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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

Philly Gas Works Allowed 30 Percent Rate Hike

LCG, Jan. 12, 2001--The Pennsylvania Public Utility Commission said yesterday it had approved a request by the Philadelphia Gas Works to raise its gas cost rate by an additional $133 million, or about 30 percent for residential customers, in order to cover the sharply escalating cost of natural gas.

The increase will raise the monthly bill for a typical residential heating customer using 10,000 cubic feet of gas per month from approximately $104.58 to $136.12 and will be effective retroactive to January 1. The rate hike comes on top of a $97 million gas cost increase the PUC approved last November.

The PUC point out that the gas cost represents what Philly Gas Works pays for wholesale natural gas. The company passes through to consumers the cost of buying gas and does not make a profit on it. The gas cost charge is one part of a customer's bill. Customers also pay a base rate charge that includes transmission and distribution charges.

Philly Gas Works wants to bump the delivery charge, too, and has asked the PUC for a $65 million base rate increase. The regulators have nine months to rule on that one.

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