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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

Court Rules Against SWEPCO's Coal-fired Power Project in Arkansas

LCG, June 25, 2009--The Arkansas Court of Appeals yesterday ruled in favor of local landowners that the Arkansas Public Service Commission?s review of Southwestern Electric Power Company's (SWEPCO) proposed John W. Turk Jr. coal-fired power plant was inadequate. Construction on the project began late last year.

Landowners appealed a November 2007 decision by the Arkansas Public Service Commission (APSC) to grant a Certificate of Environmental Compatibility and Public Need (CECPN) to construct the plant.

The ruling leaves SWEPCO with the option to request the state Supreme Court to review the Court of Appeals? decision or to reapply for a certificate, with new hearings as well. A SWEPCO spokesperson stated that the company was reviewing the ruling and did not immediately know what its next step would be.

SWEPCO also has customers in Louisiana and Texas. In March 2008, the Louisiana Public Service Commission (LPSC) unanimously approved SWEPCO's request to build the plant, including a requirement for SWEPCO to prepare and submit a study that identifies potential, cost-effective energy efficiency and load management programs for SWEPCO's Louisiana customers. The Public Utility Commission of Texas approved the proposal in July 2008, rejecting a recommendation from an administrative law judge (ALJ).
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