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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

RTO West Gets Unanimous Approval From FERC

LCG, September 19, 2002-FERC approved a stage 2 filing intended to bring a Western Regional Transmission Organization (RTO) into existence.

The Federal Energy Regulatory Commission (FERC), in keeping with its standard market design plans, welcomed the RTO filing and accepted most of the included RTO West proposals.

FERC found plans for locational power pricing, congestion management, and corporate governance acceptable, but the Commission said that the proposal did not do enough for protection against market abuse, resource-adequacy reserves, and day-ahead markets for transmission rights.

Utilities involved with the filing include Avista Corporatino, Bonneville Power Administration, British Columbia Hydro and Power Authority, Idaho Power Company, Nevada Power Company, NorthWestern Energy, PacifiCorp, Portland General Electric Company, Puget Sound Energy, and Sierra Pacific Power Company.

Many people, including California Public Utilities Commission members and several Western senators, have warned against FERC's standard market design plans, fearing that too much traditional state control will be ceded to federal bodies.

FERC will hold RTO West meetings to discuss technical aspects of the plan and will consider further whether or not to allow Canadian utilities into RTO West. The Commission's standard market design awaits public input until November 15.

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