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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

Idaho PUC Approves Sales Agreements for New Wind Farms

LCG, January 17, 2006--The Idaho Public Utilities Commission (PUC) approved on January 11 the sales agreements between Idaho Power Company and the Exergy Development Group (Exergy) related to four wind projects. The projects are to be constructed in south-central and eastern Idaho and are designed to provide a combined electric generating capacity of 75 MW.

Exergy is developing the four wind projects, which are: the Milner Dam Wind Park, located near Milner Dam in Cassia County; the Lava Beds Wind Park, located between Blackfoot and Arco,; the Notch Butte Wind Park, located between Twin Falls and Shoshone; and the Salmon Falls Wind Park, located near Hagerman and south of Bell Rapids. The first three projects each include 12, 1.5-MW turbines, while the Salmon Falls project consists of 14, 1.5-MW turbines.

The PUC agreed with Idaho Power Company's position that the projects were well along in the development process such that they should be grandfathered from a PUC order in August that temporarily reduced from 10 average MW to 100 kW the size of projects that could qualify for a rate published by the PUC for renewables under provisions of the Public Utility Regulatory Policies Act of 1978 (PURPA).

All four projects are scheduled to commence operations in November 2006 and to be in full operation by May 2007.

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