“It appears that the debate is primarily focused around how to support growth while maintaining a reliable grid with fair cost allocation […] while protecting communities and water resources and landowners,” Nye said. “Those are all things that we support and we’ll be working actively in legislation should the legislature go that direction. The laws as they exist today provide a really constructive environment for our investments and we’re optimistic that they’ll continue.”

Also constructive on the general direction of Texas’ growth and its implications for Sempra is BTIG analyst Alex Kania, who noted that investors “weren’t fully reassured” by Martin and his team about what the elections might mean for Sempra. But “the growth opportunity in Texas remains significant” and Kania said he’s continuing to recommend the stock (Ticker: SRE), which is down about 10% in 2026.

“The change in governorship and one house of the legislature has certainly added uncertainties on the potential pace of large load development […] It may be a question of what the new rules will be,” Kania wrote to clients.

Arizona Also Remains a Major Growth Story

Also hiking their growth forecasts—but not yet translating that into a capex update—are the leaders of Pinnacle West Capital Corp., the parent of Arizona Public Service. Pinnacle West serves a region that has long been booming economically and Chairman, President and CEO Ted Geisler told investors on Nov. 3 that forecasts now call for customers’ energy needs to more than double by 2041.

APS’ third-quarter residential sales grew by 4.5% from the same period a year earlier and commercial and industrial sales popped 14.5%, driven in part by the data center boom and related manufacturing that’s headlined by Taiwan Semiconductor’s massive campus in Phoenix. That has prompted Geisler and CFO Andrew Cooper to lift their 2026 sales growth forecast to a range of 8% to 10%.

The company’s growth outlook for future years also is being bumped: Through 2030, Geisler and Cooper now think sales will grow at that same 8% to 10% rate, a bump of no less than 3 percentage points from their previous forecast—which the executives had raised a year ago.

It’s worth noting that Pinnacle West’s growth—which will lead to a big jump in the company’s four-year, $10.4 billion capital spending plan early next year—is, like Oncor’s, not just a data center story. On a conference call, Geisler pointed to plans by Kimberly-Clark to open a plant in Yuma, Arizona, as well as growth from industrial and small and mid-sized business as drivers of his team’s optimism.

“One of the aspects of our load growth that we’re so excited about is the diversity,” Geisler said. “If you look at the division of that load growth, it’s actually more manufacturing than it is data centers. And [it’s] a wide variety of manufacturing, certainly advanced manufacturing such as chip manufacturing, but others as well.”