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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

Utah Outage to Cost Scottish Power a Million a Day

LCG, Dec. 4, 2000--Scottish Power Plc said this morning that the 430 megawatt power plant in Hunter, Utah, belonging to its PacifiCorp subsidiary would be out of service for between four and six months to repair the windings in its generator.

The company said it have to buy power on the western U.S. wholesale market at unusually high prices to service customers through the winter, and said the "net cost impact" of the problem would be $1 million a day.

A short circuit in the inner core of the generator occurred a week ago and is thought to have been caused by a breakdown of the insulation on the wires that constitute the windings of the unit's rotor -- the part that is spun to generate electricity.

Winding insulation usually lasts forever, because it is not exposed to the elements and does not undergo any physical stress. The Hunter plant is less than 20 years old and was fully inspected last year. A Scottish Power spokesman said "This outage is an extremely rare occurrence."

The company said it would ask regulatory approval to recover the cost of its power purchases through increased rates to its customers.

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