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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

Arrowhead-Weston Transmission Project Moves Forward

LCG, August 27, 2004--The Marathon County Board approved a proposal from American Transmission Company (ATC) to allow a new, 345-kV transmission line through a county-owned recreational area. The overall Arrowhead-Weston line between Hermantown and Wausau will extend 220 miles and is estimated to cost $420 million. The plan calls for completion of the project by 2008. Similar land use agreements will be required with other counties, plus about 850 landowners in Wisconsin and Minnesota.

The Wisconsin Public Service Commission last year approved construction of the Arrowhead-Weston line. Utilities, including Wisconsin Public Service Corp. and Minnesota Power, say it is needed to improve electric reliability. Furthermore, with locational marginal pricing (LMP) to be introduced next year by the Midwest ISO, the additional transmission capacity will tend to reduce locational price volatility.

Earlier this year, Minnesota Power started work on the Hermantown to St. Louis River section and plans to complete the 12-mile segment by early 2005.

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