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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

Rates for BC Hydro Customers May Rise

LCG, Feb. 21, 2002--A combination of below-normal generation resources, increased costs and dwindling accumulated revenue may force an electric power rate increase for BC Hydro.

The utility's most recent "dividend" paid to the provincial government was supported by nearly C$200 million ($126 million US) from the Rate Stabilization Account, a contingency fund that was also used to pay customers a dividend last year. BC Hydro's annual profit in 2001 was approximately C$200 million, significantly under the previous year's profit, which exceeded C$564 million ($355 million US) from the second through the fourth quarters.

The provincial government's budget for the next three years allows for an annual 9.7 percent decrease in dividend payments from the utility, much less than the decline in BC Hydro's profits. The utility paid C$937 million ($589 million US) more for power supplies over the period April through December 2001 than it had during the same period the previous year, largely due to depleted water levels in reservoirs.

A rate freeze was enacted by Premier Gordon Campbell's government in August of last year, and is set to last through March 31, 2003. Dick Gathercole of the B.C. Public Interest Advocacy Centre noted that the government does not have to stick to the freeze until that time. "Once Hydro sees that it's not going to be able to meet its payment without a rate increase, that's when you'll see the rate freeze lifted," Gathercole said.
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