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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 Suppliers to Continue Providing Gas

LCG, Feb. 8, 2001Pacific Gas & Electric Co. said this morning that five natural gas suppliers have agreed to continue supplying the utility in exchange for a security interest in future utility accounts receivable resulting from resale of the gas.

PG&E warned that the five suppliers provide only a portion of its natural gas requirements, an amount insufficient to "avert severe shortages in the coming days or weeks." Gordon Smith, PG&E chief executive, said the utility was trying to get more suppliers to agree to the plan. "We remain hopeful we can avoid what otherwise threatens to be a very serious gas shortage," he said.

The company said it had only about nine days' supply of gas in storage, and that would be depleted rapidly if suppliers stopped their deliveries.

The five companies agreeing to continue furnishing gas to PG&E are BP Energy Co., Texaco Natural Gas, Dynegy Marketing and Trade, Texaco Canada Petroleum and Dynegy Canada Marketing.

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