A majority of the 40 million vintage 2010 allowances were sold at the auction for the clearing price of $1.88. The vintage 2010 allowances closed yesterday at $2.01. By comparison, the last quarterly RGGI auction in March cleared at $2.07 for Vintage 2010.

All of the 2 million vintage 2013 allowances sold at the auction for the clearing price of $1.86.

The vintage 2010 auction saw a decrease in participation relative to the last auction with 43 bidders compared to 51 bidders in March. Bids were submitted for 1.3 times the available supply. While the market is still expected to be oversupplied by approximately 30-40 million allowances compared to actual emissions, this price was a little lower than anticipated by the market.

As with the previous auction, non-compliance entities did not participate in the Vintage 2013 portion of the auction. The auction cleared right at the $1.86 reserve price, which obviously indicates minimal demand for the allowances.