RGGI Auctions A View from MA

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RGGI Auctions A View from MA

• Restructuring Roundtable
• Friday Dec 9th, 2007
• David Cash Assistant Secretary for Policy
• MA Exec. Office of Energy Environmental Affairs

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Joining RGGI

• Reduce the long-term costs of addressing climate
  change
• Spur Clean Energy sector development
• Promote expanded energy efficiency and cost
  savings.
• Committed to auction 100 of its allowances.
• Modeling suggests RGGI price impacts will be
  minor, and may have net cost savings.
• Help with a glide path for federal action

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Allowance Auctions

• Economic analysis predict that auctioning
  allowances will have similar electric rate
  impacts to direct allocations.
• MA preference for a regional/multi-state auction
  in 2Q 2008
• MA proposes to use auction revenue for
• Cost minimization to electricity customers
• Energy efficiency
• Demand response
• Peak shaving
• Other strategic energy goals

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Auction design issues under consideration and
process

• Overall goal is to get to the fair market value
  as efficiently as possible
• Public comments of MA DOER and DEP regs being
  reviewed
• Final MA regulations expected on time for auction
  in 2nd quarter of 2008
• Next meeting of RGGI agency heads on Monday
• Auction frequency, format, reserve price
• Market players eligible to participate in auction

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