Regional Greenhouse Gas Initiative

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

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Auction 2

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RGGI Auction 2 was held on December 17, 2008 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 2.

 

1. Auction Statistics:

Current Control Period (2009-2011) Offering

  • Quantity Offered: 31,505,898
  • Quantity Sold: 31,505,898
  • Clearing Price: $3.38
  • Number of Bidders: 84
  • Ratio of bids to Supply: 2.5
  • Percent Won by Electric Generators: 87%

Future Control Period (2012-2014) Offering

  • Quantity Offered: 0
  • Quantity Sold: 0
  • Clearing Price:  n/a
  • Number of Bidders: n/a
  • Ratio of Bids to Supply: n/a
  • Percent Won by Electric Generators: n/a

  

2. Auction Participation:

A total of 84 qualified bidders, listed by name in section 4 below, submitted an Intent to Bid in the auction.

Electric generators and their corporate affiliates ("compliance entities") purchased 87 percent of the 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

A2 % Awarded by Entity

  

3. Dispersion of Bids

Bids were widely dispersed across compliance entities and non-compliance entities.

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 76 percent of the quantity of bids submitted in the 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

A2 % Dispersion of Bids

  

4. Qualified Bidders

The following 84 qualified bidders submitted their intent to bid in the auction:

Adirondack Council Inc.

Aeolus Fund II Master Fund, Ltd.

AES Eastern Energy, LP

Aircraft Services Corporation

Allegheny Energy Supply Company, LLC

ANP Funding I, LLC

Astoria Energy

Astoria Generating Company, LP

Barclays Bank PLC

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

Clean Air Conservancy

Conectiv Energy Services, Inc.

Conn. Municipal Electric Energy Coop.

Consolidated Edison Energy, Inc.

Constellation Energy Commodities Group, Inc.

C-Quest Capital, LLC

DC Energy Marketing, LLC

Dominion Energy Marketing, Inc.

Dynegy Marketing and Trade

Eco-Energy

Element Markets, LLC

Energy America, LLC

Evolution Markets, Inc.

FirstLight Power Resources Mgmt, LLC

FPL Energy Power Marketing, Inc.

Global Inv. Alternatives Group, Ltd.

Green Mountain Power

Hess Corporation Green

Indeck Energy Services of Silver Springs, Inc.

Indeck-Corinth Limited Partnership

Indeck-Olean Limited Partnership

Indeck-Oswego Limited Partnership

Indeck-Yerkes Limited Partnership

Integrys Energy Services, Inc.

J. Aron & Company

James S.Burrell II

Jamestown Board of Public Utilities

JP Morgan Ventures Energy Corporation

Laurence DeWitt

Logan Generating Company, LP

Louis Dreyfus Energy Services, LP

Massachusetts Muni. Wholesale Elec. Co.

Massachusetts Water Resources Authority

Maxim Power Corp.

Merrill Lynch Commodities, Inc.

Milford Power Company, LLC

Millennium Power Partners, LP

Mirant Energy Trading, LLC

Morgan Stanley Capital Group, Inc.

National Grid Gen. dba National Grid

New Athens Generating Company, LLC

North American Energy Alliance, LLC

NRG Power Marketing, LLC

Old Dominion Electric Cooperative

Power Authority of the State of New York

PPL EnergyPlus, Inc.

PSEG Energy Resources & Trade, LLC

Public Service Company of New Hampshire

RBC

RC Cape May Holdings, LLC

Rochester Gas and Electric Corporation

RPL Holdings, Inc.

Saranac Power Partners

Selkirk Cogen Partners, LP

Sempra Energy Trading, LLC

Seventh Generation Advisors

Shell Energy North America (US), LP

Statkraft Markets GmbH

Sterling Planet, Inc.

SUEZ Energy Marketing NA, Inc.

Tradax Energy, Inc.

TransCanada Power Marketing Ltd.

Universal Carbon, LLC

Village of Freeport

Vitol Inc.

William P Short III

Wing Fuel, LLC