Texas Energy Report NewsClips
Thursday May 7, 2026
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Good morning! Here are today’s Texas Energy Report NewsClips
Oil prices rose Thursday in volatile trading as investors continue to assess the latest developments in the Middle East amid concerns over renewed tensions between Iran and the U.S.
WTI for June rose 0.65% to $95.70 per barrel at 2:30 am ET Thursday.
International benchmark Brent crude futures for July gained 0.67% to $101.95 a barrel.
Scott Chronert, Citi U.S. equity strategist, said that the duration of the conflict will affect the wider economy.
“The duration of the conflict and the implication that has for higher oil prices for longer is a big deal as it pertains to future growth expectations for many parts of the market, as well as how it influences the Fed thinking in terms of the interest rate dynamic,” Chronert said on CNBC’s Squawk Box.
Despite reports that Washington and Tehran are nearing an agreement to end the war, President Donald Trump said Wednesday Iran will be bombed “at a much higher level” if it doesn’t agree to a peace deal, raising market concerns that Iran-U.S. negotiations to end the war remain fragile.
Top Stories
Bloomberg – May 6, 2026
Western Midstream to Pay $1.6 Billion for Permian Pipelines*
Western Midstream Partners LP agreed to acquire closely-held pipeline operator Brazos Delaware II for about $1.6 billion. The deal, which is expected to close by the end of June, includes 900 miles (1,450 kilometers) of pipes as well as natural gas processing plants and related equipment in the prolific Delaware region of the Permian Basin, according to a statement from the buyer Wednesday.
Under the terms of the deal, Western will pay for the deal with about $800 million in cash and the rest in the form of company shares. Occidental Petroleum Corp. is Western’s largest investor, having acquired the business during its blockbuster takeover of Anadarko Petroleum in 2019. Greenhill provided financial advice to Western, while Jefferies served as Brazos’ financial adviser.
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E&E News By Politico – May 6, 2026
Spiraling energy costs may tighten Texas governor’s race
Higher prices at the pump and rising electric bills could be Gina Hinojosa’s path to the Texas governor’s mansion — if voters decide to elect a Democrat for the first time in more than 30 years. Hinojosa, a state representative from Austin, is blaming three-term Republican Gov. Greg Abbott for a surge in electric costs. And she is urging him to suspend the state’s 20-cents-per-gallon gasoline tax to give motorists some relief, saying she hears concerns about spiking energy costs on the campaign trail.
“People are like, ‘Yes, that’s right. That’s happened to me,’” Hinojosa said in an interview. Abbott has presided over an economic boom for most of his 11-plus years as governor. Texas’ unemployment rate trails the national average, and the state’s population is growing at the expense of high-priced states on the East and West coasts. But Texas hasn’t been able to escape the nationwide inflation, and Republicans are being dragged down by President Donald Trump’s flagging approval ratings and the rising cost of gasoline in the wake of the U.S.-Israeli war with Iran. Abbott’s campaign argues that Hinojosa’s proposals are unworkable and that Texas is succeeding because of consistent Republican leadership. At $3.98 per gallon, regular gasoline in Texas was up more than $1.20 from a year earlier Tuesday while still 11 percent below the national average, according to AAA.
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Reuters – May 6, 2026
Texas off-grid power build soars as data centers bridge grid delays*
The development of behind-the-meter (BTM) power generation is booming in Texas as data center developers seek to deploy facilities faster than grid connections can be completed. Over 20 GW of BTM power projects for data centers were announced in Texas in 2024-2025, compared with 56 GW nationwide, according to data provider Cleanview. A further 10 GW was announced in Texas in January-April 2026, press releases show. In March, Fermi America pledged to add 5 GW of gas-fired capacity to its Project Matador BTM private grid, resulting in 17 GW of total campus capacity including 11 GW of natural gas and 4.4 GW of nuclear energy, solar and battery sources.
