Electricity rebates appear on October bills

The second of two Climate Credits for customers will be on Southern California Edison’s October bill. This credit, just as April’s, is for $86.

This will be identified as either “CA Climate Credit” or “California Climate Credit” or “Small Business Climate Credit” on your bill.

Since 2014, California’s large investor-owned utility customers have been recipients of the Climate Credit. Customers do not have to do anything to receive the credit.

The amount of the credit depends on the utility provider and the market prices for the greenhouse emission allowances. For example, Pacific Gas and Electric customers will receive a $55.17 credit this month.

The California Climate Credit is funded by the state’s Greenhouse Gas Cap and Trade Program aiming to lower greenhouse gas emissions from power plants and other big industries. The program was created by the California Air Resources board and the credit is managed by the California Public Utilities Commission.

In 2006, the legislature enacted Assembly Bill 32, California Global Warming Solutions Act of 2006, which authorized the Cap-and-Trade program to reduce air pollution in the State.

The Cap-and-Trade Program requires major air polluters, e.g., power plants, fuel suppliers, and greenhouse emitting large industrial facilities to “buy carbon pollution allowances from auctions managed by the California Air Resources Board.”

The revenue from the emission allowances is used either to further reduce greenhouse gas emissions or to help utility customers with the cost of their electric or natural gas bills. The latter is the California Climate Credit.

The overall intent is to reduce California’s greenhouse gas emissions to 40 % below the 1990 levels by 2030. In 2017, former Gov. Jerry Brown signed AB 398, which extended much of the goals and authorities of AB 32 until 2030.

Mobile homes, net energy metering customers or those who have solar and/or an electric vehicle will be eligible for the credit too. Solar power will not affect one’s eligibility or amount of credit. If one owns a second home, both are eligible.

Investor-owned utility customers receive a separate California Climate Credit on both their electric and natural gas bills. The amount of the credit depends on your specific utility and market prices for greenhouse gas emission allowances. Currently, all residential and qualifying small business electricity SCE customers receive the credit.

Since 2014, SCE customers have received a total of $806 in Climate Credits. During most of this period, the annual credit was between $60 and $80. In 2022, it jumped to $118 and was $142 last year.

More information about the CPUC Climate Credit can be found at https://www.cpuc.ca.gov/industries-and-topics/natural-gas/greenhouse-gas-cap-and-trade-program/california-climate-credit.

More information about the Cap-and-Trade program can be found at https://www.cpuc.ca.gov/industries-and-topics/natural-gas/greenhouse-gas-cap-and-trade-program.