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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

Second Unit at Mountainview Project Commences Operations

LCG, January 27, 2006--Southern California Edison (SCE) announced that commercial operations commenced on January 19 at the second of two gas-fired, electric generating units at the Mountainview Project, located in Redlands, California. The first unit began commercial operations in early December 2005.

The Mountainview Station now provides an additional 1,054 MW of generating capacity to the Southern California electric grid. The new capacity is especially timely, as SCE closed the 1,580-MW, coal-fired Mohave Generating Station in Nevada at the end of last year. According to SCE, the Mohave Generating Station will remain closed for at least four years.

The Mountainview Station is a combined cycle plant consists of two units, each with a capacity of 527 MW. Each new unit includes two combustion turbine generators, two heat recovery steam generators, and one steam turbine generator. Two older units at the station have been mothballed.

Plant construction was started by AES in 2001. California's energy crisis led to a halt in construction. InterGen, a Bechtel-Shell joint venture, purchased the project in March 2003. SCE exercised an option to purchase the partially completed plant in March of 2004, and the construction project was completed by Bechtel.

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