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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

Con Edison-Northeast Utilities Merger Appears Dead

With each side accusing the other of having a change of heart, to say nothing of perfidy, it appeared this morning that the planned $3.8 billion takeover of Northeast Utilities by Consolidated Edison Inc. will not take place.

Last week, Northeast gave Con Edison until last Friday to reaffirm its intention to complete the merger. "Do you still love me?" the bride asked at the wedding rehearsal. Con Edison hemmed and hawed so Northeast extended its deadline until yesterday.

Yesterday, Con Edison said Northeast had been making deals behind its back, claiming the company had entered into certain "supply obligations" through its Select Energy unregulated energy and services subsidiary, and those deals jeopardized Northeast's ability to fulfill its obligations under the merger agreement.

Northeast said Con Edison wasn't specific enough, adding that a breach of promise suit was in the works. Michael G. Morris, Northeast chief executive, said "We have instructed our attorneys to take appropriate steps to protect shareholder interests."

The merger agreement was announced in October 1999 and had received approval from shareholders of both companies and all federal and state agencies with oversight responsibility except the Securities and Exchange Commission.

The deal looked a little shaky when Con Edison objected unsuccessfully to conditions imposed by Connecticut regulators and observers felt that the New York utility was looking for a way out. When Connecticut Attorney General Richard Elemental asked a state court to delay the merger until he could get a ruling on his appeal to overturn his state regulators' approval, Con Edison quit talking.

The takeover would have created the nation's largest electric distribution company.

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