Certificate or Attribute Market What is an Attribute

Certificate or “Attribute” Market What is an “Attribute”? • Environmental Attributes can be stripped away from the energy and energy efficiency, then quantified, packaged and sold as certificates or credits • A certificate represents all of the attributes (generation type and emissions) associated with the underlying energy, and is usually referred to as: “Renewable Energy Certificates” or “Tradable Generation Certificates” • The environmental attributes associated with NOT using energy due to energy efficiency are represented by Energy Efficiency Credits (EECs) • The attributes included in Renewable Energy Certificates and Tradable Efficiency Credits include bypassed emissions, such as NOx and CO 2

What are Energy Efficiency Credits? • “Green” attributes of energy efficiency bundled with grid power and sold at a premium • k. Wh savings beyond a define threshold are eligible to be EECs • Sold bundled with renewables, or as block product 2

Energy Efficiency Credits Trading Status: TECs are soon to be traded. Renewable energy credits (the environmental attributes of green power separated from the electricity) are traded, which will contribute to the development of the TEC market. Enron Corp. and EES are actively pursuing getting TECs certified in PA and OH so that they can be traded in 2001. NEPOOL PJM Market • Near-term: PA, OH • Mid-term: PJM, NEPOOL • Long-term: Entire US Background: Traditional green power products contain renewable energy resources only. However, several states and ISOs, including PA, OH, NEPOOL and PJM have recently initiated feasibility studies on including an efficiency certificates component in green power products. 3