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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

Nevada Power Files Appeal on Pricy Long-Term Contracts

LCG, Apr. 12, 2002--Utility Nevada Power, which had indicated that it could face bankruptcy unless it received approval to recover costs incurred for long-term power purchases, yesterday filed an appeal with the District Court in Carson City to overturn an unfavorable, unanimous rate ruling by Nevada's three-member Public Utilities Commission.

The PUC ruling allowed Nevada Power to recover $485 million out of $922 million requested. Regulators determined that purchases by the utility made during last year's Western power market crisis were imprudent. The utility signed long-term contracts at prices of up to $172 per megawatt-hour.

Nevada Power, which also plans to appeal directly to the PUC for another hearing on the matter, filed the appeal with the District Court in the hopes that it could obtain a judicial order granting its request. Attorneys for intervenors do not see a strong possibility that a judge would be likely to disagree with the commission's findings.

Andrea Smith, a spokesman for Nevada Power said, "we believe the company and community are at risk. We're going to pursue whatever remedies are available to us, and this is one of those remedies." Suppliers and creditors of Nevada Power such as Reliant Energy are seeking their own risk-protection in the form of cash payments, letters of credit or collateral for new power-purchase contracts.
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