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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

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Faster-than-Expected Data Center Load Growth May Cause Increased Regional Short-term Fossil Fuel Generation and Wholesale Electricity Prices

LCG, March 18, 2026--The EIA released a new "In-depth Analysis" of the potential impact of faster-than-expected near-term growth in data center power demand on power generation and wholesale prices on March 12. The analysis models the lower 48 states through 2027 and compares results to its base case scenario. Key takeaway from this sensitivity analysis is the potential increase in fossil fuels in some regions and potentially a significant increase in wholesale prices in ERCOT.

Read more

Industry News

Detroit Edison Asks Okay for $1.85 Billion in Bonds

LCG, July 6, 2000--Business customers of Detroit Edison Co. may be able to enjoy the same 5 percent reduction in electricity costs that householders began getting June 5 as a result of Michigans electric industry restructuring legislation, the company said yesterday.The utility has asked the Michigan Public Service Commission to approve issuance of $1.85 billion in securitized bonds to refinance existing debt. The lower cost of the new borrowing will provide resources to implement a 5 percent rate reduction for all business customers, Detroit Edison said.In addition, the proceeds from the securitization will allow the company to create a fund to benefit low-income and energy efficiency programs in the state.Through the issuance of these bonds and the refinancing impact, all of our customers can begin to see some of the hard fought benefits that can be derived from the recent restructuring legislation,said Anthony F. Earley Jr., Detroit Edison chairman and chief executive. The reductions allow business customers to be more competitive in their own businesses and ultimately contribute to a stronger Michigan economy.Under the restructuring legislation, the commission has 90 days to act on the companys securitization application. Earley hopes it acts fast. Given a timely response by the MPSC and the period of time necessary to complete the refinancing, business customers could see the rate reduction as early as year-end, he said.
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