Millions of California households are set to receive rebates on their October utility bills as part of the California Climate Credit program, Governor Gavin Newsom announced. This initiative, established in 2014, provides financial relief to households twice a year—typically in April and October—through rebates on natural gas and electric utility bills.
The climate credit derives from California’s cap-and-trade program, which is designed to reduce greenhouse gas emissions and ensure a cleaner environment. The rebates aim to counterbalance any potential cost increases that utilities might pass on to consumers as they adhere to emissions mandates, according to the California Public Utilities Commission.
Governor Newsom stated that the average rebate will be approximately $61 per customer for October’s electric bills. The amounts vary depending on the utility, with Pacific Power customers receiving the highest credit at $259.36, while Bear Valley customers will see a rebate of $34.91. Notably, publicly owned utilities like the Los Angeles Department of Water and Power are excluded from this program, which is available only to customers of investor-owned utilities and community choice aggregators.
In conjunction with the April rebate, Californians are projected to receive an average of $198 in utility bill credits this year. Governor Newsom highlighted the program’s success and announced that the rebates could increase next year after he signed legislation that will inject up to $60 billion into the electric climate credit fund through 2045.
This initiative is part of California’s pioneering cap-and-trade program, initially set in motion by AB 32 in 2006, aiming for significant reductions in greenhouse gas emissions by 2050. Since its inception, the climate credit program has returned $14.6 billion to residential utility customers, reinforcing California’s commitment to environmental sustainability and financial relief for its residents.