Regional Greenhouse Gas Initiative

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

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Auction 37

RGGI Auction 37 was held on Sept. 6, 2017 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.

Below are key data and information on the results of the auction. Detailed analysis is available in the Market Monitor Report for Auction 37.

1. Auction Statistics:

Current Control Period Offering

  • Offering: 14,371,585
  • 2017 CCR Allowances Available: 10,000,000
  • Quantity Sold: 14,371,585
  • Clearing Price: $4.35
  • Number of Bidders: 43
  • Ratio of Bids to Initial Supply: 2.7
  • Percent Won by Compliance Entities: 47%
  • Percent Won by Compliance-Oriented Entities: 38%

 

2. Auction Participation:

A total of 50 potential bidders, listed by name in section 4 below, submitted an Intent to Bid in the auction.

The market monitor’s report summarizes auction participation for several categories. For reporting purposes, firms are often broken up into the following distinct categories.

  • Compliance-Oriented Entities – Compliance entities that appear to acquire and hold allowances primarily to satisfy their compliance obligations.
  • Investors with Compliance Obligations – Firms that have compliance obligations but which hold a number of allowances that exceeds their estimated compliance obligations by a margin suggesting they also buy for re-sale or some other investment purpose. These firms often transfer significant quantities of allowances to unaffiliated firms.
  • Investors without Compliance Obligations – Firms without any compliance obligations.

These three categories form the basis for two overlapping groups.

  • Compliance Entities –All firms with compliance obligations, and their affiliates. Combines the first and second of the above categories.
  • Investors – All firms which are assessed to be purchasing for investment rather than compliance purposes. Combines the second and third of the above categories.

In Auction 37, Compliance Entities purchased 47 percent of the allowances sold.

In the first 37 RGGI auctions, Compliance Entities purchased 76 percent of the allowances sold.

In Auction 37, Compliance-Oriented Entities purchased 38 percent of allowances.

54 percent of allowances in circulation will be held by Compliance-Oriented Entities following the settlement of allowances sold in Auction 37.

55 percent of allowances in circulation will be held for compliance purposes following the settlement of allowances sold in Auction 37. The number of allowances that are believed to be held for compliance purposes includes 100 percent of the allowances held by Compliance-Oriented Entities, and a portion of allowances held by Investors with Compliance Obligations.

 

3. Dispersion of Bids

In the offering of allowances for the current control period, bids were submitted by 27 Compliance-Oriented Entities and 16 Investors.

One Compliance-Oriented Entity and six Investors submitted bids for a large quantity of allowances (i.e., at least 2 million tons). Overall, Compliance-Oriented Entities accounted for 35 percent of the quantity of allowances for which bids were submitted. The quantity of allowances for which bids were submitted was 2.7 times the initial offering of 14,371,585 allowances.

 

4. Potential Bidders

The following 50 potential bidders submitted their intent to bid in the auction.

    • Astoria Energy, LLC
    • BP Products North America
    • Brooklyn Navy Yard Cogen Partners, LP
    • Caithness Long Island, LLC
    • Calpine Energy Services, LP
    • Carbon Lighthouse Association
    • Castleton Commodities Merchant Trading, LP
    • Cayuga Operating Company, LLC
    • City of Dover
    • Consolidated Edison Comp. of NY, Inc.
    • CPV Maryland, LLC
    • Delaware City Refining Company, LLC
    • Direct Energy Business Marketing, LLC
    • Dominion Energy Marketing, Inc.
    • DRW Commodities, LLC
    • DTE Energy Trading, Inc.
    • Element Markets, LLC
    • Exelon Generation Company, LLC
    • GenOn Energy Management, LLC
    • Helix Ravenswood, LLC
    • Indeck-Corinth Limited Partnership
    • Indeck-Yerkes Limited Partnership
    • J-Power USA Development Co., Ltd.
    • Kendall Green Energy, LLC
    • Kleen Energy Systems, LLC
  • KMC Thermo, LLC
  • Koch Supply & Trading, LP
  • Luminus Energy Partners Master Fund, Ltd.
  • Macquarie Energy, LLC
  • Mercuria Energy America, Inc.
  • Morgan Stanley Capital Group, Inc.
  • National Grid Gen. dba National Grid
  • Nautilus Power, LLC
  • NextEra Energy Marketing, LLC
  • NRG Power Marketing, LLC
  • Ocean State Power, LLC
  • Old Dominion Electric Cooperative
  • Power Authority of the State of New York
  • PSEG Energy Resources and Trade, LLC
  • Public Service Company of New Hampshire
  • RBC
  • Rhode Island State Energy Center, LP
  • Selkirk Cogen Partners, LP
  • Shell Energy North America (US), LP
  • Statkraft US, LLC
  • Taunton Municipal Lighting Plant
  • Verso Corporation
  • Village of Freeport
  • Vitol Inc.
  • Wallingford Energy, LLC

