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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

California Attorney General Files Suit Against Four Power Companies

LCG, April 10, 2002-Once again, California's Attorney General Bill Lockyer has filed suit against energy companies, this time for alleged profiteering.

Lockyer sued Mirant Corp., Williams Cos Inc., Coral Power, and Powerex Corp. for over $1 billion, accusing companies of "charging unjust, unreasonable and illegal rates for electricity during California's recent energy crisis."

In March Lockyer sued Mirant, Reliant Energy, Dynergy, and Williams for allegedly selling energy bought for reserve, or "double-billing."

The companies deny the charges, and according to the Associated Press, Mirant spokesman Patrick Dorinson asserted, "Suing energy companies might make great election-year politics, but it makes horrible long-term energy policy."

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