Most of the BTM projects in gas-abundant Texas will use gas-fired power, with some combining renewables with battery storage in hybrid configurations to ensure reliability, according to public announcements. Gas-fired plants provide reliable dispatchable power and do not require large land areas like solar and wind farms. Traditionally, data center operators have relied on the power grid, using dual utility feeds, backup diesel generators and other strategies to enhance reliability and resilience. As AI demand surges, hyperscalers are working to faster timelines than grid expansion projects, requiring significant amounts of BTM capacity, Matthew Herpich, CEO of power generation developer Conduit Power, said.
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Houston Chronicle – May 6, 2026
Why wind energy is big at Houston’s oil-loving Offshore Technology Conference: Michael E. Webber*
The Offshore Technology Conference is back in town, and that means one thing: tens of thousands of people at NRG Park trying to make America energy-dominant by battling storms, waves and saltwater with rugged technologies. Technologies like offshore wind. Yes, talk about offshore energy and you’re likely to summon visions of deep-sea rigs drilling for oil and gas, but wind is increasingly part of the energy mix both on land and at sea. In fact, one of OTC’s keynote sessions is dedicated to offshore wind.
Unfortunately for the industry, President Trump seems to hate offshore wind. The White House has targeted seaward turbines with unlawful permit cancellations, blocking new leases for future offshore wind farms, and using taxpayer money to pay companies to stop development. That’s too bad, because offshore wind is good for Houston and good for Texas.
Demand for electricity is growing faster than we’ve seen in decades. Though data centers capture the headlines, they’re not the only ones that want more power. The oil and gas industry is rapidly electrifying its extraction, processing, pipelines and export-facing liquefaction trains to reduce emissions, lower costs and improve productivity. In parallel, electric appliances, cars and factories are increasingly popular. If we’re going to meet the moment — supplying power to win the AI arms race while helping Texas oil and gas remain globally competitive — then we need to expand the power sector as quickly as possible. That means an all-of-the-above strategy for new power plants. And offshore wind should be allowed to compete for a spot in that mix.
The Latest TERse Tips
U.S. President Donald Trump told reporters on Wednesday that he met with top officials at Chevron and ExxonMobil a day earlier to discuss Venezuela — US News
U.S. Secretary of the Interior Doug Burgum toured oil and gas operations in the Permian Basin and New Mexico to observe industry practices firsthand, visiting a Diamondback Energy site in Reagan County to learn about the company’s operations — KOSA
The US shale patch is finally responding to President Donald Trump’s call to “Drill, baby, drill.” — Diamondback only increased its prewar production guidance 3%. But across the Permian Basin of Texas and New Mexico, the company expects drillers to add as many as 30 rigs, equating to a 10% jump in activity — Bloomberg*
The Texas Energy Fund, a controversial $10 billion taxpayer-backed program, has officially produced its first natural gas power plant for the state’s power grid after some initial hiccups — the power plant, dubbed Pin Oak Creek, was announced in 2023 by Houston-based Calpine, a company that has since been acquired by Baltimore-based Constellation — Houston Chronicle*
Houston’s EOG Resources is reallocating funds from natural gas to oil-weighted assets to capitalize on robust crude prices, management said in a first quarter earnings call — Natural Gas Intelligence*
Moment Energy, the architect of the next generation of power infrastructure, today announced a $40 million Series B funding round, bringing its total capital raised to over $100 million — see the press release
California Braces for Oil Shortfall After Gulf Shipments Halt — with no pipeline access and declining refining capacity, the state faces growing supply risks — Governing
Delfin Midstream Inc. and Gunvor Group announced that Gunvor International B.V. Amsterdam, Geneva Branch, has entered into a long-term LNG Sale and Purchase Agreement with Delfin LNG LLC, a subsidiary of Delfin — see the press release
Saudi Arabia’s state oil producer Saudi Aramco has held official selling prices steady for liquefied petroleum gas in May, while Algeria’s Sonatrach has cut them by 2% to 18% due to higher global supply and weaker demand, traders said on Monday — Reuters*
Battalion Oil Corporation has announced the signing of a letter of intent with an industry partner to develop an up to eight-well program in Monument Draw, Ward County — see the AI summary
