<HTML><BODY style="word-wrap: break-word; -khtml-nbsp-mode: space; -khtml-line-break: after-white-space; "><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">LFEE Seminar on Energy and Environment </DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">Sponsored by the MIT Laboratory for Energy and the Environment</DIV><DIV class="MsoNormal"><BR class="khtml-block-placeholder"></DIV><DIV class="MsoNormal"><BR class="khtml-block-placeholder"></DIV><DIV class="MsoNormal"><SPAN style=""><B><FONT class="Apple-style-span" color="#000005">“Getting Enough Money to Get Something Built”</FONT></B><B><FONT class="Apple-style-span" color="#000005"><O:P></O:P></FONT></B></SPAN></DIV><DIV class="MsoNormal"><SPAN style=""><B><FONT class="Apple-style-span" color="#000005"> </FONT></B><B><FONT class="Apple-style-span" color="#000005"><O:P></O:P></FONT></B></SPAN></DIV><DIV class="MsoNormal"><SPAN style=""><B><FONT class="Apple-style-span" color="#000005">The New England Forward Capacity Market:</FONT></B><B><FONT class="Apple-style-span" color="#000005"><O:P></O:P></FONT></B></SPAN></DIV><DIV class="MsoNormal"><SPAN style=""><B><FONT class="Apple-style-span" color="#000005">Necessary, but not necessarily sufficient</FONT></B><B><FONT class="Apple-style-span" color="#000005"><O:P></O:P></FONT></B></SPAN></DIV><DIV class="MsoNormal"><FONT class="Apple-style-span" color="#000005"><B><BR class="khtml-block-placeholder"></B></FONT></DIV><DIV class="MsoNormal"><B>Dr. Raymond Cox</B></DIV><DIV class="MsoNormal"><B>President and Principal of Mosaic Energy Insights</B><FONT class="Apple-style-span" color="#000005"><B></B></FONT></DIV><DIV class="MsoNormal"><SPAN style=""><B><FONT class="Apple-style-span" color="#000005"> </FONT></B><B><FONT class="Apple-style-span" color="#000005"><O:P></O:P></FONT></B></SPAN></DIV><DIV class="MsoNormal"><B><FONT class="Apple-style-span" color="#000005">Wednesday</FONT></B></DIV><DIV class="MsoNormal"><B><FONT class="Apple-style-span" color="#000005">December 6, 2006</FONT></B></DIV><DIV class="MsoNormal"><B><FONT class="Apple-style-span" color="#000005">12:00 - 1:30 pm</FONT></B></DIV><DIV class="MsoNormal"><B><FONT class="Apple-style-span" color="#000005">E40-496</FONT></B></DIV><DIV class="MsoNormal"><BR class="khtml-block-placeholder"></DIV><DIV class="MsoNormal"><BR class="khtml-block-placeholder"></DIV><DIV class="MsoNormal"><SPAN style="">Competitive electricity markets, especially in the US, are characterized by high volatility in spot energy prices.<SPAN style="mso-spacerun: yes"> </SPAN>Political responses to high volatility (particularly energy price caps) limit the net revenues for any generator from spot energy sales. <SPAN style="mso-spacerun: yes"> </SPAN>These limits have dampened investor interest in new generating facilities in many regions, which may jeopardize reliability. <SPAN style="mso-spacerun: yes"> </SPAN>In turn, market administrators have turned to capacity markets – market for a call option on energy – to provide more stable revenues for new generation investments and thus attract needed investment.<O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><BR class="khtml-block-placeholder"></DIV><DIV class="MsoNormal"><SPAN style="">This talk will consider<O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><BR class="khtml-block-placeholder"></DIV><DIV class="MsoNormal"><SPAN style="">Fundamental volatility in electrical energy spot prices within competitive electricity markets;<O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><BR class="khtml-block-placeholder"></DIV><DIV class="MsoNormal"><SPAN style="">Political and investor response to price volatility;<O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN style="">The “missing money” for generators – how exit barriers and socialized reliability limit investor interest in the absence of markets for reliability products;<O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN style="">Market structures to provide the missing money (including capacity markets);<O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN style="">Linkages between engineering reliability criteria and capacity markets;<O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN style="">New England’s capacity markets – historical and future; and <O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN style="">Key features and challenges of the forthcoming “Forward Capacity Market” in New England.<O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN style=""> <O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><SPAN style=""> <O:P></O:P></SPAN></DIV><DIV class="MsoNormal"><BR class="khtml-block-placeholder"></DIV><DIV class="MsoNormal"><BR class="khtml-block-placeholder"></DIV><DIV style="text-align: justify;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">Bring your lunch - light refreshment will be provided.</DIV><DIV style="text-align: justify;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal Helvetica; min-height: 14px; "><BR></DIV><DIV style="text-align: justify;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal Helvetica; min-height: 14px; "><BR></DIV><DIV style="text-align: auto;margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">___________________________________________________</DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; font: normal normal normal 12px/normal Helvetica; min-height: 14px; "><BR></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; ">If you would like to be added or removed from this mailing list, please contact Karen Gibson, <A href="mailto:kgibson@mit.edu"><FONT class="Apple-style-span" color="#005BF6">kgibson@mit.edu</FONT></A></DIV><DIV style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><BR class="khtml-block-placeholder"></DIV><BR><BR><DIV> <P style="margin: 0.0px 0.0px 0.0px 0.0px"><FONT face="Helvetica" size="3" style="font: 12.0px Helvetica">Karen<SPAN class="Apple-converted-space"> </SPAN>L. Gibson</FONT></P> <P style="margin: 0.0px 0.0px 0.0px 0.0px"><FONT face="Helvetica" size="3" style="font: 12.0px Helvetica">Program Assistant</FONT></P> <P style="margin: 0.0px 0.0px 0.0px 0.0px"><FONT face="Helvetica" size="3" style="font: 12.0px Helvetica">MIT Laboratory For Energy and the Environment</FONT></P> <P style="margin: 0.0px 0.0px 0.0px 0.0px"><FONT face="Helvetica" size="3" style="font: 12.0px Helvetica">77 Massachusetts Avenue, E40-469</FONT></P> <P style="margin: 0.0px 0.0px 0.0px 0.0px"><FONT face="Helvetica" size="3" style="font: 12.0px Helvetica">(1 Amherst St., E40-469 - for DHL and FedEx)</FONT></P> <P style="margin: 0.0px 0.0px 0.0px 0.0px"><FONT face="Helvetica" size="3" style="font: 12.0px Helvetica">Cambridge, MA 02139<SPAN class="Apple-converted-space"> </SPAN>USA</FONT></P> <P style="margin: 0.0px 0.0px 0.0px 0.0px"><FONT face="Helvetica" size="3" style="font: 12.0px Helvetica">Tel:<SPAN class="Apple-converted-space"> </SPAN>1 (617) 258-6368; Fax:<SPAN class="Apple-converted-space"> </SPAN>1 (617) 258-6590</FONT></P> </DIV><BR></BODY></HTML>