HomeMy WebLinkAboutF-5 GHG Emissions Information Item
Presented 61/1114-
INFORAZUSA
MATION ITEM
ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA
UTILITY BOARD
FROM: GEORGE F.MORROW,DIRECTOR OF UTILITIES
DATE: MAY 27,2014 0 IV
SUBJECT: RESULTS OF THE CALIFORNIA AIR RESOURCES BOARD'S MAY
16,2014 AUCTION OF GREENHOUSE GAS ALLOWANCES
Consistent with provisions of the AB 32 based Cap-and-Trade program and Utility
Board's direction,Azusa Light&Water participated in the May 16,2014 auction of 2014
Greenhouse Gas (GHG) Allowances.
As per the Board's authorization to participate in future GHG auctions without advance
notice (such notice being prohibited by the AB32 regulations), Staff hereby reports the
outcome of the May 16,2014 Quarterly auction.
Key results related to the May 16 auction are as follows:
• 16,947,080 of 2014 allowances and 9,260,000 of 2017 allowances were
auctioned.
• The CARB reserve price(a de facto floor for auction clearing price)was$11.34.
40 All vintage 2014 allowances offered in the auction, including 35,000 of Azusa's,
allowances were sold.
• The market clearing price for the 2014 vintage was$11.50(i.e. 16 cents above the
administrative floor).
• 89.5%of the buyers were Compliance Entities(i.e. entities with GHG compliance
responsibilities under AB32 such as Azusa).
For further details on the May 16 auction, please see the attached Summary Results
Report issued by CARB.
Prepared by: Yarek Lehr,P.E.,Assistant Director-Resource Management
Attachment: CARB Quarterly Auction 7 Summary Results Report
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California Lnvlronnl0ntal Protection Nit ncy I AIR RESOURCES BOARD
California Air Resources Board Quarterly Auction 7
May2014
Summary Results Report
Background
The Air Resources Board (ARB) held its seventh auction of greenhouse gas(GHG)
allowances on May 16, 2014. The auction included a Current Auction of 2014 vintage
allowances and an Advance Auction of 2017 vintage allowances. The information
provided in this report is a balance between the need for program transparency and
protection of individual auction participant's market positions.
Prior to the certification of the auction, ARB staff and the Market Monitor carefully
evaluated the bids, and determined that the auction process and procedures complied
with the requirements of the Cap-and-Trade Regulation. As provided below, the Market
Monitor made the following determination:
"The Market Monitor found that the auction was cleared consistent with the auction
clearing rules in the regulation and appropriate economic logic. The Market Monitor
confirmed the auction results, based on the data available. The Market Monitor
confirmed the clearing price and clearing quantities by participant for the auction for
2014 and for the auction for 2017 vintage allowances. The Auction Administrator(AA)
reported that the 2014 auction clearing price is $11.50 per allowance,with 16,947,080
total 2014 allowances sold. The AA reported that the 2017 auction clearing price is
$11.34 per allowance with 4,036,000 total 2017 allowances sold. The Market Monitor
confirmed that the 2014 auction clearing price is $11.50 per allowance and that the 2017
auction clearing price is $11.34 per allowance. The Market Monitor confirmed the
cleared quantities assigned to individual participants by the M were consistent with the
regulation logic involving tie breakers and the random allocation of residual allowances
in both auctions and therefore that the total volumes cleared are correct. The auction
algorithm correctly applied the regulation requirements covering the bid guarantee and
the tie breaker constraints. The Market Monitor did not observe any breaches of
security or communication protocols. The Market Monitor recommends that ARB
approve the May 2014 Auction results?
There were no violations of the holding limits, purchase limits, or bid guarantee for any
submitted bids in the Current Auction of 2014 allowances or in the Advance Auction of
2017 vintage allowances. The bid price statistics for submitted bids are therefore the
same as qualified bids.
www.arh.ca.Sov PO BOX 2815 SACRAMENTO CA 95812 (916)322-2990
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Cabo., En/ui n n - I H,�1ectiJn Ac:en;;y, I AIR RESOURCES BOARD
California Air Resources Board Quarterly Auction 7
May 2014
The Air Resources Board (ARB) held its seventh auction of greenhouse gas(GHG)
allowances on May 16, 2014. The auction included a Current Auction of 2014 vintage
allowances and an Advance Auction of 2017 vintage allowances. Below are key data
and information on the results of the auction. Please see Explanatory Notes after the
list of Qualified Bidders for descriptions of all summary information.
