NEPOOL Class I RECs: Q3 2015 Data Release Update & the “Maine” Event

Ali Shajrawi Market Research Briefs

While NEPOOL Class I REC pricing saw a retreat in 2015 compared to 2014, prices for the spot vintages in all markets (except Maine) remained robust near their newly established low-$50sresistance level. NEPOOL Class I REC pricing tracked within 95% of their respective ACPs in 2013 and most of 2014, bringing into focus assumptions of persistent undersupply. Nevertheless, as REC generation increased in 2015, the NEPOOL Class I REC market became adequately supplied and REC prices pulled back.

Maine RPS Update New (Class I) RECs

Karbone Market Research Briefs

Maine Governor LePage (R) recently indicated that the evidence from the report “The Economic Impact of Maine’s Renewable Portfolio Standard”, suggested the program was raising costs on the state while providing little environmental benefits. As many reviewers point out, these conclusions run counter to those of similar studies completed that indicate no increase in rate payer costs due to RPS programs in other states. With Democrats taking control of both the Maine Senate and House, coupled with Senator Angus King deciding to caucus with Democrats, it seems likely that political support for renewables will continue in ME on a state and federal level. Despite this likely ongoing support, ME prices have continued to decline due to NEPOOL supply flowing back into ME.