Millions of Californians are getting a refund on their electric bill. What you need to know
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- Millions of Californians will see automatic refunds of more than $50 on their October electric bills from the state’s Climate Credit program.
- The money comes from California’s cap-and-trade system, which has generated billions by making large polluters pay for emissions allowances.
- Gov. Newsom extended the program through 2045, with credits expected to increase from a projected $60-billion fund.
Your October electric bill could be reduced by more than $50.
Every April and October, millions of Californians receive a utility bill credit through the California Climate Credit program.
The credit comes from the state cap-and-trade program, rebranded as cap-and-invest, which sets limits on greenhouse gas emissions and garners billions in funding for the state’s climate goals by allowing large polluters to buy and sell unused emissions allowances at quarterly auctions.
Ratepayers then see a portion of those funds in the form of a utility bill credit. An electric bill reduction comes in April and October. The natural gas credits are distributed only in April.
Total payments in October will exceed $700 million for residential electricity customers and $60 million for qualifying small-business customers. For the year, it’s $1.4 billion for electricity customers, $1 billion for natural gas customers and $122 million for small businesses, according to the governor’s office.
Here’s how much you’ll be credited
The amount of the credit depends on the utility company, regardless of your energy consumption or bill amount.
To find the credit, look for the line item labeled “CA Climate Credit” or “California Climate Credit,” with the refunded amount.
Here’s what ratepayers can expect:
- Pacific Gas & Electric: $58.23
- Southern California Edison: $56
- San Diego Gas & Electric: $81.38
- Bear Valley Electric Service: $34.91
- Liberty: $63.71
- Pacific Power: $259.36
For the record:
10:25 a.m. Sept. 25, 2025An earlier version of this article stated San Diego Gas & Electric customers received their credit in September. Customers will see their refund next month.
Customers of publicly owned utilities not regulated by the California Public Utilities Commission, such as those who get their electricity from the Los Angeles Department of Water and Power, are not covered.
If you don’t see the credited amount on your bill, contact your utility provider.
How to get your refund
The credit will automatically show up on your fall electricity bill.
The credit is expected to rise in the coming years
Gov. Gavin Newsom signed a package of climate and environmental bills this month, one of which was aimed at reducing the cost of electricity. The law extends the state’s cap-and-invest program through 2045.
During that time, the refund is anticipated to increase, with up to $60 billion going toward electric bill credits. The exact amount that the credit is expected to increase is unclear.
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