Regional Greenhouse Gas Initiative

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

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Auction 3

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RGGI Auction 3 was held on March 18, 2009 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 3.

 

1. Auction Statistics:

Current Control Period (2009-2011) Offering

  • Quantity Offered:  31,513,765
  • Quantity Sold:  31,513,765
  • Clearing Price:   $3.51
  • Number of Bidders:   50
  • Ratio of bids to Supply: 2.5
  • Percent Won by Electric Generators: 78%

Future Control Period (2012-2014) Offering

  • Quantity Offered: 2,175,513
  • Quantity Sold: 2,175,513
  • Clearing Price:  $3.05
  • Number of Bidders: 20
  • Ratio of Bids to Supply: 2.3
  • Percent Won by Electric Generators: 93%

 

2. Auction Participation:

A total of 63 qualified bidders, listed in section 4 below, submitted an Intent to Bid in the auction.

Electric generators and their corporate affiliates (“compliance entities”) purchased 78 percent of the current control period allowances sold in the auction and 93 percent of the future control period allowances sold in the auction.

The figure below shows the quantity of allowances purchased in the auction by each of three types of entities:

  • Compliance Entities:  Includes all electric generators and their corporate affiliates. 
  • Environmental/Individuals:  Includes non-compliance entities describing themselves as “Environmental Groups” or “Individual Person” in their qualification application
  • Other Non-Compliance Entities:  Includes all other non-compliance entities

 

Quantity of Allowances Awarded By Type of Entity

A3 % Awarded by Entity

 

 

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 vintage 2009 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 84 percent of the quantity of bids submitted in the vintage 2009 auction.

In the auction for vintage 2012 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 75 percent of the quantity of bids submitted in the vintage 2012 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

A3 % Dispersion of Bids

 

 

4. Qualified Bidders

The following 63 qualified bidders submitted their intent to bid in the auction.

  • Adirondack Council Inc.
  • Aeolus Fund II Master Fund, Ltd.
  • AES Eastern Energy, LP
  • ANP Funding I, LLC
  • Astoria Generating Company, LP
  • Barclays Bank PLC
  • BG Dighton Power, LLC
  • Boston Generating, LLC
  • Brick Power Holding, LLC
  • Brookfield Energy Marketing Inc.
  • Calpine Energy Services, LP
  • CE2 Carbon Capital, LLC
  • CE2 Environmental Markets, LP
  • CE2 Environmental Opportunities I, LP
  • Chambers Cogeneration, LP
  • Conectiv Energy Supply, Inc.
  • Conn. Municipal Electric Energy Coop.
  • Consolidated Edison Energy, Inc.
  • Constellation Energy Commodities Group
  • C-Quest Capital, LLC
  • Craig Hart
  • DigiLog Global Environmental Master Fund
  • Dominion Energy Marketing, Inc.
  • DTE Carbon LLC
  • Dynegy Marketing and Trade
  • Element Markets, LLC
  • Evolution Markets, Inc.
  • FES Fund I LLC
  • FPL Energy Power Marketing, LLC
  • H.Q. Energy Services (US) Inc.
  • Hess Corporation (G)
  • Indeck-Olean Limited Partnership
  • Index Capital Group LLC
  • J. Aron & Company
  • JP Morgan Ventures Energy Corporation
  • J-Power USA Development Co., Ltd.
  • Lake Road Generating Company, L.P.
  • Logan Generating Company, LP
  • Louis Dreyfus Energy Services, LP
  • Macquarie Cook Power Inc.
  • Massachusetts Bay Transportation Auth.
  • Massachusetts Muni. Wholesale Elec. Co.
  • Masspower
  • Mercuria Energy Trading
  • Merrill Lynch Commodities, Inc.
  • Michael Forlini
  • Milford Power Company, LLC
  • Millennium Power Partners, LP
  • Mirant Energy Trading, LLC
  • National Grid Gen. dba National Grid
  • New Athens Generating Company, LLC
  • NRG Power Marketing, LLC
  • Power Authority of the State of New York
  • PSEG Energy Resources & Trade, LLC
  • Public Service Company of New Hampshire
  • RBC
  • Rochester Gas and Electric Corporation
  • Saranac Power Partners
  • Selkirk Cogen Partners, LP
  • SUEZ Energy Marketing NA, Inc.
  • Tradax Energy, Inc.
  • TransCanada Power Marketing Ltd.
  • Universal Carbon, LLC