China demonstrates microwave beam that recharges drones in flight, continues power delivery — this could significantly expand how long drones remain in the air, supporting continuous surveillance, strike missions — Interesting Engineering
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FINANCIAL RESULTS
Natural gas producer Comstock Resources missed Wall Street’s revenue expectations in Q1 CY2026, but sales rose 8% year on year to $419 million, its non-GAAP profit of $0.15 per share was 34.4% below analysts’ consensus estimates — Stock Story
Excelerate Energy came out with quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.39 per share — Zacks
Par Petroleum came out with quarterly earnings of $0.78 per share, missing the Zacks Consensus Estimate of $1.05 per share, compared to a loss of $0.94 per share a year ago — Zacks
Oil States International, Inc. reported net income of $1.1 million, or $0.02 per share, and Adjusted EBITDA of $16.7 million for the first quarter of 2026 on revenues of $145.4 million — see the press release
USA Compression Partners, LP announced Tuesday its financial and operating results for first-quarter 2026 — see the press release
Murphy Oil Corporation on Wednesday announced its financial and operating results for the first quarter ended March 31 — see the press release
Riley Exploration Permian, Inc. on Wednesday reported financial and operating results for the first quarter ended March 31, 2026 — see the press release
Oil & Gas Texas
Texas Public Radio – May 6, 2026
Oilfield theft in Texas grows more organized — and more dangerous
Oil theft has been part of the Texas oil patch since the earliest days of wildcatters. But officials say today’s version of “oil rustling” has become more organized, more sophisticated and far more dangerous. In March 2025, that danger lit up the night sky in Reeves County, when a pipeline caught fire and exploded after what investigators described as an attempted theft of petroleum products.
The fire was contained before it spread to populated areas or to a nearby natural gas pipeline. Tim Murphy with the Texas Department of Public Safety described the incident during recent testimony before the Texas House Energy Resources Committee. “They cut into the pipeline and tried to tap directly into the main pipeline,” Murphy said. “It sparked and it blew. They blew up everything in the area, but the pipeline burned for several days.”
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Center Square – May 6, 2026
Reports: As record crude production increases in Texas, flaring intensity drops
Another report shows a consistent pattern: as record oil production occurs in the Permian Basin and other key oil fields in Texas, flaring intensity continues to drop, improving environmental outcomes. In its annual flaring report, Texans for Natural Gas is pointing to consistent findings in recent years: as oil production increases, flaring and methane emissions are decreasing, and by record amounts.
“The level of flaring reductions the industry has been able to accomplish over the past five years is very significant, in some regions it’s been nearly halved,” said Ed Longanecker, president of the Texas Independent Producers & Royalty Owners Association, which launched the Texans for Natural Gas campaign. “Achievements to that degree don’t just happen. It’s proof that the industry’s commitment to the environment wasn’t just a talking point, but rather clear action in the way it operates and invests in its business.”
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ABC News – May 1, 2026
Are oil companies profiting from the Iran war? Experts explain
“This quarter demonstrated that ExxonMobil is a fundamentally stronger company than it was just a few years ago, built to perform through disruption and across market cycles. Events in the Middle East tested that strength with the safety of our people remaining our top priority,” Exxon CEO Darren Woods said in a statement. Roughly 15% of Exxon’s production has been impacted by the Iran war, Woods told CNBC on Friday.
“If you had to reduce the amount of product that you’re selling, you’re not going to be able to take advantage of the higher prices,” Tom Seng, a professor of energy finance at Texas Christian University, told ABC News. Exxon also temporarily lost out on billions in earnings as a result of “timing effects” tied to financial hedges, the company said. Oil companies sometimes take such financial positions to lock in a buyer at a minimum price and avoid pain from potentially volatile price drops. The approach, however, risks losses in the event of an unanticipated jump in prices. “It’s like paying a premium on an insurance policy and you don’t end up having to make a claim,” Fitzgerald said.
