Regional Greenhouse Gas Initiative

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

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Auction 35

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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.

Below are key data and information on the results of the auction. Detailed analysis is available in the Market Monitor Report for Auction 35.

1. Auction Statistics:

Current Control Period Offering

  • Offering: 14,371,300
  • 2017 CCR Allowances Available: 10,000,000
  • Quantity Sold: 14,371,300
  • Clearing Price: $3.00
  • Number of Bidders: 36
  • Ratio of Bids to Initial Supply:2.2
  • Percent Won by Compliance Entities: 47%
  • Percent Won by Compliance-Oriented Entities: 34%

 

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 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.

  • Astoria Energy, LLC
  • Berkshire Power Company, LLC
  • Biourja Nehme Commodities, LLC
  • BP Products North America, Inc.
  • Brookfield Energy Marketing LP
  • Brooklyn Navy Yard Cogen Partners, LP
  • Caithness Long Island, LLC
  • Calpine Energy Services, LP
  • Carbon Lighthouse Association
  • Cayuga Operating Company, LLC
  • City of Dover
  • Consolidated Edison Comp. of NY, Inc.
  • Delaware City Refining Company, LLC
  • Direct Energy Business Marketing, LLC
  • Dominion Energy Marketing, Inc.
  • DRW Commodities, LLC
  • DTE Energy Trading, Inc.
  • Exelon Generation Company, LLC
  • GDF Suez Energy Marketing, NA, Inc.
  • GenOn Energy Management, LLC
  • Hawkeye Energy Greenport
  • Indeck-Corinth Limited Partnership
  • Jamestown Board of Public Utilities
  • J-Power USA Development Co., Ltd.
  • 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.
  • Maxim Power (USA), Inc.
  • Mercuria Energy America, Inc.
  • Morgan Stanley Capital Group, Inc.
  • National Grid Gen. dba National Grid
  • NextEra Energy Marketing, LLC
  • Noble Americas Gas and Power Corp.
  • NRG Power Marketing, 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 Markets GmbH
  • Verso Corporation
  • Village of Freeport
  • Vitol, Inc.