Regional Greenhouse Gas Initiative

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

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Auction 12

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RGGI Auction 12 was held on June 8, 2011 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 12.

 

1. Auction Statistics:

Current Control Period (2009-2011) Offering

  • Quantity Offered: 42,034,184
  • Quantity Sold: 12,537,000
  • Clearing Price: $1.89
  • Number of Bidders: 25
  • Ratio of bids to Supply: 0.3x
  • Percent Won by Electric Generators: 91

Future Control Period (2012-2014) Offering

  • Quantity Offered: 1,864,952
  • Quantity Sold: 943,000
  • Clearing Price: $1.89
  • Number of Bidders: 5
  • Ratio of Bids to Supply: 0.51x
  • Percent Won by Electric Generators: 100

  

2. Auction Participation:

A total of 47 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 12, compliance entities and their affiliates purchased: 

  • 91 percent of the current control period allowances sold and
  • 100 percent of the future control period allowances sold.

In the first 12 RGGI auctions, compliance entities and their affiliates purchased:

  • 85 percent of the current control period allowances sold,
  • 92 percent of the future control period allowances sold, and
  • 85 percent of all allowances sold.

Compliance entities and their affiliates will hold 97 percent of the allowances in circulation following the settlement of allowances sold in Auction 12.

 

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 current control period 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 91 percent of the quantity of bids submitted in the current control period auction.

In the auction for future control period 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 100 percent of the quantity of bids submitted in the future control period 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

A12 % Dispersion of Bids

 

4. Qualified Bidders

The following 47 qualified bidders submitted their intent to bid in the auction.

  • AES Eastern Energy, LP
  • Aircraft Services Corporation
  • Algonquin Windsor Locks, LLC
  • Astoria Energy, LLC
  • Astoria Generating Company, LP
  • Brick Power Holding, LLC
  • Brookfield Energy Marketing Inc.
  • Brooklyn Navy Yard Cogen Partners, LP
  • Burlington Electric Department
  • Caithness Long Island, LLC
  • Calpine Energy Services, LP
  • Castleton Power, LLC
  • Chambers Cogeneration, LP
  • Conoco Phillips Company
  • Consolidated Edison Comp. of NY, Inc.
  • Constellation Energy Commodities Group
  • CP Energy Marketing (US) Inc.
  • Delaware Municipal Electric Corp
  • Dominion Energy Marketing, Inc.
  • Dynegy Marketing and Trade, LLC
  • Empire Generating Co., LLC
  • Energy Echelon, LLC
  • EquiPower Resources
  • GDF SUEZ Energy Marketing NA, Inc.
  • GenOn Energy Management, LLC
  • Hess Corporation (G)
  • Indeck-Corinth Limited Partnership
  • Jamestown Board of Public Utilities
  • J-Power USA Development Co., Ltd.
  • Logan Generating Company, LP
  • Massachusetts Muni. Wholesale Elec. Co.
  • Morgan Stanley Capital Group, Inc.
  • National Grid Gen. dba National Grid
  • NextEra Energy Power Marketing
  • North American Energy Alliance, LLC
  • NRG Power Marketing, LLC
  • Old Dominion Electric Cooperative
  • PSEG Energy Resources & Trade, LLC
  • Public Service Company of New Hampshire
  • RBC
  • Selkirk Cogen Partners, LP
  • Shell Energy North America (US), LP
  • TAQA Gen X, LLC
  • TransCanada Power Marketing, Ltd.
  • Verso Paper Corp.
  • Village of Freeport
  • Vitol Inc.