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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

LA Utility Faces Another Lawsuit for Alleged Overcharging

LCG, April 2, 2002-Following Attorney General Lockyer's lead, five government agencies filed suit against the Los Angeles Department of Water and Power for allegedly overcharging by $200 million over 10 years.

Los Angeles County Unified School District, Los Angeles County Metropolitan Transportation Authority, Los Angeles County Community College District, and Los Angeles County have been joined by California Attorney General Bill Lockyer in the lawsuit and are seeking triple damages.

Lockyer had filed a similar suit in March and claims that the municipal utility consciously charged customers too much in order to dissipate costs of building new plants.

The plaintiffs have filed the suit in the San Francisco Superior Court.

Los Angeles Department of Water and Power denies the charges, and its legal representation says that there are problems with the suit regarding the statute of limitations.

The suit relies on studies conducted in 1991 and 1992 that show electricity rates higher than allowed as a percent of the cost of generation.

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