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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

Canadian Merger Would Form Largest North American Independent Oil and Gas Producer

LCG, Apr. 4, 2002--The merger of Alberta Energy Co. and PanCanadian Energy Corp. appears likely as shareholders of both companies vote their interests today.

The deal, which would create EnCana Corp., has been under discussion since October, when oil and gas prices were sigificantly lower. The director of oil and gas research at Scotia Capital Inc., David Stenason, said, "I think the cash flow is going to be unbelievable for this company and it's [higher commodity prices] giving EnCana a great start."

The approval by a majority of shareholders is thought to be more than likely. According to the details of the proposal, PanCandian would offer 1.4772 shares per AEC share. Gwyn Morgan, who organized the deal and is CEO of AEC, said the new entity would not only be the largest independent natural gas producer in North American but would also have the highest "internal growth."
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