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I find the performance in Summerset itself to be worse than any other area, too, which I chalk up to the population on there as well as what seems to be a higher level of detail. I don't think you should be seeing quite the dips that you are, though.
I would suggest to install MSI Afterburner and check GPU temperature, CPU temperature, GPU workload, CPU workload, RAM usage, and VRAM usage when the effect occurs. That should cover the most common causes for large FPS drops.
Also make sure that your machine isn't doing anything work-intensive in the background (Windows downloading and installing updates, Steam downloading huge updates for other games, Antivirus scanning your hard drive, an automated task defragmenting your drive, etc.). Those tasks shouldn't directly influence FPS, but with a game that has to transfer lots of data during play, they can have a noticable effect.
How do you lock frame rates in ESO? I could never find this option.
One good thing to note is I played ESO again this morning in the same area where I was getting those terrible FRs and everything was perfect again. Back to the 90s. Idk if playing to long can build up memory problems or if it was just a population problem. If it's the latter, I guess I'm going to hate going to markets in this game.