Most Californians will receive a credit on their gas and electric bills this month as part of the California Climate Credit program, which aims to offset rising prices for customers while reducing the state’s reliance on fossil fuels. Southern Californians can look forward to paying $159 less for gas and electricity this month, with another credit coming in October. That breaks down to $86 off your electric bill in April from Southern California Edison and another $86 off in October.
The rising cost of allowances provides an incentive for companies to emit less carbon. The most recent allowance auction, held in February, saw more than 51 million allowances sold for $41 each, for a total of nearly $2.1 billion in revenue. The state along with electric and gas utility companies are able to sell allowances at an auction. The state puts its proceeds into its Greenhouse Gas Reduction Fund, which is used to incentivize energy efficiency and other climate-related projects.