This report, the third report in a series of annual monitoring reports, summarizes data for electricity generation, electricity imports, and related carbon dioxide (CO2) emissions for the ten states that participated in the Regional Greenhouse Gas Initiative (RGGI) first control period for the period from 2005 through 2011. These monitoring reports were called for in the 2005 RGGI Memorandum of Understanding (MOU) in response to expressed concerns about the potential for the RGGI CO2 Budget Trading Program to result in “emissions leakage”.

In the Northeast and Mid-Atlantic states, CO2 emissions from the regional electric power sector are a function of highly dynamic wholesale electricity markets. The cost of compliance with the RGGI CO2 Budget Trading Program is only one of several factors that influence the dispatch of electric generation, and resulting CO2 emissions, through the operation of these markets. As a result, this report presents data without assigning causality to any one of the factors influencing observed trends.

The observed trends in electricity demand, net electricity imports, and electricity generation from multiple categories of generation sources (including electricity imports), show there has been no increase in CO2 emissions or the CO2 emission rate (pounds of CO2 per megawatt hour or lb CO2/MWh) from non- RGGI electric generation serving load in the ten-state RGGI region in the first three year control period of the RGGI program, 2009 – 2011.