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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

Dynegy Warns on Possible Bankruptcy

LCG, Aug. 15, 2002--Dynegy Inc. said in quarterly filings with the Securities and Exchange Commission yesterday that its ability to avoid bankruptcy will depend on its success in raising $2 billion through key asset sales.

The company also disclosed that the SEC believed that the company's financial reporting relating to a gas-trading transaction, Project Alpha, and energy trades with CMS Energy, were in violation of antifraud and federal securities laws. The filing also noted that the U.S. Attorney's office in Houston is looking into the company's investment with Black Thunder Investors in Caitlin Associates. Black Thunder contributed $850 million to Dynegy's $100 million, with Caitlin having "indirect economic interests" in Dynegy's Midwestern power generation assets.

In a statement regarding a pending $928 million pipeline sale, the company said that if it "is unable to complete the Northern Natural sale in the near term or other elements of its strategy prior to the second quarter 2003, it may be forced to consider other strategic alternatives or a possible reorganization under the protection of bankruptcy laws." Dynegy did not meet a deadline yesterday to certify its second-quarter financial results as ordered by the SEC. It expects to do so following the re-audit of the past three years' results by auditor PriceWaterhouseCoopers, by the end of 2002.
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