Regional Greenhouse Gas Initiative

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

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Auction 2

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RGGI Auction 2 was held on December 17, 2008 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 2.

 

1. Auction Statistics:

Current Control Period (2009-2011) Offering

  • Quantity Offered: 31,505,898
  • Quantity Sold: 31,505,898
  • Clearing Price: $3.38
  • Number of Bidders: 84
  • Ratio of bids to Supply: 2.5
  • Percent Won by Electric Generators: 87%

Future Control Period (2012-2014) Offering

  • Quantity Offered: 0
  • Quantity Sold: 0
  • Clearing Price:  n/a
  • Number of Bidders: n/a
  • Ratio of Bids to Supply: n/a
  • Percent Won by Electric Generators: n/a

  

2. Auction Participation:

A total of 84 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 87 percent of the 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

A2 % Awarded by Entity

  

3. Dispersion of Bids

Bids were widely dispersed across compliance entities and non-compliance entities.

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 76 percent of the quantity of bids submitted in the 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

A2 % Dispersion of Bids

  

4. Qualified Bidders

The following 84 qualified bidders submitted their intent to bid in the auction:

Adirondack Council Inc.

Aeolus Fund II Master Fund, Ltd.

AES Eastern Energy, LP

Aircraft Services Corporation

Allegheny Energy Supply Company, LLC

ANP Funding I, LLC

Astoria Energy

Astoria Generating Company, LP

Barclays Bank PLC

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

Clean Air Conservancy

Conectiv Energy Services, Inc.

Conn. Municipal Electric Energy Coop.

Consolidated Edison Energy, Inc.

Constellation Energy Commodities Group, Inc.

C-Quest Capital, LLC

DC Energy Marketing, LLC

Dominion Energy Marketing, Inc.

Dynegy Marketing and Trade

Eco-Energy

Element Markets, LLC

Energy America, LLC

Evolution Markets, Inc.

FirstLight Power Resources Mgmt, LLC

FPL Energy Power Marketing, Inc.

Global Inv. Alternatives Group, Ltd.

Green Mountain Power

Hess Corporation Green

Indeck Energy Services of Silver Springs, Inc.

Indeck-Corinth Limited Partnership

Indeck-Olean Limited Partnership

Indeck-Oswego Limited Partnership

Indeck-Yerkes Limited Partnership

Integrys Energy Services, Inc.

J. Aron & Company

James S.Burrell II

Jamestown Board of Public Utilities

JP Morgan Ventures Energy Corporation

Laurence DeWitt

Logan Generating Company, LP

Louis Dreyfus Energy Services, LP

Massachusetts Muni. Wholesale Elec. Co.

Massachusetts Water Resources Authority

Maxim Power Corp.

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

North American Energy Alliance, LLC

NRG Power Marketing, LLC

Old Dominion Electric Cooperative

Power Authority of the State of New York

PPL EnergyPlus, Inc.

PSEG Energy Resources & Trade, LLC

Public Service Company of New Hampshire

RBC

RC Cape May Holdings, LLC

Rochester Gas and Electric Corporation

RPL Holdings, Inc.

Saranac Power Partners

Selkirk Cogen Partners, LP

Sempra Energy Trading, LLC

Seventh Generation Advisors

Shell Energy North America (US), LP

Statkraft Markets GmbH

Sterling Planet, Inc.

SUEZ Energy Marketing NA, Inc.

Tradax Energy, Inc.

TransCanada Power Marketing Ltd.

Universal Carbon, LLC

Village of Freeport

Vitol Inc.

William P Short III

Wing Fuel, 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 26 53 2.5 N/A 88%
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 26
12/3/2014
Current 18,198,685 18,198,685 $5.21 $94,815,148.85
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 22,338,727 $124,967,181.66
Delaware 9,952,619 12,949,207 $63,852,728.77
Maine 11,797,376 10,591,027 $59,680,379.88
Maryland 74,943,417 75,239,644 $401,915,502.10
Massachusetts  62,024,346 56,331,176 $316,488,293.21
New Hampshire 14,479,101 14,435,469 $76,335,390.34
New York 144,305,904 128,764,643 $728,232,766.75
Rhode Island 6,270,050 6,444,140 $35,727,553.64
Vermont 2,877,123 2,565,272 $14,501,596.43
Total for States Participating in Second RGGI Control Period 350,993,348 329,659,305 $1,821,701,392.78
New Jersey* 46,266,477 2,217,293 $113,344,551.27
Total 397,259,825 331,876,598 $1,935,045,944.05

 

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