When Southern California Edison residential and small business customers view their April bill, they’ll find a $56 California Climate Credit that lowers their account balance. Another $56 credit will appear in October. No action by customers is needed to receive the twice-a-year benefit.
Funding for the credit comes from California’s Greenhouse Gas Cap-and-Trade Program, which creates an economic incentive for greenhouse gas producers, like power plants, fuel providers and large industrial facilities, to reduce their emissions.
Since 2014, more than $17 billion in bill credits have been distributed by SCE, Pacific Gas and Electric, San Diego Gas and Electric and other utilities across the state.
“The climate credit provides a welcome measure of bill relief for millions of SCE customers,” said Funmi Williamson, SCE’s chief customer officer and senior vice president of Customer Service. “It’s one of the many ways communities across California benefit from the continuing progress toward a clean energy future.”
Here’s how it works:
Each year, the California Air Resources Board sets a cap on greenhouse gas emissions and issues a set number of emission “credits” companies can purchase equal to the cap. Each credit “allows” its owner to emit one metric ton of carbon dioxide equivalent annually.
CARB also holds auctions every three months where participants buy, sell or trade credits in an amount equal to their level of emissions. For example, a company that emits 25,000 metric tons of CO2e must obtain 25,000 credits.
The revenue from the auctions flows to the state’s Greenhouse Gas Reduction Fund. Some of that money is directed to utility customers through the Climate Credit program, and some is directed to the California Climate Investments program.
Each year, CARB reduces its emissions cap by 5% and the number of available credits decreases in proportion. Ultimately, striving to reduce GHG emissions, improve public health and the environment, and provide meaningful benefits to the most disadvantaged and low-income communities and households.
For more information, visit sce.com/cleanenergy.
