Friday, September 09, 2011

10 States Complete 13th Regional Auction of CO2 Allowances

Current Control Period Allowances Sold at $1.89

The ten Northeastern and Mid-Atlantic states participating in the nation’s first market-based regulatory program to reduce greenhouse gas emissions today announced the results of their 13th quarterly auction of carbon dioxide (CO2) allowances. The auction, held Wednesday, September 7th, marks three years since the launch of the Regional Greenhouse Gas Initiative (RGGI) auctions in 2008.

7,487,000, or 17.75 percent, of the 42,189,685 current control period (2009-2011) CO2 allowances offered for sale by the ten participating states were sold. The auction clearing price was $1.89 per allowance, the minimum reserve price for the auction. Thirty-one entities submitted winning bids, with bids ranging from $1.89 to $5.18. Electric generators and their corporate affiliates purchased 94 percent of the current control period allowances sold.

The participating states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Vermont also offered a smaller number of CO2 allowances for a future control period (2012-2014). None of the future control period allowances offered in the auction was sold.

According to the independent market monitor retained to evaluate the RGGI market, the quarterly auctions have been consistent with a competitive market and have successfully delivered the vast majority of allowances to power plants that need them for compliance. The Market Monitor Report for Auction 13 details that power plants and their corporate affiliates purchased 85 percent of allowances sold in Auctions 1-13 and hold 97 percent of the allowances in circulation.

Proceeds from RGGI auctions now total more than $900 million, approximately 80 percent of which is being invested by states in consumer benefits: energy efficiency, renewable energy, direct assistance to consumers and other programs. State data show that energy efficiency programs, which account for the largest share of investments across the region, are generating $3 to $4 in savings for every $1 invested. For more information on each RGGI state’s investment of auction proceeds, visit:

The participating states have announced that they are preparing for a comprehensive review of the RGGI program in 2012. That review will consider, among other things, the reduction in emissions that has occurred since the regional emission cap was put into place. A stakeholder session has been scheduled for September 19, 2011 to receive stakeholder input on various analyses that the participating states are undertaking. The stakeholder meeting will take place in New York City and will be open to all. For more information.

The next RGGI auction is scheduled for December 7, 2011.

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