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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

Palisades Nuke May Restart in January

LCG, Sept. 4, 2001--CMS Energy Corp. said on Friday that its Consumers Energy Co. subsidiary expects to restart its Palisades nuclear power plant near South Haven, Mich., in January, following a long shutdown to repair the 790 megawatt reactor's control rod mechanism.

The plant was shut down last June after operators found a small amount of steam leaking where the control rod equipment enters the reactor core. The company said it was decided to replace the entire system at a cost of between $25 million and $30 million rather than simply repair the leak.

In addition to guiding control rods which pass through them at the top of a reactor vessel head, fittings include nozzles which provide coolant to maintain the reactor system pressure boundary. The control rods are moved in and out of the bundles of fuel rods to regulate the level of a reactor's output.

The Nuclear Regulatory Commission recently noted that some reactors have experienced circumferential, as well as longitudinal, cracks in those nozzles, and ordered their inspection by licensees.

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