The DC market has been on a downward trend, moving against fundamentals based on the new RPS. However due to the grandfathering of the old DC renewable portfolio standard (RPS) buyers are not obligated to pay over $300 per SREC for some of their obligations.   We are seeing just that happen now, lower SREC payments.  It is unknown to how much of a supply the buyers have covered at the upper, new, RPS, level vs the old.  

 The normal reaction, in a quickly dropping SREC market, of a SREC seller is to hold.  We've witnessed this in the OH, PA, NJ and MD markets and in most cases (except for NJ due to they passed legislation to correct/re-tune the RPS) it does not work.  Holding in this situation creates a potential glut of SRECs for the next energy year, the carry over of unsold SRECs, and will push pricing even lower.  New SREC sellers are calculated in at a lower SREC price and will be willing to sell at the new lower levels.

 Kevin Flett