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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

Southern's Kemper County IGCC Project Now Targets Completion in First Half of 2016

LCG, October 29, 2014-Southern Company announced yesterday further delays in the schedule to begin operations of its Kemper County coal project that is currently under construction by its subsidiary, Mississippi Power. A year ago, Mississippi Power announced the project should be completed in the last quarter of 2014. Yesterday's filing targeted the facility to be placed in service the first half of 2016.

Mississippi Power further revised its cost estimate subject to the cost cap for the Kemper IGCC by approximately $330 million to include a further adjustment of approximately $20 million related to start-up and operational readiness activities and approximately $310 million related to the extension of the project schedule. The total estimated Kemper IGCC cost subject to the $2.88 billion cost cap as of September 30, 2014 was approximately $4.86 billion, net of the DOE Grants and excluding the Cost Cap Exceptions.

The project, located in Kemper County, Mississippi, is a 582-MW IGCC (Integrated Gasification Combined Cycle) project. The leading-edge IGCC project is designed to convert coal into synthetic gas, which will then be burned in a combined cycle system. The project includes a carbon capture system that will capture at least 65 percent of the CO2 that results from combustion of the syngas. The captured CO2 will be transported via pipeline and used for enhanced oil recovery (EOR). The project is located adjacent to the fuel source, lignite.

In December 2010, Mississippi Power held the ground breaking ceremony for the project, and the estimated cost of the project was then $2.4 billion. Operations were targeted to commence in 2014. In April 2013, the project cost was estimated to be over $3.2 billion, with a May 2014 deadline to start service to retain certain tax incentives.

Mississippi Power placed the combined cycle block (which can also be fueled by natural gas delivered via pipeline) and associated common facilities portion of the Kemper IGCC in service on August 9, 2014. Mississippi Power has reviewed the project schedule for the remainder of the Kemper IGCC (including the gasifier and the gas clean-up facilities) as a result of matters related to the time expected to be required for start-up activities and operational readiness, including enhancing the scope of specialized operator training, and now expects that the remainder of the Kemper IGCC will be placed in service in the first half of 2016.
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