Qualified Bid Summary Statistics
Current Auction of 2014 Vintage Allowances
Total 2014 Allowances Available for Sale: 16,947,080
Total IOU Consigned 2014 Allowances: 13,234,228 ($152,193,622)
Total POU Consigned 2014 Allowances: 1,506,610($17,326,015)
Total State-Owned 2014 Allowances: 2,206,242 ($25,371,783)
Total 2014 Allowances Sold at Auction: 16,947,080 ($194,891,420)
Total Qualified Bids Divided by
Total 2014 Allowances Available for Sale: 1.46
Auction Reserve Price: $11.34
Settlement Price Per Allowance: $11.50
Allowances Purchased by Compliance Entities: 89.5%
Bid Price Summary Statistics
Maximum Price: $50.00
Minimum Price: $11.34
Mean Price: $13.55
Median Bid Price: $11.65
Median Allowance Price: $11.61
Hirschman-Herfindahl Index: 482
Advance Auction of 2017 Vintage Allowances
Total 2017 Allowances Available for Sale: 9,260,000
Total 2017 Allowances Sold at Auction: 4,036,000 ($45,768,240)
Total Qualified Bids Divided by
Total 2017 Allowances Available for Sale: 0.44
Auction Reserve Price: $11.34
Settlement Price Per Allowance: $11.34
Allowances Purchased by Compliance Entities: 100%
Bid Price Summary Statistics
Maximum Price: $13.00
Minimum Price: $11.34
Mean Price: $11.59
Median Bid Price: $11.82
Median Allowance Price: $11.44
Hirschman-Herfindahl Index: 1439
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;F Cal forma FnviroT11(in AIR RESOURCES BOARD
•`
California Air Resources Board Quarterly Auction 7
May 2014
Submitted Bid Summary Statistics
Current Auction of 2014 Vintage Allowances
Total 2014 Allowances Available for Sale: 16,947,080
Total IOU Consigned 2014 Allowances: 13,234,228 ($152,193,622)
Total POU Consigned 2014 Allowances 1,506,610 ($17,326,015)
Total State-Owned 2014 Allowances: 2,206,242 ($25,371,783)
Total 2014 Allowances Sold at Auction: 16,947,080 ($194,891,420)
Total Submitted Bids Divided by
Total 2014 Allowances Available for Sale: 1.46
Auction Reserve Price: $11.34
Settlement Price Per Allowance: $11.50
Allowances Purchased by Compliance Entities: 89.5%
Bid Price Summary Statistics
Maximum Price: $50.00
Minimum Price: $11.34
Mean Price: $13.55
Median Bid Price: $11.65
Median Allowance Price: $11.61
Herfindahl-Hirschman Index: 482
Advance Auction of 2017 Vintage Allowances
Total 2017 Allowances Available for Sale: 9,260,000
Total 2017 Allowances Sold at Auction: 4,036,000 ($45,768,240)
Total Submitted Bids Divided by
Total 2017 Allowances Available for Sale: 0.44
Auction Reserve Price: $11.34
Settlement Price Per Allowance: $11.34
Allowances Purchased by Compliance Entities: 100%
Bid Price Summary Statistics
Maximum Price: $13.00
Minimum Price: $11.34
Mean Price: $11.59
Median Bid Price: $11.82
Median Allowance Price: $11.44
Herfindahl—Hirschman Index: 1439
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-4-44 California En tortmc,nta Prol<:(,ti n Agcnr,) AM RESOURCES BOARD
List of Qualified Bidders for the Current Auction of 2014 Vintage
Allowances and the Advance Auction of 2017 Vintage Allowances
A Qualified Bidder is an entity that registered for the auction, submitted an acceptable
bid guarantee, and was approved by ARB to participate in the auction.
Aera Energy, LLC
AltaGas Power Holdings(U.S.) Inc.
BNSF Railway Company
BreitBum Operating, LP
California Department of Water Resources
Calpine Energy Services, LP
CE2 Carbon Capital, LLC
Chevron U.S.A. Inc.
