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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

Bangor Hydro Plans New Transmission Line from Canada

LCG, Aug. 14, 2001-- Bangor Hydro-Electric Co. said it has asked authorization from the Maine Public Utilities Commission to build a new 345 kilovolt transmission line between Maine and New Brunswick, Canada.

Bangor Hydro would build an 84-mile portion of the line from a substation at Orrington, Maine., to the St. Croix River at Baileyville, the company said. New Brunswick Power Corp., which is owned by the province of New Brunswick, would add a 60-mile section connecting a substation at Pt. Lepreau with the Bangor-Hydro line at the St. Croix River. Pt. Lepreau is a nuclear power plant belonging to the Canadian province.

Carroll Lee, senior vice president and chief operating officer of Bangor Hydro, said "The proposed 345 kV transmission line is intended to lower electricity prices and increase reliability, which are fundamental concerns of Bangor Hydro's customers."

The new transmission facilities would also be able to move power from new generation facilities spawned by completion of the Maritimes & Northeast natural gas pipeline.

"Since the beginning of restructuring, costs for our residential customers have increased by 18 percent. Additional transmission capacity between Maine and the Maritimes will increase competition among generators for sales by expanding the ability of Canadian firms to transmit energy," Lee said.

Lee said he expected to receive permits necessary to allow construction of the new wires to begin this winter.

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