From RTO Insider:

Texas regulators threw another curveball at ERCOT market participants last week, backing away from a market design they seemed to favor a year ago and moving toward a hybrid model recommended by commission staff.

Following an external consultants’ review of the Public Utility Commission’s proposed market redesign, staff urged the commissioners to pursue a performance credit mechanism (PCM) that requires load-serving entities to buy performance-based credits from generation resources. (54335)…

‘Detail Devils’

Beth Garza, a senior fellow with R Street Institute and ERCOT’s former market monitor, said there are rarely right or wrong answers when designing a market but “merely choices that will have consequences.”

“Ever the optimist, I think the PCM can be a workable mechanism,” she said. “The detail devils include one, capacity accreditation and two, the definition and number of ‘high-risk’ hours. I am also optimistic that PCM could provide another incentive for loads to consider their consumption during times of potential supply scarcity.”