Regional Greenhouse Gas Initiative

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

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Auction 15

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RGGI Auction 15 was held on March 14, 2012 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 15.

 

1. Auction Statistics:

Current Control Period (2012-2014) Offering

  • Quantity Offered: 34,843,858
  • Quantity Sold: 21,559,000
  • Clearing Price: $1.93
  • Number of Bidders: 20
  • Ratio of bids to Supply: 0.62x
  • Percent Won by Electric Generators: 99

 

2. Auction Participation:

A total of 34 qualified bidders, listed by name in section 4 below, submitted an Intent to Bid in the auction.

The following statistics summarize the purchases and holdings of allowances by electric generators and their corporate affiliates ("compliance entities") under the RGGI program:

In Auction 15, compliance entities and their affiliates purchased: 99 percent of the CO2 allowances sold.

In the first 15 RGGI auctions, compliance entities and their affiliates purchased 87 percent of the current control period allowances sold.

Based upon the Market Monitor's estimate of first control period compliance obligations, 90 percent of the CO2 allowances in circulation will be held by electric generators and their corporate affiliates ("compliance entities") following the settlement of Auction 15 and after compliance has been completed for the first control period.

 

3. Dispersion of Bids

In the offering of allowances for the 2012 allocation year, bids were submitted by 18 compliance entities and two non-compliance entities.

Three compliance entities submitted bids for a large quantity of allowances (e.g., at least 2 million tons). Overall, compliance entities accounted for 99 percent of the quantity of allowances for which bids were submitted. The quantity of allowances for which bids were submitted decreased to 0.62 times the available supply in Auction 15 from 0.63 times the available supply in Auction 14, but increased from 0.18 times the available supply in Auction 13.

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

Quantity of Bids Submitted By Type of Entity and Quantity Bid

A15MM_Figure_2

 

4. Qualified Bidders

The following 34 qualified bidders submitted their intent to bid in the auction.

  • Brooklyn Navy Yard Cogen Partners, LP
  • Caithness Long Island, LLC
  • CE2 Carbon Capital, LLC
  • Consolidated Edison Comp. of NY, Inc.
  • Constellation Energy Commodities Group
  • CP Energy Marketing (US) Inc.
  • Delaware Municipal Electric Corp.
  • Dominion Energy Marketing, Inc.
  • EDF Trading North America, LLC
  • Empire Generating Co., LLC
  • EquiPower Resources
  • Essential Power, LLC
  • GenOn Energy Management, LLC
  • Granite Ridge Energy, LLC
  • H.Q. Energy Services (US) Inc.
  • Hawkeye Energy Greenport
  • Indeck-Corinth Limited Partnership
  • J-Power USA Development Co., Ltd.
  • Kleen Energy Systems, LLC
  • Koch Supply & Trading, LP
  • Massachusetts Muni. Wholesale Electric Co.
  • 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
  • Power Authority of the State of New York
  • Public Service Company of New Hampshire
  • RBC
  • Rochester Gas and Electric Corporation
  • Selkirk Cogen Partners, LP
  • Sterling Planet, Inc.
  • Verso Paper Corp.
  • Vitol Inc.
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