The Regional Greenhouse Gas Initiative held its latest auction for carbon emission allowances last week and produced a price of $19.76 per ton. Because Virginia is no longer a participant, that probably saved electric utility customers another $100 million.ย

The March 2025 price, in reality a tax on the use of hydrocarbon fuels, was lower than during 2024, when it peaked at $25.75. The price dropped below $20 a ton largely because the organizers of the auction released more than 8 million allowances from its โcost containment reserveโ to better balance supply and demand.ย
But the $19.76 price is still 33% higher than the carbon tax Virginia utilities paid in the final auction that included Virginia, in December 2023. Should Virginia return to RGGI, as Democrats led by their gubernatorial candidate Abigail Spanberger will surely promise, that price would likely result in $400-500 million in annual carbon tax receipts.
Governor Glenn Youngkin (R) had the Air Pollution Control Board repeal the regulation that placed Virginia under the RGGI regime. A local circuit court has ruled that action was invalid, but that is on appeal and the same judge recently decided to let the state remain out of the compact pending that appeal.ย









