Regional Greenhouse Gas Initiative

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

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Auction 1

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RGGI Auction 1 was held on September 25, 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 1.

 

1. Auction Statistics:

Current Control Period (2009-2011) Offering

  • Quantity Offered:  12,565,387*
  • Quantity Sold: 12,565,387
  • Clearing Price:   $3.07
  • Number of Bidders:   82
  • Ratio of bids to Supply:  4.1
  • Percent Won by Electric Generators:  82%

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

  *Note: Only six states (CT, ME, MD, MA, RI, VT) offered allowances for sale in Auction 1.

 

2. Auction Participation:

Electric generators and their corporate affiliates ("compliance entities") purchased 82 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

A1 % 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 80 percent of the quantity of bids submitted in the auction.

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

 

Quantity of Bids Submitted By Type of Entity and Quantity Bid

A1 % Dispersion of Bids