California carbon allowances trading at $14.30

California carbon allowances for delivery in 2013 saw prices remain steady, trading at $14.30 over the week.


Since the last California carbon allowance auction in February, prices have hovered in the $14 range.


The market continued to see high volumes transacting, with over 300,000 California carbon allowances trading during the course of the week.


Last week the Air Resources Board announced that Quebec will likely join the California market in 2014, and they will hold a joint practice auction this year.


The inclusion of Quebec should further drive demand for California carbon allowances, since the Canadian province will increase the size of the market by roughly 20%.


Market players are awaiting news regarding the San Onofre nuclear plant, which supplied around 8% of electricity in the state, but has been shut down since early last year.


Southern California Edison (SCE), the plant operator, has submitted an application to resume partial operations, since electricity demand typically reaches its peak during the summer months.


Nuclear energy generation does not produce any carbon emissions, since it does not involve the combustion of any fossil fuels.


SCE has had to increase production from natural gas power plants to make up for the lost supply, resulting in higher than expected emissions.


The uncertain future of the San Onofre nuclear plant has increased demand for California carbon allowances.