California just announced that millions of California households are seeing an automatic break on their electricity bills this summer, with eligible customers receiving a credit during August and September. The California Climate Credit is being distributed to residential customers of PG&E, Southern California Edison and San Diego Gas & Electric, with the state putting a total of $886 million back into the hands of electric customers this year. The average relief is about $75 per month during the two-month summer credit period.
The timing is different from previous years. Instead of arriving during the traditional spring and fall periods, the electric credit has been moved to August and September, when hot weather can push air-conditioning use and electricity bills higher.
Who is getting the credit?
The credit is available automatically to eligible residential electric customers of the state’s three largest investor-owned electric utilities: PG&E, Southern California Edison and San Diego Gas & Electric. There is no application to fill out and customers do not need to contact their utility to request the money. The credit is applied directly to the electricity bill, so customers should look for it among their bill’s charges and credits.
The exact amount varies by utility. According to the California Public Utilities Commission, PG&E customers receive $36.18 in August and another $36.18 in September, while Southern California Edison customers receive $36 in each month. San Diego Gas & Electric customers receive $49.36 in August and another $49.36 in September.
That means the total two-month credit is about $72.36 for PG&E customers, $72 for SCE customers and $98.72 for SDG&E customers. Customers of smaller electric utilities have different credit schedules. The CPUC says Bear Valley, Liberty and Pacific Power customers receive their 2026 electric credits on a separate schedule.
Where does the money come from?
The California Climate Credit is funded through the state’s Cap-and-Invest Program, which requires companies that produce significant amounts of climate pollution to purchase allowances for their emissions.
A portion of that money is returned directly to residential customers through their utility bills. California says the broader Cap-and-Invest program has generated $37 billion in climate investments, while more than $21 billion has been awarded since the program began. The CPUC says the new schedule is intended to provide the credit when customers are more likely to face elevated electricity use.
For Californians who are eligible, there is nothing extra to do. The credit is automatic, and the amount should appear directly on the utility bill. Customers can check their bill or use the CPUC’s Climate Credit information to see how the program applies to their utility.
