“The Spark”

www.epa-mc.com (973) 285-3352 F (914) 381-6303 January 13, 2011

EPA MEMO-Cogen’s Energy Price Commentary & Technical Research

atural Gas & Electricity

Crude Oil had a very significant technical move this past week. For the first time since September 2008 Crude Oil is now in a Bullish
or Positive Long-Term Trend. Is this due to the cold winter weather, the recent Pipeline Shutdown in Alaska or the start of a new
escalation in oil prices? "The Spark" believes that is probably a combination of all three. However, the big question remains, will the
move in Oil prices impact the price of Natural Gas and Electricity? On this question "The Spark" believes the answer is probably
not. Increasingly over the last few years Crude Oil has ceased to trade as a commodity, rather it trades more like an economic instru-
ment because of it's hedging capabilities against the dollar. This has done nothing to temper the Media's fascination with Crude Oil,
and they continue to fan the flames whenever Crude Oil puts in a significant price move.

The reality is that Electricity is more a derivative of Natural Gas and Coal prices, than anything else besides the weather. Natural Gas
and Coal prices have continued to trade as "pure" commodities based on supply and demand of the commodity itself. Coal made a
run at trying to move into a Bullish trend earlier this month and failed. Natural Gas continues to be mired in the $4.00 range that it
has been in for months, and shows no signs of staging any type of significant price run. That all being said, the last time Oil in-
creased dramatically Natural Gas, Coal and Electricity did the same. "The Spark" will be keeping a very close eye on prices over the
next few weeks. For the time being we still recommend variable energy pricing strategies to our clients.

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Natural Gas Strip Current Price*

6 Month 4.52
12 Month 4.70
24 Month 4.91

PJM Electric Strip Current Price

6 Month 5.28¢
12 Month 5.34¢
24 Month 5.31¢

NJ SREC Current Price

2011 $655
Crude Oil

This Newsletter is authored by Michael E. Mollin. The information contained herein is believed to be reliable, however, Energy Portfolio Associates
("EPA") and M.ichael E. Mollin do not warrant it's completeness or accuracy. Quotes are estimates and are not guaranteed by either EPA or MEM. Neither
EPA or MEM is acting as your advisor and the decision to proceed with any transaction rest solely with you. Copyright 2011, M.E. Mollin & Company,
LLC