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Reuters – May 1, 2026
Woodside struggles to sell LNG volumes at Louisiana LNG plant, sources say*
Australia’s Woodside Energy is struggling to sell liquefied natural gas volumes from its planned Louisiana LNG export facility because it is seeking liquefaction fees above prevailing U.S. market rates, two people familiar with the matter told Reuters. The Australian energy producer has so far announced only one long-term sales and purchase agreement for the project, a deal with Germany’s Uniper covering up to 2 million metric tons per year. That is equivalent to about 25% of Woodside’s share of the plant’s output, outside of the 8 million tons of LNG it has decided to keep for its own portfolio.
Liquefaction fees are charged by producers on top of the base energy price to turn natural gas to liquid for transport. They have been rising amid labor shortages, increasing construction costs, and strong demand that’s been further boosted by the ongoing Iran conflict, but the resistance Woodside is facing could signal a ceiling on what buyers are willing to pay for U.S. LNG. “The problem Woodside has is the price of its liquefaction fees, which are above what others in the U.S. are charging,” one of the sources said.
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Offshore Engineer – May 6, 2026
Chevron Expands Mediterranean Push with Malta Exploration
Chevron said on Tuesday it would search for oil and gas south of Malta, which lies between producing Mediterranean nations Libya, Italy and Tunisia but has not got any production itself yet. Exploration studies will be based on existing data rather than newly drilled wells.
Chevron’s portfolio in the Mediterranean includes operating stakes in Israel’s Leviathan and Tamar gas fields and the Aphrodite field being developed offshore Cyprus. Chevron also has exploration blocks offshore Greece and Egypt.
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San Antonio Express-News – May 5, 2026
Corpus Christi water crisis triggers credit rating downgrade. What we know.
Corpus Christi’s looming water crisis has prompted the nation’s largest credit rating agencies to downgrade the city’s credit ratings or put it on notice that a downgrade could be forthcoming. But how has the Coastal Bend’s longstanding drought impacted Corpus Christi’s creditworthiness, and what does it mean when a city’s credit score worsens? Turns out, a lower credit score can impact everything from a resident’s monthly water bill to whether or not a new business chooses to open its doors somewhere else.
Right now, the three major credit rating agencies — Moody’s, Fitch Ratings and S&P Global Ratings — are all keeping a close eye on Corpus Christi as the city stares down a potential level one water emergency. Moody’s first announced its downgrade in December. Last month, it announced it was placing the city “under review” for another potential downgrade, depending on how the water crisis plays out. On April 8, Fitch Ratings — which is owned by MySA’s parent company, Hearst — said it was downgrading its outlook from “Stable” to “Negative.” And on Monday, May 4, S&P Global downgraded the city’s credit rating by “two notches,” from “A” to “AA-” while also placing the city on a so-called “CreditWatch with negative implications.”
Oil & Gas National & International
The New York Times – May 6, 2026
Trump’s U-turn and hopes of a deal ease tensions in energy markets.*
Oil prices fell sharply on Wednesday after President Trump announced that the United States was pausing a days-old U.S. operation to escort ships through the Strait of Hormuz and claimed there had been “great progress” toward a deal with Iran. Markets had been uneasy after a sharp increase in oil prices on Monday, when Mr. Trump announced the naval operation in the crucial oil and gas shipping route, prompting Iran to escalate its threats and putting further pressure on the already fragile truce. Mr. Trump made the sudden reversal on Tuesday, a day after the U.S. Navy began efforts to guide ships through the vital waterway, which remains effectively closed. Iran has effectively blocked transit through the strait since the U.S. and Israel attacked Iran in late February, and the United States imposed a blockade of Iran’s ports after a cease-fire took effect in early April.
