Auction 4

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RGGI Auction 4 was held on June 17, 2009 and monitored by Potomac Economics, an independent monitor of electricity markets retained to evaluate the RGGI CO2 allowance market. Potomac observed the auction and confirmed that there was no material evidence of collusion or manipulation by bidders, and that the vast majority of bids were consistent with competitive expectations.

Below are key data and information on the results of the auction. Detailed analysis is available in the Market Monitor Report for Auction 4.

 

1. Auction Statistics:

Current Control Period (2009-2011) Offering

  • Quantity Offered: 30,887,620
  • Quantity Sold: 30,887,620
  • Clearing Price: $3.23 
  • Number of Bidders:  54
  • Ratio of bids to Supply: 2.6
  • Percent Won by Electric Generators: 85%

Future Control Period (2012-2014) Offering

  • Quantity Offered: 2,172,540
  • Quantity Sold: 2,172,540
  • Clearing Price:  $2.06
  • Number of Bidders: 13
  • Ratio of Bids to Supply: 1.5
  • Percent Won by Electric Generators: 81%

 

2. Auction Participation:

A total of 67 qualified bidders, listed by name in section 4 below, submitted an Intent to Bid in the auction.

Electric generators and their corporate affiliates (“compliance entities”) purchased 85 percent of the current control period allowances sold in the auction and 81 percent of the future control period allowances sold in the auction.

The figure below shows the quantity of allowances purchased in the auction by each of three types of entities:

 

Quantity of Allowances Awarded By Type of Entity

A4 % Awarded by Entity

 

3. Dispersion of Bids

Bids were widely dispersed across both compliance entities and non-compliance entities in both the current and future control period offerings.

In the auction for vintage 2009 allowances, most of the bidders that submitted a large number of bids (e.g., at least 2 million tons which is 6 percent of the available supply) were compliance entities.  Overall, compliance entities accounted for 80 percent of the quantity of bids submitted in the vintage 2009 auction.

In the auction for vintage 2012 allowances, most of the bidders that submitted a large number of bids (e.g., at least 100,000 tons which is 5 percent of the available supply) were compliance entities.  Overall, compliance entities accounted for 62 percent of the quantity of bids submitted in the vintage 2012 auction.

The following figure summarizes the quantities of bids submitted in the two auctions by all bidders.

 

Quantity of Bids Submitted By Type of Entity and Quantity Bid

A4 % Dispersion of Bids

 

4. Qualified Bidders

The following 67 qualified bidders submitted their intent to bid in the auction:

  • AES Eastern Energy, LP
  • Allegheny Energy Supply Company, LLC
  • ANP Funding I, LLC
  • Barclays Bank PLC
  • Basil P. Bourque
  • Brick Power Holding, LLC
  • Brookfield Energy Marketing Inc.
  • Caithness Long Island, LLC
  • Calpine Energy Services, LP
  • Chambers Cogeneration, LP
  • Clean Air Gardening, LLC
  • Conectiv Energy Supply, Inc.
  • ConocoPhillips Company
  • Consolidated Edison Comp. of NY, Inc.
  • Constellation Energy Commodities Group
  • C-Quest Capital, LLC
  • DigiLog Global Environmental Master Fund
  • Dominion Energy Marketing, Inc.
  • DTE Carbon, LLC
  • Dynegy Marketing and Trade, LLC
  • Element Markets, LLC
  • FES Fund I LLC
  • Five Rings Capital, LLC
  • Four Oaks Interests, LLC
  • GDF SUEZ Energy Marketing NA, Inc.
  • Green Fund Partners, LLC
  • Green Mountain Power Corporation
  • H.Q. Energy Services (US) Inc.
  • Hess Corporation (G)
  • Indeck Energy Serv. of Silver Springs
  • Indeck-Olean Limited Partnership
  • Indeck-Oswego Limited Partnership
  • Indeck-Yerkes Limited Partnership

  • J. Aron & Company
  • Jamestown Board of Public Utilities
  • JP Morgan Ventures Energy Corporation
  • Lake Road Generating Company, L.P.
  • Logan Generating Company, LP
  • Louis Dreyfus Energy Services, LP
  • Macquarie Cook Power Inc.
  • Massachusetts Muni. Wholesale Elec. Co.
  • Mercuria Energy Trading
  • Merrill Lynch Commodities, Inc.
  • Milford Power Company, LLC
  • Millennium Power Partners, LP
  • Mirant Energy Trading, LLC
  • Morgan Stanley Capital Group, Inc.
  • National Grid Gen. dba National Grid
  • New Athens Generating Company, LLC
  • NextEra Energy Power Marketing, LLC
  • North American Energy Alliance, LLC
  • NRG Power Marketing, LLC
  • Old Dominion Electric Cooperative
  • Power Authority of the State of New York
  • PPL EnergyPlus, LLC
  • PSEG Energy Resources & Trade, LLC
  • Public Service Company of New Hampshire
  • RBC
  • Rochester Gas and Electric Corporation
  • Selkirk Cogen Partners, LP
  • Sempra Energy Trading, LLC
  • Statkraft Markets GmbH
  • TAQA Gen X, LLC
  • Tradax Green Energy, LLC
  • TransCanada Power Marketing Ltd.
  • Verso Paper Corp.
  • Vitol Inc.