Millions of California households will receive utility bill relief this month, with natural gas customers expected to see an average $40 credit, Gov. Gavin Newsom announced last week.
The credits are part of the California Climate Credit program, which will return $520 million to residents through automatic reductions on utility bills. The effort is aimed at easing costs for households as part of the state’s broader affordability strategy, according to Newsom’s office.
The California Climate Credit, funded through the state’s Cap-and-Invest program, provides direct financial relief to utility customers. Since 2014, the program has delivered about $16 billion in bill credits to residential customers of investor-owned utilities.
“Thanks to the Legislature’s partnership, the Golden State is delivering on its promise to put money back in Californians’ pockets, and we’re making it work smarter and harder for households across the state,” Newsom said in a statement April 16.
This year, California plans to distribute a total of $1.4 billion in residential utility credits, including $894 million for electric customers and $520 million for natural gas users. Additional funding will support small businesses and industry assistance programs.
Newsom said the credits reflect the state’s efforts to reduce living expenses while continuing to invest in climate programs.
“California is delivering on its promise to put money back in Californians’ pockets,” said Newsom.
State regulators are also considering changes to how and when credits are distributed. The California Public Utilities Commission (CPUC) is set to vote April 30 on a proposal that would shift electric bill credits to the summer months, when energy use and costs are typically highest.
If approved, customers of Pacific Gas and Electric, Southern California Edison, and San Diego Gas and Electric would begin receiving electric credits in August and September starting in 2026, instead of the current spring and fall schedule.
Natural gas credits could also be adjusted. Beginning in 2027, those credits may be issued earlier in the year to better align with higher winter heating costs.
The proposed changes stem from Assembly Bill 1207, signed by Newsom in 2025, which extends the Cap-and-Invest program through 2045 and requires that credits be delivered when they provide the most benefit.
Customers do not need to take any action to receive the credit. The amount will appear automatically on their utility bills.
State officials say the program also supports climate investments, including clean energy projects and job creation, while providing direct financial relief to households.