Southern California residents can look for a credit on their SoCal Gas and or SoCal Edison bills this month, as part of the state's Climate Credit program.
Roughly six million SoCal Gas customers will get a $73 credit on their gas bill this month, while about 5 million SoCal Edison customers will also get an $86 credit on their April bill and then again on their October bill.
Customers do not have to take any additional steps. The credit will be automatically applied to their bill and can be seen under the Climate Credit line. The distribution is based on the customer’s regular billing date, which means people will get the credit throughout the month along with their bill.
The Climate Credits are meant to offset the rising cost of utilities and stem from the state’s Cap-and-Trade program that began in 2014 as a way to reduce greenhouse gas emissions in the state.
Cap-and-Trade requires companies in California that emit high amounts of greenhouse gases, like power plants and natural gas distributors, to buy allowances for the emissions they can make.
The state says these companies are responsible for 75% to 85% of the state’s greenhouse gas emissions.
One allowance equals one metric ton of carbon dioxide equivalent emissions, according to the California Air Resources Board (CARB) who sets the annual caps.
Every year, the CARB reduces the number of allowances these companies can buy, with the goal of incentivizing them to invest in cleaner technology.
The credits people are now receiving are funds from the money made raised from the purchased allowances.
Residents receive these credits twice a year, once in the Spring and once in the Fall, from the state and through their private utility companies.
“So really, this credit belongs to our customers. We are simply passing it on and making sure that they receive it on their billing cycle,” said SoCal Edison spokesperson Gabriela Ornelas.
Although this year’s credit is the largest since the program began in 2014, many customers have expressed how little it is compared to their monthly bill.
According to the Public Advocates Office at the California Public Utilities Commission, the average SoCal Edison bill is $220 and has increased 91% in the past ten years.
Ornelas says this program is unrelated to those price hikes and says the price increases are largely due to electrification goals the state has.
“As we look to electrify the economy, there is more grid built out that is required and more electrification and more infrastructure. So these rates do help utilities build that infrastructure and help facilitate this transition toward clean energy,” said Ornelas.
Both SoCal Edison and SoCal Gas have requested to increase their rates this year.
Those struggling to pay their utility bills can apply for assistance programs through their utility companies, some of which are not income dependant.