Upon taking office, Gov. Abigail Spanberger promised to reduce living expenses for Virginians. Two days later she announced plans to reenter the Regional Greenhouse Gas Initiative (RGGI). The two statements conflict.
RGGI is a cooperative cap-and-trade program among Eastern states aimed at reducing carbon dioxide (CO2) emissions from large power plants. Regional limits on CO2 emissions are set and decrease over time. Participating states purchase “allowances,” which are limited in number and carry market value, equal to the tons of CO2 they emit. Plants can trade regionally but must hold enough to cover their own emissions.
Buying expensive CO2 allowances forces power plants to either pay more or cut pollution by investing in cleaner tech, switching fuels, improving efficiency, building renewables or cutting production. Plants out of compliance incur fines and must surrender allowances worth triple the amount of their excess emissions in the next compliance period.
Gov. Glenn Youngkin removed Virginia during his tenure and predicts electricity bills will increase if the state rejoins. Plenty of data suggests he’s right.
One study concluded RGGI states experienced a 64% increase in electricity rates compared to non-RGGI jurisdictions eight years after implementation.
Lawrence Berkeley National Lab’s recent study shows every participating RGGI state saw electricity prices jump (in some cases substantially) more during the past five years than the national average. The majority of RGGI states consistently rank in the top 10 U.S. highest electricity rates.
Kristen Walker is Senior Policy Analyst and Manager for Energy and Transportation with the American Consumer Institute, a nonprofit education and research organization. Follow ACI on X @ConsumerPal.