177), email (info@fourthdayenergy.com) or fill out our form as we're always ready and looking to help our fellow Texas business owners and community.