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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

Nevada Puts Electric Dereg on Hold

LCG, April 19, 2001Nevada Gov. Kenny Guinn yesterday signed into law legislation that puts electric deregulation on hold, halts the sale of power plants by state utilities and sets a new rate structure protecting the electric companies from soaring wholesale power prices.

The state Senate and Assembly had passed the measure earlier yesterday and sent it to the governor. The bill, which was framed with an anxious eye on California to the west, is an emergency act, meaning it takes effect immediately.

"I can tell you, this is a great relief," said Guinn, himself a former utility executive. "Nothing can stop escalating costs, but we're in the best position to protect ourselves."

Walt Higgins, chief executive of Sierra pacific Resources Corp., parent company for Nevada's two electric utilities, said "This was a bold move by the legislature and the governor to focus on the real problem that threatened every consumer and business in Nevada."

The problem also threatened Higgins' company, and he too can breathe a sigh of relief. Under the provisions of the legislation, rates would be continued at their current levels, reflecting all recent increases to date, and remain stable until early next year, at which time they would be adjusted to reflect the actual costs of wholesale power and fuel over that period. If wholesale costs remain high, the legislation allows for the rates to be spread out over several years.

Lawmakers added last-minute language to the bill to make sure retail customers get a break if it turns out that Sierra Pacific's operating utilities make too much money selling wholesale power.

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