Governor Rell Hails Continued

Success of RGGI Auction

            Governor M. Jodi Rell today announced the successful results of the third regional auction of emission allowances under the landmark Regional Greenhouse Gas Initiative (RGGI), saying the state expects to receive about $5.2 million, most of which will be used for energy efficiency programs and renewable power technologies.

            Under RGGI, Connecticut and nine other Northeast states are working together to significantly cut air pollution, improve energy efficiency and develop clean energy. The agreement sets a cap on the amount of carbon dioxide power plants can emit and creates a “cap-and-trade” program to allow power- generating companies and others to buy “allowances” to cover the emissions.

            Under Governor Rell’s guidance, Connecticut was one of the first states to join this historic program, which has demonstrated the viability of efforts to limit dangerous green house gas emissions.

            “By taking the lead in this landmark initiative, Connecticut continues its work to ensure a healthier environment for our future generations and make clear our commitment to cleaner and greener energy sources,” Governor Rell said. “The auction process continues to be a tremendous success from all perspectives. Of the $5.2 million we expect to receive from Wednesday’s auction, more than $3.6 million will be used for energy efficiency program and about $1.2 million will go to our clean energy programs.”

            The remaining funds will be used to continue efforts to implement last year’s landmark climate law, An Act Concerning Connecticut Global Warming Solutions.

            Two different “vintages” of allowances were offered for sale on Wednesday: allowances for the current calendar year and a small quantity of 2012 allowances. The dates indicate the compliance period for regulatory purposes.

            Fifty separate entities submitted bids to purchase more than 2½ as many 2009 allowances as were actually available. Twenty entities submitted bids for more than twice as many 2012 allowances as were actually available.

            In all, 42 entities won allowances for the 2009 offering and 12 entities won allowances for the 2012 offering. The price for a 2009 allowance cleared the auction at $3.51 a ton and the price for a 2012 allowance cleared the auction at $3.05 a ton. The fourth auction is scheduled for June 17.

            “The fact that there continues to be strong interest in obtaining these allowances during these troubling economic times is an excellent sign that the market is performing well and that these allowances are being valued appropriately,” Governor Rell said.

            The auction was administered by World Energy Solutions, Inc., which operates online exchanges for energy and green commodities. The sale was overseen by Potomac Economics, an independent market monitor retained by RGGI, Inc.