Millions of people in California to get utility bill credit: who’s impacted

Millions of Californians will qualify for a utility bill credit next month, potentially saving them more than a hundred dollars.

Pacific Gas and Electric Company (PG&E) customers will see the California Climate Credit applied to their April energy bills.

Why It Matters

The median customer utility bill payment increased by 6 percent in January, “well above the rate of inflation in utilities, reflecting higher usage,” according to economists at the Bank of America Institute.

If bill payments continue to rise, low-income and median-income households would likely need to limit spending on discretionary items to make ends meet. That makes climate credits like PG&E’s even more vital for the average customer.

What To Know

PG&E customers in California will get an electric credit of $58.23 in April. However, for residential households with a gas account at PG&E, the savings will be $67.03 for April.

Collectively, that means Californians could receive a total credit of $125.26 for April.

The California Climate Credit is available to residents due to the state’s Cap-and-Trade program.

This program mandates that companies pay for emissions, with the bill credit made to help state residents have more sustainable energy in the long term.

Since 2014, PG&E customers have saved an average of roughly $1,000 due to the California Climate Credit.

Altogether, PG&E serves more than 16 million people across the state of California.

What People Are Saying

Vincent Davis, senior vice president of customer experience for PG&E, said in a statement: “We know many of our customers are feeling the pressure of rising energy bills. We support bill relief for families and fostering a more climate-resilient future.”

Kevin Thompson, a finance expert and the founder and CEO of 9i Capital, told Newsweek: “This is a big win as Californians continue moving toward a more climate-resilient future. Residents with active utility accounts may see a bill credit of up to $125 to help offset rising energy costs. In the long run, this could be a win for consumers, not only by promoting cleaner air through emissions caps but also by keeping energy prices in check through the credit system.”

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “These credits are the result of California’s cap-and-trade program, which can return money to customers for multiple reasons including financial assistance. The official reasoning for these credits is to assist with the higher cost of living Californians are experiencing. These credits will undoubtedly help many get some financial relief from higher energy costs.”

What Happens Next

Despite California’s Climate Credit, Americans have faced inflation on nearly on everything from groceries to housing and electricity in recent years.

However, Trump promised to halve energy and electricity costs “within 12 months, at a maximum 18 months,” once he took office during his 2024 presidential campaign.

Policy analysts have expressed their doubts that Trump would have enough power as president to influence the global oil market.

Those lower costs will depend on the administration’s ability to increase domestic production and loosen environmental regulations.