On January 1st, 2013, California’s cap-and-trade program for Greenhouse Gas emissions (GHG) went live and West Coast energy markets entered a whole new world. Wholesale electricity prices in California increased 20% as a result and other energy markets have felt the impact. For example, the new rules pushed up the average cost of refining oil by $0.78/bbl. For companies subject to the regulations, the bottom line is that if you generate GHG, you pay. But exactly who pays, how much you pay, and when you pay are all subject to a dizzying array of rules and regulations. Today we’ll navigate the turbulent and uncharted seas of California cap-and-trade markets.