Regional Greenhouse Gas Initiative

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

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Auction 14

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RGGI Auction 14 was held on December 7, 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 14.

 

1. Auction Statistics:

Current Control Period (2009-2011) Offering

  • Quantity Offered: 42,983,482
  • Quantity Sold: 27,293,000
  • Clearing Price: $1.89
  • Number of Bidders: 38
  • Ratio of bids to Supply: 0.63x
  • Percent Won by Electric Generators: 99

Future Control Period (2012-2014) Offering

  • Quantity Offered: 1,864,951
  • Quantity Sold: 0
  • Clearing Price: --
  • Number of Bidders: --
  • Ratio of Bids to Supply: --
  • Percent Won by Electric Generators: --

 

2. Auction Participation:

A total of 49 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 14, compliance entities and their affiliates purchased:

  • 99 percent of the current control period allowances sold; and
  • No future control period allowances.

In the first 14 RGGI auctions, compliance entities and their affiliates purchased:

  • 86 percent of the current control period allowances sold;
  • 92 percent of the future control period allowances sold; and
  • 86 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 14.

 

3. Dispersion of Bids

In the offering of current control period allowances, bids were submitted by a large number of compliance entities and several non-compliance entities. A small number of allowances were also auctioned in advance for a future control period, although no bids were submitted in this offering.

In the auction for current control period allowances, just two compliance entities submitted bids for a large quantity of allowances (e.g., at least 1 million tons or 2.5 percent of the available supply). Overall, compliance entities accounted for 99 percent of the quantity of allowances for which bids were submitted in the offering of current control period allowances. The quantity of allowances for which bids were submitted increased to 0.63 times the available supply in Auction 14 from 0.18 times the available supply in Auction 13 and .3 times the available supply in Auction 12.

In the auction for future control period allowances, no bids were submitted. This remained stable from zero sold in Auction 13, and decreased from 0.57 times the available supply in Auction 12.

The following figure summarizes the quantities of bids submitted by all bidders.

Quantity of Bids Submitted By Type of Entity and Quantity Bid

A14MM_Figure_2

 

4. Qualified Bidders

The following 49 qualified bidders submitted their intent to bid in the auction.

  • AES Eastern Energy, LP
  • AES Warrier Run Cogeneration Facility
  • Aircraft Services Corporation
  • Astoria Generating Company, LP
  • Brooklyn Navy Yard Cogen Partners, LP
  • Caithness Long Island, LLC
  • Calpine Energy Services, LP
  • Cargill Power Markets, LLC
  • Castleton Power, LLC
  • Chambers Cogeneration, LP
  • ConocoPhillips Company
  • Consolidated Edison Comp. of NY, Inc.
  • Constellation Energy Commodities Group
  • Covanta Energy Corporation
  • CP Energy Marketing (US) Inc.
  • Dominion Energy Marketing, Inc.
  • Dynegy Marketing and Trade, LLC
  • Empire Generating Co., LLC
  • EquiPower Resources
  • GenOn Energy Management, LLC
  • Green Mountain Power Corporation
  • H.Q. Energy Services (US) Inc.
  • Hawkeye Energy Greenport
  • Indeck-Corinth Limited Partnership
  • Jamestown Board of Public Utilities
  • J-Power USA Development Co., Ltd.
  • Kleen Energy Systems, LLC
  • Koch Supply & Trading, LP
  • Logan Generating Company, LP
  • Massachusetts Bay Transportation Authority
  • Massachusetts Muni. Wholesale Electric Co.
  • Massachusetts Water Resources Authority
  • Millennium Power Partners, LP
  • 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
  • Panda Brandywine, LP
  • Power Authority of the State of New York
  • Public Service Company of New Hampshire
  • RBC
  • Rochester Gas and Electric Corporation
  • Selkirk Cogen Partners, LP
  • Sunoco Power Generation, LLC
  • Verso Paper Corp.
  • Wallingford Energy, LLC
  •