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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

Reliant Takes Over Duke's Florida Power Project

LCG, June 12, 2001Reliant Resources Inc., a subsidiary of Houston-based Reliant Energy Inc., said yesterday it had taken over from Duke Energy Corp. the development of a 500 megawatt power plant in New Smyrna Beach, Fla.

In August 1998, Duke announced that it would build the merchant plant in conjunction with the Utilities Commission of New Smyrna Beach, conforming to Florida law which bans non-utility power plants unless built in partnership with municipal utilities. In March 1999, the Florida Public Service Commission gave Duke permission to build the plant.

But Florida's investor-owned utilities didn't want an out-of-state company building power plants on their turf, and brought suit to block the plant in the state's highly parochial Supreme Court. In April 2000, the Florida high court sided with the utilities, banning the project on a 6-1 vote.

Duke recently terminated its agreement with the New Smyrna Beach municipal utility, and Reliant has stepped in to take on the project.

"Florida is a key market for us, and the New Smyrna Beach Power Project represents another step in our strategy to meet demand for electricity in one of the fastest-growing areas of the country," saidCurtis Morgan, president of Reliant Resources Eastern Region.

"We are excited about the prospects of working with the City of New Smyrna Beach and other Florida load-serving entities on this project," he added. "We believe that this additional base-load capacity will be well received by the local wholesale market."

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