California climate credit: Customers can get up to $175 off their April utility bill

Finally, some good news! 

If your last gas and/or electric bill was way too high for your liking, some relief is on the way.

California will provide a total of $2.7 billion in credits – $1.6 billion for electric customers, $1 billion for natural gas customers, and $160 million for small businesses.

Here's what you need to know. 

What exactly is the Climate Credit?

Every spring and fall, millions of Californians receive credits on their electric and natural gas bills identified as the California Climate Credit. The California Climate Credit comes from the state's Cap-and-Trade Program, which requires power plants and other large industries that emit greenhouse gases to buy carbon pollution permits from auctions managed by the California Air Resources Board. 

The credit on the electricity bills of consumers represents the consumer’s share of the payments from the State’s program.

The Climate Credit is one of many programs developed as a result of landmark legislation called the Global Warming Solutions Act of 2006 (Assembly Bill 32), which puts California at the forefront of efforts to battle climate change.

Who gets the Climate Credit?

You'll get the Climate Credit if you are a customer of Pacific Gas and Electric Company, Southern California Edison, San Diego Gas & Electric, or Southern California Gas Company. 

Customers of Bear Valley, Liberty, PacifiCorp, and Southwest Gas will also receive a credit. 

What do I need to do?

Absolutely nothing!

How much will I get?

The combined Climate Credit is around $32 to $175. According to the state, $146 in average climate credits will be disbursed for April utility bills.

To check how much your household will get, tap or click here.

When will I get it?

Households typically receive the Climate Credit on their October or November and April or May bills each year, regardless of energy consumption or bill amount.

Since 2014, California households have already received an average of $971 in combined automatic April and October climate credits on their utility bills, totaling more than $14 billion statewide.

"Every year, California's nation-leading climate laws deliver real climate action while giving you money back on your utility bills. This relief will support millions of California families," said Gov. Gavin Newsom.