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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

CA Attorney General Says Gaming of Power Market Still Possible

LCG, Apr. 13, 2004--Market manipulation of "epidemic" severity is still a possibility in California's power market, the state's attorney general Bill Lockyer maintains in a newly released report.

"The incentives to game the market and create disruption appear, for the most part, to remain in place," the report states. According to the findings in the report, neither the state nor the Federal Energy Regulatory Commission has put in place policies that will effectively deter attempts at manipulation.

The report criticizes a rule established by the FERC that restricts requests for refunds to sixty days after the occurrence of alleged overcharges and the filing of a complaint. The FERC did not recognize as eligible the state's claims that manipulation had occurred between May 2000 up to October 2000, based on the rule. In the report, it is argued that refund requests be considered without the waiting period.

Poor relations between the FERC and California officials do not show any signs of dying down. Bryan Lee, a FERC spokesman, called the attorney general's report "a cheap political stunt" in which California paid scant attention to its own poor job of market design.
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