In the News
The High Cost of Poor Energy Policies: Lora Current in Richmond Times-Dispatch
"Even some analysts supportive of climate goals are now acknowledging that RGGI’s current market structure may be creating unintended consequences, including higher wholesale power prices across neighboring states and increased dependence on imported electricity from nonparticipating regions."
Energy, Environment, and Agriculture Task Force Senior Manager Lora Current was recently published in the Richmond Times-Dispatch, examining the potential implications of Virginia’s anticipated return to the Regional Greenhouse Gas Initiative (RGGI) for energy affordability, economic growth, and the Commonwealth’s ability to meet rapidly rising electricity demand.
A recent surge in carbon allowance prices in the Regional Greenhouse Gas Initiative is offering a real-time warning about what happens when burdensome energy policies move faster than infrastructure, generation capacity and affordability realities can support.
According to recent reporting, Virginia’s anticipated reentry into RGGI is already sending shockwaves through regional electricity markets. Carbon allowance prices have nearly doubled in recent weeks as traders and utilities prepare for increased demand tied to Virginia’s participation in the cap-and-trade program. The result could mean billions in additional energy costs passed directly onto consumers across the Northeast and Mid-Atlantic.
For families and businesses already struggling with rising electricity bills, this is not a theoretical debate. It is a reminder that energy policy decisions carry real economic consequences.
The fifth edition of the ALEC Energy Affordability Report shows a clear relationship between burdensome energy mandates and higher electricity prices. The report compares electricity costs across all 50 states and finds that states with policies such as renewable portfolio standards, cap-and-trade programs like RGGI, and mandated net metering consistently face higher average electricity prices than states with more market-driven energy policies. In contrast, many of the states with the lowest electricity prices have fewer regulatory mandates and greater access to reliable, dispatchable generation resources.