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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

NYPA Urges Munis to Join Hydro Relicensing Reform

LCG, Aug. 29, 2001--Warning that current law impedes the relicensing of hydroelectric facilities and adds significantly to the cost of renewing their operating permits, the chairman of the New York Power Authority last night urged the state's municipal utilities to get behind a movement to reform the law.

"In 1986, the Federal Power Act was amended to require the Federal Energy Regulatory Commission to balance power generation with energy conservation, protection of fish and wildlife, recreational opportunities and environmental protection," Joseph J. Seymour, chairman and chief executive of the NYPA, told the New York Municipal Electric Utilities Association at its annual meeting in Niagara Falls.

"While the goal was to accommodate competing interests, the (FERC's) role has been seriously impacted by past legislation and by subsequent interpretations of the law by the courts," he said. "The current law enables various agencies to impose on licensees huge unfunded conditions with little or no balancing as contemplated by the Federal Power Act."

Seymour also defended public power's role in an increasingly deregulated electric marketplace. "Early on, some were forecasting the death of public power. They assumed that lower pricesanticipated under deregulation and competition would ease us out of the picture," he said. "But now, people are finding that public power has a great deal to offer in a deregulated marketplace."

"California created a state power authority as a potential solution to the state's energy problems, though they're about 70 years behind us," he observed.

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