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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 Reaches Settlement Related to CA Energy Crisis

LCG, Apr. 27, 2004--Dynegy Inc. has agreed to a settlement with California and federal authorities, such that its West Coast Power LLC trading unit, which it owns with NRG Energy, will forego payment of $259 million for previous power sales, while it will pay an additional $22.5 million for distribution to power buyers.

The Federal Energy Regulatory Commission and California Public Utilities Commission reached the settlement, which was related to charges that it withheld power from the market on occasions during the period from January 2000 to June 2001.

Under the settlement, the cancellation of outstanding bills for power purchases will be divided among the major California utilities and the California Department of Water Resources. Pacific Gas and Electric Co. will be recognized in the amount of $82.3 million, Southern California Edison with $34.4 million, and San Diego Gas & Electric in the amount of $16.5 million.
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