Mr. Trump said that the naval escort mission would be paused while negotiators try to finalize a deal with Iran to end the war. He said the decision followed requests from Pakistan, a key mediator, and from other countries that he did not name. He did not elaborate on what he meant by progress in the efforts to reach an agreement. Still, the decision helped ease the mood in energy markets, which rose sharply after the war began and have been fluctuating in response to disruptions to energy supplies and the effects on economies around the world. The price of Brent crude, the global benchmark for oil, was down 2 percent to about $108 a barrel on Wednesday. West Texas Intermediate crude, the U.S. benchmark, dropped 2 percent to around $100 a barrel. The United States and Iran both claim to have control over the Strait of Hormuz. Iran announced a new mechanism on Tuesday to oversee traffic through the channel, Iranian state news reported. These reports did not say how the new system would work and what new rules would be enforced.
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The Wall Street Journal/MSN – May 6, 2026
High gas prices wreak havoc on America’s army of supercommuters
Nicole Smith fills the gas tank of her 2021 Jeep Compass three times a week to keep up with her long commute, 50 miles each way, three times a week, from her Fredericksburg, Va., home to a graduate program in the nation’s capital. Smith, 35, and her husband moved there from a town closer to Washington, D.C., in 2023 for more-affordable housing. Now she is being stung by higher gasoline prices, with fill-ups costing about $200 more each month compared with earlier this year.
“One of the biggest things that I have been forgoing is just less fun activities, less weekends out, less traveling,” said Smith, who is retired from the D.C. Army National Guard and studying public health. She and her husband live off his Army paycheck and her disability benefits. “It’s mostly frustrating because you go from one month budgeting for a certain amount, and the next month it’s another amount,” said Smith, who can spend up to two hours fighting traffic in each one-way commute. The ranks of America’s marathon commuters have grown since the pandemic, with many workers moving farther away from city centers for cheaper housing and more space. The work-from-home era, meanwhile, has shifted to more of a full-time and hybrid-schedule mix. These days so-called supercommuters, often defined as people who travel 90 minutes or more each way to work, are paying an especially heavy price if they have to drive.
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Yahoo! News – May 6, 2026
US-backed pipeline proposal targets global reliance on Strait of Hormuz amid Iran threats
A new U.S.-backed proposal to build a network of overland energy pipelines bypassing the Strait of Hormuz is gaining attention as tensions in the region expose a critical vulnerability in the global energy system. A policy memo reviewed by Fox News Digital outlines the concept, known as “ARAM Express,” a proposed consortium between the United States and Gulf partners to develop a multidirectional overland network for oil, gas and petrochemicals, originating with Richard Goldberg of the Foundation for Defense of Democracies.
The plan envisions pipelines extending westward to the Red Sea and Mediterranean, as well as southern routes toward the Arabian Sea, creating multiple export pathways that would reduce reliance on the strait, through which roughly one-third of the world’s seaborne oil currently flows.
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Reuters – May 6, 2026
Occidental scraps new oil hedges as Iran war fuels price volatility*
https://www.reuters.com/business/energy/occidental-scraps-new-oil-hedges-iran-war-fuels-price-volatility-2026-05-06/
Most producers hedge their sales of crude, natural gas and refined products to mitigate the risk of price changes during the time it takes to ship cargoes to customers. Most producers hedge their sales of crude, natural gas and refined products to mitigate the risk of price changes during the time it takes to ship cargoes to customers
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The Wall Street Journal – May 6, 2026
Jet-Fuel Prices Are Spiking and Trump’s Advisers Are Worried*
Former New Hampshire Gov. Chris Sununu delivered a warning to Treasury Secretary Scott Bessent during a recent visit to Washington: Already-high airfares will surge if the war in Iran doesn’t end soon. Sununu, a Republican who represents some of the biggest airlines as the president of the industry group Airlines for America, has for weeks sounded the alarm to Trump administration officials about the economic fallout from high jet-fuel prices. The war, Sununu has argued, must come to a close soon, or things will get worse. Administration officials have gotten the message.