Auction 36

RGGI Auction 36 was held on June 7, 2017 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.

Below are key data and information on the results of the auction. Detailed analysis is available in the Market Monitor Report for Auction 36.

1. Auction Statistics:

Current Control Period Offering

  • Offering: 14,597,470
  • 2017 CCR Allowances Available: 10,000,000
  • Quantity Sold: 14,597,470
  • Clearing Price: $2.53
  • Number of Bidders: 40
  • Ratio of Bids to Initial Supply:2.1
  • Percent Won by Compliance Entities: 49%
  • Percent Won by Compliance-Oriented Entities: 36%

 

2. Auction Participation:

A total of 48 potential bidders, listed by name in section 4 below, submitted an Intent to Bid in the auction.

The market monitor’s report summarizes auction participation for several categories. For reporting purposes, firms are often broken up into the following distinct categories.

  • Compliance-Oriented Entities – Compliance entities that appear to acquire and hold allowances primarily to satisfy their compliance obligations.
  • Investors with Compliance Obligations – Firms that have compliance obligations but which hold a number of allowances that exceeds their estimated compliance obligations by a margin suggesting they also buy for re-sale or some other investment purpose. These firms often transfer significant quantities of allowances to unaffiliated firms.
  • Investors without Compliance Obligations – Firms without any compliance obligations.

These three categories form the basis for two overlapping groups.

  • Compliance Entities –All firms with compliance obligations, and their affiliates. Combines the first and second of the above categories.
  • Investors – All firms which are assessed to be purchasing for investment rather than compliance purposes. Combines the second and third of the above categories.

In Auction 36, Compliance Entities purchased 49 percent of the allowances sold.

In the first 36 RGGI auctions, Compliance Entities purchased 76 percent of the allowances sold.

In Auction 36, Compliance-Oriented Entities purchased 36 percent of allowances.

53 percent of allowances in circulation will be held by Compliance-Oriented Entities following the settlement of allowances sold in Auction 36.

54 percent of allowances in circulation will be held for compliance purposes following the settlement of allowances sold in Auction 36. The number of allowances that are believed to be held for compliance purposes includes 100 percent of the allowances held by Compliance-Oriented Entities, and a portion of allowances held by Investors with Compliance Obligations.

 

3. Dispersion of Bids

In the offering of allowances for the current control period, bids were submitted by 26 Compliance-Oriented Entities and 14 Investors.

One Compliance-Oriented Entity and five Investors submitted bids for a large quantity of allowances (i.e., at least 2 million tons). Overall, Compliance-Oriented Entities accounted for 28 percent of the quantity of allowances for which bids were submitted. The quantity of allowances for which bids were submitted was 2.1 times the initial offering of 14,597,470 allowances.

 

4. Potential Bidders

The following 48 potential bidders submitted their intent to bid in the auction.

