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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

Washington Nixes 'Time of Day' Electric Meters

LCG, April 12,2001The Washington Utilities and Transportation Commission said yesterday that a plan by Puget Sound Energy to charge different electric rates depending on the time of day places too much risk on ratepayers and not enough on the company.

The utility, which said it may have to go into the volatile spot market to purchase electricity to serve its native load, wants to shift power use to off-peak periods by charging more when demand is high. The company has proposed a one-year pilot program under which some industrial, commercial and residential customers would be equipped with automated meter-reading devices.

Puget Sound Energy had asked the commission for a "fast track" approval so it could begin the program Monday. The commission said "no" to the idea and said it would discuss the matter again in two weeks.

The utility said only about 1 percent of its customers would see a rate increase of more than 3 percent under the program, but the commissioners were more worried that Puget Sound Energy might benefit.

Commissioner Richard Hemstad estimated that Puget Sound Energy could take in an additional $88 million a year from selling power conserved by consumers to other utilities.
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