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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

EPA to Propose Tighter Power Plant Emission Rules

LCG, Sept. 7, 2001--The U.S. Environmental Protection Agency will propose lowering limits on three main pollutants from power plants in its plan to expand an emissions trading system for utilities, Bloomberg news service reported yesterday.

Jeffrey Holmstead, assistant EPA administrator for air and radiation, told Bloomberg that the new limits on sulfur dioxide, nitrogen oxide and mercury haven't been settled as the EPA tries to address Department of Energy officials' concerns about the economic impact on electric utilities.

"These levels will be achievable, they will not be economically disruptive, but they will be substantially below the levels that are emitted today," Holmstead said.

EPA Administrator Christie Whitman will submit legislation this month to expand a system begun in 1990 that lets utilities sell or buy credits to release sulfur dioxide, a byproduct of burning coal and other fossil fuels that causes acid rain. The new trading system would include nitrogen oxide and mercury as well as sulphur dioxide, but would not include carbon dioxide, the "greenhouse gas," which the Bush administration has said would be too costly to regulate.

"From the perception of the utilities, I think what this does is give them certainty," Holmstead said of the trading credits legislation. "They know what the regulatory requirements are going to be, rather than have a number of uncoordinated programs come along piecemeal over a number of years."

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