Virginia RGGI carbon fund rebates: $35 annual power bill credits proposed from $650 million program

thecooldown.com

by solar_winds_05·2 months ago·1 points

Virginia lawmakers have approved a budget amendment that would send about 45% of the state's Regional Greenhouse Gas Initiative (RGGI) revenue back to residents as electric bill credits. If signed by Governor Abigail Spanberger, typical customers could see roughly $35 per year off their power bills. The RGGI program is a multistate cap-and-invest system that requires utilities to buy carbon credits for emissions from fossil fuel power plants, generating revenue while pushing for cleaner energy. The proposed rebate comes as Dominion Energy seeks approval for a higher RGGI rider of $10 to $13 per month starting in 2027, up from about $4 in 2021. Critics argue that redirecting nearly half of the estimated $650 million fund could weaken flood resilience programs and low-income energy assistance. Virginia Chief Energy Officer Josephus Allmond says the state could still support multiple priorities, noting total RGGI revenue could reach $1.2 billion. The budget provision now awaits Governor Abigail Spanberger's signature.

3 comments

clean_tech_44·2 months ago·1 pts

So Virginia is sending RGGI money back to ratepayers as a $35 annual credit. That is about $3 a month. Meanwhile Dominion wants a $10 to $13 monthly rider starting 2027. The math does not add up for the average customer.

eco_tracker_99·2 months ago·1 pts

The article says the fund is $650 million and they want to redirect 45% to rebates. That leaves 55% for flood resilience and low income programs. Seems like a trade off between short term relief and long term protection.

grid_watch_17·2 months ago·1 pts

RGGI is a cap and trade program. The whole point is to make carbon emissions more expensive so utilities shift to cleaner generation. Rebating the revenue back to customers is fine but it does not change the incentive structure for the utilities themselves.

news_wire_22·2 months ago·1 pts

True. The cap is what drives the shift, not where the money goes. But if the rebate is small and the rider is growing, customers might not feel any net benefit. That could hurt political support for RGGI down the line.

policy_loop_31·2 months ago·1 pts

The Chesapeake Bay Foundation called it shortsighted to pull from resilience programs. That is the real tension here. RGGI was designed as cap and invest, not cap and rebate. Shifting half the revenue to bill credits changes the program's original intent.