Regulation & Approvals
Dominion Asks Virginia Regulators to Recoup RGGI Costs, Adding Up to $13 to Monthly Bills
By News Desk ·
Key takeaways
- Dominion Energy projects RGGI fees of $1.2 billion over the next two years and needs about 35.5 million CO2 allowances from July 1, 2026 through February 28, 2028.
- The utility's two recovery options would add about $13 or about $10 a month to the average residential bill, with the RGGI rider not expected until March 2027.
- The State Corporation Commission has until February 5 to decide how to reinstate the RGGI rider and implement the legislature's bill credit.
Dominion Energy asked Virginia's State Corporation Commission to recoup RGGI carbon allowance costs from customers, projecting a monthly bill increase of up to $13, Yahoo reported on October 29, 2026. The utility expects RGGI fees to total $1.18 billion over the next two years, with the rider not anticipated until March 2027.
Dominion's Two RGGI Recovery Options
At the commission's headquarters on Wednesday, Dominion debated how to recover the cost of carbon allowances and how to implement the bill credit lawmakers allocated to offset the impact on ratepayers. The company projects RGGI fees of $1.2 billion for the next year, including the eight months it has been back in the agreement. According to SCC filings, Dominion will need approximately 35.5 million CO2 allowances for the period of July 1, 2026 through February 28, 2028.
The utility offered two methods for allocating payments to customers' bills. Adding all 20 months of costs without mitigation would mean a jump of about $13 a month for the average residential customer. A mitigation plan would spread the eight months not yet recovered over two years, making the monthly increase about $10. Appalachian Voices, an intervenor in the RGGI rider case, said at the hearing that financing costs under the delayed payment plan would add up to $17 million.
Dominion was directed to rejoin the Regional Greenhouse Gas Initiative by July 2026, forcing it to participate in the September allowance auction before the cost recovery mechanism was reimplemented. The company projects carbon prices of $37.04 to $38.32 per CO2 allowance over the July 2026 through December 2028 period.
Dominion's Scale After the NextEra Deal
Dominion Energy serves 2.7 million customers in Virginia and North Carolina through 6,800 miles of electric transmission lines and 58,510 miles of distribution lines, according to akta.pro company records. NextEra Energy completed a $67 billion all-stock acquisition of Dominion in May 2026, creating a company with enterprise value of $420 billion and market value of $249 billion. The combined entity serves approximately 10 million utility customers across Florida, North Carolina, South Carolina, and Virginia.
Virginia's Path Back to RGGI
Former Gov. Glenn Youngkin withdrew Virginia from RGGI in 2023, and Gov. Abigail Spanberger announced the state's return in her first speech to lawmakers in January, a move cemented by legislation that took effect earlier this year, Yahoo reported. Virginia received over $800 million over the three years it was in the program before the removal. A budget amendment settled in late June directs 45% of the funds the state brings in from RGGI back to residential, small business, and church customers as a bill credit.
February 5 Deadline for the Commission
Lisa Crabtree, Dominion's director of strategic planning, testified that a process for calculating the credit has not been finalized. "It's the companies' understanding that a process has not been finalized at this point," Crabtree said. The commission has until February 5 to determine the methodology for reinstating the RGGI rider and implementing the bill credits.