Many of Pacific Gas and Electric Company’s (PG&E) customers were surprised to see a $30 “climate credit” on their April bills—a pleasant surprise, that was completely intentional.
Residents and small business owners will be receiving a credit as the result of a climate change law passed over 10 years ago as part of California’s efforts to fight climate change and improve air quality.
Assembly Bill 32, the Global Warming Solutions Act passed in 2006, required the states’ biggest polluters—namely power plants—to buy permits for each ton of pollution they produced in an effort to bring greenhouse gas emissions back to 1990 levels by 2020.
In 2012, the California Public Utilities Commission (CPUC) voted to stop paying for the majority of those proceeds for permits back to the three largest investor owned utilities and instead start sending rebates to customers. The climate credit represents each customer’s share of the polluter fees collected from the energy companies.
Household customers will receive the climate credit every April and October, while small businesses will receive the credit every month. Small business customers include commercial, industrial, agricultural, nonprofits and schools that use less than 20 kilowatts of power each month, and will vary depending on the amount of power they use.
Customers don’t have to do anything to get the credit but, if the climate credit is more than a customer’s total monthly bill, the credit rolls over to the next month and these same customers can also ask for a refund check.
However, the hope is that customers will use the savings and spend it on newer energy efficient LED light bulbs, smart thermostats or other energy saving equipment. For many low income customers, the credit will provide a little relief on the rising costs of electricity twice a year.
The Climate Change Credit will also go to customers of Southern California Edison and San Diego Gas and Electric, the credit varying for each utility.
Low Income Resources
California Alternate Rates For Energy (CARE) provides a 20 percent discount on electric and natural gas, customers are encouraged to call their utility.
PG&E Energy Savings Assistance Program provides no cost weatherization services to low-income households who meet the CARE income guidelines. For more information call 866-743-2273.
The Home Energy Assistance Program (HEAP) provides one-time financial assistance. For more information on this program call 1-866-675-6623.