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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

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

Corona to Seize Control of City Distribution

LCG, October 31, 2002-Corona City, California is fed up with the high rates and, they say, less than quality service from utility Southern California Edison and is expected to take over distribution within the city limits.

While no move has been made public as yet, the city will make an announcement today regarding electricity transmission within its borders.

If the city decides to take control of electricity distribution, it will form the first significant new municipal electric utility in California since 1947, when Sacramento formed SMUD (Sacramento Municipal Utility District).

SMUD was voted into existence in 1923 and involved several years of fundraising and twelve years of litigation, in regards to the price of distribution, in order to become a full-fledged municipal system.

The city of Corona may face similar challenges if it tries this route, especially considering that Southern California Edison says that it is not selling its system. The city has power of eminent domain, however, and has legal grounds on which to base a distribution takeover. Unfortunately, court costs may put the possibility of becoming a municipalized utility out of reach.

California currently has 30 municipal systems and several large investor-owned utilities, which include Southern California Edison, San Diego Gas & Electric, and Pacific Gas & Electric.

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