Virginia rejoined the Regional Greenhouse Gas Initiative; its first auction raised $259 million, with allowances at $37.65 each—over twice the $14.88 pre-exit price. Dominion asks regulators to approve a $13 monthly charge on a typical bill, up from about $4.40.
Under RGGI, power producers must buy an allowance for every metric ton of carbon pollution they emit, and utilities such as Dominion can pass those costs on to customers. William Shobe of the University of Virginia said allowance prices have climbed roughly 14% a year since 2012 and are likely to keep rising as caps shrink through 2033.
Virginia now directs 45% of RGGI revenue to customer rebates, with the remainder split between flood resilience and low-income programs; before leaving, it sent 50% to low-income energy efficiency and 45% to flood preparedness. Environmental advocates worry the smaller flood-fund share could slow Hampton Roads projects. Industrial and large retail users will not get rebates; Steve Haner said businesses may pass some higher utility costs on elsewhere.
