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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

PJM Operations Expand to Include Dominion

LCG, May 4, 2005--PJM Interconnection (PJM) announced that its electric grid now includes the transmission assets - over 6,000 miles of high-voltage lines in Virginia and North Carolina - of Dominion as of May 1, 2005. Although PJM will control the transmission system, Dominion will retain ownership. PJM now manages and administers the wholesale power markets covering a 13 state region, plus the District of Columbia.

The addition of Dominion is a continuation of the progress PJM made last year to enlarge its footprint. In May of last year, PJM integrated over 5,000 miles of transmission lines transferred by Commonwealth Edison (ComEd), becoming the world's largest grid operator. On October 1, 2004, PJM began managing the transmission lines of AEP and Dayton Power and Light Company, and Duquesne Light Company was added on January 1, 2005.

The integration of Dominion's system into PJM, coupled with the Midwest ISO's launching of its new, Day-Ahead and Real-Time electricity markets on April 1, are two major achievements for the Federal Energy Regulatory Commission (FERC) towards its objective of creating geographically large, Regional Transmission Organizations (RTOs) that incorporate the FERC's Standard Market Design (SMD), including centralized, security-constrained unit commitment; security-constrained economic dispatch; locational marginal pricing (LMP); and a market for financial transmission rights (FTRs).

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