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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

Rhode Island Legislature Passes Revisions to Increase RPS Goals to 40 Percent

LCG, June 28, 2016--The Rhode Island legislature last week passed legislation to increase the state's renewable energy target from 14.5 percent by 2019 to 40 percent by 2035. The legislation is expected to be signed into law by Governor Gina Raimondo.

The legislation proposes to revise Rhode Island's original renewable portfolio standard (RPS) approved in June 2004. The original RPS targeted 3 percent renewable energy by 2007; it would then rise an additional 0.5 percent through 2010, an additional 1.0 percent through 2014, and an additional 1.5 percent of renewable energy each year through 2019, when it would reach 16 percent. However, in December 2014, the PUC decided to delay the 1.5 percent increase for 2015 by one year, thus reducing the 2019 goal from 16 percent to 14.5 percent.

A House amendment attached to the new legislation gives the PUC more flexibility to delay a planned increase in the RPS in the event of an inadequate supply of renewable energy credits.

Last month, Maryland Governor Larry Hogan vetoed legislation that would increase the state's RPS from 20% to 25% by 2020. According to the Governor, Maryland consumers in 2014 paid over $104 million for renewable energy credits, and the higher standard would increase the burden on ratepayers. The tax increases were estimated to be up to $196 million in 2020 under the proposed legislation.
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