California returns $886m in electricity bill credits, about $75 per household
California is distributing $886 million in climate credits to millions of households to help offset electricity costs during peak summer months. The credits are funded by the state's Cap-and-Invest program and are applied automatically to utility bills.
Why it matters
This program demonstrates a mechanism for returning carbon-pricing revenue directly to consumers to mitigate the impact of energy costs.
Millions of California households received a sweet surprise in their electricity bills for the months of August and September. Under a new schedule designed to place relief in the hottest, highest-use months, homes received automatic credit. Governor Gavin Newsom's office said on Tuesday that customers of Pacific Gas and Electric, Southern California Edison and San Diego Gas & Electric will receive a combined $886 million in California Climate Credits this year, averaging about $75 per household across the three large utilities.Interestingly, the credits require no application. They appear automatically on eligible residential bills and are funded with proceeds from California’s Cap-and-Invest program, which requires large greenhouse-gas emitters to buy allowances. A portion of those proceeds is returned directly to utility customers rather than retained for other climate investments.
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