Privately, President Trump’s advisers are increasingly worried that Republicans will pay a political price for the rising fuel costs, according to people familiar with the matter. Many of those advisers are eager to end the war in hopes that prices will begin moderating before November’s midterm elections. The fallout from the U.S.-Israeli attack in late February has slowed traffic through the Strait of Hormuz, a vital shipping lane, triggering a sharp increase in oil, gasoline and jet-fuel prices. That means consumers are grappling with high costs ahead of the summer travel season, as they consider vacation plans. Sixty-three percent of Americans said they put a great deal or a good amount of blame on Trump for the increase in gas prices, according to a new poll conducted by NPR, PBS and Marist. More than 8 in 10 Americans said struggles at the gas pump are putting strain on their finances.
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S&P Global Platts – May 5, 2026
US LPG exports hit record high in April on curtailed Hormuz Strait traffic: CAS
US LPG exports climbed to a record high of 3.3 million barrels/day in April, led by propane, as the continued effective closure of the Strait of Hormuz has boosted demand for US barrels, S&P Global Commodities at Sea data showed on May 5. China and Japan were the single largest buyers of US LPG in April — the US exported 457,000 b/d of LPG to China and 460,000 b/d to Japan.
The growing interest from buyers in Asia — which also includes India, which in late 2025 signed its first deal to import 2.2 million metric tons of LPG in 2026 — comes at a time when substantial volumes of LPG exports out of the Middle East are impacted by curtailed movements through the Strait of Hormuz. “We have not seen the supply disruption that we see now, and that creates various opportunities that Enterprise is working to capture,” Enterprise co-CEO Jim Teague said on the company’s earnings webcast in late April.
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The New York Times – May 6, 2026
If OPEC Falls Apart, It’ll Cost Us All: Jason Bordoff, Columbia University*
Over the past decade, OPEC and a Russian-led bloc of other producers have restrained their oil output to prop up Brent crude prices, which, save for a crash during the Covid-19 pandemic, have hovered between $65 and $80 per barrel, occasionally spiking. Helped by that price floor, U.S. oil output has surged by around five million barrels per day, a more than 50 percent increase. By contrast, when OPEC chose not to cut production in 2014, oil prices collapsed, and so did U.S. investment in extracting its own petroleum. U.S. producers know that if OPEC didn’t exist to stabilize prices, someone would have to invent it. …
The greater oil price volatility that might be in store would be costly. When oil prices swing sharply, consumers become less confident about what they will spend on gasoline, heating oil or air travel. Businesses shorten planning horizons and postpone investments. Energy producers may delay drilling, while companies that use a lot of energy hesitate to expand when future fuel costs are more uncertain.
The best response is to make the U.S. economy less vulnerable to oil price shocks. That starts with refilling the Strategic Petroleum Reserve, which has been drawn down by both political parties yet remains an important source of crude in times of need. America’s leaders should also think more creatively about how the government could help smooth the effects of boom-and-bust oil price cycles. For example, fuel taxes could rise when oil prices fall and decline when prices spike, or oil company taxes might increase when prices soar and ease when they slump.
Even more effective would be reducing the economy’s exposure to oil. America’s high levels of oil production help the country better withstand price shocks, but even more important have been moves to cut its dependence on oil. Imposing stronger fuel economy standards on cars and trucks, offering more incentives for buying electric vehicles and building transportation alternatives like high-speed rail and public transit are economic security necessities, not just climate ones.
When oil shocks hit, Washington inevitably scrambles to ease the pain. But the most effective defenses take time to build. Energy security should not be measured by whether OPEC is weaker, or by whether politicians have someone to blame when prices spike, but by whether the next inevitable swing in oil prices hurts less than the last one.
