Regional Greenhouse Gas Initiative

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

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Auction 3

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RGGI Auction 3 was held on March 18, 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 3.

 

1. Auction Statistics:

Current Control Period (2009-2011) Offering

  • Quantity Offered:  31,513,765
  • Quantity Sold:  31,513,765
  • Clearing Price:   $3.51
  • Number of Bidders:   50
  • Ratio of bids to Supply: 2.5
  • Percent Won by Electric Generators: 78%

Future Control Period (2012-2014) Offering

  • Quantity Offered: 2,175,513
  • Quantity Sold: 2,175,513
  • Clearing Price:  $3.05
  • Number of Bidders: 20
  • Ratio of Bids to Supply: 2.3
  • Percent Won by Electric Generators: 93%

 

2. Auction Participation:

A total of 63 qualified bidders, listed in section 4 below, submitted an Intent to Bid in the auction.

Electric generators and their corporate affiliates (“compliance entities”) purchased 78 percent of the current control period allowances sold in the auction and 93 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

A3 % 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 84 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 75 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

A3 % Dispersion of Bids

 

 

4. Qualified Bidders

The following 63 qualified bidders submitted their intent to bid in the auction.

  • Adirondack Council Inc.
  • Aeolus Fund II Master Fund, Ltd.
  • AES Eastern Energy, LP
  • ANP Funding I, LLC
  • Astoria Generating Company, LP
  • Barclays Bank PLC
  • BG Dighton Power, LLC
  • Boston Generating, LLC
  • Brick Power Holding, LLC
  • Brookfield Energy Marketing Inc.
  • Calpine Energy Services, LP
  • CE2 Carbon Capital, LLC
  • CE2 Environmental Markets, LP
  • CE2 Environmental Opportunities I, LP
  • Chambers Cogeneration, LP
  • Conectiv Energy Supply, Inc.
  • Conn. Municipal Electric Energy Coop.
  • Consolidated Edison Energy, Inc.
  • Constellation Energy Commodities Group
  • C-Quest Capital, LLC
  • Craig Hart
  • DigiLog Global Environmental Master Fund
  • Dominion Energy Marketing, Inc.
  • DTE Carbon LLC
  • Dynegy Marketing and Trade
  • Element Markets, LLC
  • Evolution Markets, Inc.
  • FES Fund I LLC
  • FPL Energy Power Marketing, LLC
  • H.Q. Energy Services (US) Inc.
  • Hess Corporation (G)
  • Indeck-Olean Limited Partnership
  • Index Capital Group LLC
  • J. Aron & Company
  • JP Morgan Ventures Energy Corporation
  • J-Power USA Development Co., Ltd.
  • Lake Road Generating Company, L.P.
  • Logan Generating Company, LP
  • Louis Dreyfus Energy Services, LP
  • Macquarie Cook Power Inc.
  • Massachusetts Bay Transportation Auth.
  • Massachusetts Muni. Wholesale Elec. Co.
  • Masspower
  • Mercuria Energy Trading
  • Merrill Lynch Commodities, Inc.
  • Michael Forlini
  • Milford Power Company, LLC
  • Millennium Power Partners, LP
  • Mirant Energy Trading, LLC
  • National Grid Gen. dba National Grid
  • New Athens Generating Company, LLC
  • NRG Power Marketing, LLC
  • Power Authority of the State of New York
  • PSEG Energy Resources & Trade, LLC
  • Public Service Company of New Hampshire
  • RBC
  • Rochester Gas and Electric Corporation
  • Saranac Power Partners
  • Selkirk Cogen Partners, LP
  • SUEZ Energy Marketing NA, Inc.
  • Tradax Energy, Inc.
  • TransCanada Power Marketing Ltd.
  • Universal Carbon, LLC

 

 



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 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 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 19,869,941 $112,512,156.29
Delaware 9,952,619 11,164,442 $54,848,589.51
Maine 11,797,376 9,385,541 $53,565,703.01
Maryland 74,943,417 67,787,760 $364,320,747.32
Massachusetts  62,024,346 50,011,640 $284,606,234.09
New Hampshire 14,479,101 13,137,987 $69,789,593.65
New York 144,305,904 114,418,247 $655,855,198.93
Rhode Island 6,270,050 5,403,913 $30,479,608.59
Vermont 2,877,123 2,282,462 $13,074,819.98
Total for States Participating in Second RGGI Control Period 350,993,348
293,461,933 $1,639,052,651.37
New Jersey* 46,266,477 2,217,293 $113,344,551.27
Total 397,259,825
295,679,226 $1,752,397,202.64

 

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