Monthly Bulletin

<%@LANGUAGE="VBSCRIPT" CODEPAGE="1252"%> Monthly Bulletin

SO2 EA and NOx EA
June 2004

June 2004 SO2 EA and NOx EA MPI HEADLINES
SO2 EA MPI Up 13.04% - Vintage 2004 NOx EA MPI Up 4.58%

What are the Cantor Environmental Brokerage SO2 EA and NOx EA MPIs?

The Cantor Environmental Brokerage Market Price Indices (MPIs) are prices that reflect current market conditions for Clean Air Act Title IV SO2, and Section 126/NOx SIP Call emission allowances (EAs). The MPI is an average of the following three numbers (where available) (Note: fees and commissions are not.

RECENT TRANSACTION PRICE
Prices from the most recent transactions (sales, swaps, and options) either executed by Cantor Environmental Brokerage and/or reasonably believed by Cantor Environmental Brokerage to have occurred. Also note that the MPI does not include transactions that are reported as retirements or facility changes of ownership because such transactions may not be reflective of current market conditions.

Lowest Offer Price
Lowest price, reported to Cantor Environmental Brokerage, at which a seller is willing to sell.

Highest Bid Price
Highest price, reported to Cantor Environmental Brokerage, at which a buyer is willing to buy.

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For More Information Call (203) 662-3638
19 Old Kings Highway South, Darien, Connecticut 06820
Fax (203) 662-3643

www.emissionstrading.com

Note: All information contained here is obtained by Cantor Environmental Brokerage from sources believed to be accurate and reliable. However, because of the possibility of human and mechanical errors, as well as other factors, such information is provided "as is" without warranty of any kind and Cantor Environmental Brokerage, in particular, makes no representation or warranty as to the accuracy, timeliness, or completeness of this information. Under no circumstance shall Cantor Environmental Brokerage have any liability to any person or entity for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling interpreting, analyzing, editing, transcribing, transmitting, communicating, or delivering any such information, or (b) any direct, indirect, special, consequential, or incidental damages whatsoever even if Cantor Environmental Brokerage is advised in advance of the possibility of such damages, resulting from the use of, or inability to use, any such information. The data and information contained herein are, and must be construed solely as statements of opinions and not statements of fact or recommendations to purchase, sell, or hold SO2 or NOx EAs. All prices are merely indications of interest, do not represent firm bids and offers, and their terms are subject to change without notice. NOWARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH DATA OR INFORMATION OROTHER OPINION IS GIVEN OR MADE BY CANTOR ENVIRONMENTAL BROKERAGE IN ANY FORM OR MANNER.

For information on trading SCAQMD RTCs and/or ERCs, SJVAPCD and BAAQMD ERCs, Illinois ATUs, ERCs, DERs, or Sewerage Facilities Charge Credits please visit or call 1-800-228-2955 ext. 1, 2, 4, 6, 7, 8, or 9. For information on trading HGA NOx Allowances, call 800-228-2955 ext. 13 or 14. For information on trading NOx Section 126/NOx SIP Call Allowances, and SO2 Allowances call (203) 662-3638 or 800-228-2955 ext. 6 or 12. For information regarding Greenhouse Gas Credits visit , or call 800-228-2955 ext. 10.

            June 2004
           CANTOR ENVIRONMENTAL BROKERAGE
           SO2 EA Market Price Index

Cantor Environmental BROKERAGE Market Price Index: $401.82
(Call 203-662-3638 for description)

	Bids*	Offers*	Trades	MPI
Price/Volume	2,500 @ $405.00	2,500 @ $415.00	Not Listed
Weighted Average	$405.00	$415.00	$385.45	$401.82

Immediate Settlement

		Best Prices ($/Allowance)		Maximum Volume
Term	Vintage	Bid to Buy	Offer to Sell	Bid	Offered
1 Year Term	2004	$405.00	$415.00	2,500	2,500	Allowances
	2005	$403.42		2,500		Allowances
	2006	$402.37		2,500		Allowances
	2007	$395.89		2,500		Allowances
	2008	$377.66		2,500		Allowances

Swaps


Swap Rates against vintage 2004 allowances
	2005	2006	2007	2008
Offer	0.39%	0.65%	2.25%	6.75%
Ratios for base years other than 2004 are available upon request.

SO2 EA Market Beat

  The Cantor Environmental Brokerage SO2 EA
  Market Price Index increased by 13.04% this
  month from $361.11 in May 2004
to $401.82 in June 2004.