  • Adirondack Council Inc.
  • Astoria Energy, LLC
  • BP Products North America Inc.
  • Brooklyn Navy Yard Cogen Partners, LP
  • Caithness Long Island, LLC
  • Calpine Energy Services, LP
  • Carbon Lighthouse Association
  • Castleton Commodities Merchant Trading, LP
  • Cayuga Operating Company, LLC
  • City of Dover
  • Consolidated Edison Comp. of NY, Inc.
  • CPV Maryland, LLC
  • Delaware City Refining Company, LLC
  • Delaware Municipal Electric Corp.
  • Dominion Energy Marketing, Inc.
  • DRW Commodities, LLC
  • DTE Energy Trading, Inc.
  • Exelon Generation Company, LLC
  • Fathom Energy, LLC
  • GenOn Energy Management, LLC
  • Hawkeye Energy Greenport
  • Indeck-Corinth Limited Partnership
  • Jamestown Board of Public Utilities
  • J-Power USA Development Co., Ltd.
  • Kendall Green Energy, LLC
  • KMC Thermo, LLC
  • Koch Supply & Trading, LP
  • Luminus Energy Partners Master Fund, Ltd.
  • Macquarie Energy, LLC
  • Massachusetts Water Resources Authority
  • Mercuria Energy America, Inc.
  • Morgan Stanley Capital Group, Inc.
  • National Grid Gen. dba National Grid
  • NextEra Energy Marketing, LLC
  • Noble Americas Gas & Power Corp.
  • NRG Power Marketing, LLC
  • Old Dominion Electric Cooperative
  • Power Authority of the State of New York
  • PSEG Energy Resources & Trade, LLC
  • Public Service Company of New Hampshire
  • RBC
  • Selkirk Cogen Partners, LP
  • Shell Energy North America (US), LP
  • Statkraft US, LLC
  • Verso Corporation
  • Village of Freeport
  • Vitol Inc.
  • Wallingford Energy, LLC

CO2 Auctions, Tracking & Offsets

These pages are a gateway for regulated entities, other market participants, and interested observers to access program information, materials, and data.

CO2 Allowance Auctions: The RGGI States distribute nearly all CO2 allowances through quarterly, regional CO2 allowance auctions. Enter here to access auction participation instructions, bidder qualification materials, previous auction results and the schedule of upcoming auctions.

CO2 Emissions & Allowance Tracking: RGGI COATS is the electronic platform that records and tracks data for each state's CO2 Budget Trading Program. RGGI COATS facilitates participation in the CO2 allowance market and enables the public to view, customize, and download reports of RGGI program data and CO2 allowance market activity.

Market Monitor: The independent market monitor, Potomac Economics, monitors the performance and efficiency of the RGGI CO2 allowance auctions and the secondary CO2 allowance market. The market monitor issues reports immediately following each RGGI CO2 allowance auction and following each quarter on the secondary market.

CO2 Offsets: A CO2 offset represents project-based greenhouse gas emissions reductions or carbon sequestration achieved outside of the capped electricity sector. RGGI States currently allow regulated power plants to use a carefully chosen group of qualifying offsets to meet up to 3.3 percent of their compliance obligations. Learn more here.

 

Auction 35

RGGI Auction 35 was held on March 8, 2017 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.

Below are key data and information on the results of the auction. Detailed analysis is available in the Market Monitor Report for Auction 35.

1. Auction Statistics:

Current Control Period Offering

  • Offering: 14,371,300
  • 2017 CCR Allowances Available: 10,000,000
  • Quantity Sold: 14,371,300
  • Clearing Price: $3.00
  • Number of Bidders: 36
  • Ratio of Bids to Initial Supply:2.2
  • Percent Won by Compliance Entities: 47%
  • Percent Won by Compliance-Oriented Entities: 34%

 

2. Auction Participation:

A total of 48 potential bidders, listed by name in section 4 below, submitted an Intent to Bid in the auction.

The market monitor’s report summarizes auction participation for three categories: Compliance Entities and their Affiliates; Compliance-Oriented Entities; and Other Entities. Compliance-Oriented Entities are compliance entities that (in the market monitor's assessment) appear to acquire and hold allowances primarily to satisfy their compliance obligations.

