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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

FERC Okays Cross-Gulf Gas Pipeline

LCG, Feb. 22, 2001-- The Federal Energy Regulatory Commission yesterday gave its final approval to the Gulfstream pipeline sponsored by Williams Companies and Duke Energy Corp.

The new pipeline will carry natural gas across the Gulf of Mexico from Mississippi and Alabama to feed increasing demand in Florida, where as much as 10,000 megawatts of new electric generating capacity is expected by 2007.

New power plants planned for Florida are to be fueled by natural gas and several large existing plants are being converted to burn the cleaner fuel.

The 744-mile Gulfstream project will originate near Pascagoula, Miss. and Mobile, Ala., cross more than 400 miles under the Gulf of Mexico to a point in Florida south of Tampa, and then continue another 300 miles across the peninsula to a terminus near Palm Beach.

The project, which is scheduled to begin delivering some 1.1 billion cubic feet of natural gas per day in June of next year, is expected to cost around $1.6 billion.

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