BEST BIDS TO BUY	1999: 50 tons @ $ 830/ton 1999: 25 tons @ $ 825/ton 1999: 50+ tons @ $ 500/ton 2000: 100+ tons @ $1,000/ton
BEST OFFERS TO SELL	1999: 100 tons @ $1,250/ton 1999: 50+ tons @ $1,200/ton 1999: 50 tons @ $1,110/ton 1999: 100 tons @ $2,500/ton 1999: 100+ tons @ $1,360/ton 2000-02: 100+ tons/yr @ $2,000/ton
RECENT TRADE PRICES	$ 900/ton (1999) $ 935/ton (1999) $1,250/ton (1999) $1,200/ton (1999) $1,400/ton (1999) $1,500/ton (1999) $1,605/ton (1999) $1,650/ton (1999) $1,690/ton (1999) $1,175/ton (2000) $1,250/ton (2000) $1,300/ton (2000) $1,450/ton (2000) $1,500/ton (2000) $1,700/ton (2000) in chronological order
MARKET PRICE INDEX	1999 = $1,093/ton     down $603     (since 8/12/99) 2000 = $1,178/ton     down $847     (since 8/12/99) 2000-02 = $2,018/ton     no change     (since 8/12/99) The Market Price Index (MPI) is derived by averaging the Best Bid, Best Offer, and Most Recent Trades.

NOx NEWS The first ozone season is coming to a close (May 1 through September 30,1999). As the summer months went by, we witnessed prices hovering at between $1,700 - $1,800/ton for vintage 1999 NOx EAs for many weeks. Thereafter prices shifted downward for vintage 1999 NOx EAs. Why?? A few reasons are offered. Supply. Greater than expected. This is because of: 1) the one time “early reduction allowance” allocation, estimated to amount to approximately. 25,000 additional tons; 2) early price increases fostering creativity, to avoid/minimize NOx EA demand. Lawsuit. Certain Maryland parties filed a suit, which ultimately resulted in Maryland not being included in the 1999 program. Estimates place the result at approximately. 20,000+ tons of lost demand. Regulatory Impact. DC did not pass a timely rule, and as a result, its sources are not in the 1999 program. This is estimated to also represent net foregone demand. Additionally, Maine and Vermont elected to operate independently. Unnecessary Panic. Many people predict that “progressive flow control” (PFC) will occur in 2000. Faced with this news, some sellers began to “dump” their NOx EAs. PFC may exist in 2000. But that does not render vintage 1999 NOx EAs useless, nor does it mean that every ton of vintage 1999 NOx EA is useable only at 2:1 in 2000. Focus could be placed upon: the PFC ratio; that many vintage 1999 NOx EAs will still be useable at 1:1 in 2000; and recognition that PFC could also be avoided in subsequent year(s). Indeed, we are aware of vintage 2000 NOx EA buyers who have recognized such, and who will accept vintage 1999 NOx EAs with a PFC ratio. In the next bulletin, we will explain “PFC Ratios”. In the interim, as always, please do not hesitate to call us for a personal tutorial.

How is the MPI Derived? The MPI, in $/ton, is derived by averaging the following: 1) the Best Bid - the highest price at which a buyer is willing to purchase at least 5 tons of NOx Allowances. 2) the Best Offer - the lowest price at which a seller is willing to sell at least 5 tons of NOx Allowances. 3) the Most Recent Trade - the price(s) at which NOx Allowances have been agreed to be transacted (NOTE: NOx Allowances have not yet been placed in Budget Sources' NATS Accounts, and thus trades cannot yet be "transacted". Until such time, the "Most Recent Trade" represents buyer(s) and seller(s) agreement(s) on price).

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