Millions of California households are getting an automatic credit on their electricity bills this August and September, when air conditioning pushes usage to its yearly peak. Governor Gavin Newsom said on September 22 that the California Climate Credit averages $75 and returns a total of $886 million to residential customers of Pacific Gas and Electric, Southern California Edison and San Diego Gas & Electric. No application is required; the money shows up as a line item on eligible bills.
How much each major utility’s customers receive
The Governor’s Office announcement said eligible customers of the state’s three largest investor-owned electric utilities are receiving the credit for the first time during the summer months. “These credits are real relief to families across the Golden State,” Newsom said.
The California Public Utilities Commission, which sets the amounts, lists the 2026 electric credit on its Climate Credit page as two equal installments, one on the August bill and one on the September bill:
- PG&E residential electric customers: $36.18 each month, or $72.36 in total.
- Southern California Edison customers: $36.00 each month, or $72 in total.
- San Diego Gas & Electric customers: $49.36 each month, or $98.72 in total.
Those figures explain the statewide average of about $75. Because the credit is a flat amount per residential account rather than a percentage of usage, it covers a larger share of a small bill than a large one. For a retired couple in a modest apartment who keep the thermostat high, the two installments can offset a meaningful slice of the summer bills. For a large home running central air through a Central Valley heat wave, the credit is welcome but modest.
Customers who get electricity through a community choice aggregator but are billed by PG&E, SCE or SDG&E are also covered; the CPUC says the credit reaches customers of investor-owned utilities and community choice aggregators statewide.
Beyond the summer bill credit. The Climate Credit arrives on its own, but most other help with cooling costs, home repairs and property taxes has to be applied for and renewed, and those programs are laid out alongside an application log and renewal calendar in The Senior Property Tax & Home-Cost Relief Kit.
Why the credit moved from spring and fall to August and September
For years, electric customers received the Climate Credit in April and October, months when bills are usually low. On April 30, 2026, the CPUC voted to shift the credit to the months when bills are highest. “This is about timing relief to match reality,” CPUC President John Reynolds said in the commission’s announcement. “By aligning Climate Credits with the months when bills are highest, Californians will receive relief when they need it most.”
The decision carries out Assembly Bill 1207, signed in 2025, which extended the state’s Cap-and-Invest Program through 2045 and required the credits to be paid during high-bill months. The Governor’s Office said the legislation is expected to generate $10 billion for electric-bill Climate Credits through 2030.
Smaller electric utilities follow a different calendar. The CPUC said customers of Liberty Utilities, Pacific Power and Bear Valley Electric Service will receive their credits in October and November in future years, and in April and November for 2026. Pacific Power’s 2026 credit is listed at $111.83 per installment, Liberty’s at $71.98 and Bear Valley’s at $17.52.
Natural gas customers are on a separate schedule as well. The 2026 gas credit was paid in April, with PG&E gas customers receiving $46.26, SoCalGas customers $36.06 and SDG&E gas customers $32.58, according to the CPUC. Starting in 2027, the gas credit will move to February to line up with winter heating bills.
Where the money comes from
The credit is funded by California’s Cap-and-Invest Program, which is run by the California Air Resources Board. Companies that emit large amounts of greenhouse gases must buy allowances for their emissions, and a share of the proceeds is returned to residential utility customers as a bill credit. “Polluters foot the bill, not ratepayers,” the Governor’s Office said.
The CPUC put the total 2026 residential electric credit at $894 million in its April decision, along with $520 million for natural gas customers. The Governor’s figure of $886 million refers to the summer credits for the three large utilities. The same April decision directed 5% of electric utility Cap-and-Invest proceeds to a new California Transmission Accelerator Revolving Fund, meant to help finance power lines and hold down long-term costs.
Beyond bill credits, the Governor’s Office said the program has generated $37 billion in climate investments, with over $21 billion awarded since it began 12 years ago for projects including affordable housing near job centers, wildfire prevention and zero-emission transportation.
What older Californians should look for on their bills
The CPUC’s April decision requires utilities to identify the Climate Credit clearly on bills and to update their outreach materials so customers can see the benefit. Households on budget billing or automatic payment may not notice a change in the amount drafted, since the credit reduces the account balance rather than arriving as a check. Reviewing the itemized August and September statements is the simplest way to confirm both installments posted.
The credit does not replace other assistance. Low-income discount programs, medical baseline allowances and bill-payment plans each have their own rules and enrollment steps through the utility, and the automatic Climate Credit does not sign anyone up for them. For retirees on fixed incomes, the summer credit can be combined with those discounts to reduce the peak-season total.
Because the credit is automatic, anyone who receives a call, text or email asking for account numbers or a fee to “release” a Climate Credit is being targeted by a scam. The utility named on the bill and the CPUC’s Climate Credit page are the places to confirm amounts. A forthcoming phase of the CPUC proceeding will consider further changes to the program, so the credit schedule may continue to evolve after 2026.
The rest of the housing-cost picture after a summer of high bills
A two-month utility credit helps with the hottest stretch of the year, but it does nothing for the property-tax bill, the aging air conditioner or next winter’s heating costs, and the programs that address those each run on their own deadlines.
The Senior Property Tax & Home-Cost Relief Kit explains the 5 kinds of property-tax relief and the circuit-breaker credit that includes renters, and it covers heating, cooling and home-repair help, with an application log and renewal calendar to keep the filings in order.
Map out the year’s household-cost programs with The Senior Property Tax & Home-Cost Relief Kit.
This article was prepared with AI assistance and reviewed against the linked official sources.
