State Rep. Mike Schofield told the Rotary Club of Katy on Thursday, Aug. 6, that homeowners' insurance reform and regulation of AI data centers will dominate the next Texas legislative session, two issues hitting Katy-area wallets and power grids directly.
Schofield, a Republican whose District 132 covers part of the greater Katy area, spoke at the Club at Falcon Point on Falcon Point Drive. After the meeting, he told the Katy Times that "two major developments to watch in the next legislative session include regulations for new AI data centers and 765 KV transmission lines, along with action on homeowners' insurance."
The 90th Texas Legislature convenes in January 2027.
Insurance costs squeezing Katy-area homeowners
The Houston metro area carries the highest home insurance premiums among major Texas cities, averaging $5,653 in 2025, according to Insurify data reported by the Houston Chronicle. Statewide, homeowners paid roughly 80% more in 2025 than in 2020, with the average policy climbing from about $2,000 to $3,500, according to Texas Department of Insurance data reported by the Houston Chronicle.
Texas insurers earned about 22 cents on every premium dollar collected in 2025, their best year in two decades. Statewide rates rose an average of 4.3% that year, down from double-digit increases in prior years. The state's "file-and-use" system lets insurers raise premiums without prior state approval. Proposed legislation would require state sign-off before companies impose double-digit increases.
About 7 million Texas households are priced out of the median home in their county once insurance costs are factored in, according to a Rice University Kinder Institute report cited by Realtor.com.
Data centers and the grid
Schofield's second priority touches a statewide fight already in motion. Gov. Greg Abbott on Aug. 4 directed ERCOT and the Public Utility Commission to audit all data centers advancing through the grid's large-load interconnection process, effectively halting new data center connections.
A proposed $100 billion buildout of 765-kilovolt transmission lines, intended to power AI data centers and Permian Basin electrification, may be paused until 2027 after Lt. Gov. Dan Patrick and Senate Business and Commerce Chairman Charles Schwertner called on regulators to deny pending applications.
Texas Stock Exchange
Schofield also highlighted the July 31 launch of the Texas Stock Exchange in Dallas, the first new major U.S. stock exchange in decades. TXSE has raised more than $275 million in backing and plans to begin corporate listings in the fourth quarter of 2026.
Schofield's District 132 office is at 22910 Colonial Parkway, Suite 1001, in Katy.
