The Texas Public Utility Commission is considering raising the price cap on wholesale electricity rates by 50 percent this summer in hopes it will spur construction of new power plants.
Officials say Texas needs to boost its electricity capacity to avoid potential blackouts at peak times like hot summer days.
Advocates of the plan hope the promise of higher profits will lead power companies to build new power plants. A vote is scheduled for Thursday's commission meeting.
Consumer groups worry the price increase will raise wholesale costs by billions of dollars and mean higher electric bills for Texas households. And there's no guarantee the higher rates will result in new construction.
On Tuesday, Texas set a June record for peak electricity demand as temperatures soared into the 100s.