Regional Greenhouse Gas Initiative

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

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Auction 31

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RGGI Auction 31 was held on March 9, 2016 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 31.

1. Auction Statistics:

Current Control Period Offering

  • Initial Offering: 14,838,732
  • 2016 CCR Allowances Available: 10,000,000
  • Quantity Sold: 14,838,732
  • Clearing Price: $5.25
  • Number of Bidders: 46
  • Ratio of Bids to Intial Supply: 3.5
  • Percent Won by Compliance Entities: 67%
  • Percent Won by Compliance-Oriented Entities: 59%

 

2. Auction Participation:

A total of 57 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 31, compliance entities and their affiliates purchased 67 percent of the allowances sold.

In the first 31 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 31, compliance-oriented entities and their affiliates purchased 59 percent of allowances.

50 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 31.

 

3. Dispersion of Bids

In the offering of allowances for the current control period, bids were submitted by 30 compliance-oriented entities and 16 other entities.

Four compliance-oriented entities and seven other entities submitted bids for a large quantity of allowances (i.e., at least 2 million tons). Overall, compliance-oriented entities accounted for 41 percent of the quantity of allowances for which bids were submitted. The quantity of allowances for which bids were submitted was 3.5 times the initial offering of 14,838,732 allowances.

 

4. Potential Bidders

The following 57 potential bidders submitted their intent to bid in the auction.

  • Astoria Energy, LLC
  • Berkshire Power Company, LLC
  • Blue Delta Energy, LLC
  • BP Products North America Inc.
  • Brooklyn Navy Yard Cogen Partners, LP
  • Caithness Long Island, LLC
  • Calpine Energy Services, LP
  • Carbon Lighthouse Association
  • Castleton Commodities Merchant Trading, LP
  • Castleton Power, LLC
  • City of Dover
  • Consolidated Edison Comp. of NY, Inc
  • Covanta Niagara I, LLC
  • Delaware City Refining Company, LLC
  • Delaware Municipal Electric Corp.
  • Direct Energy Business Marketing, LLC
  • Dominion Energy Marketing, Inc.
  • DRW Commodities, LLC
  • DTE Energy Trading, Inc.
  • EDF Trading North America, LLC
  • Energie Row, LLC
  • Essential Power, LLC
  • Exelon Generation Company, LLC
  • Five Rings Capital, LLC
  • GDF SUEZ Energy Marketing NA, Inc.
  • GenOn Energy Management, LLC
  • Hawkeye Energy Greenport
  • Indeck-Corinth 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
  • KMC Thermo, LLC
  • Koch Supply & Trading, LP
  • Luminus Energy Partners Master Fund, Ltd.
  • Macquarie Energy, LLC
  • Maxim Power (USA) Inc.
  • Mercuria Energy America, Inc.
  • Morgan Stanley Capital Group, Inc.
  • National Grid Gen. dba National Grid
  • 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
  • Talen Energy Marketing, LLC
  • Taunton Municipal Lighting Plant
  • TransCanada Power Marketing, Ltd.
  • Upstate New York Power Producers, LLC
  • Verso Corporation
  • Vitol Inc.
  • Wallingford Energy, LLC