            June 2004
           CANTOR ENVIRONMENTAL BROKERAGE
           NOx EA Market Price Index

BEST BIDS TO BUY			BEST OFFERS
2004	50 tons	$2,300/ton	2004	50 tons	$2,400/ton
2005	50 tons	$3,300/ton	2005	50 tons	$3,500/ton
2006	50 tons	$3,050/ton	2006	50 tons	$3,200/ton
2007	50 tons	$2,650/ton	2007	50 tons	$2,800/ton

RECENT TRADE PRICES May 26, 2004 - June 25, 2004
	V04 for $2,250/ton	V06 for $2,950/ton	V05 for $3,175/ton	V05 for $3,225/ton
	V04 for $2,775/ton x4	V04 for $2,300/ton	V05 for $3,200/ton x4	V06 for $3,075/ton
	V04 for $2,300/ton x6	V04 for $2,275/ton	V06 for $3,000/ton	V06 for $3,100/ton x3
	V06 for $2,950/ton	V04 for $2,250/ton	V04 for $2,275/ton x2	V05 for $3,250/ton
	V04 for $2,300/ton x2	V04 for $2,225/ton	V07 for $2,650/ton x2	V05 for $3,300/ton
	V06/04 for $700/ton	V04 for $2,250/ton	V04 for $2,250/ton	V04 for $2,350/ton
	V05 for $3,100/ton	V04 for $2,275/ton	V06 for $3,000/ton	V05 for $3,325/ton
	V04 for $2,300/ton	V06 for $2,925/ton x5	V05 for $3,200/ton	V06 for $3,150/ton
	V04 for $2,275/ton x5	V06 for $2,950/ton	V04 for $2,250/ton x2	V04 for $2,350/ton x 3
	V06 for $2,950/ton x3	V06 for $2,975/tpy	V06 for $3,000/ton	V04-05 for $2850/ton
	V06/04 for $685/ton	V04 for $2,250/ton	V05 for $3,200/ton	V06 for $3,125/ton
	V04 for $2,300/ton	V04 for $2,225/ton	V06 for $3,025/ton
	V07 for $2,600/ton	V06/04 for $700/ton	V06 for $3,050/ton
	V07 for $2,575/ton	V07-09 for $2,350/ton	V05 for $3,200/ton
	V04 for $2,300/ton	V05 for $3,15000/ton	V04 for $2,200/ton

MARKET INDEX PRICE
	2004 $2,327/ton	$102	3,572 tons trade this month
	2005 $3,337/ton	$265	1,050 tons trade this month
	2006 $3,098/ton	$137	1,750 tons trade this month
	2007 $2,692/ton	$50	510 tons trade this month

            June 2004
           CANTOR ENVIRONMENTAL BROKERAGE
           Market News

NOx Ticks Up		auction prices were above recent open market prices. In normal trading today (June 25th, 2004) however, prices are lower at the close, with an ’04 market of $2250 @ $2350.
Defying Micro Economics class teachings in college, the NOx EA market rose this month despite news that the Commonwealth of Virginia would be selling by auction 1,855 tons each of vintage ’04 and ’05 NOx on June 24th. While fuel prices have remained volatile, weather has not been extraordinarily hot. However, concern over NOx availability, and limited supply leading up to the auction helped keep prices relatively stable during most of the month. On June 24th, thousands of tons traded in the open market across various vintages, as it became clear that

SO2 Continues to Rise

Fuel prices continued to influence the SO2 market this month, as the MPI has risen another $46.36/ton since last month. There are many opinions on either side of the market price as to whether these levels are warranted/sustainable. Fuel choices, heat, and available generation, all combined with news associated with the EPA’s proposed Clean Air Interstate Rule (“CAIR”), will continue to influence SO2 and NOx EA prices this year.

For more information please call us at 800-228-2955.

Cantor Environmental Brokerage
19 Old Kings Highway South, Darien, Connecticut 06820
Tel. (203) 662-3638 Fax (203) 662-3643
www.emissiontrading.com

To Reach Cantor Environmental Brokerage Staff Call 800-228-2955 or Dial Direct:
Josh Margolis San Francisco RTCs/ERCs/DERs 800-228-2955 ext 1	Robin Langdon San Francisco RTCs/ERCs/DERs 800-228-2955 ext 2
Andy Kruger Darien, CT ERCs/NOx & SO2 EAs/DERs 800-228-2955 ext 6	Alexa Paton Darien, CT ERCs/NOx & SO2 EAs/DERs 800-228-2955 ext 6
Laurie Gage New York ERCs/NOx & SO2 EAs/DERs 800-228-2955 ext 7	Lauren Kisling New York ERCs/NOx & SO2 EAs/DERs 800-228-2955 ext 7
Mike Hammond San Francisco RTCs/ERCs/DERs 800-228-2955 ext 9	Christine Grandstaff Los Angeles RTCs/ERCs/DERs 800-228-2955 ext 4
Diarmuid McGarry San Francisco Back Office Manager 800-228-2955 ext 3