Current and future renewable energy certificate (REC) markets were discussed. Several northeastern US states like New Jersey and Connecticut face REC oversupply issues. Solar mandates in Massachusetts and North Carolina are driving development in those states. Existing long-term contracts in California could limit the REC market there. The presentation covered REC and renewable portfolio standard trends in various US states and regions.

1. Current REC markets and future projectionsCarrie Sisto7 June 2011 London, Houston, Washington, Jersey City, Portland, Calgary, Santiago, Bogotá, Johannesburg, Dubai, Singapore, Tokyo, Beijing, Sydney, Moscow, Astana, Kiev and Berlin

2. For more information, contact sales@argusmedia.com or 713-968-0000

3. Agenda New Jersey markets face oversupply Connecticut, Pennsylvania and Maryland turning in-state Massachusetts, North Carolina solar mandates drive development Existing contracts could stifle California REC market

4. New Jersey compliance by fuel Note: ACP stands for alternative compliance payment. Source: New Jersey Office of Clean Energy Draft 2010 Compliance Report

5. New capacity hits forward prices

6. SREC market backs capacity additions

7. ORECs New Jersey goal of 1,100MW of offshore wind No compliance schedule set Applications to be an OREC generator due next week

8. NEPOOL deadline eclipses oversupply

9. Historical Connecticut Class I compliance Note: 2009 not yet available. ACP stands for alternative class compliance. Source: Connecticut DPUC RPS compliance reports

10. New legislation? 450MW solar goal SREC price cap at $350/MWh Utility-funded solar incentives Long-term, in-state contract requirements Combine Departments of Public Utility Control and Environmental Protection New CHP incentives for up to 50MW of in-state facilities

11. Solar market extinguished by wave of supply

12. Supply tight in first year of program

13. Compliance needs driving solar development

14. Maryland 2009 compliance by fuel *Hydro systems must be <30MW for Tier I; other than pumped storage for Tier II Source: Maryland Energy Administration **MSW qualifies as Tier I from 1 October 2011.

15. Projected sources of Maryland RPS compliance Source: Governor Martin O'Malley, Maryland Energy Summit

16. Capacity swells before start of program

17. Rules in limbo Whole tree biomass? NCUC decision challenged by Environmental Defense Fund “Electric demand reduction” Utilities can meet part or all of their RPS compliance with voluntary actions by their customers Alternative compliance payment? No penalties or alternative compliance mechanisms in place NCUC has authority to enforce the RPS

18. Contracts in the California pipeline loom large

19. Utilities on pace to meet 33pc target

20. Conclusions Excess supply encumbers PJM markets Massachusetts solar just getting started Connecticut, Maryland, Pennsylvania looking to in-state sources North Carolina rules in flux Existing contracts could hamper California REC markets

21. Thank you!Carrie Sisto Editor, Argus Air Dailycarrie.sisto@argusmedia.com202.349.2881 London, Houston, Washington, Jersey City, Portland, Calgary, Santiago, Bogotá, Johannesburg, Dubai, Singapore, Tokyo, Beijing, Sydney, Moscow, Astana, Kiev and Berlin