Citigroup Energy Inc.
City of Anaheim, Public Utilities Department
City of Azusa
City of Los Angeles, Department of Airports
City of Roseville
City of Vernon, Light and Power
CP Energy Marketing (U.S.) Inc.
CPV Sentinel, LLC
EDF Trading North America, LLC
Exelon Generation Company, LLC
Exxon Mobil Corporation
Freeport-McMoRan Oil &Gas, LLC
Fresno Cogeneration Partners, LP
•
Gila River Power, LLC
Goal Line, LP
High Desert Power Project, LLC
J. Aron & Company
J.G. Boswell Company
J.P. Morgan Ventures Energy Corporation
Kings River Conservation District
Koch Supply&Trading, LP
La Paloma Generating Company, LLC
Lassen Municipal Utility District
Liberty Utilities(CalPeco Electric), LLC
Los Angeles Department of Water& Power
Luminus Energy Partners QP, LP
Macquarie Energy, LLC
Modesto Irrigation District
Morgan Stanley Capital Group Inc.
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CaliforniaEnvironmental ProIc ti n AqcnnyAIR RESOURCES BOARD
Naftex Operating Company
NextEra Energy Power Marketing, LLC
Noble Americas Gas & Power Corp.
Northern California Power Agency
NRG Power Marketing, LLC
Occidental Power Services Inc.
Oildale Energy, LLC
Pacific Coast Energy Company, LP
Pacific Gas and Electric Company
PacifiCorp
Pasadena Water& Power
Phillips 66 Company
Plumas-Sierra Rural Electric Cooperative
Portland General Electric Company
Powerex Corp.
Ripon Cogeneration, LLC
Royal Bank of Canada
Sacramento Municipal Utility District(SMUD)
San Diego Gas& Electric Company
Sempra Generation
Shell Energy North America (US), LP
Signal Hill Petroleum Inc.
Silicon Valley Power(SVP), City of Santa Clara
Southern California Edison Company
Southern California Gas Company
Stanislaus Food Products Company
The Bank of Nova Scotia
The Metropolitan Water District of Southern California
The Morning Star Packing Company
TransCanada Energy Sales Ltd.
Turlock Irrigation District
Union Pacific Railroad Company
United States Gypsum Company
Vista Metals Corp.
Vitol Inc.
Walnut Creek Energy, LLC
Yuba City Cogeneration Partners, LP
)sww.arb.caeov PO BOX 2215 SACRAMENTO CA 95812 (916)322-2990
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• Cil,=ornFnvir.,n )1 Pratt, tion f n ` i11 I2 RFSUURCI:S Ut) 1RI)
Explanatory Notes: Qualified Bid Summary Statistics
Current Auction of 2014 Vintage Allowances
Total 2014 Allowances Available for Sale: Total 2014 vintage allowances available for
purchase in the auction in metric tons,
including allowances consigned by Electric
Distribution Utilities and allowances sold by
the State of California.
Total IOU 2014 Consigned Allowances: The 2014 vintage allowances available for
purchase in the auction in metric tons that
were consigned by investor owned utilities.
Total POU 2014 Consigned Allowances: The 2014 vintage allowances available for
purchase in the auction in metric tons that
were consigned by publicly owned utilities.
Total 2014 Allowances Sold at Auction: Total 2014 vintage allowances purchased in
the auction in metric tons.
Total Qualified Bids Divided by
Total 2014 Allowances Available for Sale: Total number of allowances included in all
the qualified bids for the current vintage
(regardless of bid price) divided by the total
number of current vintage allowances
available in the auction.
Auction Reserve Price: The minimum acceptable auction bid price
for current vintage allowances in dollars per
metric ton.
Settlement Price Per Allowance: The current vintage allowance price that
resulted from the auction, in dollars per
metric ton.
Allowances Won by Compliance Entities: The total number of current vintage
allowances purchased in the auction by
compliance entities divided by the total
number of current vintage allowances sold
in the auction. A Compliance Entity is a
Covered Entity or Opt-in Covered Entity as
defined in the Cap-and-Trade Regulation.
Bid Price Summary Statistics Statistics are calculated from all the
qualified bids for the current vintage
(regardless of bid price).
