California Governor Gavin Newsom announced on September 24 that over 11.5 million households in California will receive refunds on their electricity bills in October.
The “California Climate Credit” will provide over $700 million in electricity bill refunds for customers of California utilities, and $60 million in refunds for eligible small business users.
According to the Governor’s office, most families will receive refunds ranging from $56 to $81 in October.
The refund amount varies depending on the utility company the customer is with: Pacific Gas & Electric will refund $58.23, Southern California Edison $56, San Diego Gas & Electric $81.38, Bear Valley Electric Service $34.91, Liberty $63.71, and Pacific Power $259.36.
Smaller electricity companies not regulated by the California Public Utilities Commission, whose power comes from the Los Angeles Department of Water and Power, are not included in this plan. The refund amount will be directly shown on the users’ bills.
Every April and October, utility customers in California receive bill refunds through the “Climate Credit Program”. This refund comes from the Cap-and-invest emissions trading program.
The program sets limits on greenhouse gas emissions, with the state government allowing companies to purchase emission allowances and selling unused allowances in quarterly auctions, raising billions of dollars to fund its climate projects.
Users receive partial funds back through biannual bill refunds. Users can check their eligible refund amounts on the official California Climate Credit website.
This year, California distributed around $2.4 billion in climate credits to residents in April and October, with $1.4 billion going to electricity users, $1 billion to natural gas users, and an additional $122 million for small businesses.
Newsom recently signed multiple climate and environment-related bills, including one extending the California Cap-and-Trade program until 2045.
Since 2014, the Cap-and-Trade program in California has provided $14.6 billion in refunds to utility customers. Newsom stated that by 2045, a total of $60 billion in climate credits will be returned to consumers.
Among Newsom’s newly signed bills is funding for the California High-Speed Rail project, ensuring $1 billion annually until 2045. The project had previously faced cuts due to reduced federal funding.