The Performance Credit Mechanism (PCM) is a new market tool approved by the Public Utility Commission of Texas in January 2023 to enhance grid system reliability. Power generators will earn credits by being available to produce incremental power during the hours of highest demand. Retail Electricity Providers must purchase these credits on behalf of their customers. The goal is to attract new generation assets. The PCM will take approximately 2 years to implement and will impact 2025 electricity prices.