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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

550 Megawatt Gregory, Texas, Plant On Line

LCG, July 27, 2000--Subsidiaries of Columbia Energy Group and LG&E Corp. yesterday announced the commercial operation of their jointly-owned 550 megawatt Gregory Power Plant, a natural gas-fired, combined-cycle cogeneration facility located at the Reynolds Metals Co. Sherwin Alumina plant in Gregory, Texas.

Columbia Electric Corp. and LG&E Power Inc. are equal partners in the facility which will provide process steam and electricity to the Reynolds plant and sell surplus power in the Electric Reliability Council of Texas wholesale market. The companies said Dynegy Power Marketing Inc. will market the extra power.

" The commencement of commercial operations represents the culmination of many months ofplanning and hard work," said George Basinger, LG&E Energy senior vice president for power operations. "This facility will supply approximately 1.2 million pounds of steam per hour to theReynolds alumina plant in addition to being one of the lowest-cost electric generating facilities inTexas."

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