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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

Initiative Would Have Montana Buy Back Hydro

LCG, Sep. 4, 2002--An initiative to be on the Montana ballot later this year will ask whether the state should enter into a process by which it could buy twelve hydroelectric dams under private ownership, through negotiation or possibly by condemning them.

The reason given by campaigners for the initiative is that power prices have risen more than they would have under a regulated utility. Rates were previously relatively low compared to rates in other states. Deregulation was enacted in 1997, when the regulated utility, Montana Power, pushed for deregulation, and projected lower prices for customers following divestiture of its assets.

Residential rates were frozen until this summer, but have begun to rise. Montana Power has transformed itself into an internet service provider, Touch America, while its market capitalization is 10 percent of its former value. Surveys by the current owners of the dams in question, including PPL Corporation and Avista, have found that while residents are skeptical of the merits of deregulation, they are also wary of condemning private assets.
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