Gov. Gavin Newsom announced Wednesday that customers of PG&E and other utilities would see a climate credit on their October bills as part of a decade-old state program. At least one consumer group stressed it’s still not enough to lessen the impact of high electricity costs.
“Millions of California families will see money back on their electricity bills in October,” Newsom stated in a prepared release. “That refund will be even bigger next year thanks to new laws I signed last week.”
The October refunds are part of a California Climate Credit effort that began in 2015. The credits appear twice a year on state utility bills – once in April and once in October.
The governor issued a similar announcement in March ahead of the April installment.
While the twice-a-year credits offer a welcome relief to elevated costs in California, the reductions don’t address the fundamental challenges of expensive utility rates, said Mark Toney, executive director of The Utility Reform Network, also known as TURN.
“These are refunds,” Toney said. “They don’t address electricity rates.”
The average credit for PG&E residential customers who receive electricity services from the utility is slated to total $58.23 during the October billing cycle, according to Oakland-based PG&E.
“This credit helps ease energy costs for our customers and reinforces our commitment to a more sustainable and climate-resilient energy future,” said Vincent Davis, a PG&E senior vice president for customer experience.
Newsom said the monthly bill credits would be “supercharged” starting in 2026.
“Up to $60 billion will go back in your pockets, cutting your electric bills while we keep our historic momentum transitioning away from polluting fossil fuels,” Newsom stated.
It wasn’t immediately clear how much of a twice-a-year bill credit PG&E and other utility customers would receive starting in 2026.
“Any relief is great, but the rebates don’t address the fundamental problem of affordable electricity bills,” Toney said.
The announcement of the already expected climate credit arrives at a time when California’s electricity and natural gas costs are among the nation’s highest, as sketched out in a report for July that the California Center for Jobs & the Economy issued.
“Average energy prices remained the highest among the contiguous states and Washington, D.C. for electricity and fuels, while average residential natural gas rates notched up to the third highest,” the report stated.
SB 254, one of the laws the governor signed this month, will help ease costs being endured by utility customers, Toney said.
The governor and backers of SB 254 argue that the bill could trim a few dollars off monthly bills — although they didn’t offer specifics.
Among the provisions of SB 254:
— Requirements would be strengthened to ensure that PG&E, Southern California Edison, San Diego Gas & Electric, and other investor-owned utilities pursue the most cost-effective ways to prevent their equipment from sparking wildfires.
— Utilities would be prevented from earning shareholder profits on the first $6 billion they spend on wildfire prevention upgrades.
— Low-interest loans would be created to cover the construction of new transmission lines.
“TURN supports SB 254 as an important first step in the right direction for ratepayer affordability,” the consumer group stated.