Auction 28

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RGGI Auction 28 was held on June 3, 2015 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 28.

1. Auction Statistics:

Current Control Period Offering

  • Intial Offering: 15,507,571
  • 2015 CCR Allowances Available: 10,000,000
  • Quantity Sold: 15,507,571
  • Clearing Price: $5.50
  • Number of Bidders: 48
  • Ratio of Bids to Intial Supply: 3.1
  • Percent Won by Compliance Entities: 68%
  • Percent Won by Compliance-Oriented Entities: 47%

 

2. Auction Participation:

A total of 53 potential bidders, listed by name in section 4 below, submitted an Intent to Bid in the auction.

The following statistics summarize the participation by electric generators and their corporate affiliates ("compliance entities") under the RGGI program.

In Auction 28, compliance entities and their affiliates purchased 68 percent of the allowances sold.

In the first 28 RGGI auctions, compliance entities and their affiliates purchased 77 percent of the allowances sold.

This post-auction report also summarizes allowance purchases and holdings for “compliance-oriented entities.” This includes most compliance entities and their affiliates. Compliance-oriented entities exclude compliance entities that (in the market monitor’s assessment) have allowance holdings which exceed their estimated compliance obligations by a margin to suggest purchasing allowances for re-sale or some other investment purpose.

In Auction 28, compliance-oriented entities and their affiliates purchased 47 percent of allowances.

55 percent of allowances in circulation will be held by firms that are believed to hold them for compliance purposes following the settlement of allowances sold in Auction 28.

 

3. Dispersion of Bids

In the offering of allowances for the current control period, bids were submitted by 35 compliance-oriented entities and 13 other entities.

Two compliance-oriented entities and six other entities submitted bids for a large quantity of allowances (i.e., at least 2 million tons). Overall, compliance-oriented entities accounted for 39 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 15,507,571 allowances.

 

4. Potential Bidders

The following 53 potential bidders submitted their intent to bid in the auction.

  • Astoria Energy, LLC
  • Brookfield Energy Marketing LP
  • Brooklyn Navy Yard Cogen Partners, LP
  • Caithness Long Island, LLC
  • Calpine Energy Services, LP
  • Castleton Commodities Merchant Trading, LP
  • Castleton Power, LLC
  • CE2 Carbon Capital, LLC
  • City of Dover
  • Consolidated Edison Comp. of NY, Inc
  • CP Energy Marketing (US) Inc.
  • Delaware City Refining Company, LLC
  • Delaware Municipal Electric Corp.
  • Direct Energy Business Marketing, LLC
  • Dominion Energy Marketing, Inc.
  • DTE Energy Trading, Inc.
  • EDF Trading North America, LLC
  • Element Markets, LLC
  • Entergy Rhode Island State Energy, LP
  • Essential Power, LLC
  • Exelon Generation Company, LLC
  • GDF SUEZ Energy Marketing NA, Inc.
  • GenOn Energy Management, LLC
  • Granite Ridge Energy, LLC
  • Indeck-Corinth Limited Partnership
  • Indeck-Olean Limited Partnership
  • Indeck-Oswego Limited Partnership
  • Indeck-Yerkes Limited Partnership
  • Jamestown Board of Public Utilities
  • J-Power USA Development Co., Ltd.
  • Kendall Green Energy, LLC
  • Kleen Energy Systems, LLC
  • Koch Supply & Trading, LP
  • Luminus Energy Partners Master Fund, Ltd.
  • Massachusetts Bay Transportation Auth.
  • Maxim Power (USA) Inc.
  • Mercuria Energy America, Inc.
  • 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
  • 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
  • TransCanada Power Marketing, Ltd.
  • Upstate New York Power Producers, LLC
  • Verso Corporation
  • Vitol Inc.