Regional Greenhouse Gas Initiative

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

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Auction 34

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RGGI Auction 34 was held on December 7, 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 34.

1. Auction Statistics:

Current Control Period Offering

  • Offering: 14,791,315
  • 2016 CCR Allowances Available: 10,000,000
  • Quantity Sold: 14,791,315
  • Clearing Price: $3.55
  • Number of Bidders: 33
  • Ratio of Bids to Initial Supply: 2.4
  • Percent Won by Compliance Entities: 71%
  • Percent Won by Compliance-Oriented Entities: 40%

 

2. Auction Participation:

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; Compliance-Oriented Entities; and Other Entities. Compliance Entities include firms with a compliance obligation, and their affiliates. 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. Other Entities include firms without any compliance obligation, as well as firms that have compliance obligations, but which hold a number of allowances that (in the market monitor’s assessment) suggests that they are also buying for re-sale or some other investment purpose.

In Auction 34, Compliance-Oriented Entities purchased 40 percent of allowances.

In Auction 34, Compliance Entities purchased 71 percent of the allowances sold.

In the first 34 RGGI auctions, Compliance Entities purchased 77 percent of the allowances sold.

53 percent of allowances in circulation will be held by Compliance-Oriented Entities following the settlement of allowances sold in Auction 34.

59 percent of allowances in circulation will be held for compliance purposes following the settlement of allowances sold in Auction 34. 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 21 Compliance-Oriented Entities and 12 Other Entities.

One Compliance-Oriented Entity and six Other Entities submitted bids for a large quantity of allowances (i.e., at least 2 million tons). Overall, Compliance-Oriented Entities accounted for 27 percent of the quantity of allowances for which bids were submitted. The quantity of allowances for which bids were submitted was 2.4 times the initial offering of 14,791,315 allowances.

 

4. Potential Bidders

The following 48 potential bidders submitted their intent to bid in the auction.

  • Astoria Energy, LLC
  • Biourja Nehme Commodities, LLC
  • BP Products North America Inc.
  • Brooklyn Navy Yard Cogen Partners, LP
  • Caithness Long Island, LLC
  • Calpine Energy Services, LP
  • Castleton Commodities Merchant Trading, LP
  • Cayuga Operating Company, LLC
  • City of Dover
  • Consolidated Edison Comp. of NY, Inc.
  • Delaware City Refining Company, LLC
  • Delaware Municipal Electrical Corp.
  • Direct Energy Business Marketing, LLC
  • Dominion Energy Marketing, Inc.
  • DRW Commodities, LLC
  • DTE Energy Trading, Inc.
  • Energie Row, 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
  • J-Power USA Development Co., Ltd.
  • Kendall Green Energy, LLC
  • KMC Thermo, LLC
  • Koch Supply & Trading, LP
  • Luminus Energy Partners Master Fund, Ltd.
  • Macquarie Energy, LLC
  • Massachusetts Muni. Wholesale Elec. Co.
  • Maxim Power (USA), Inc.
  • Mercuria Energy America, Inc.
  • Morgan Stanley Capital Group, Inc.
  • National Grid Gen. dba National Grid
  • NextEra Energy 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
  • Statkraft Markets GmbH
  • Taunton Municipal Lighting Plant
  • Verso Corporation
  • Village of Freeport
  • Vitol Inc.
  • Wallingford Energy, LLC

Allowance Prices and Volumes (by Auction)

This chart displays the results of each RGGI CO2 Allowance Auction. To view a state-by-state breakdown for each auction, click on the auction number listed in the left-hand column.

 