Maximum Price: Highest qualified bid
Minimum Price: Lowest qualified bid
Mean Price: Average qualified bid calculated as the sum
of the bid price times the bid quantity of
each qualified bid divided by the sum of the
bid quantities across all qualified bids.
www.arb.ca.eov PO BOX 2815 SACRAMENTO CA 95812 (916)322-2990
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'� Cal�forn!a Enp,irc :ntal Protu( j AIR RESOUR(:ES HOARD
Median Bid Price: The price per metric ton calculated so that
50% of the qualified bids fall above and
below the median bid price.
Median Allowance Price: The price per metric ton calculated so that
50% of the quantity of allowances in the
qualified bids fall above and below that
price median value.
Herfindahl-Hirschman index(HHI): The HHI is a measure of the concentration
of allowances purchased by winning
bidders relative to the total sale of current
vintage allowances in the auction. The
percentage of allowances purchased by
each winning bidder is squared and then
summed across all winning bidders. The
HHI can range up to 10,000, representing
100% of the current vintage allowances
purchased by a single bidder(i.e.,
100x100=10,000).
Advance Auction of 2017 Vintage Allowances
The data for the future vintage allowance auction are computed in the same manner as
computed for the current vintage allowance auction. No allowances are consigned to
the future vintage auction.
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, . C,2W(, r-ta Fn,'Hunm,-11,31Proter...tnn hgcnry AIR Hi:SOURCES BO\RE)
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Explanatory Notes: Submitted Bid Summary Statistics
Current Auction of 2014 Vintage Allowances
Total 2014 Allowances Available for Sale: Total 2014 vintage allowances available for
purchase in the auction in metric tons,
including allowances consigned by Electric
Distribution Utilities and allowances sold by
the State of California.
Total IOU 2014 Consigned Allowances: The 2014 vintage allowances available for
purchase in the auction in metric tons that
were consigned by investor owned utilities.
Total POU 2014 Consigned Allowances: The 2014 vintage allowances available for
purchase in the auction in metric tons that
were consigned by publicly owned utilities.
Total 2014 Allowances Sold at Auction: Total 2014 vintage allowances purchased in
the auction in metric tons.
Total Submitted Bids Divided by
Total 2014 Allowances Available for Sale: Total number of allowances included in all
the submitted bids for the current vintage
(regardless of bid price)divided by the total
number of current vintage allowances
available in the auction.
Auction Reserve Price: The minimum acceptable auction bid price
for current vintage allowances in dollars per
metric ton.
Settlement Price Per Allowance: The current vintage allowance price that
resulted from the auction, in dollars per
metric ton.
Allowances Won by Compliance Entities: The total number of current vintage
allowances purchased in the auction by
compliance entities divided by the total
number of current vintage allowances sold
in the auction. A Compliance Entity is a
Covered Entity or Opt-in Covered Entity as
defined in the Cap-and-Trade Regulation.
Bid Price Summary Statistics Statistics are calculated from all the
submitted bids for the current vintage
(regardless of bid price).
Maximum Price: Highest submitted bid
Minimum Price: Lowest submitted bid
Mean Price: Average submitted bid calculated as the
sum of the bid price times the bid quantity
of each submitted bid divided by the sum of
the bid quantities across all submitted bids.
www.arh.ca.gov PO BOX 2815 SACRAMENTO CA 95812 (916)322-2990
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California 7-nolc-nr'ental Prote;Ai ,11 ,0- jt>nuy AIR RESOURCI S 1RD
Median Bid Price: The price per metric ton calculated so that
50% of the submitted bids fall above and
below the median bid price.
Median Allowance Price: The price per metric ton calculated so that
50% of the quantity of allowances in the
submitted bids fall above and below that
price median value.
Herfindahl—Hirschman Index(HHI): The HHI is a measure of the concentration
of allowances purchased by winning
bidders relative to the total sale of current
vintage allowances in the auction. The
percentage of allowances purchased by
each winning bidder is squared and then
summed across all winning bidders. The
HHI can range up to 10,000, representing
100% of the current vintage allowances
purchased by a single bidder
(i.e.,100x100=10,000).
Advance Auction of 2017 Vintage Allowances
The data for the future vintage allowance auction are computed in the same manner as
computed for the current vintage allowance auction. No allowances are consigned to
the future vintage auction.
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