Following relatively light trading activity in the fourth quarter of 2003, demand for renewable energy credits (RECs) at the wholesale level bounced back in first quarter 2004. But while volumes of traded wholesale RECs increased, average national REC prices decreased. REC supply in most regions exceeded demand in the first quarter, so lower prices are not surprising. Supply is increasing rapidly as new facilities are built, and more owners of old generation are selling RECs. Demand is also increasing—due largely to various federal and state government programs. (RPS-F-1; May 2004; 7 pages)