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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

Ontario Utility Remains in Public Control

LCG, June 13, 2002--Ontario's Premier Ernie Eves yesterday stoped what was to be the largest initial public offering in Canadian history, saying that the sale of a minority stake in the province's utility Hydro One would still be considered.

Political and public opposition to the IPO had grown increasingly untenable for Eves and his Conservative government, with polls indicating 70% of the public being against privatization. The idea of privatizing Hydro One was first supported in December by now-retired Premier Mike Harris. A surprise ruling by the Ontario Superior Court in April found that there was no legal basis for such a sale. Wholesale electricity markets were deregulated in Ontario in May.

Eves maintained that he will still consider the privatization of up to 49 percent of the utility, saying "We still believe that there are ways to bring private-sector discipline to the corporation." Following the resignations of each of 12 board members last week after Eves announced an impending review of their salaries, the new board is made up of a broad spectrum of political leaders.
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