Utilities, Electricity & Renewables
Houston Chronicle – May 6, 2026
As water shortages loom in Texas, the fast-growing data center industry is under intense public scrutiny for the large amount of water many of these facilities use to stay cool. In response, data center companies have pledged to move to less water-intensive cooling technologies. But cooling is only part of the picture. A new report from the Sierra Club points to a more substantial burden on the state’s water systems: power plants. The analysis illustrates how the electricity source for a data center project can be more consequential to the facility’s water footprint than the cooling technology it uses, according to Margaret Cook, a water expert with the Houston Advanced Research Center.
Earlier this year, Cook published a report finding that by 2030, Texas data centers could consume up to six times more water than they need today. “If data centers push for natural gas as their supply, or even small modular nuclear reactors … that will increase our water use. That’s what pushes the demand,” Cook said. Nuclear, coal and natural gas power plants — also known as thermal plants — are the most water-intensive types of power generation. In Texas, these plants require between 200 gallons and nearly 700 gallons of water to generate a megawatt-hour of electricity, according to the Sierra Club’s analysis of federal data. In contrast, a typical data center consumes 95 gallons of water for every megawatt-hour of electricity used to cool the computer servers inside, according to national estimates.
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Zacks/Yahoo! News – May 6, 2026
NRG Energy (NRG) came out with quarterly earnings of $1.48 per share, missing the Zacks Consensus Estimate of $1.78 per share. This compares to earnings of $2.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -16.85%. A quarter ago, it was expected that this power company would post earnings of $1.01 per share when it actually produced earnings of $1.03, delivering a surprise of +1.98%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times. NRG, which belongs to the Zacks Utility – Electric Power industry, posted revenues of $10.26 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 44.21%. This compares to year-ago revenues of $8.59 billion. The company has topped consensus revenue estimates four times over the last four quarters.
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San Antonio Express-News – May 6, 2026
CPS Energy hit with separate lawsuits over gas explosion and transformer fire*
CPS Energy is facing lawsuits over two unrelated residential disasters in San Antonio — one involving an alleged natural gas explosion on the North Side and another involving a transformer fire on the West Side — with plaintiffs accusing the utility of failing to properly maintain infrastructure. The latest lawsuit, filed Tuesday by Mayte Reeves and Jose Ochoa, significantly expands on an earlier complaint tied to an April 21 explosion and fire in the 15000 block of Preston Hollow Drive. The petition accuses CPS Energy of ignoring long-standing problems within its natural gas system despite prior explosions, lawsuits and warning signs.
In a separate lawsuit filed Monday, Johnny and Irene Sanchez allege a CPS Energy transformer exploded outside their home in February, sparking a fire that destroyed the house and injured the couple. Together, the cases add to mounting scrutiny of the city-owned utility’s handling of aging infrastructure and emergency response practices following a series of high-profile explosions and fires in San Antonio neighborhoods. Each complaint seeks more than $1 million in damages. … Reeves and Ochoa allege a natural gas leak from CPS Energy’s infrastructure caused an explosion and fire after they were told it was safe to return to their home. Their revised lawsuit stems from the April 21 explosions on Preston Hollow Drive, which injured five people, severely damaged homes and prompted a federal investigation. The explosions also prompted City Council members to question whether emergency crews and CPS properly handled evacuations after the first blast.
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Utility Dive – May 6, 2026
TXU Energy EV charging program could work in other competitive markets: ChargeScape CEO
A TXU Energy program that allows Ford electric vehicle owners in Texas to fill up at home without paying energy charges during off-peak hours shifted the vast majority of charging to lower-demand parts of the day, Ford said on April 23. In 2025, the TXU Free EV Miles program pushed 94% of enrolled customers’ charging activity between the hours of 10 p.m. and 1 p.m., when congestion and wholesale energy pricing tend to be lower on the Electric Reliability Council of Texas grid.
Ford said the program shifted 515 MWh of energy to off-peak periods, enough to power about 39 average Texas homes for a year. Enrolled customers receive a $100 prepaid card from Ford at sign-up and $250 each year from TXU Energy as long as they remain in the program, Ford said.
