“The Spark”

www.epa-mc.com (973) 285-3352 F (914) 381-6303 February 24, 2011

EPA MEMO-Cogen’s Energy Price Commentary & Technical Research

atural Gas & Electricity

Electricity, Natural Gas and Coal have all come down significantly from their December and January highs. Coal is 18% off the
January highs, and Natural Gas and electricity are both off 11% from the January highs. Now that the worst of winter is over and we
are heading into the spring shoulder season "The Spark" believes that prices will continue to remain low. In fact Natural Gas has
been mired in the $4.00 range for the better part of a year. What is particularly significant is that we have seen no price spike in
Natural Gas due to the disturbances in the middle east. This is because The United States in the "Saudi Arabia" of Natural Gas due to
new fracturing drilling techniques. Electricity is a derivative of Natural Gas and Coal, not Crude Oil.

With commodity prices low, and in our opinion just about as low as they are going to go. "The Spark" feels that it may be time to
start considering locking in these low prices for fixed longer term contracts. While we don't profess to able to predict the weather.
We feel that most of the risk in Electric and Natural Gas prices is on the upside, not the downside. Additionally, any uptick in eco-
nomic activity will surly drive demand, and thus prices.

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Natural Gas Strip Current Price*

6 Month 3.97
12 Month 4.20
24 Month 4.50

PJM Electric Strip Current Price

6 Month 4.67¢
12 Month 4.76¢
24 Month 4.87¢

NJ SREC Current Price

2011 $655

March Natural Gas

This Newsletter is authored by Michael E. Mollin. The information contained herein is believed to be reliable, however, Energy Portfolio Associates
("EPA") and M.ichael E. Mollin do not warrant it's completeness or accuracy. Quotes are estimates and are not guaranteed by either EPA or MEM. Neither
EPA or MEM is acting as your advisor and the decision to proceed with any transaction rest solely with you. Copyright 2011, M.E. Mollin & Company,
LLC