The Spark

www.epa-mc.com (973) 285-3352 F (914) 381-6303 November 29, 2011

EPA MEMO-Cogens Energy Price Commentary & Technical Research

Natural Gas & Electricity At the risk of sounding like a broken record, there is not much going on in the price of Natural Gas or Electricity. While there has been a normal seasonal bump up in prices on Natural Gas over the last few weeks, the spot price on NYMEX is still well below the $4.00 level currently at $3.60 up from recent lows of $3.30. We view this move as inconsequential to the price of Electricity and would not even take a hard look at Natural Gas prices until they hit at least $4.50. With the continued push on Natural Gas Fracking and 9% unemployment we believe it will be quite some time before we see any non-weather related moves in the price of Natural Gas and its derivative Electricity.

Solar The New Jersey Solar Renewable Energy Credit (SREC) Market has been quite as well over the last few months. NJ spot SREC prices have settled in around $225-$240 with the forward curves at essentially the same level. That being said there are some very significant events going on underneath the surface. Both the New Jersey Board of Public Utilities (BPU) and Assemblyman Chivukula are working on drafts that will significantly change the New Jersey Solar market, and appease Governor Christies blueprint for the new Energy Master Plan. We have been following the developments very closely and believe it is not if the laws will change, but how and what that means over the near-term and long-term. As with all Government regulation, speculation is a slippery slope so we prefer to wait and see. However, we are very confident that NJ SREC prices will appreciate significantly towards the 3rd quarter of 2012, and the industry as a whole will continue to be a positive economic driver in the state.

Natural Gas January Future February Future March Future PJM Electric December Future January Future February Future NJ SREC 2011 2012

Current Price* 3.60 3.62 3.63 Current Price 4.58 5.15 4.85 Current Price $645 - $665 $225- $240

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