Restoration News has reported that Virginia residents could face an increase of $500 million in annual electricity costs if the state rejoins the Regional Greenhouse Gas Initiative (RGGI), a regional carbon emissions trading program. This projection is based on a study by the Thomas Jefferson Institute.
The RGGI is a multi-state cap-and-trade program where power generators purchase CO₂ allowances at quarterly auctions, subsequently recovering these compliance costs from ratepayers through regulated riders. Virginia exited the RGGI in 2023 under Governor Glenn Youngkin, prompting legal action from environmental groups aiming to keep the state within the initiative. In the 2025 gubernatorial race, Abigail Spanberger has expressed support for rejoining RGGI, while Winsome Earle-Sears opposes it. This policy divergence places electricity affordability and carbon policy at the forefront of Virginia’s gubernatorial contest, with early voting already underway for November 4.
According to the Thomas Jefferson Institute, reentry into RGGI would add approximately “$500 million per year” to Virginians’ electric bills. This figure is calculated by multiplying current allowance prices across Virginia’s power-sector emissions footprint. The analysis also indicates that had Virginia remained in RGGI during 2024–2025, consumers would have faced nearly another $1 billion in carbon-tax pass-throughs. For right-leaning ratepayer advocates focused on household budgets, this figure highlights the financial implications of returning to carbon auctions and how monopoly utilities fully recover such costs.
The auction clearing prices for RGGI have significantly increased: from $5.65 per ton in March 2020 to $14.88 in December 2023 and $22.25 in September 2025. This near-quadrupling over five years substantially raises compliance costs that utilities aim to recoup from customer bills. After exiting RGGI, Virginia’s regulator approved removing a roughly $4.50-per-month RGGI rider, demonstrating the direct impact on bills due to participation. Rising allowance prices and updated program targets post-2027 suggest escalating annual costs if Virginia reenters.
Restoration News is a right-of-center digital publication within the Restoration of America network, launched in 2023. It describes itself as an “America First” outlet focused on investigative reporting and commentary across elections, energy, courts, and culture. The site emphasizes founder and managing editor Hayden Ludwig and positions its coverage as addressing stories it claims legacy media overlook.
