Governor Newsom delivers $520 million in utility bill relief to millions of Californians with more coming this summer

As part of California's commitment to affordability, utility bill credits are being shifted to deliver maximum relief

What you need to know: California Climate Credits will be added to utility bills this month, putting $520 million back in Californians' pockets.

SACRAMENTO - Governor Gavin Newsom today announced that millions of California households will see automatic bill credits beginning this month through the California Climate Credit. The average Californian with natural gas service will see a bill credit of about $40 this month.

Since 2014, the state's Cap-and-Invest program has delivered $16 billion in bill refunds back to residential investor-owned utility customers. This year, California will add to that and provide a total of $1.4 billion in residential credits - $894 million for electric customers and $520 million for natural gas customers. An additional $73 million for small businesses and $114 million for Industry Assistance adds to the $1.9 billion already distributed since 2014 in Small Business Climate Credits and California Industry Assistance.

At a time when Donald Trump is making life more expensive for every American - at the pump, in their home, at the grocery store, and virtually everywhere - California is fighting back. Thanks to the Legislature's partnership, the Golden State is delivering on its promise to put money back in Californians' pockets, and we're making it work smarter and harder for households across the state.

Governor Gavin Newsom

A decision by the California Public Utilities Commission (CPUC), set for a vote on April 30, would shift when most electric credits are delivered to Californians to the hottest, highest-bill months of the year when families need relief the most.

The proposed changes stem from historic legislation that the Legislature passed and Governor Newsom signed last year to make sure Californians see maximum benefit from the state's Cap-and-Invest Program, which is expected to generate $10 billion for electric bill Climate Credits through 2030.

What's changing and why

Electric climate credits
Under the CPUC's proposed decision on April 30th, electric Climate Credits will shift from their traditional spring and fall schedule (April and October) to the months when electricity bills peak.

• PG&E, SCE, and SDG&E customers: credits will now arrive in August and September when summer heat drives bills the highest.
• The new electric credit schedule would take effect for the 2026 credit year.

Natural gas climate credits
By aligning credits with peak usage periods, the program maximizes real financial impact for households during the most expensive months of the year.

• The proposed decision also shifts future natural gas credits earlier in the year, when natural gas customers typically have higher winter bills.
• This shift will begin in February 2027.

This shift implements Assembly Bill 1207, signed by Governor Newsom last September, which extends the Cap-and-Invest Program through 2045 while requiring that credits be delivered when Californians need them most.

Customers can visit cpuc.ca.gov/climatecredit to learn more about the program and find credit amounts for their utility.

How it works

Californians do not need to do anything to receive their credit because it appears automatically on their utility bill. Check how much your refund will be here.

The California Climate Credit comes from the state's Cap-and-Invest Program, which is managed by the California Air Resources Board. Companies that emit large amounts of greenhouse gases must purchase allowances for their emissions. That revenue is returned directly to residential customers as a credit on their utility bills.

In addition to electric bill refunds, California's Cap-and-Invest program has generated $33 billion in climate investments, creating more than 120,000 jobs and cutting millions of tons of carbon emissions. The investments include a wide range of solutions such as putting affordable housing near job centers, building the nation's first high-speed rail, and adding zero-emission transportation options in underserved communities

California's climate leadership

Pollution is down and the economy is up. Greenhouse gas emissions in California are down 21% since 2000 - even as the state's GDP increased 81% in that same time period, all while becoming the world's fourth largest economy.

California also continues to set clean energy records. In 2023, the state was powered by two-thirds clean energy, the largest economy in the world to achieve this level. California has also run on 100% clean electricity for part of the day almost every day this year.

Since the beginning of the Newsom Administration, battery storage has surged to nearly 17,000 megawatts - a 2,100%+ increase, and over 30,000 megawatts of new resources have been added to the electric grid. California now has 33% of the storage capacity estimated to be needed by 2045 to reach 100% clean electricity.