RGGI Carbon Allowance Prices in Connecticut Rose 900% Since 2008: Impact on Electricity Rates

Connecticut's participation in the Regional Greenhouse Gas Initiative (RGGI) has seen carbon allowance auction prices climb from $3.07 per allowance in 2008 to $35 per allowance in June 2026, a 900% increase. The article from Marcellus Drilling News argues this carbon tax directly contributes to Connecticut having the third-highest electricity rates in the U.S., behind only Hawaii and California. Massachusetts, another RGGI member, ranks fourth. The piece challenges claims that RGGI does not raise electricity costs, using the price data as evidence. It links the rising cost of carbon allowances to higher consumer electricity bills. For readers tracking carbon market design and its real-world effects on energy prices, this article provides a concrete example of how allowance price increases correlate with ratepayer costs in a specific state.