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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

Generators Say Refund Hearings a 'Show Trial'

LCG, Sept. 5, 2001--Federal hearings into possible refunds owed to Pacific Northwest utilities by independent power producers were branded yesterday as a "show trial" by generators, who denied they had overcharges for electricity sales to utilities in the region.

Puget Sound Energy Co., the cities of Seattle and Tacoma, and many other municipal utilities have banded together to demand about $1.5 billion in refunds from power purchases made earlier this year as a long drought severely cut available hydroelectric power in a region dependent on its rivers for plentiful electricity.

Carmen Cintron, an administrative law judge for the Federal Energy Regulatory Commission, this week began several days of hearings on the possible refunds. The case is separate from a similar one in which California is demanding $8.9 billion in refunds.

Dan Waitkiss, a lawyer representing the power producers, said "We overcharged no one." His clients include Enron Corp., Arizona Public Service Co. and Idacorp Inc, parent holding company for Idaho Power Co., among others.

Waitkiss complained that his clients were not given sufficient time to prepare for the hearings. "This is really being reduced to a show trial," he said.

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