# PJM and ERCOT navigate a capacity rollercoaster

- Show: [Catalyst](https://hardwarepodcasts.com/podcast/catalyst)
- Published: 2026-02-12
- Length: 40m
- Page: https://hardwarepodcasts.com/podcast/catalyst/2026-02-12-pjm-and-ercot-navigate-a-capacity-rollercoaster

## Summary

Paul Segal, CEO of LS Power, discusses the extreme volatility in US wholesale power markets, specifically the capacity crunch in PJM and the unexpected load behavior in ERCOT. He explains how PJM shifted from market stasis to a shortage due to rapid data center growth, leading to a federal emergency order requiring large loads to pay for their own capacity. In ERCOT, Segal highlights how high forward prices triggered over 10 gigawatts of uncontracted demand response during a recent winter storm, compressing merchant battery spreads and creating a cyclical investment environment.

## Chapters

- [0:07](https://hardwarepodcasts.com/podcast/catalyst/2026-02-12-pjm-and-ercot-navigate-a-capacity-rollercoaster#t=7) Introduction: Paul Segal and LS Power
- [4:11](https://hardwarepodcasts.com/podcast/catalyst/2026-02-12-pjm-and-ercot-navigate-a-capacity-rollercoaster#t=251) PJM's Shift from Stasis to Capacity Shortage
- [10:58](https://hardwarepodcasts.com/podcast/catalyst/2026-02-12-pjm-and-ercot-navigate-a-capacity-rollercoaster#t=658) The Role and Limitations of Demand Response in PJM
- [13:44](https://hardwarepodcasts.com/podcast/catalyst/2026-02-12-pjm-and-ercot-navigate-a-capacity-rollercoaster#t=824) DOE Emergency Order and Data Center Costs
- [25:08](https://hardwarepodcasts.com/podcast/catalyst/2026-02-12-pjm-and-ercot-navigate-a-capacity-rollercoaster#t=1508) ERCOT Winter Storm: Expected vs. Actual Load
- [29:20](https://hardwarepodcasts.com/podcast/catalyst/2026-02-12-pjm-and-ercot-navigate-a-capacity-rollercoaster#t=1760) 10 Gigawatts of Uncontracted Demand Response
- [36:29](https://hardwarepodcasts.com/podcast/catalyst/2026-02-12-pjm-and-ercot-navigate-a-capacity-rollercoaster#t=2189) ERCOT's Cyclical Market and Battery Economics

## Topics

- [Policy, trade & tariffs](https://hardwarepodcasts.com/topic/policy-trade-and-tariffs)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)
- [Energy & climate tech](https://hardwarepodcasts.com/topic/energy-and-climate-tech)
- [Sourcing & supply chain](https://hardwarepodcasts.com/topic/sourcing-and-supply-chain)

## Most relevant to

large enterprises

## Mentioned

- LS Power (company)
- PJM (other)
- ERCOT (other)
- EnergyHub (company)
- Uplight (company)
- Antenna Group (company)
- Latitude Media (company)
- Uri (other)

## Related episodes from other shows

- [Renewable Energy Policy with Ari Gerstman](https://hardwarepodcasts.com/podcast/the-amp-hour/2023-05-02-renewable-energy-policy-with-ari-gerstman) (The Amp Hour)
- [Like a steam engine in your house](https://hardwarepodcasts.com/podcast/the-amp-hour/2025-04-15-like-a-steam-engine-in-your-house) (The Amp Hour)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/catalyst/2026-02-12-pjm-and-ercot-navigate-a-capacity-rollercoaster. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to Catalyst.