Testimony for House Committee on State Affairs Meeting 5.6.2026

“The solution is not to direct markets, but to allow them to function more efficiently. States like New Hampshire and Utah are already moving in this direction by creating frameworks that allow private, off-grid, or behind-the-meter generation without triggering full public utility regulation. These models demonstrate how removing barriers can accelerate investment, encourage competition, and reduce dependence on traditional monopoly structures. Texas should follow a similar path by streamlining permitting, clarifying interconnection rules, and allowing private microgrids, particularly those operating independently of ERCOT, to develop without unnecessary regulatory burdens. When these systems interact with the broader grid, appropriate oversight can apply, but early-stage innovation should not be stifled.

Public-private partnerships and subsidy-driven programs, while well-intentioned, risk distorting markets, shifting costs to taxpayers, and picking winners and losers. True resilience comes from competition and decentralized decision-making, not government direction. Texas does not have a demand problem. It has an infrastructure and regulatory alignment challenge. By removing barriers and empowering private investment, the state can expand supply, lower costs, and strengthen grid reliability without expanding government.

https://www.texaspolicyresearch.com/testimony-for-house-committee-on-state-affairs-meeting-5-6-2026/