Millions of Californians will receive more than $50 in refunds on their October electric bills as part of the California Climate Credit program. This initiative stems from the state’s cap-and-trade system, which has generated billions by charging large polluters for emissions allowances. Governor Gavin Newsom recently extended the program through 2045, with credits expected to increase from a projected $60-billion fund.
According to the Los Angeles Times, the credit is automatically applied to utility bills every April and October. In October, total payments will exceed $700 million for residential electricity customers and $60 million for small businesses. The average refund will be $61 per customer, with most households receiving between $56 and $81.
The California Governor’s Office reports that since 2014, the Cap-and-Invest program has returned $14.6 billion in bill refunds to residential utility customers. This year alone, California will provide $2.4 billion in credits, including $1.4 billion for electric customers and $1 billion for natural gas customers.
The California Public Utilities Commission explains that the Climate Credit is part of the state’s efforts to combat climate change. It represents the consumer’s share of payments from the Cap-and-Invest Program managed by the California Air Resources Board.
Governor Newsom’s recent legislation aims to increase these refunds, with up to $60 billion going toward electric bill credits through 2045. Californians do not need to take any action to receive the refund, as it will automatically appear on their bills.
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