(CALIFORNIA) -- California residents can expect to see a total of $72.36 applied to their electricity bills beginning this August and September.
Photo Credit: PG&E.com
According to a PG&E press release, residential customers with an open electricity account will receive a credit of $36.18, once in August and the other in September, totaling up to the $72.36 figure.
PG&E Marketing & Communications representative Jennifer Robison told OpGov.News, “Under California Assembly Bill 1207 (2025), the California Public Utilities Commission implemented changes to the California Climate Credit to improve affordability by aligning credit distributions with periods when customers typically experience higher energy use and higher bills.”
Under the Cap and Trade program, free “allowances” are given by the state to utility companies. These allowances are formally known as California Carbon Allowances (CCA) that legally allow companies like PG&E to emit a certain amount of greenhouse gases, up to one metric ton.
Subsequently, through mandatory state-sanctioned auctions, utility companies sell these permits to other polluters such as oil refineries or factories. The proceeds received from auctioning off these permits are then redirected to the Greenhouse Gas Reduction Fund (GGRF) or dispersed into your utility account in the form of California Climate Credits.
Photo Credit: CPUC.CA.GOV
By March 26 of this year, The California Public Utilities Commission issued the proposed decision which implemented these changes. The proposed decision states, “Going forward, Climate Credits will be delivered during high electricity use months, when customers need relief the most.
The Proposed Decision sets August and September as those two months for most electric customers and February for natural gas customers.” Robison told OpGov.News that these changes will be permanent.
The change stems from a formal proceeding titled ‘‘Order Instituting Rulemaking to Improve the California Climate”. The California Public Utilities Commission (CPUC), the state agency that regulates privately owned utility companies, initiated this proceeding.
On July 24, 2025, the proceeding set forth the motion to begin moving the California Credit application. “This rulemaking is initiated to consider ways to improve the effectiveness of the California Climate Credit for supporting customer affordability..”, it states.
Photo Credit: PG&E.com
Essentially, the idea is that during the summer months when energy use is high, these credits would be available to financially assist customers. This is in compliance with California law titled Public Utilities Code Section 748.5 which requires greenhouse gas allowances received by utility companies to be credited back to residential customers as well as eligible businesses.
Utility customers have California Assembly Bill 32 to thank for the California Climate Credit and a lower bill. Enacted in 2006, AB 32 established the foundational legal framework to reduce greenhouse gas emissions.
For a cleaner California, the bill commissioned the California Air Resources Board (CARB) to implement and create regulatory policies to be enforced across various sectors that cause pollution. Other state programs aimed at reducing emissions and lowering customer bills are “The Switch Is On” and “GoGreen Home Financing”.
Photo Credit: WW2.ArB.Ca.Gov
The former program offers incentives to both homeowners and renters that revert to the usage of electric over gas appliances. The latter program grants financing options to those seeking to upgrade their homes with more energy-efficient technology.
These efforts seek to lower your bills and are continuously making California a leader in clean energy.
If you have any questions, comments please reach out to me at yikaileau.w@lead4earth.org
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