California households to see October utility refunds as state expands Climate Credit Program

Sacramento, California – More than 11.5 million California households are set to receive automatic refunds on their October electric bills, thanks to the California Climate Credit. Governor Gavin Newsom announced the relief measure this week, highlighting that the program will be significantly expanded over the coming years. In October alone, the state will return over $700 million to electric customers and another $60 million to qualifying small businesses.

The average refund per household is expected to be about $61. This is the second electric credit issued in 2025, following a similar payout in April. In total, most households will receive approximately $198 in refunds from both credits combined this year.

“Millions of California families will see money back on their electricity bills in October – and that refund will be even bigger next year thanks to new laws I signed last week,” said Governor Newsom. “Up to $60 billion will go back in your pockets, cutting your electric bills while we keep our historic momentum transitioning away from polluting fossil fuels.”

Refunds to Increase Through 2045

The state’s newly signed legislation will significantly increase the funding available for the electric Climate Credit beginning in 2026, with up to $60 billion expected to be distributed through 2045. The refund amounts will vary depending on the household’s electric provider but generally range between $35 and $259. Most households will receive between $56 and $81 in the upcoming credit.

Recipients do not need to apply or take any action to receive the refund. The California Climate Credit is automatically applied to electric bills and is part of the state’s Cap-and-Invest Program. The program, overseen by the California Air Resources Board, collects payments from polluters and returns a portion of that revenue to residents and small businesses.

Since 2014, the Cap-and-Invest Program has delivered $14.6 billion in utility bill credits to Californians. In total, $2.4 billion will be distributed this year, with $1.4 billion going to electric customers and $1 billion going to natural gas customers. An additional $122 million is allocated to small business utility accounts.

Cap-and-Invest Program Fuels Broader Climate Action

Beyond utility refunds, California’s Cap-and-Invest Program has generated $33 billion in climate-focused investments across the state. These initiatives have helped create more than 120,000 jobs while also reducing carbon emissions. Some of the most impactful projects include affordable housing developments near job hubs, the construction of America’s first high-speed rail system, and the expansion of zero-emission transit in underserved neighborhoods.

Governor Newsom emphasized that the program’s benefits go beyond financial relief for residents. It also plays a crucial role in supporting California’s broader climate goals. “Pollution is down and the economy is up,” the Governor’s Office noted.

Greenhouse gas emissions in the state have dropped 20% since 2000, all while California’s gross domestic product has grown by 78%. This progress has made California the fourth largest economy in the world.

State Clean Energy Milestones Continue

California remains a national leader in clean energy development. In 2023, the state was powered by two-thirds clean energy, making it the largest economy globally to reach that threshold. In fact, this year, the state has operated on 100% clean electricity during some part of nearly every day.

Battery storage capacity has also seen a remarkable boost. Since Governor Newsom took office, California has increased battery storage capacity by over 1,900%, bringing the total to more than 15,000 megawatts. In addition, more than 25,000 megawatts of new energy resources have been added to the electric grid, further securing the state’s clean energy future.

For more information on how much each household can expect to receive from the October California Climate Credit, residents can visit the California Public Utilities Commission’s website.