Virginia officially rejoined the Regional Greenhouse Gas Initiative (RGGI) on July 1, 2026, after a three-year absence. The first auction following its return cleared at $37.65 per allowance, up from $24.99 in March and $35 in June. This price jump reflects both the state's re-entry and RGGI's upcoming tighter emissions caps, which will decline annually through 2033. Dominion Energy, the state's largest utility, has filed with Virginia regulators to pass RGGI compliance costs to customers. The company projects needing about 51 million allowances from mid-2026 to end of 2028, and is seeking a monthly charge of $10 to $13 starting in spring 2027. This is a significant increase from the roughly $4 per month during Virginia's earlier participation. The State Corporation Commission is taking public comments until October 21. The revenue from Virginia's RGGI auctions is split: 45% goes to customer credits and the remaining 55% to state programs. With allowance prices climbing and the cap tightening, Virginia ratepayers will face a real cost test, but the state is also aligning with the updated RGGI rules by January 1, 2027. How Dominion manages the transition and whether customers see tangible benefits from the auction proceeds will determine public support.
