State’s Cap-and-Trade Program Rewards Customers While Combating Climate Change
October 5, 2023 - SAN FRANCISCO – The California Public Utilities Commission (CPUC) today offered a reminder that this October, millions of Californians across the state will see a credit on their electric bills designed to reward their commitment to fighting climate change. Thanks to the State’s Cap and-Trade program, most customers of electric investor-owned utilities will see an approximate $40-$70 credit on their electricity bills. The California Climate Credit is designed to help utility customers during the transition to a low-carbon future.
The California Climate Credit is part of California’s Cap-and-Trade Program, which requires power plants, fuel providers, and large industrial facilities that emit greenhouse gases to buy carbon pollution allowances. Proceeds raised by the Cap-and-Trade Program are used to provide the California Climate Credit and fund additional programs that are cutting pollution, creating jobs, and investing in cleaner energy and transportation.
There’s no action necessary to receive the credit. Households typically receive the fall California Climate Credit on their October bill (it may appear in November due to billing period differences). Customers will receive their subsequent California Climate Credit in April. It doesn’t matter how much energy a customer consumes or the amount of their bill. If the credit is larger than the bill, the remaining balance will roll forward until the California Climate Credit is used up.
The program is designed to benefit everyone. Earlier this year, natural gas customers received their spring California Climate Credit early when the CPUC accelerated it to provide much-needed support to customers experiencing unusually high natural gas bills during the winter. The same was done for the October credit.
The California Climate Credit is one of many positive outcomes of the landmark Global Warming Solutions Act of 2006 (Assembly Bill 32). The visionary law placed California at the forefront of the battle against climate change by setting the ambitious goal of reducing greenhouse gas emissions to 1990 levels by 2020. Since then, California has set an increasingly ambitious goal of 40 percent below 1990 levels by 2030.
More information on the Climate Credit, including the amount customers will receive by utility, is available on the CPUC’s website.
About the California Public Utilities Commission
The CPUC regulates services and utilities, protects consumers, safeguards the environment, and assures Californians access to safe and reliable utility infrastructure and services. Visit www.cpuc.ca.gov for more information.
Source: CPUC