In Auction 35, Compliance Entities and their Affiliates purchased 47 percent of the allowances sold.

In the first 35 RGGI auctions, Compliance Entities and their Affiliates purchased 76 percent of the allowances sold.

In Auction 35, Compliance-Oriented Entities purchased 34 percent of allowances.

54 percent of allowances in circulation will be held by Compliance-Oriented Entities following the settlement of allowances sold in Auction 35.

55 percent of allowances in circulation will be held for compliance purposes following the settlement of allowances sold in Auction 35. The number of allowances that are believed to be held for compliance purposes includes 100 percent of the allowances held by Compliance-Oriented Entities, and a portion of allowances held by Other Entities for compliance purposes.

 

3. Dispersion of Bids

In the offering of allowances for the current control period, bids were submitted by 22 Compliance-Oriented Entities and 14 Other Entities.

One Compliance-Oriented Entity and five Other Entities submitted bids for a large quantity of allowances (i.e., at least 2 million tons). Overall, Compliance-Oriented Entities accounted for 34 percent of the quantity of allowances for which bids were submitted. The quantity of allowances for which bids were submitted was 2.2 times the initial offering of 14,371,300 allowances.

 

4. Potential Bidders

The following 48 potential bidders submitted their intent to bid in the auction.

  • Astoria Energy, LLC
  • Berkshire Power Company, LLC
  • Biourja Nehme Commodities, LLC
  • BP Products North America, Inc.
  • Brookfield Energy Marketing LP
  • Brooklyn Navy Yard Cogen Partners, LP
  • Caithness Long Island, LLC
  • Calpine Energy Services, LP
  • Carbon Lighthouse Association
  • Cayuga Operating Company, LLC
  • City of Dover
  • Consolidated Edison Comp. of NY, Inc.
  • Delaware City Refining Company, LLC
  • Direct Energy Business Marketing, LLC
  • Dominion Energy Marketing, Inc.
  • DRW Commodities, LLC
  • DTE Energy Trading, Inc.
  • Exelon Generation Company, LLC
  • GDF Suez Energy Marketing, NA, Inc.
  • GenOn Energy Management, LLC
  • Hawkeye Energy Greenport
  • Indeck-Corinth Limited Partnership
  • Jamestown Board of Public Utilities
  • J-Power USA Development Co., Ltd.
  • Kendall Green Energy, LLC
  • KMC Thermo, LLC
  • Koch Supply and Trading, LP
  • Luminus Energy Partners Master Fund, Ltd.
  • Macquarie Energy, LLC
  • Massachusetts Muni. Wholesale Elec. Co.
  • Maxim Power (USA), Inc.
  • Mercuria Energy America, Inc.
  • Morgan Stanley Capital Group, Inc.
  • National Grid Gen. dba National Grid
  • NextEra Energy Marketing, LLC
  • Noble Americas Gas and Power Corp.
  • NRG Power Marketing, LLC
  • Old Dominion Electric Cooperative
  • Power Authority of the State of New York
  • PSEG Energy Resources and Trade, LLC
  • Public Service Company of New Hampshire
  • RBC
  • Selkirk Cogen Partners, LP
  • Shell Energy North America (US), LP
  • Statkraft Markets GmbH
  • Verso Corporation
  • Village of Freeport
  • Vitol, Inc.

2017 Allowance Distribution

COallowances are issued by each RGGI State in an amount defined in each state's applicable statute and/or regulations. Together, all the CO2 allowances issued by all the RGGI States comprise the RGGI cap.

The RGGI 2017 cap is 84.3 million short tons.

The RGGI 2017 adjusted cap is 62.5 million short tons. This is the number of CO2 allowances allocated by the RGGI states for 2017.

For more details on the distribution of CO2 allowances by state, download the full data here:
PDF ] [ XLS ]