Evolution Markets, an energy brokerage firm, has brokered the first renewable energy certificate (REC) trade under Connecticut’s recently revised renewable portfolio standard (RPS). Under the forward trade, 10,000 vintage 2004 Connecticut “Class I” New England Power Pool (NEPOOL) certificates were sold for US$37.50 per certificate. Evolution Markets specializes in carbon finance and structures transactions in the environmental credit, renewable energy, weather derivative, and coal markets.White Plains, New York – August 26, 2003 [SolarAccess.com] Under Connecticut’s program, “Class I” certificates are generated by renewable energy sources including wind, landfill gas to energy, some biomass generation, fuel cells, and solar photovoltaic (PV) generation. Certificates can be sourced from generation located anywhere within the NEPOOL region or from an adjacent power pool if the electricity is delivered to NEPOOL. One certificate represents the renewable attributes associated with 1 MW of electricity. “This is the first trade in an exciting new market,” said Anna Giovinetto a director with Evolution Markets and the chief REC broker. “With this transaction, Connecticut Class I certificates traded at some of the highest prices we’ve seen in the compliance markets for renewable energy certificates. This forward trade is also significant because load serving entities won’t have a clear picture of their 2004 certificate needs until this fall.” Earlier this year, the Connecticut General Assembly implemented major changes to the state’s energy laws, which the Connecticut Governor signed into law on June 26, 2003. In addition to expanding the scope of the entities covered by the RPS, the law also redefines what types of renewable resources are eligible, which dramatically altered the supply-demand balance for Class I certificates. As a result, 2004 demand is expected to outstrip supply in the short term. As of January 1, 2004, the RPS requires load-serving entities in Connecticut to purchase and retire a quantity of NEPOOL certificates from eligible renewable energy resources equivalent to a set percentage of their supply portfolios. The percentage ramps up from 1 percent in 2004 to 7 percent in 2010.