California households are getting credits on electricity bills issued in August and September, with the relief arriving during the part of the year when air-conditioning use can push costs up.
Each credit averages roughly $75, and it is applied automatically rather than through an application process.
Here's what to know
As the administration of Gavin Newsom announced in a press release, residential customers of PG&E, San Diego Gas & Electric, and Southern California Edison are seeing California Climate Credits on their utility bills.
For 2026, the credits total $886 million statewide, and households don't need to do anything to receive the money. It will simply show up on their bill.
The California Climate Credit is paid for through the state's Cap-and-Invest Program, administered by the California Air Resources Board rather than by other ratepayers.
Within that program, businesses that produce large amounts of climate pollution are required to buy allowances for their pollution, and some of that money is sent back to residential utility customers.
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"At a time when Donald Trump's policies are making life more expensive for Americans at the grocery store, gas pump, and virtually everywhere else, California is making polluters pay," Newsom said in the release.
More background
For eligible residential electric customers of those three utilities, this is the first time the credit has been issued in August and September, when hot summer weather typically increases electricity demand.
The rationale for that is to pay back California households during the hottest and most expensive time of the year. The summer bill credit is one piece of the wider state program.
California's Cap-and-Invest program has generated $37 billion for climate initiatives around the state, according to the statement. The money has gone toward efforts such as zero-pollution transportation in underserved communities, conservation, wildfire prevention, and affordable housing near job centers.
Those investments have supported more than 143,000 jobs and cut carbon pollution by millions of tons.
What's being done?
The governor's office noted Newsom just signed legislation to lock in the maximum benefit for Californians through the Cap-and-Invest Program.
Newsom said the program is "delivering that money back to millions of households when summer utility bills are at their highest."
"These credits are real relief to families across the Golden State," he added in the release.
Where can I learn more?
Despite the positive vibes of these credits, there are concerns that polluters aren't being fully held to account and energy bills are going in the wrong direction.
• California officials are considering a $4 billion giveaway to major polluters, alarming climate advocates.
• A California lawsuit argues the California Air Resources Board allowed 118 million new allowances without required environmental review.
• State regulators warned PG&E customers could face bills of $840 more a year by 2030.
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