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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

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

Puget Energy Asks to Recover Higher Power Costs

LCG, Aug. 22, 2001--Puget Sound Energy Co., the utility subsidiary of Puget Energy Corp., said yesterday it has asked regulators to approve a rate increase to recover the net power cost the company incurs in supplying electricity to customers.

The proposal asks the Washington Utilities and Transportation Commission to approve an interim cost-recovery mechanism whereby customers' electric bills would be linked to the company's actual net power costs. This method matches the way Washington utilities currently pass through to customers thewholesale cost of natural gas, at no profit to the utility.

The company said approval of its request would allow it to collect about $84 million for additional net power costs for this year. In a statement, Puget Sound Energy said "While numerous Northwest utilities have had to raise their electric rates steeply in recent months, PSE managed until now to insulate its customers from the increase in costs associated with hydroelectric generation being at record lows and the extremely volatile wholesale power markets."

"The load-serving utilities in the Western states have all been infected by the power cost problemsinitiated by California's mishandling of their situation and misguided federal intervention in thewholesale markets," said Rick Hawley, vice president and chief financial officer.

"We don't want to end up in the same predicament as California. Timely recovery of PSE's costs is critical to ensuring that we keep our customers' rates reasonable and fulfill our customer service obligations. We think it's better to take preventative measures now and cure the disease before long-lasting damage occurs," he added.

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