The California Public Utilities Commission announced on April 30 that it will move the California Climate Credit to months when energy costs are highest, aiming to provide more effective bill relief for residents.
The change is intended to help Californians better manage high utility bills during periods of increased energy use. By aligning the timing of the credit with peak usage months, the commission said customers will receive financial support when they need it most.
Beginning in 2026, residential electric customers of Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas & Electric will receive their credits in August and September. Starting in 2027, residential natural gas customers will get their credits in February. The commission said this adjustment is designed to deliver timely financial relief without requiring any action from customers.
“This is about timing relief to match reality. By aligning Climate Credits with the months when bills are highest, Californians will receive relief when they need it most,” said CPUC President John Reynolds. “This is a practical step to improve affordability while continuing to advance the state’s climate goals.”
For 2026, $894 million in credits are allocated for residential electric customers and $520 million for natural gas customers. The Climate Credit comes from proceeds collected through California’s Cap-and-Invest Program and returns funds directly to utility customers statewide.
Previously issued in April and October, the credit schedule now targets periods of high usage: August and September for major electric utilities; October and November (April and November for 2026) for Liberty Utilities, Pacific Power, and Bear Valley Electric; February beginning in 2027 for major natural gas providers.
Utilities must also improve customer communications by updating outreach materials and making program benefits clearer on bills. In addition, five percent of electric utility Cap-and-Invest proceeds will be directed toward transmission infrastructure projects through the California Transmission Accelerator Revolving Fund.
Today’s decision implements provisions from Assembly Bill 1207 (2025), which extends the Cap-and-Invest Program through 2045 and requires distribution of credits during high-bill months. A forthcoming Phase 1B proceeding will consider further reforms aimed at expanding affordability benefits.
