Regional Greenhouse Gas Initiative

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

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Auction 32

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RGGI Auction 32 was held on June 1, 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 32.

1. Auction Statistics:

Current Control Period Offering

  • Offering: 15,089,652
  • 2016 CCR Allowances Available: 10,000,000
  • Quantity Sold: 15,089,652
  • Clearing Price: $4.53
  • Number of Bidders: 42
  • Ratio of Bids to Initial Supply: 3.1
  • Percent Won by Compliance Entities and their Affiliates: 93%
  • Percent Won by Compliance-Oriented Entities: 64%

 

2. Auction Participation:

A total of 56 potential bidders, listed by name in section 4 below, submitted an Intent to Bid in the auction.

The market monitor’s report summarizes auction participation for three categories: Compliance Entities and their Affiliates; Compliance-Oriented Entities; and Other Entities. Compliance-Oriented Entities include compliance entities that (in the market monitor's assessment) appear to acquire and hold allowances primarily to satisfy their compliance obligations.

In Auction 32, Compliance Entities and their Affiliates purchased 93 percent of the allowances sold.

In the first 32 RGGI auctions, Compliance Entities and their Affiliates purchased 77 percent of the allowances sold.

In Auction 32, Compliance-Oriented Entities purchased 64 percent of allowances.

46 percent of allowances in circulation will be held by Compliance-Oriented Entities following the settlement of allowances sold in Auction 32.

54 percent of allowances in circulation will be held for compliance purposes following the settlement of allowances sold in Auction 32. The number of allowances that are believed to be held for compliance purposes includes 100 percent of the allowances held by Compliance-Oriented Entities, and a portion of allowances held by Other Entities for compliance purposes.

 

3. Dispersion of Bids

In the offering of allowances for the current control period, bids were submitted by 27 Compliance-Oriented Entities and 15 Other Entities.

Three Compliance-Oriented Entities and eight Other Entities submitted bids for a large quantity of allowances (i.e., at least 2 million tons). Overall, Compliance-Oriented Entities accounted for 35 percent of the quantity of allowances for which bids were submitted. The quantity of allowances for which bids were submitted was 3.1 times the initial offering of 15,089,652 allowances.

 

4. Potential Bidders

The following 56 potential bidders submitted their intent to bid in the auction.

  • Berkshire Power Company, LLC
  • Biourja Nehme Commodities, 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
  • CE2 Carbon Capital, LLC
  • City of Dover
  • Consolidated Edison Comp. of NY, Inc.
  • Delaware City Refining Company, LLC
  • Delaware Municipal Electric Corp.
  • 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
  • GDF SUEZ Energy Marketing NA, Inc.
  • GenOn Energy Management, LLC
  • Green Mountain Power Corporation
  • Green Olive Holdings, LLC
  • 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 System, 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
  • The William & Flora Hewlett Foundation
  • TransCanada Power Marketing, Ltd.
  • Upstate New York Power Producers, Inc.
  • Verso Corporation
  • Village of Freeport
  • Vitol Inc.