RGGI Raises $64M In Ninth Auction

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The 10 states participating in the Regional Greenhouse Gas Initiative (RGGI) conducted their 9th regional auction of carbon-dioxide (CO2) allowances last week. The auction marks two years since the debut of the RGGI CO2 allowance auctions.

Since September 2008, proceeds from RGGI auctions have totaled approximately $729 million, of which over 80% is being invested in strategic energy programs to benefit consumers and build a clean energy economy.

The offering of current control-period CO2 allowances (2009 to 2011) in Wednesday's auction yielded approximately $64 million from the sale of 34,407,000 allowances. Over 75% of allowances offered for sale were sold. The auction clearing price was $1.86 per allowance, the reserve price for the auction. Forty-five entities submitted winning bids, with bids ranging from $1.86 to $3. Electric generators and their corporate affiliates purchased 92% of the total number of current control-period allowances sold.

‘RGGI auctions continue to set an example for the nation,’ says David Littell, a commissioner of the Maine Public Utilities Commission and chairman of the RGGI's board of directors. ‘Nine successful CO2 auctions have delivered allowances to the power plants that need them for compliance and enabled states to return millions of dollars to consumers through investments in energy savings and clean energy.’

States also offered a smaller number of CO2 allowances for a future control period (2012 to 2014). The offering yielded approximately $2.4 million from the sale of 1,312,000 allowances. Over 61% of future control-period allowances offered for sale were sold. The auction clearing price was $1.86 per allowance. Six bidders submitted winning bids, with bids ranging from $1.86 to $1.92. Electric generators and their corporate affiliates purchased 100% of the total number of future control-period allowances sold.

As they have for previous auctions, the participating states released the report of the independent market monitor, which contains aggregate auction results and a list of all qualified auction participants that submitted their intent to bid in the auction.

SOURCE: Regional Greenhouse Gas Initiative Inc.

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