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Public utilities

California's Cap-and-Trade Program Provides Significant Benefits to Residents and Small Businesses

Strategic Insights

— 1 min read

California's residents and eligible small businesses will receive a significant boost to their energy bills in 2025, thanks to the state's Cap-and-Trade Program. In October, millions of households and small businesses with active electric accounts will see a $58.23 electric credit applied to their Pacific Gas and Electric Company (PG&E) bills, while those with natural gas accounts will receive a $67.03 credit. This brings the total annual bill credits for residential customers to $183.49, with eligible small businesses receiving $116.46 in annual credits. These credits are a direct result of the state's efforts to reduce carbon emissions, overseen by the California Air Resources Board (CARB) and distributed by PG&E.

Key Takeaways:

  • Residential households with active electric accounts will receive a $58.23 electric credit in October, in addition to the $67.03 natural gas credit for those with gas accounts, totaling $183.49 in annual bill credits.
  • Eligible small businesses will receive a total of $116.46 in annual credits.
  • The California Climate Credit represents the public's share of the state's efforts to cut carbon emissions through the Cap-and-Trade Program, which has provided an average of $1,000 in benefits to residential and small business customers since 2014.
  • The program has disbursed over $12.9 billion in benefits to customers statewide, making it one of the largest and most successful energy efficiency programs in the country.
  • PG&E offers various resources to help customers manage energy costs, including a free personal energy coach, a tool to find the lowest rate for their household or business, and financial assistance programs for low-income customers.
  • The company also provides energy efficiency DIY toolkit recommendations, income-eligible assistance programs, and programs such as CARE, SBIP, and HEAP to help customers adjust to the new credits and reduce energy costs.

Statistics:

  • Residential customers will receive a total of $183.49 in annual bill credits in 2025.
  • Eligible small businesses will receive $116.46 in annual credits in 2025.
  • Since 2014, the Cap-and-Trade Program has provided an average of $1,000 in benefits to residential and small business customers, totaling over $12.9 billion in benefits statewide.

Sources:

  • Pacific Gas and Electric Company
  • California Air Resources Board
  • California Public Utilities Commission
  • State of California
  • U.S. Department of Energy
  • California Energy Commission

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