Millions of California households are receiving automatic credits on their electricity bills this summer, with the state saying the payments will provide an average of about $75 in relief as power use rises during the hottest months.
California Gov. Gavin Newsom announced the $886 million utility-bill relief program on September 22 during Climate Week NYC. The credits are being issued in August and September to eligible residential electric customers of Pacific Gas & Electric (PG&E), Southern California Edison (SCE) and San Diego Gas & Electric (SDG&E).
The payments do not require an application. Eligible customers should see the California Climate Credit automatically listed on their electricity bills.
How much is the California Climate Credit?
The exact amount depends on the utility serving the household. According to the California Public Utilities Commission’s 2026 Climate Credit schedule, PG&E customers receive $36.18 in August and another $36.18 in September, for a total of $72.36.
SCE customers receive $36 in each of the two months, while SDG&E customers receive $49.36 in August and another $49.36 in September. That means the two-month totals are $72 for SCE customers and $98.72 for SDG&E customers.
The $75 figure cited by the governor’s office is therefore an average; the actual credit on an individual bill depends on the utility.
The CPUC says the change in timing is designed to provide the credit during months when electricity use and bills are typically higher. Previously, residential electric credits were generally distributed in April and October.
Why is California giving the credit in summer?
The California Climate Credit is funded through the state’s Cap-and-Invest program. Under the system, major companies covered by the program must obtain allowances for greenhouse-gas emissions. Revenue from the program is used for climate investments, with a portion returned to residential customers through utility-bill credits.
The CPUC said the 2026 schedule was changed following legislation requiring the credits to be delivered during higher-usage periods. For customers of the state’s three largest investor-owned electric utilities, PG&E, SCE and SDG&E, that means August and September.
The governor’s office said the state’s Cap-and-Invest program has generated $37 billion in climate investments and that legislation adopted last year is expected to generate $10 billion in electric-bill Climate Credits through 2030.
Do Californians need to apply?
The credit is automatic for eligible customers, according to the CPUC. Customers should look for a line item labelled “CA Climate Credit” or “California Climate Credit” on their electricity bill.
Customers of smaller electric utilities follow a different schedule. The CPUC says Bear Valley, Liberty Utilities and Pacific Power customers have separate 2026 credit months.
The program is separate from individual utility discounts or other assistance programs, meaning households that qualify for the Climate Credit do not have to submit a separate application to receive it.
