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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

New York Approves Niagara Mohawk Rate Hike

LCG, Aug. 31, 2001--The New York State Public Service Commission has approved a request by New York utility Niagara Mohawk Power Corp. to increase electricity rates, reflecting the higher cost of producing power.

The rate hike, commonly called a "fuel cost adjustment," will hit householders with a 7.9 percent increase beginning September 1. Overall, the increase will average 4.9 percent for all classes of customers.

The new rates will remain in effect for two years unless fuel costs happen to unexpectedly drop over the next two years, in which case there would be a downward adjustment in rates.

"While none of us wants rate increases, it is important to understand what is driving the increases -- prices of fuel used to generate electricity," Niagara Mohawk Chairman Maureen Helmer said. "What we don't want to happen is for the real price of electricity to go unrecognized, risking the credit worthiness of utilities -- as happened in California -- and driving electricity prices for consumers even higher."

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