Jason,

To avoid confusion, use the following for demand and supply imbalance and pricing:
Demand-supply imbalance for each year
Demand	= Sum of post-technology emissions
Supply		= Sum of allowances*

* For states such as CT, GA, MO, SC and TN, use the state budget from the Inputs sheet for the supply number (as of now, allowance allocation for units is not available)

Pricing (depending upon the above imbalance)
When demand = supply,
then simply calculate the average of the various price expectations.

When demand > supply,
then take the average of the prices starting from the highest until the supply is exhausted. Also, find out the maximum price expectation.

When demand < supply,
Progressive Flow Control will kick in only if the demand > supply for next year. To illustrate,
Demand	= 100
Supply		= 150
then reduce the supply by 50% (variable in the Inputs tab) of the difference between supply and demand, that is, by 25. The balance of 25 (Banked allowances) will carry forward to the next year but not at face value. The value applicable for next year will be calculated as follows:
PFC ratio for next year	= (Applicable percentage * NOx Budget for next year)/ Banked allowances
			= (10% * 100)/ 25 = 0.4
This implies that 40% of 25 will be available at face value but the balance 60% of 25 will be available at 50% (variable in the Inputs sheet) of the face value!

(Applicable percentage will be a variable in the Inputs sheet.)

I somehow forgot to get this long-pending thing incorporated in the model:
The emission limit for Non-EGUs is 0.17 lbs/mmBtu. 
Implication: The target rate for a holding company will not be 0.15 but an average. To illustrate,
Plant	Heat Input	Classification
ABC	100		Non-EGU
DEF	200		EGU
GHI	150		EGU

Target rate = [0.15*(200+150)+0.17*(100)]/(100+200+150) = 0.154

Give me a buzz if you need any help/ clarification.

Thanks,
Rajneesh Salhotra 
_____________________________________________________
Rajneesh Salhotra
Coal and Emissions Trading
Enron Global Markets
713.853.6764