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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

WPS Resources Moves Ahead With New Coal Plant

LCG, October 26, 2004--Wisconsin Public Service Corporation, a subsidiary of WPS Resources, stepped forward into the construction phase with the groundbreaking for the new Weston 4 coal-fired facility near Wausau. The Public Service Commission of Wisconsin (PSCW) just approved the 500-MW expansion on September 23, 2004. The project was announced two years ago and submitted to the PSCW a year ago. The new unit is the first project approved by the PSCW under a new law designed to streamline the approval process.

The new unit at Weston is planned to commence operations in 2008 and has an estimated cost of $752 million. The three, existing units at the station have a combined capacity of 510 MW. The new unit will use low-sulfur coal and state-of-the-art technologies.

The Weston project is another indication of the positive progress being made in a number of regions with the development of new, coal-fired power plants.

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