Report: RGGI Trading Volumes Grow in First Quarter of 2009‏

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For Immediate Release Contact:Emilee PierceMay 7, 2009 212-417-3179 Report: RGGI Trading Volumes Grow in First Quarter of 2009 (New York, NY) — A report released today by the states participatingin the Regional Greenhouse Gas Initiative (RGGI) shows that the secondarymarket for RGGI CO2 allowances continues to mature.

The report, whichaddresses trading in the first quarter of 2009, finds no evidence ofanti-competitive conduct and identifies increased market participationand trading volumes as a “sign of competitiveness and efficiency.” The Report on the Secondary Market for RGGI CO2 Allowances wasindependently prepared by Potomac Economics for RGGI, Inc. on behalfof the RGGI participating states. Potomac’s other key findings include the following:

• Although first quarter trading volumes remain “modest” consideringthe number of allowances sold in auctions, the volume of trading onsecondary market exchanges has risen considerably — from an averageof 303,000 allowances per day in December 2008 to 979,000 per day inMarch 2009.

• Market price volatility declined significantly from the last quarterof 2008 to the first quarter of 2009.

• By the end of the first quarter of 2009, 26 firms held a significantquantity of futures and options contracts on secondary market exchanges.

This is a positive sign for the competitiveness of the secondary marketat this early stage. Potomac’s conclusions were based on the analysis of data reported to theCommodity Futures Trading Commission, the Chicago Climate Futures Exchange,the New York Mercantile Exchange and other data.

“RGGI, Inc. will continue to monitor the RGGI CO2 allowance market throughour independent market monitor,” said Jonathan E. Schrag, Executive Directorof RGGI, Inc. “We are grateful to have Potomac Economics, an experiencedmonitor of electricity markets across the region, as an independent monitorof the RGGI market, supporting each RGGI participating state’s regulatoryoversight of this young program.”

The complete Report on the Secondary Market for RGGI CO2 Allowances isavailable at http://www.rggi.org/docs/Secondary_Market_Report_May_2009.pdf About the Regional Greenhouse Gas InitiativeThe 10 Northeast and Mid-Atlantic states participating in RGGI (Connecticut,Delaware, Maine, Maryland, Massachusetts, New Jersey, New Hampshire, New York,Rhode Island and Vermont) have designed the first market-based, mandatorycap-and-trade program in the U.S. to reduce greenhouse gas emissions.

The RGGIparticipating states have regulations in place to cap and then reduce the amountof carbon dioxide (CO2) that power plants in their region are allowed to emit,limiting the region’s total contribution to atmospheric greenhouse gas levels.Power sector CO2 emissions are capped at 188 million short tons of CO2 through2014. The cap will then be reduced by 2.5 percent in each of the four years 2015through 2018, for a total reduction of 10 percent. A CO2 allowance represents a limited authorization to emit one ton of CO2, asissued by a respective participating state. A regulated power plant must holdCO2 allowances equal to its emissions to demonstrate compliance at the end ofeach compliance period. Because CO2 allowances issued by any participating stateare usable across all state programs, the ten individual state CO2 Budget TradingPrograms, in aggregate, form one regional compliance market for CO2 emissions.

For more information about RGGI, turn to: www.rggi.org About Regional Greenhouse Gas Initiative, Inc.RGGI, Inc. was created in September 2007 to provide technical and administrativeservices to the states participating in the Regional Greenhouse Gas Initiative.RGGI, Inc. is a 501(c) 3 nonprofit organization. For more information please visit:www.rggi.org/rggi