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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, Ozone
Transport Commission 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 factored into the MPI):
- 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.
| 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 www.emissionstrading.com
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 OTC Allowances, Section
126 Allowances, and SO2 Allowances call (203) 662-3638 or 800-228-2955
ext. 6 or 12. For information regarding Greenhouse Gas Credits
visit www.CO2e.com, or call 800-228-2955 ext. 10. |
If you would like to receive this bulletin as an e-mail attachment in
Adobe format please fax this to 415-296-9582 with your e-mail address
listed below, or send an email to loshiro@cantor.com.
Don’t want to get this anymore? No problem! Tell us by checking
the box below and faxing this back to 415-296-9582:
[ ] Stop sending this to me. Give us your name, company, and fax number:
Cantor Environmental Brokerage Market Price Index:
$143.64
(Call 203-662-3638 for
description)
| |
Bids * |
|
Offers * |
|
Trades |
MPI |
| Price/Volume |
2,500 |
@ |
$143.00 |
|
2,500 |
@ |
$145.00 |
|
Not
listed |
|
| |
|
|
$143.00 |
|
|
|
$145.00 |
|
$142.92 |
$143.64 |
Bid and offer for vintage
2002 allowances.
Immediate
Settlement:
| |
|
|
|
Best
Prices ($/Allowance) |
|
Maximum
Volume |
|
| Term |
|
Vintage |
|
|
|
Bid to Buy |
Offer to Sell |
|
Bid |
|
Offered |
|
|
| 1 |
Year |
|
2002 |
|
|
|
$143.00 |
$145.00 |
|
2,500 |
|
2,500 |
|
Allowances |
| 1 |
Year |
|
2003 |
|
|
|
$142.64 |
|
|
2,500 |
|
|
|
Allowances |
| 1 |
Year |
|
2004 |
|
|
|
$141.23 |
|
|
2,500 |
|
|
|
Allowances |
| 1 |
Year |
|
2005 |
|
|
|
$140.19 |
|
|
2,500 |
|
|
|
Allowances |
| 1 |
Year |
|
2006 |
|
|
|
$134.27 |
|
|
2,500 |
|
|
|
Allowances |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Swaps:
| Swap
Rates against vintage 2002 allowances |
| |
2003 |
2004 |
2005 |
2006 |
| Offer |
0.25% |
1.25% |
2.00% |
6.50% |
| Ratios for base years
other than 2002 are available upon request |
SO2 EA Market Beat
--The Cantor Environmental Brokerage SO2 EA Market Price Index decreased by 1.93%
this month from $146.47 in July 2002 to $143.64 in August 2002.
|
|
| |
BEST BIDS TO BUY |
| 1999 |
50 tons |
$400/ton |
| 2000 |
100 tons |
$560/ton |
| 2001 |
100 tons |
not listed |
| 2002 |
100 tons |
$650/ton |
| 2003 |
50 tons |
$4,500/ton |
| 2004 |
50 tons |
$4,000/ton |
| 2005 |
50 tons |
$3,400/ton |
|
BEST OFFERS TO SELL |
| 1999 |
50 tons |
@ $500/ton |
| 2000 |
100 tons |
@ $615/ton |
| 2001 |
100 tons |
@ not listed |
| 2002 |
100 tons |
@ $680/ton |
| 2003 |
50 tons |
@ $4,900/ton |
| 2004 |
50 tons |
@ $4,600/ton |
| 2005 |
50 tons |
@ $3,900/ton |
|
|
|
| V99/01 for $580/ton |
V02 for $670/ton |
V99/01 for $585/ton |
| V02 for $680/ton |
V02 for $670/ton |
V03 for $4,700/ton |
| V02 for $640 /ton |
V02 for $650/ton |
|
| V00/02 for $607.50/ton |
V02 for $650/ton |
|
|
| |
| 1999 |
$443/ton |
- $64 |
| 2000 |
$570/ton |
- $1 |
| 2001 |
$644/ton |
- $9 |
| 2002 |
$651/ton |
- $17 |
| 2003 |
$4,700/ton |
+ $17 |
| 2004-2007 |
$3,250/ton |
|
|
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.
