RGGI Auction 23 was held on March 5, 2014 and monitored by Potomac Economics, an independent monitor of electricity markets retained to evaluate the RGGI CO2 allowance market. Potomac observed the auction and found no material evidence of collusion or manipulation by bidders.
A total of 52 potential 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 23, compliance entities and their affiliates purchased 45 percent of the CO2 allowances sold.
In the first 23 RGGI auctions, compliance entities and their affiliates purchased 78 percent of the allowances sold.
Compliance entities and their affiliates will hold 74 percent of the allowances in circulation following the settlement of allowances sold in Auction 23.
3. Dispersion of Bids
In the offering of allowances for the current control period, bids were submitted by 35 compliance entities and ten other entities.
Nine compliance entities and five other entities submitted bids for a large quantity of allowances (i.e., at least 2 million tons). Overall, compliance entities accounted for 65 percent of the quantity of allowances for which bids were submitted. The quantity of allowances for which bids were submitted was 3.1 times the initial offering of 18,491,350 allowances and 2.5 times the total available supply (including the 5 million allowances in the CCR). In Auction 22, the quantity of allowances for which bids were submitted was 2.7 times the available supply.
4. Potential Bidders
The following 52 potential bidders submitted their intent to bid in the auction.