The California Public Utilities Commission (CPUC) and the California Air Resources Board (CARB) today announced that millions of California households in regions serviced by investor owned utilities will receive a “Climate Credit” averaging $35 on their April electricity bills. The credit comes from California’s cap and trade mechanism for reducing greenhouse gas emissions.
According to CPUC President Michael R. Peevey, “The Climate Credit is made to households and small businesses to promote a cleaner, more energy efficient California, giving millions of Californians a stake in the fight for clean air and a healthy environment.” Officials hope that households will invest the Climate Credit in simple energy efficient improvements that will help households further conserve energy and lower utility bills thereby forming a “virtuous circle” according to Mary D. Nichols, Chairman of CARB.
Households will receive a Climate Credit on their April and October bills each year, regardless of energy consumption or bill amount. Small businesses will receive a Climate Credit every month beginning in April and is based on the amount of electricity used. In the aggregate, approximately $750 million will be allocated to households and $64 million will be allocated to small businesses in 2014.