Higher Electricity Prices on the Horizon for Virginia?
With the 20th lowest electricity prices among the 50 states, the Commonwealth of Virginia currently ranks in the top half of ALEC’s new Energy Affordability Report. At the time the data in this report was collected, the state did not have a Renewable Portfolio Standard (RPS) in place, nor was it a part of the Regional Greenhouse Gas Initiative (RGGI).
However, the Commonwealth joined RGGI this year, and electricity prices are expected to skyrocket in the state. Estimates show that joining RGGI could lead to $6 billion in increased costs for customers of Dominion Energy, the state’s largest utility provider.
In addition to raising costs on consumers, studies show that initiatives like RGGI can potentially result in harmful overall impacts on climate.
It will be interesting to note the changes in prices as this new policy takes effect. Virginia could face a dramatic drop in its energy affordability ranking in the coming years.