| Tough
Times -- Most NOx and SO2 Allowance market
participants are in the energy business and energy markets. In
response to many stories emerging in the energy sector beginning
around this time last year – stories that have only gotten worse
in the first two quarters of this year – NOx and SO2 Allowance prices
and market liquidity have continued to soften this month. Allowance
prices and market liquidity have softened despite the hot summer
occurring in many parts of the country. In addition, credit issues,
as well as concerns related to the “right” trading price have contributed
to a declining price. However, the energy sector is beginning to
show recovery on Wall Street (as noted in today’s Market Close summary
by CBS MarketWatch) and a turn-around is anticipated. Our reason
for pointing this out is to address your overall concern about “what’s
going on in the Allowance markets?”
A Lawsuit to Watch -- In the past, the U.S. EPA
has been successful in litigating its ability and authority to foster
the creation of the SIP Call NOx Allowance program. One program issue
left unresolved by the Court was EPA’s justification of the “growth
factors” used in the annual Allowance allocations to states. The
U.S. EPA amended its regulation and the related preamble to the SIP
Call. Apparently unsatisfied with the U.S. EPA’s changes, the Midwest
Ozone Group (MOG), Utility Air Regulatory Group (UARG), and the states
of Illinois and West Virginia have filed suit again. The outcome
is uncertain, but has added to the volatility in the NOx Allowance
markets. Will the Court just be frustrated and find a basis to throw
the suit away? Will there be a delay? Will the suit amount to nothing?
Facility planning requires answers to these questions. We will endeavor
to keep you advised as these matters develop.
Kentucky Funds SIP Call NOx Allowances --
Over the past month, Kentucky has funded the NOx Allowance accounts
for its budget sources. Kentucky joins the ranks of many states
that have fostered liquidity of SIP Call NOx Allowances. |
| Greenhouse Gas Reductions
Portfolio: CO2e.com, Cantor Environmental Brokerage ' sister company, provides market-based solutions to
help companies manage the opportunities and risks of climate change
including: environmental brokerage, climate neutral solutions,
trading and risk management tools and advice, and market information.
CO2e.com can help your company hedge greenhouse gas exposure and
liabilities. CO2e.com experts provide risk managers with options
to create a diverse portfolio of greenhouse gas reductions and
offsets. Transactions range from simple purchases and sales to
structured options transactions. CO2e.com currently represents
a diverse family of reductions including: (a) Renewable energy,
energy efficiency, land-use and methane projects expected to be
eligible for credit under the Clean Development Mechanism in South
and Central America, Asia, and Africa; and (b) Renewable energy,
energy efficiency, methane capture and recovery, and land-use
projects in Australia, Canada, Europe and the US. Price estimates
vary, but currently range from $1.00 - $2.00 per ton CO2 equivalent
and increase up to $9.00 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
or at 1-800-228-2955 (ext. 10 or 11). |
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 |
| Andy
Kruger |
Darien,
CT |
ERCs/NOx
& SO2 EAs/DERs |
800-228-2955
ext 6 |
| Laurie
Gage |
New
Jersey |
NOx
&SO2 EAs/RTCs/ERCs/DERs |
800-228-2955
ext 7 |
| Robin Langdon |
San
Francisco |
RTCs/ERCs/DERs |
800-228-2955
ext 2 |
| Christine
Grandstaff |
Los
Angeles |
RTCs/ERCs/DERs |
800-228-2955
ext 4 |
| Patrick
Bartosh |
Houston |
NOx
EAs/ERCs/DERs |
800-228-2955
ext 13/14 |
| Mike
Hammond |
San
Francisco |
RTCs/ERCs/DERs |
800-228-2955
ext 9 |
| Lauren
Kisling |
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 |
| Lori
Oshiro |
San
Francisco |
West
Coast Office Manager |
800-228-2955
ext 5 |
| Jenny
Jo |
San
Francisco |
West
Coast Administrative Assist. |
800-228-2955
ext 3 |
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