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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

PG&E Asks Federal Court for Future Power Cost Recovery

LCG, Jan. 26, 2001Pacific Gas & Electric Co., which may have blown $6.6 billion in 2000 by not insisting on getting paid for electric power it delivers to profligate customers, went to federal court yesterday to get affirmation that it can collect for future power deliveries.

The company has already asked the court for help in getting it paid for last year.

"All of the principal participants in this regulatory drama, from the Federal Energy Regulatory Commission to the California Public Utilities Commission itself, have formally acknowledged that, as a matter of federal preemption, PG&E is entitled to recover these wholesale costs from its customers," the company said in its filing with the U.S. District Court yesterday.

At issue, PG&E says, is whether the CPUC, in violation of the Supremacy Clause of the United States Constitution, may nullify federally-regulated tariffs which it ordered PG&E to follow in its purchase of electricity.

Southern California Edison Co., which is in the same fix as PG&E but for a billion fewer dollars, has a similar lawsuit going in the District Court in Los Angeles.

PG&E's motion asks the to order the CPUC to allow it "to recover in rates the true cost of the electricity it is purchasing on a going-forward basis so that PG&E can afford to buy vitally needed power for California," the company said.

"Rarely has a more urgent plea for relief been brought before this or any court. PG&E is both captive to and victim of California's deregulated electricity market, a market described by government officials in terms ranging from 'disastrous' to 'apocalyptic," the utility said in its papers.

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