Auction 16

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RGGI Auction 16 was held on June 6, 2012 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 16.

 

1. Auction Statistics:

Current Control Period Offering

  • Quantity Offered: 36,426,008
  • Quantity Sold: 20,941,000
  • Clearing Price: $1.93
  • Number of Bidders: 24
  • Ratio of bids to Supply: 0.57x
  • Percent Won by Electric Generators: 95

 

2. Auction Participation:

A total of 35 qualified bidders, listed by name in section 4 below, submitted an Intent to Bid in the auction.

The following statistics summarize the purchases and holdings of allowances by electric generators and their corporate affiliates ("compliance entities") under the RGGI program:

In Auction 16, compliance entities and their affiliates purchased: 95 percent of the CO2 allowances sold.

In the first 16 RGGI auctions, compliance entities and their affiliates purchased 87 percent of the current control period allowances sold.

90 percent of the CO2 allowances in circulation will be held by electric generators and their corporate affiliates ("compliance entities") following the settlement of Auction 16. This percentage reflects that allowances used for first control period compliance are no longer in circulation.

 

3. Dispersion of Bids

In the offering of allowances for the current control period, bids were submitted by 22 compliance entities and two non-compliance entities.

Three compliance entities submitted bids for a large quantity of allowances (e.g., at least 2 million tons). Overall, compliance entities accounted for 95 percent of the quantity of allowances for which bids were submitted. The quantity of allowances for which bids were submitted decreased to 0.57 times the available supply in Auction 16 from 0.62 times the available supply in Auction 15 and .63 times the available supply in Auction 14.

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

Quantity of Bids Submitted By Type of Entity and Quantity Bid

A16_MM_Figure_2

 

4. Qualified Bidders

The following 35 qualified bidders submitted their intent to bid in the auction.

  • AES Warrior Run Cogeneration Facility
  • Astoria Energy, LLC
  • Brookfield Energy Marketing, Inc.
  • Brooklyn Navy Yard Cogen Partners, LP
  • Caithness Long Island, LLC
  • Carbon Lighthouse Association
  • Casteton Power, LLC
  • Consolidated Edison Comp. of NY, Inc.
  • Constellation Energy Commodities Group
  • Dominion Energy Marketing, Inc.
  • EDF Trading North America, LLC
  • Empire Generating Co., LLC
  • EquiPower Resources
  • Essential Power, LLC
  • GenOn Energy Management, LLC
  • Granite Ridge Energy, LLC
  • Hawkeye Energy Greenport
  • Indeck Energy Serv. of Silver Springs
  • Indeck-Corinth Limited Partnership
  • Indeck-Olean Limited Partnership
  • Jamestown Board of Public Utilities
  • J-Power USA Development Co., Ltd.
  • Massachusetts Muni. Wholesale Electric Co.
  • Millennium Power Partners, LP
  • National Grid Gen. dba National Grid
  • New Athens Generating Company, LLC
  • NextEra Energy Power Marketing, LLC
  • Public Service Company of New Hampshire
  • RBC
  • Rochester Gas and Electric Corporation
  • Selkirk Cogen Partners, LP
  • Shell Energy North America (US), LP
  • TransCanada Power Marketing, Ltd.
  • Verso Paper Corp.
  • Village of Freeport
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