Virginia set to rejoin RGGI as utilities prepare to pass the cost back to ratepayers

(VIRGINIA MERCURY) - Virginia is poised to reenter the Regional Greenhouse Gas Initiative this summer, a move that could again add a monthly charge to electricity customers’ bills as utilities resume buying carbon credits.

State officials expect the commonwealth to participate in the program’s September auction once regulations to reestablish the CO2 budget trading program are finalized. Dominion Energy plans to petition the State Corporation Commission in June to add the cost of those credit auctions back onto ratepayer’s bills.

The Department of Environmental Quality and the Secretary of Natural and Historic Resources are working to complete the regulations before the May 21 deadline laid out in the legislation passed by the General Assembly.

“Our intention is that we will formally be participating in the Regional Greenhouse Gas Initiative effective July 1 of this year,” DEQ Deputy Director Jonathan Rak said.

Virginia began participating in 2021 auctions that require utilities to purchase carbon emission credits when they exceed caps set by RGGI Inc., a program now involving 10 other states.

Former Gov. Glenn Youngkin removed Virginia from the agreement in 2023, calling it a hidden tax on ratepayers. The program costs an estimated $2 a month for residential customers in Dominion’s territory. When RGGI was officially paused, customers were paying about $4 due to the stop and start of the court process. A court later ruled that the removal was unlawful, and when he took office, Attorney General Jay Jones canceled the appeal of that ruling.

Read more on virginiamercury.com