As always Cantor Environmental Brokerage does not trade for its own account. All allowances purchased in the auction or traded in the open market are for our clients. It is Cantor Environmental Brokerage 's policy to keep the identity of our clients and their positions in the market in strict confidence.

Whats Happening in the SO2 EA Market? This month the SO2 EA market has continued its range-bound behavior, with price cycles between the $160s and the $170s. As we approach the $170s, sellers appear and sell it down. As we reach the $160s, buyers appear and buy it up. The cycle has become semi-predictable. However, looking for things that could affect this range-bound behavior, we can’t help but notice certain facts including the: a) Northeast drought’s potential effect on hydro-generated power; b) potential for a very hot summer in light of a mild winter; c) risk of fuel cost spikes, including those possibly prompted by the mid-east crisis; and d) uncertainty regarding equipment potentially tripping off-line. One or all of these items could dramatically affect prices. Hence, options continue to be actively traded. The OTC NOx EA Market Awakens Faced with a bit of heat in the northeast during the middle of this month and the realization that the ozone season (May 1 – September 30) is not far away, buyers of NOx EAs became more aggressive. Prices broke out of the $800/ton range and quickly moved into the $875/ton range. Prices have now settled at $850/ton for the past few trades. Certain parties continue to be interested in the purchase or sale of banked EAs -- largely determined by the state where their facility is located and the related 2003 and/or 2004 regulatory impact on the usability of banked EAs beginning in 2003.

Greenhouse Gas Reductions Portfolio: Cantor Environmental Brokerage sister company, assists companies to hedge their greenhouse gas exposure and potential limitations on their ability to emit greenhouse gases. CO2e.com experts provide risk managers with options to create a diverse portfolio of greenhouse gas reductions and offsets. Transactions include simple purchases and sales to structured options transactions. CO2e.com currently represents a diverse family of reductions including: (a) Renewable energy, energy efficiency and land-use projects expected to be eligible for credit under the Clean Development Mechanism in South and Central America, Asia, and Africa; (b) Renewable energy, energy efficiency, methane capture and recovery, and land-use projects in Australia, Canada, and Europe; and (c) Renewable energy, land-use, and methane capture and recovery projects in the United States. Prices vary but range from $1.00 - $2.00 per ton CO2 equivalent and increase up to $8.00 depending on vintage year, risk guarantees, volume, and contract structure. Options prices are according to structure. For details call Corinne Boone at 416-350-2177.