Gov. Rell Says Latest Regional Carbon Auction

Brings $4.7 Million to Connecticut

Funds To Support Clean Energy Program, Green Jobs

Governor M. Jodi Rell said today the latest regional auction of carbon allowances has generated $4.7 million for Connecticut’s clean energy and energy efficient programs, which include incentives for solar rebates and leases for homes, fuel cell production and funding to help communities and businesses reduce their energy dependence. The state has received approximately $18.7 million from all four auctions since last fall.

“By taking the national lead to combat climate change, we have ensured that we will have the resources to both reduce our demand for fossil fuel and speed the development of clean energy sources and our green jobs workforce,” Governor Rell said.

Under Governor Rell’s leadership, Connecticut was among the first to join a historic 10-state alliance in the Northeast, known as the Regional Greenhouse Gas Initiative (RGGI). The states work together to 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.

            These funds will support the renewable energy programs of the Connecticut Clean Energy Fund (CCEF) and programs for energy efficiency administered by utilities Connecticut Light & Power, United Illuminating and the Connecticut Municipal Electrical Energy Cooperative (CMEEC).

The auction held Wednesday, June 17, raised a total of $104.2 million.  Under RGGI agreement, the 10 states hold quarterly allowance auctions and invest the proceeds in energy efficiency, renewable energy and other programs that benefit energy consumers and create green jobs.  The states have now auctioned more than 110 million allowances and raised a total of $366.5 million since the first RGGI auction in September of 2008.

All of the 30.8 million allowances for 2009 offered in Wednesday’s auction sold at $3.23 an allowance. Potomac Economics, the RGGI independent market monitor, found participation in the 2009 offering to be robust with 54 separate entities submitting bids to purchase 2.6 times the available supply of 2009 allowances. The RGGI states also auctioned allowances for the second three-year control period beginning January 1, 2012. All of the 2.2 million allowances for 2012 vintage sold at $2.06 an allowance with 13 entities submitting bids to purchase 1.5 times the available supply.

“In addition to generating revenues for us, the RGGI program is showing that a ‘cap-and-trade’ program is a successful approach to reducing greenhouse gases,” Governor Rell said. “That is why I have joined repeatedly with other Governors in asking Congress to enact a federal program as comprehensive as RGGI.”

         The complete Market Monitor Report for Auction 4 is available at: http://www.rggi.org/docs/Auction_4_News_Release_MM_Report.pdf