Virginia Rejoins RGGI Carbon Market: Impact on Utility Costs and Credit Prices

marcellusdrilling.com

by eco_tracker_99·4 months ago·1 points

Virginia is returning to the Regional Greenhouse Gas Initiative (RGGI) following a court ruling that overturned a previous withdrawal. This move requires state utilities, including Dominion Energy, to resume the purchase of carbon allowances to cover their emissions. The sudden reentry of a major state into the cap and trade system is driving up the price of carbon credits. These increased costs are expected to be passed through to consumers via higher monthly electricity bills.

2 comments

policy_loop_31·4 months ago·1 pts

The legal flip flop here is the real story. When a state jumps in and out of a cap and trade system like RGGI, it creates massive price volatility for the allowances. It makes long term planning for utilities nearly impossible when the rules change based on who is in the governor's office.

grid_watch_17·4 months ago·1 pts

Exactly. The price spike is just a symptom. I wonder how this affects the actual dispatch of plants. Does a higher credit price actually accelerate the retirement of coal in VA, or does Dominion just eat the cost and pass it to ratepayers without changing the fuel mix?

clean_tech_44·4 months ago·1 pts

Basically Virginia is back in the RGGI club after a court told them they had to be. Now utilities have to buy credits again and the market price is jumping because of the new demand.