Monthly Bulletin

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

SO2 EA and NOx EA
September 2004

September 2004 SO2 EA and NOx EA MPI HEADLINES
SO2 EA MPI Up 10.91% - Vintage 2004 NOx EA MPI Down 1.66%

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.

If you would like to receive this bulletin as an e-mail attachment in Adobe format please fax this to 203-662-3643 with your e-mail address listed below, or send an email to apaton@cantor.com.		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.

            September 2004
           CANTOR ENVIRONMENTAL BROKERAGE
           SO2 EA Market Price Index

Cantor Environmental BROKERAGE Market Price Index: $502.80
(Call 203-662-3638 for description)

	Bids*	Offers*	Trades	MPI
Price/Volume	2,500 @ $510.00	2,500 @ $525.00	Not Listed
Weighted Average	$510.00	$525.00	$473.40	$502.80

Immediate Settlement

		Best Prices ($/Allowance)		Maximum Volume
Term	Vintage	Bid to Buy	Offer to Sell	Bid	Offered
1 Year Term	2004	$510.00	$525.00	2,500	2,500	Allowances
	2005	$508.00		2,500		Allowances
	2006	$506.69		2,500		Allowances
	2007	$498.53		2,500		Allowances
	2008	$475.58		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 10.91% this
  month from $453.33 in August 2004
to $502.80 in September 2004.

            September 2004
           CANTOR ENVIRONMENTAL BROKERAGE
           NOx EA Market Price Index

BEST BIDS TO BUY			BEST OFFERS
2004	50 tons	$2,025/ton	2004	50 tons	$2,075/ton
2005	50 tons	$3,350/ton	2005	50 tons	$3,400/ton
2006	50 tons	$2,650/ton	2006	50 tons	$2,750/ton

RECENT TRADE PRICES August 26, 2004 - September 25, 2004
V04 for $2,025/ton	V04 for $2,100/ton x2	V05 for $3,375/ton x2	V04 for $2,050/ton
V04 for $2,050/ton x4	V04 for $2,075/ton	V07 for $2,600/ton	V05 for $3,350/ton
V04 for $2,100/ton x2	V04 for $2,150/ton	V06 for $2,725/ton	V07 for $2,550/ton x2
V05 for $3,400/ton	V04 for $2,100/ton	V04 for $2,150/ton	V04 for $2050/ton
V05 for $3,425/ton x2	V07 for $2,550/ton	V04 for $2,175/ton	V05 for $3350/ton
V06 for $2,700/ton	V04 for $2,050/ton x2	V04 for $2,200/ton	V05 for $3375/ton
V06 for $2,675/ton x2	V04 for $2,100/ton x2	V05 for $3,450/ton	V04 for $2075/ton
V04 for $2,150/ton x2	V04 for $2,075/ton	V05 for $3,500/ton	V05 for $3075/ton
V04 for $2,100/ton x2	V04 for $2,060/ton	V06 for $2,750/ton
V05 for $2,075/ton x2	V04 for $2,050/tpy x2	V06 for $2,800/ton
V04 for $2,100/ton	V04 for $2,075/ton	V06 for $2,825/ton
V06 for $2,725/ton	V04 for $2,100/ton	V07 for $2,650/ton x5
V06 for $2,750/ton	V06 for $2,700/ton x2	V03-07 for $2,414/ton
V06 for $2,700/ton	V07 for $2,550/ton	V04 for $2,050/ton
V04 for $2,125/ton	V04 for $2,100/ton	V05 for $3,350/ton x2

MARKET INDEX PRICE
	2004 $2,063/ton	$35	2,821 tons trade this month
	2005 $3,373/ton	$52	680 tons trade this month
	2006 $2,705/ton	$25	900 tons trade this month
	2007 $2,568/ton	$60

            September 2004
           CANTOR ENVIRONMENTAL BROKERAGE
           Market News

Last Month of NOx/Ozone Season Draws to a Close

Trading of odd-lot volumes began to pick up this month, as the ozone season (May – September) draws to a close. With relatively mild weather over the past week, and the end of the ozone season in sight, long and short positions have begun the true up process a few days early. While uncertainty as to the actual quantity exists, it is quite likely that flow control will “kick-in” for 2005 - it’s now just a question of where we fall

in the predicted range of 175,000 – 200,000 tons leftover. Please keep in mind that all unit accounts for NOx must be trued up by November 30, 2004!

EPA Publishes 2003 SO2
Emissions Progress Report

EPA has completed its reconciliation
process, and has announced that
2003 annual SO2 emissions were
10.6 million tons. With an annual
allocation of approx. 9.5 million tons, the burn of the SO2 allowance bank
continues the trend starting in 2000

of consuming approximately 1 million
tons per year. EPA notes a 4%
increase of SO2 emissions vs. 2002
annual emissions, citing increased
coal-fired and oil-fired unit operation
in response to natural gas price
increases. The report can be reviewed here.

EMA to Hold Houston Meeting

The Emissions Marketing Association, now known as the Environmental Markets Association, will hold a November 14-17, 2004 meeting in Houston, Texas to review emissions and renewables markets. Turnout is anticipated by EMA to be quite high, with numerous sponsors already lined up. A preliminary agenda is available here.

Please note that Today’s Data is as of 12:00 pm EST on September 24, 2004, rather than the typical daily close of the market

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	Bill Ross New York/San Francisco RECs 800-228-2955 ext 7
Andy Kruger Darien, CT ERCs/NOx & SO2 EAs/DERs 800-228-2955 ext 6	Lauren Kisling New York ERCs/NOx & SO2 EAs/DERs 800-228-2955 ext 7
Laurie Gage New York ERCs/NOx & SO2 EAs/DERs 800-228-2955 ext 7	Christine Grandstaff Los Angeles RTCs/ERCs/DERs 800-228-2955 ext 4
Mike Hammond San Francisco RTCs/ERCs/DERs 800-228-2955 ext 9	Diarmuid McGarry San Francisco Back Office Manager 800-228-2955 ext 3