Regional Greenhouse Gas Initiative

an initiative of the Northeast and Mid-Atlantic States of the U.S.

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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:

  • Compliance Entities:  Includes all electric generators and their corporate affiliates. 
  • Environmental/Individuals:  Includes non-compliance entities describing themselves as “Environmental Groups” or “Individual Person” in their qualification application
  • Other Non-Compliance Entities:  Includes all other non-compliance 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.

 

 

Allowance & Bid Statistics (by Auction)

This chart includes data on participation in the current control period offering in each RGGI CO2 Allowance Auction.

Auction Number of Potential Bidders Ratio of Bids to Supply Ratio of Bids To Supply with CCR Percent of Allowances Won by Compliance Entities
Auction 25 47 2.5 N/A 80%
Auction 24 51 2.9 N/A 55%
Auction 23 52 3.1 2.5 45%
Auction 22 55 2.7 N/A 43%
Auction 21 52 2.0 N/A 53%
Auction 20 55 2.1 N/A 68%
Auction 19 43 2.2 N/A 69%
Auction 18 34 0.53 N/A 100%
Auction 17 29 0.65 N/A 100%
Auction 16 35 0.57 N/A 95%
Auction 15 34 0.62 N/A 99%
Auction 14 49 0.63 N/A 99%
Auction 13 41 0.18 N/A 94%
Auction 12 47 0.3 N/A 91%
Auction 11 49 1.1 N/A 85%
Auction 10 49 0.57 N/A 97%
Auction 9 56 0.75 N/A 92%
Auction 8 53 1.3 N/A 92%
Auction 7 61 2.3 N/A 85%
Auction 6 74 2.6 N/A 65%
Auction 5 59 2.5 N/A 77%
Auction 4 67 2.6 N/A 85%
Auction 3 63 2.5 N/A 78%
Auction 2 84 3.5 N/A 87%
Auction 1 82 4.1 N/A 82%

Allowances Offered & Sold (by Auction)

This chart displays the results of each RGGI CO2Allowance Auction. To view a state-by-state breakdown for each auction, click on the auction number listed in the left-hand column.

 

Auction Number Offering Quantity Offered Quantity Sold Clearing Price Total Proceeds
Auction 25
9/3/2014
Current 17,998,687 17,998,687 $4.88 $87,833,592.56
Auction 24
6/4/2014
Current 18,062,384 18,062,384 $5.02 $90,673,167.68
Auction 23
3/5/2014
Current 18,491,350 (Intial)
5,000,000 (CCR)
23,491,350 $4.00 $93,965,400.00
Auction 22
12/4/2013
Current 38,329,378 38,329,378 $3.00 $114,988,134.00
Auction 21
9/4/2013
Current 38,409,043 38,409,043 $2.67 $102,552,144.81
Auction 20
6/5/2013
Current 38,782,076 38,782,076 $3.21 $124,490,463.96
Auction 19
3/13/2013
Current 37,835,405 37,835,405 $2.80 $105,939,134.00
Auction 18
12/5/2012
Current 37,563,083 19,774,000 $1.93 $38,163,820.00
Auction 17
9/5/2012
Current 37,949,558 24,589,000 $1.93 $47,456,770.00
Auction 16
6/6/2012
Current 36,426,008 20,941,000 $1.93 $40,416,130.00
Auction 15
3/14/2012
Current 34,843,858 21,559,000 $1.93 $41,608,870.00
Auction 14
12/07/2011
Current 42,983,482 27,293,000 $1.89 $51,583,770.00
Future 1,864,951 0 --
Auction 13
09/07/2011
Current 42,189,685 7,487,000 $1.89 $14,150,430.00
Future 1,864,951 0 --
Auction 12
06/08/2011
Current 42,034,184 12,537,000 $1.89 $25,477,200.00
Future 1,864,952 943,000 $1.89
Auction 11
03/09/2011
Current 41,995,813 41,995,813 $1.89 $83,425,588.47
Future 2,144,710 2,144,710 $1.89
Auction 10
12/01/2010
Current 43,173,648 24,755,000 $1.86 $48,224,220.00
Future 2,137,991 1,172,000 $1.86
Auction 9
09/10/2010
Current 45,595,968 34,407,000 $1.86 $66,437,340.00
Future 2,137,992 1,312,000 $1.86
Auction 8
6/09/2010
Current 40,685,585 40,685,585 $1.88 $80,465,566.78
Future 2,137,993 2,137,993 $1.86
Auction 7
3/10/2010
Current 40,612,408 40,612,408 $2.07 $87,956,944.56
Future 2,137,992 2,091,000 $1.86
Auction 6
12/2/2009
Current 28,591,698 28,591,698 $2.05 $61,587,120.90
Future 2,172,540 1,599,000 $1.86
Auction 5
9/9/2009
Current 28,408,945 28,408,945 $2.19 $66,278,239.35
Future 2,172,540 2,172,540 $1.87
Auction 4
6/17/2009
Current 30,887,620 30,887,620 $3.23 $104,242,445.00
Future 2,172,540 2,172,540 $2.06
Auction 3
3/18/2009
Current 31,513,765 31,513,765 $3.51 $117,248,629.80
Future 2,175,513 2,175,513 $3.05
Auction 2
12/17/2008
Current 31,505,898 31,505,898 $3.38 $106,489,935.24
Auction 1*
9/25/2008
Current 12,565,387 12,565,387 $3.07 $38,575,738.09

 

*Six states participated in Auction 1

Cumulative Allowances & Proceeds (by State)

This chart displays cumulative auction results organized by state. To view an auction-by-auction breakdown for each state, click on the state name listed in the left-hand column.

State Cumulative First Control Period Allowances Sold Cumulative Second Control Period Allowances Sold Cumulative Proceeds
Connecticut 24,343,412 21,104,334 $118,535,994.13
Delaware 9,952,619 12,056,825 $59,203,418.55
Maine 11,797,376 9,888,284 $56,019,088.85
Maryland 74,943,417 71,513,702 $382,503,344.28
Massachusetts  62,024,346 53,171,408 $300,025,901.93
New Hampshire 14,479,101 13,786,728 $72,955,449.73
New York 144,305,904 121,591,445 $690,860,405.17
Rhode Island 6,270,050 5,924,027 $33,017,764.91
Vermont 2,877,123 2,423,867 $13,764,876.38
Total for States Participating in Second RGGI Control Period 350,993,348 311,460,620 $1,726,886,243.93
New Jersey* 46,266,477 2,217,293 $113,344,551.27
Total 397,259,825 313,677,913 $1,840,230,795.20

 

* See New Jersey’s Notice of Withdrawal of Agreement to the RGGI MOU.