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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

Washington Governor Pushes New Power Plants

LCG, March 7, 2001Washington state Gov. Gary Locke announced yesterday several initiatives that will speed up the construction of new power plants, but they won't help the state this year which could be the worst in memory.

The word "drought" is being used with increasing frequency in the Pacific Northwest as low rainfall has left rivers flowing at half their normal rate and the impoundments behind dams at dangerously low levels.

Those impoundments are the fuel tanks for the turbines that produce the Pacific Northwest's normally abundant hydroelectric power.

"We are looking at a drought of near epic proportions," said Steve Wright, administrator at the Bonneville Power Administration. "My guess is that we are looking at a one- to two-year problem."

Locke said the permitting process for a 520 megawatt gas-fired power plant would be sped up in exchange for pollution control measures and signed a permit allowing Chehalis Power Ltd., a unit of Belgian utility Tractebel SA , break ground on the new plant.

Locke also said two other plants would be expedited, a 240 megawatt facility in Goldendale and a 248 megawatt plant in Centralia. In addition, the state will ease emissions restrictions to allow Avista Corp. to run a small peaking unit in Spokane 24 hours a day.

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