Virginia RGGI Return Raises Carbon Allowance Prices to $37.65, Dominion Seeks Higher Customer Charges

Virginia rejoined the Regional Greenhouse Gas Initiative (RGGI) on July 1, 2026, after a two-year absence. The first auction after its return cleared at $37.65 per carbon allowance, up from $35 in June and $24.99 in March. The auction generated over $1.07 billion across the 11-state market, with Virginia receiving about $259 million. The price jump reflects both the state's re-entry and RGGI's declining emissions caps through 2033. Dominion Energy has asked regulators to approve a monthly customer charge of $10 to $13 to cover higher RGGI compliance costs, up from the previous $4.40. Virginia also changed how it spends RGGI revenue: 45% now goes to customer rebates, with the rest split between flood resilience and low-income energy efficiency. Industrial customers and large retailers won't get rebates and may see higher electricity costs passed through.