The Edison Electric Institute held its 2007 fall legal conference in Napa, California on 3-6 October 2007. The conference brings together nearly 100 General Counsels and senior attorneys serving the electric power industry. As part of the conference's "Adapting to Decarbonization" session, NERA Senior Vice President and Environment Group Head Dr. David Harrison provided an overview of the European Union Emissions Trading Scheme (EU ETS) for carbon dioxide and its implications for US utilities. Dr. Harrison discussed the fundamentals of the EU ETS, the implications of experience since its inception in January 2005, key issues for the future, and implications for implementing a similar program in the US. Dr. Harrison concluded his talk with a list of five issues every electric utility should address to get ready for carbon regulation and an overview of the NERA carbon financial impacts model.