Houston is confronting a sharp rise in electricity costs that is reshaping the city’s budget outlook, per City Controller Chris Hollins.
During a March city council meeting, Hollins said electricity spending is projected to reach about $131 million in fiscal year 2026, an increase of more than 40% compared with previous years, which reflects structural changes in Texas’ electricity market following the 2021 Winter Storm Uri disaster.
“This isn’t a routine fluctuation,” Hollins said. “This is a material and a substantial shift in our cost structure that’s going to stick moving forward.”
Low-income and minority communities are most affected
For Black Houstonians living in neighborhoods such as Kashmere Gardens, Denver Harbor, Mayfair, Clinton Park and Pasadena, areas that often face higher energy burdens and aging infrastructure, the implications could extend beyond city finances…