Millions of families about to see huge savings on next bill: “Putting money back in Californians’ pockets”
California – Millions of California households are starting to see relief on their utility bills this month as the state rolls out another round of automatic credits through the California Climate Credit program, with more help expected later this year.
Governor Gavin Newsom announced that the average Californian with natural gas service will receive a credit of about $40 this month, part of a broader effort to return money to residents as energy costs continue to weigh on household budgets.
The latest round of relief includes $520 million in natural gas bill credits, while the state is also set to provide $894 million in electric bill credits this year. Altogether, California plans to deliver $1.4 billion in residential utility credits in 2026.
Beyond households, the state is also directing an additional $73 million to small businesses and $114 million through Industry Assistance, adding to the $1.9 billion that has already been distributed since 2014 through Small Business Climate Credits and California Industry Assistance.
Newsom cast the announcement as both economic relief and a continuation of California’s broader climate strategy.
“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 said.
The program is funded through California’s Cap-and-Invest system, which requires major greenhouse gas emitters to purchase allowances for their emissions. Revenue from that system is then returned to residents through utility bill credits.
Since 2014, the program has sent $16 billion back to residential customers of investor-owned utilities. It has also financed $33 billion in climate investments across the state, supporting more than 120,000 jobs and helping reduce millions of tons of carbon emissions.
More changes could soon make those credits even more useful. The California Public Utilities Commission is scheduled to vote on April 30 on a proposal that would move electric bill credits away from the traditional April and October schedule and instead deliver them during the hottest, most expensive months.
For customers of PG&E, SCE and SDG&E, that would mean credits arriving in August and September beginning with the 2026 credit year. Future natural gas credits would also shift earlier in the year, beginning in February 2027, so households receive them during higher winter usage periods.
The change would implement Assembly Bill 1207, signed by Newsom last September, extending the Cap-and-Invest Program through 2045 while requiring credits to be delivered when Californians are likely to need them most.
Residents do not need to apply for the credit, as it appears automatically on their utility bills. More information, including utility-specific credit amounts, is available through the CPUC’s Climate Credit resources.