Auction Number Offering Quantity Offered Quantity Sold Clearing Price Total Proceeds
Auction 38
12/08/2017
Current 14,687,989 14,687,989 3.80 $55,814,358.20
Auction 37
09/08/2017
Current 14,371,585 14,371,585 4.35 $62,516,394.75
Auction 36
06/07/2017
Current 14,597,470 14,597,470 $2.53 $36,931,599.10
Auction 35
03/08/2017
Current 14,371,300 14,371,300 $3.00 $43,113,900.00
Auction 34
12/07/2016
Current 14,791,315 14,791,315 $3.55 $52,509,168.25
Auction 33
09/07/2016
Current 14,911,315 14,911,315 $4.54 $67,697,370.10
Auction 32
06/01/2016
Current 15,089,652 15,089,652 $4.53 $68,356,123.56
Auction 31
03/09/2016
Current 14,838,732 14,838,732 $5.25 $77,903,343.00
Auction 30
12/2/2015
Current 15,374,274 15,374,274 $7.50 $115,307,055.00
Auction 29
9/9/2015
Current 15,374,294 25,374,294 $6.02 $152,753,249.88
10,000,000(CCR)
Auction 28
6/3/2015
Current 15,507,571 15,507,571 $5.50 $85,291,640.50
Auction 27
3/11/2015
Current 15,272,670 15,272,670 $5.41 $82,625,144.70
Auction 26
12/3/2014
Current 18,198,685 18,198,685 $5.21 $94,815,148.85
Auction 25
9/3/2014
Current 17,998,687 17,998,687 $4.88 $87,833,592.56
Auction 24
6/4/2014
Current 18,062,384 18,062,384 $5.02 $90,673,167.68
Auction 23
3/5/2014
Current 18,491,350 23,491,350 $4.00 $93,965,400.00
5,000,000(CCR)
Auction 22
12/4/2013
Current 38,329,378 38,329,378 $3.00 $114,988,134.00
Auction 21
9/4/2013
Current 38,409,043 38,409,043 $2.67 $102,552,144.81
Auction 20
6/5/2013
Current 38,782,076 38,782,076 $3.21 $124,490,463.96
Auction 19
3/13/2013
Current 37,835,405 37,835,405 $2.80 $105,939,134.00
Auction 18
12/5/2012
Current 37,563,083 19,774,000 $1.93 $38,163,820.00
Auction 17
9/5/2012
Current 37,949,558 24,589,000 $1.93 $47,456,770.00
Auction 16
6/6/2012
Current 36,426,008 20,941,000 $1.93 $40,416,130.00
Auction 15
3/14/2012
Current 34,843,858 21,559,000 $1.93 $41,608,870.00
Auction 14
12/07/2011
Current 42,983,482 27,293,000 $1.89 $51,583,770.00
Future 1,864,951 0 --
Auction 13
09/07/2011
Current 42,189,685 7,487,000 $1.89 $14,150,430.00
Future 1,864,951 0 --
Auction 12
06/08/2011
Current 42,034,184 12,537,000 $1.89 $25,477,200.00
Future 1,864,952 943,000 $1.89
Auction 11
03/09/2011
Current 41,995,813 41,995,813 $1.89 $83,425,588.47
Future 2,144,710 2,144,710 $1.89
Auction 10
12/01/2010
Current 43,173,648 24,755,000 $1.86 $48,224,220.00
Future 2,137,991 1,172,000 $1.86
Auction 9
09/10/2010
Current 45,595,968 34,407,000 $1.86 $66,437,340.00
Future 2,137,992 1,312,000 $1.86
Auction 8
6/09/2010
Current 40,685,585 40,685,585 $1.88 $80,465,566.78
Future 2,137,993 2,137,993 $1.86
Auction 7
3/10/2010
Current 40,612,408 40,612,408 $2.07 $87,956,944.56
Future 2,137,992 2,091,000 $1.86
Auction 6
12/2/2009
Current 28,591,698 28,591,698 $2.05 $61,587,120.90
Future 2,172,540 1,599,000 $1.86
Auction 5
9/9/2009
Current 28,408,945 28,408,945 $2.19 $66,278,239.35
Future 2,172,540 2,172,540 $1.87
Auction 4
6/17/2009
Current 30,887,620 30,887,620 $3.23 $104,242,445.00
Future 2,172,540 2,172,540 $2.06
Auction 3
3/18/2009
Current 31,513,765 31,513,765 $3.51 $117,248,629.80
Future 2,175,513 2,175,513 $3.05
Auction 2
12/17/2008
Current 31,505,898 31,505,898 $3.38 $106,489,935.24
Auction 1*
9/25/2008
Current 12,565,387 12,565,387 $3.07 $38,575,738.09

 

*Six states participated in Auction 1

Supply & Bid Statistics (by Auction)

This chart includes data from the market monitor's reports on participation in the current control period offering in each RGGI CO2 Allowance Auction.

Auction Potential Bidders Ratio of Bids to Supply Allowances Won by Compliance Entities and their Affiliates Allowances Won by Compliance-Oriented Entities
Auction 38 45 2.2 64% 55%
Auction 37 50 2.7 47% 38%
Auction 36 48 2.1 49% 36%
Auction 35 48 2.2 47% 34%
Auction 34 48 2.4 71% 40%
Auction 33 50 2.8 61% 42%
Auction 32 56 3.1 93% 64%
Auction 31 57 3.5 67% 59%
Auction 30 57 3.0 80% 23%
Auction 29 55 3.4 74% 51%
2.1 (w/CCR)
Auction 28 53 3.1 68% 47%
Auction 27 50 2.8 100% --
Auction 26 53 2.5 88% --
Auction 25 47 2.5 80% --
Auction 24 51 2.9 55% --
Auction 23 52 3.1 45% --
2.5 (w/CCR)
Auction 22 55 2.7 43% --
Auction 21 52 2.0 53% --
Auction 20 55 2.1 68% --
Auction 19 43 2.2 69% --
Auction 18 34 0.53 100% --
Auction 17 29 0.65 100% --
Auction 16 35 0.57 95% --
Auction 15 34 0.62 99% --
Auction 14 49 0.63 99% --
Auction 13 41 0.18 94% --
Auction 12 47 0.3 91% --
Auction 11 49 1.1 85% --
Auction 10 49 0.57 97% --
Auction 9 56 0.75 92% --
Auction 8 53 1.3 92% --
Auction 7 61 2.3 85% --
Auction 6 74 2.6 65% --
Auction 5 59 2.5 77% --
Auction 4 67 2.6 85% --
Auction 3 63 2.5 78% --
Auction 2 84 3.5 87% --
Auction 1 82 4.1 82% --

 

Cumulative Allowances & Proceeds (by State)

This chart displays cumulative auction results organized by state. To view a complete breakdown by auction and allowance control period for each state, click on the state name listed in the left-hand column.

State

Cumulative Allowances Sold

Cumulative Proceeds

Connecticut 59,689,570 $186,744,124.38
Delaware 32,041,210 $107,255,871.02
Maine 29,218,563 $91,909,096.27
Maryland 188,574,702 $584,573,954.11
Massachusetts 150,816,939 $470,804,598.82
New Hampshire 39,562,113 $126,890,112.04
New York 345,471,912 $1,073,310,772.10
Rhode Island 17,562,748 $59,596,886.33
Vermont 6,903,063 $ 21,435,324.75
Total for Participating States 869,840,820.00 $2,722,520,739.82
New Jersey* 48,483,770 $113,344,551.27
Total 918,324,590.00 $2,835,865,291.09

 

* See New Jersey’s Notice of Withdrawal of Agreement to the RGGI MOU.