PG&E Customers to Receive Up to $140.63 California Climate Credit on Spring Energy Bill

Rhea-AI Summary

PG&E customers to receive increased California Climate Credit in 2024, highlighting environmental responsibility and sustainability efforts.

Energy Policy Analyst

The increase in the California Climate Credit for PG&E customers is a reflection of the state's ongoing commitment to incentivize environmentally responsible behavior among consumers. The rise in credit amounts from $38.39 to $55.17 for electricity and from $52.78 to $85.46 for gas represents a significant year-over-year increase, which can be interpreted as a strategic move to offset the costs associated with the state's cap-and-trade program. This financial incentive is designed to ease the transition for households towards a more sustainable energy consumption pattern while also promoting the adoption of energy-efficient practices and technologies.

From an economic perspective, the distribution of credits can have a ripple effect on consumer spending, potentially increasing disposable income and thereby stimulating the local economy. However, it's important to note that the funding for these credits originates from the auctioning of carbon pollution allowances, which could lead to increased operational costs for businesses subject to the cap-and-trade regulations. These costs may be passed onto consumers in the form of higher prices for goods and services.

Furthermore, the program aligns with California's broader environmental goals and could serve as a model for other states considering similar initiatives. The long-term impact may include a reduction in greenhouse gas emissions, contributing to the state's climate targets and potentially influencing national policy discussions on climate change mitigation.

Environmental Economist

The California Climate Credit program is a direct application of environmental economics principles, specifically the 'polluter pays' principle. By requiring emitters of greenhouse gases to purchase allowances, the state effectively places a price on carbon, which is intended to internalize the external costs of pollution. The redistribution of proceeds from the cap-and-trade auctions to consumers via the credit system is an innovative approach to maintain economic equity and alleviate any regressive impacts of carbon pricing on lower-income households.

It's essential to evaluate the effectiveness of such credits in driving real behavioral change towards lower carbon footprints. While the immediate financial relief is clear, the long-term behavioral impacts are less certain. The increased credit might encourage energy conservation and investment in renewable energy sources by making sustainable options more financially accessible. Yet, there's a risk that without proper education and incentives for energy efficiency, consumers might not change their consumption patterns.

Moreover, the overall success of the cap-and-trade system hinges on the careful balancing of allowance prices to ensure they are high enough to motivate emission reductions but not so high as to cause economic disruption. As such, the program's design and adjustment mechanisms will be crucial in achieving California's ambitious climate goals without imposing undue burdens on the economy.

California's Cap-and-Trade Program Continues to Benefit PG&E Customers through the California Climate Credit 

OAKLAND, Calif., March 11, 2024 /PRNewswire/ -- In April, more than five million Pacific Gas and Electric Company (PG&E) customers will automatically receive the California Climate Credit on their energy bill. 

Residential households with an active electric account will automatically receive an electric credit of $55.17, an increase from last year's credit of $38.39. Residential households with an active gas account will automatically receive a credit of $85.46, an increase from the $52.78 credit in 2023. That is a total credit of $140.63 for customers receiving both gas and electric service from PG&E.  

"This credit highlights our partnership with the state to champion environmental responsibility," said Vincent Davis, Senior Vice President, Customer Experience. "It encourages sustainable practices, moving our communities toward a brighter, greener future." 

The California Climate Credit is part of the state's efforts to fight climate change and is distributed by PG&E to customers as directed by the California Public Utilities Commission (CPUC). This credit is from the California Cap-and-Trade Program, which requires power plants, fuel providers, and large industrial facilities that emit greenhouse gases to buy carbon pollution allowances. The bill credit is designed to help utility customers during the transition to a low-carbon future.  

Residential customers receive biannual electric credits during April and October, while natural gas customers receive an annual credit in April. Eligible small business customers receive identical electric credits, distributed twice a year. Both sets of customers will receive the second electric credit in October. PG&E will also distribute over $36 million to eligible industrial customers on behalf of the CPUC. Eligibility requirements and other details are online here.

In addition to the California Climate Credit, customers are encouraged to explore other ways to save energy, reduce costs on monthly bills, and contribute to building a sustainable future.  

PG&E Assistance Programs for Income-eligible Customers 

• California Alternate Rates for Energy (CARE): offers a discount of 20% or more each month on energy bills. 
• Family Electric Rate Assistance (FERA): offers a monthly discount of 18% on electricity bills for households with three or more people. 
• Energy Savings Assistance (ESA): provides energy-saving improvements at no charge.  
• Relief for Energy Assistance through Community Help (REACH): offers a one-time energy credit of up to $1,000, doubling the previous amount of up to $500 based on past due balances. This is to help with sudden hardship and to prevent service disconnections. 
• Low Income Home Energy Assistance (LIHEAP): a federally funded assistance program overseen by the state that offers a one-time payment to help low-income households pay for heating or cooling in their homes, provides emergency assistance in energy crises, and home weatherization. 

PG&E's Energy Efficiency DIY Tool Kit 

Did you know you can lower energy bills and save money with PG&E's Energy Efficiency DIY tool kit? With a $200 investment in energy-efficient materials, customers can save nearly $1,000 each year.  

For more ways to manage your monthly bills, visit: Save Energy & Money. 

About PG&E
Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE: PCG), is a combined natural gas and electric utility serving more than sixteen million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news   

 

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SOURCE Pacific Gas and Electric Company

How much will PG&E residential households with an active electric account receive in the California Climate Credit?

Residential households with an active electric account will receive an electric credit of $55.17 in 2024.

What is the total credit for customers receiving both gas and electric service from PG&E?

Customers receiving both gas and electric service from PG&E will receive a total credit of $140.63 in 2024.

Who distributes the California Climate Credit to PG&E customers?

The California Climate Credit is distributed by PG&E to customers as directed by the California Public Utilities Commission (CPUC).

What is the purpose of the California Cap-and-Trade Program?

The California Cap-and-Trade Program requires power plants, fuel providers, and large industrial facilities that emit greenhouse gases to buy carbon pollution allowances.