Regional Greenhouse Gas Initiative

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

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Auction 38

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RGGI Auction 38 was held on Dec. 6, 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.

Below are key data and information on the results of the auction. Detailed analysis is available in the Market Monitor Report for Auction 38.

1. Auction Statistics:

Current Control Period Offering

  • Offering: 14,687,989
  • 2017 CCR Allowances Available: 10,000,000
  • Quantity Sold: 14,687,989
  • Clearing Price: $3.80
  • Number of Bidders: 35
  • Ratio of Bids to Initial Supply: 2.2
  • Percent Won by Compliance Entities: 64%
  • Percent Won by Compliance-Oriented Entities: 55%


2. Auction Participation:

A total of 45 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 several categories. For reporting purposes, firms are often broken up into the following distinct categories.

  • Compliance-Oriented Entities – Compliance entities that appear to acquire and hold allowances primarily to satisfy their compliance obligations.
  • Investors with Compliance Obligations – Firms that have compliance obligations but which hold a number of allowances that exceeds their estimated compliance obligations by a margin suggesting they also buy for re-sale or some other investment purpose. These firms often transfer significant quantities of allowances to unaffiliated firms.
  • Investors without Compliance Obligations – Firms without any compliance obligations.

These three categories form the basis for two overlapping groups.

  • Compliance Entities –All firms with compliance obligations, and their affiliates. Combines the first and second of the above categories.
  • Investors – All firms which are assessed to be purchasing for investment rather than compliance purposes. Combines the second and third of the above categories.

In Auction 38, Compliance Entities purchased 64 percent of the allowances sold.

In the first 38 RGGI auctions, Compliance Entities purchased 75 percent of the allowances sold.

In Auction 38, Compliance-Oriented Entities purchased 55 percent of allowances.

56 percent of allowances in circulation will be held by Compliance-Oriented Entities following the settlement of allowances sold in Auction 38.

57 percent of allowances in circulation will be held for compliance purposes following the settlement of allowances sold in Auction 38. 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 Investors with Compliance Obligations.


3. Dispersion of Bids

In the offering of allowances for the current control period, bids were submitted by 23 Compliance-Oriented Entities and 12 Investors.

One Compliance-Oriented Entity and six Investors submitted bids for a large quantity of allowances (i.e., at least 2 million tons). Overall, Compliance-Oriented Entities accounted for 52 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 14,687,989 allowances.


4. Potential Bidders

The following 45 potential bidders submitted their intent to bid in the auction.

  • Astoria Energy, LLC
  • BP Products North America Inc.
  • Burlington Electric Department
  • Caithness Long Island, LLC
  • Calpine Energy Services, LP
  • Carbon Lighthouse Association
  • Cayuga Operating Company, LLC
  • Consolidated Edison Comp. of NY, Inc.
  • CPV Maryland, LLC
  • CPV Towantic, LLC
  • Delaware City Refining Company, LLC
  • Dominion Energy Marketing, Inc.
  • DTE Energy Trading, Inc.
  • Element Markets, LLC
  • Exelon Generation Company, LLC
  • GenOn Energy Management, LLC
  • Hawkwye Energy Greenport
  • Helix Ravenswood, LLC
  • Indeck-Corinth Limited Partnership
  • Jamestown Board of Public Utilities
  • Kendall Green Energy, LLC
  • KMC Thermo, LLC
  • Koch Supply and Trading, LP
  • Luminus Energy Partners Master Fund, Ltd.
  • Macquarie Energy, LLC
  • Massachusetts Muni. Wholesale Elec. Co.
  • Mercuria Energy America Inc.
  • Morgan Stanley Capital Group, Inc.
  • National Grid Gen. dba National Grid
  • New Mach Gen, LLC
  • NextEra Energy Marketing, LLC
  • NRG Power Marketing, LLC
  • Ocean State Power, LLC
  • Old Dominion Electric Cooperative
  • Power Authority of the State of New York
  • PSEG Energy Resources and Trade, LLC
  • Public Service Company of New Hampshire
  • RBC
  • Selkirk Cogen Partners, LP
  • Shell Energy North America (US) LP
  • Statkraft US, LLC
  • Verso Corporation
  • Village of Freeport
  • Vitol Inc.
  • Wallingford Energy LLC