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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

SDG;E Asks State to Release Customer Funds

LCG, July 17, 2000--San Diego Gas & Electric Co. on Friday filed a request with theCalifornia Public Utilities Commission to accelerate the return of $100 million in customer money from a CPUC-controlled transition cost balancing account, which the utility would pass on to its customers who have seen their electric costs double since May.

The utility said release of the funds would decrease August and September residential electric bills by $17 a month. This, combined with the checks most SDG&E customers will receive next month, would result in a total of about $500 million being returned to them in August and September which amounts to nearly $300 for the typical residential customer.

The company said that under Fridays proposal, all SDG&E customers would benefit from a bill reduction of about 3.5 cents per kilowatt-hour.

"We continue to be concerned about the impact high energy prices from the California PowerExchange are having on our customers and we are working to mitigate this impact as much aspossible," said Edwin A. Guiles, president of SDG&E. "Our customers need relief and we arehopeful the CPUC will act quickly to accelerate the return of this money to them."

SDG&E is also promoting a so-called "level-pay" program to all customers, which affords the opportunity to even out electricity payments over the year. Customers on the program will see bills this summer that are comparable to those they got last summer, the company said.

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