EPA Memo-Cogen

www.energyportfolioassociates.com
The Spark
(914) 381-6300 F (914) 381-6303 November 6, 2009

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

atural Gas & Electricity

Natural Gas and Electricity prices were down across board again this past and for much the same reasons as the week before. We've
got a lot of supply and not a lot of demand. Natural Gas storage levels just came in at their 6th consecutive record and unemploy-
ment just hit a 26 year high.

In our opinion this environment offers the perfect opportunity to reiterate out basic philosophy. No matter what anyone tells you,
market prices move for one reason and one reason only and that is the irrefutable law of supply and demand. It doesn't matter if it's
the price of Natural Gas or the price of Oranges in the supermarket, it all comes down to supply and demand. There might thousands
of reasons why the supply demand relationship for any security might change, but it all comes down to whether or not there are more
buyers or more sellers. Thus, our main focus is monitoring the battle that occurs between supply and demand in the markets we fol-
low everyday, and reacting to changes in this relationship. We feel this approach gives us clarity, discipline and eliminates emotion
from our decision making process.

Natural Gas Strip Current Price* Price Target

6 Month 5.00 -.49 4.0
12 Month 5.26 -.47 4.4
24 Month 5.82 -.38 8.6

PJM Electric Strip Current Price* Price Target

6 Month 4.86¢ -.16 9.6
12 Month 5.27¢ -.18 8.4
24 Month 5.62¢ -.18 8.3
PJM Electric 12 Month Strip

*prices are a snapshot at time of composition. Price changes are on a publication over publication change.

This Newsletter is authored by Michael E. Mollin. Michael E. Mollin is the principal of M.E. Mollin & Company LLC a Registered Investment Advisor in
New York State. The information contained herein is believed to be reliable, however, Energy Portfolio Associates ("EPA") and M.E. Mollin & Company
LLC ("MEM") 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 2009, M.E. Mollin & Company, LLC