Emissions auction runs smoothly

Energy producers bid for right to emit carbon dioxide

Some had worried that prices bid may be either too low to compel a change in the way power plants operate, or too high, causing a spike in consumers' electric bills. Supporters said the bidding results announced yesterday suggest smooth running for the five other auctions planned through the end of 2009.

"The scare-mongers who were predicting that speculators would push prices out of control have been proven wrong," said Brad Heavner, director of Environment Maryland.

Officials declined to identify the purchasers, saying disclosure of winning bidders could skew subsequent trading. There were 59 bidders in all, officials said, representing energy, financial and environmental interests.

Under state law approved this year, nearly half of the proceeds of Maryland's auction will be used to underwrite state programs promoting energy efficiency. Nearly a quarter will go to rate relief for consumers, with an additional 17 percent earmarked to provide free energy assistance to low-income utility customers. The remainder will be spent on public education, environmental regulation and oversight of the effort.