RGGI Prices Remain Flat, All Allowances Sell
The Regional Greenhouse Gas Initiative held auction 11 on March 9th. It yielded $83,425,588. All of the of the 41,995,813 current control period CO2 allowances (2009-2011) offered in the auction sold at a price of $1.89 per allowance. This is up from the low of $1.86 seen in the last auction, but well off prices in the $3 and $2 range seen in earlier auctions.
There is good news for RGGI in the fact that all of the allowances sold. In the last auction, 57% of allowances went unsold.
RGGI says that states are investing proceeds from the RGGI auctions, now more than $860.9 million, in programs to save energy consumers money, create jobs and make businesses more competitive. But that’s a pretty wide description of where the money is going. Late last year it was reported that RGGI money was being spent to fill state budget gaps and pay general bills.
Thirty-six entities submitted bids to purchase 1.1 times the available supply of allowances during auction 11. Electric generators and their corporate affiliates purchased 85 percent of the current control period allowances.
States also offered a smaller number of CO2 allowances for a future control period (2012-2014). All of the 2,144,710 future control period allowances offered in the auction sold at a price of $1.89 per allowance. Seven entities submitted bids to purchase 1.4 times the available supply of allowances. Electric generators and their corporate affiliates purchased 56 percent of the future control period allowances.
Electric generators and their corporate affiliates have won 85 percent of all CO2 allowances sold in Auctions 1-11 and will hold 97 percent of CO2 allowances in circulation following the settlement of Auction 11. Additional details may be found in the Market Monitor Report for Auction 11.
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