Virginia RGGI Auction Raises $259M, Double Estimates, as Dominion Seeks $1.18B Rider RGGI Recovery
atr.orgVirginia rejoined the Regional Greenhouse Gas Initiative in 2026 and the first auction came in far above state projections. The September auction raised about $259 million, more than double the $115.6 million per auction that Virginia budget officials estimated in March. Allowance prices cleared at $37.65, up from the $19.63 price used in the state's forecast. Dominion Energy is now asking regulators to reinstate Rider RGGI to recover compliance costs. The utility says the charge would add about $13 per month to a typical residential customer's bill, or $10.36 if spread over two years. Virginia plans to send 45% of RGGI revenue back to residential and small business customers as a credit, but industrial and large commercial customers would not get that credit. The article argues this amounts to a backdoor carbon tax. Supporters see it as a cap and trade program with a declining emissions cap. Either way, the gap between the state's cost estimate and the actual auction result is the number to watch as Dominion's rate case moves forward.