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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

Hydro Plant from 1800's Likely to Operate Again

LCG, Apr. 11, 2003--A small but distinguished hydro plant on New York's Hudson River could begin producing power again, with the approval of regulators.

The Mechanicville plant began operating first in 1898, and was shut down in 1997 due to a protracted legal conflict between co-owners Niagara Mohawk and Fourth Branch Associates, over whether to retain or sell the facility. Recently, Niagara Mohawk has offered to release its interest, and Fourth Branch hopes to produce power by Labor Day. Niagara has wanted to exit the generation business, while a principal of Fourth Branch, James Besha, had reason to believe that the Federal Energy Regulatory Commission would take actions that would lead to the dismantling of Mechanicville.

"This will be its third century in which it will operate," said Besha of the 4.5-megawatt plant. A noteworthy engineer with General Electric, Charles Steinmetz, assisted in the plant's design in the nineteenth century. Mechanicville is found on the National Register of Historic Places. The legal settlement provides for a joint effort to obtain a license for further operations. Should the license be granted, the transfer would then take place.
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