RGGI Auction 35 was held on March 8, 2017 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.
A total of 48 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 are compliance entities that (in the market monitor's assessment) appear to acquire and hold allowances primarily to satisfy their compliance obligations.
In Auction 35, Compliance Entities and their Affiliates purchased 47 percent of the allowances sold.
In the first 35 RGGI auctions, Compliance Entities and their Affiliates purchased 76 percent of the allowances sold.
In Auction 35, Compliance-Oriented Entities purchased 34 percent of allowances.
54 percent of allowances in circulation will be held by Compliance-Oriented Entities following the settlement of allowances sold in Auction 35.
55 percent of allowances in circulation will be held for compliance purposes following the settlement of allowances sold in Auction 35. 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 22 Compliance-Oriented Entities and 14 Other Entities.
One Compliance-Oriented Entity and five Other Entities submitted bids for a large quantity of allowances (i.e., at least 2 million tons). Overall, Compliance-Oriented Entities accounted for 34 percent of the quantity of allowances for which bids were submitted. The quantity of allowances for which bids were submitted was 2.2 times the initial offering of 14,371,300 allowances.
4. Potential Bidders
The following 48 potential bidders submitted their intent to bid in the auction.