Texas lawmakers may take steps to boost subsidies for nuclear energy in the upcoming legislative session, set to begin Jan. 14. The move comes as Gov. Greg Abbott has unveiled a new study from the Texas Advanced Nuclear Reactor Working Group, which outlines plans for expanding the state's nuclear power industry.
The report proposes the creation of a Texas Nuclear Energy Fund, similar to the Texas Energy Fund established in 2023 to support natural gas generation. With energy subsidies already a significant part of the state’s budget, the new fund could add billions to Texas' existing energy support programs.
In a press release, Abbott said the study lays out “Texas’ plan to build a world-leading advanced nuclear power industry to enhance electric reliability and energy security, promote economic development, and create new opportunities for the growing Texas workforce.”
“Texas is the energy capital of the world, and we are ready to be No. 1 in advanced nuclear power,” Abbott said.
The proposal for the Texas Nuclear Energy Fund is one of several recommendations from the working group, which seeks to foster a competitive nuclear industry in the state. The report does not specify a funding amount, but Abbott and Lt. Gov. Dan Patrick have indicated they want to double the $5 billion already allocated to the Texas Energy Fund. A similar allocation for nuclear energy could add another $5 billion in subsidies to the state’s energy sector.
If approved, this would bring the total increase in Texas energy subsidies to $10 billion.
Texas already leads the nation in subsidies for energy generation, and a 2023 study by the Energy Alliance found that the state increased the cost of electricity by $19.9 billion that year, largely due to subsidies and benefits for generators and utilities. These subsidies accounted for 42% of the total cost of electricity.
Public Utility Commissioner Jimmy Glotfelty, who chairs the working group, said the proposed fund would help “mitigate risk” for investors in nuclear energy.
“We hope that the Legislature will agree that [the fund] mitigates risk,” Glotfelty said, according to the Dallas Morning News.
However, Bill Peacock, policy director for the Energy Alliance, cautioned that existing energy subsidies—particularly those for renewable sources—are already increasing financial risks for Texas electricity consumers.
“Commissioner Glotfelty is one of the biggest advocates of renewable energy in the state,” Peacock said. “If he wants to mitigate the risk of investment in nuclear and other sources of dispatchable generation, he should propose eliminating renewable energy subsidies rather than increasing subsidies for other energy sources.”
The growing cost of energy subsidies has contributed to rising electricity prices in Texas. According to the Energy Alliance, wholesale electricity prices in the state were the highest in the nation for the past three years, dropping to second place behind California last year.
Retail electricity prices have also climbed steadily, with residential rates up 24% since 2020 and overall customer prices rising by 23%.