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Utility Dive – May 6, 2026
AEP eyes exit from PJM, SPP over slow generation interconnection
American Electric Power is considering its options for how its utilities participate in the PJM Interconnection and the Southwest Power Pool due to the grid operators’ slow pace of interconnecting generation to meet customer demand, Bill Fehrman, AEP chairman, president and CEO, said Tuesday during a quarterly earnings conference call.
Those options include leaving PJM and SPP, staying in them or adopting “alternative structures,” Fehrman said. “We’re committed to participating in a market that’s responsive to the customer needs, but we also know that we have to figure out a way to get it to move more efficiently and more effectively.”
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San Antonio Express-News – May 6, 2026
Tesla invests $300K in Texas Hill Country projects with apparent Buc-ee’s ties
Two major Texas brands, one known globally for electric vehicles and the other for mega roadside travel adventures, may be intersecting along one of the state’s busiest highway corridors. New filings with the Texas Department of Licensing and Regulation indicate Tesla is planning a pair of small-scale construction projects along the I-35 corridor in Central Texas, both at locations that appear to be associated with Buc-ee’s.
The filings outline two nearly identical entries in New Braunfels and San Marcos. Each project is listed as new construction, privately funded and located on private land for private use. Each carries an estimated cost of $150,000, totaling at $300,000, and is described only as “electrical infrastructure.” Each filing also notes a relatively small footprint of 120 square feet, with no additional technical details included. According to the documents, construction for the Tesla-related project in New Braunfels is expected to begin May 18, while work in San Marcos is scheduled to start May 25. Both projects list a projected completion date of May 31, 2027. Tesla did not immediately respond to MySA’s request for comment.
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S&P Global Platts – May 6, 2026
Surging US data center power demand tests sustainability targets
The US data center building boom is putting the sustainability ambitions of power-hungry hyperscalers to the test, with capital expenditures climbing, natural gas deals proliferating and demand for electricity outpacing even some of the most bullish forecasts.
US grid power supplied to hyperscale, leased and crypto-mining data centers increased 25% in 2025 to reach about 64.4 gigawatts and has nearly tripled since 2020, according to data from 451 Research, part of S&P Global Energy Horizons. That amount exceeded the group’s June 2025 forecast of 58 GW needed by the end of last year to power data center IT equipment, cooling, lighting and other applications. Fueled by the emergence of artificial intelligence, the digital infrastructure expansion shows no signs of slowing down.
Regulatory
Austin American-Statesman – May 6, 2026
Waymo, Zoox and AV leaders ask Ted Cruz for national self-driving car rules*
The CEOs of Waymo, Avride and other major players in the autonomous vehicle industry want a clear, unified federal framework, and are calling on Sen. Ted Cruz to assist. In a letter sent to the Texas senator, who is Chairman of the Senate Committee on Commerce, Science, and Transportation, the CEOs ask Cruz to prioritize federal autonomous vehicle rules while they develop policies for the upcoming surface transportation reauthorization legislation. The legislation, commonly known as the highway bill, is Congress’ periodic reauthorization of federal transportation programs, including highway, transit and safety funding.
The last reauthorization was folded into the $1.2 trillion bipartisan infrastructure law passed in 2021. With that authorization expiring in 2026, lawmakers are beginning work on the next package, giving autonomous vehicle companies an opening to push for national rules. The bill could total $500 billion to $550 billion and focus more heavily on roads and bridges, Politico reported. The CEOs who sent the letter lead companies that are members of the Autonomous Vehicle Industry Association, or AVIA. That includes those at the helm of several companies operating in Austin and other parts of Texas, such as Tekedra Mawakana of Waymo, Dmitry Polishchuk of Austin-based Avride, Chris Urmson of Aurora and Aicha Evans of Zoox. Others include Bot Auto, Gatik, Kodiak, Nuro, Rivian, PlusAI, Stack AV, Torc, Volvo, Waabi, and Volkswagen’s MOIA America.