The “California Climate Credit” line item that appears on customers’ electricity bills each year, is one of the state’s key customer bill-credit programs. Clean Energy Alliance (CEA) wants to ensure customers understand how this credit works and what is changing in 2026. This year, the California Public Utilities Commission (CPUC) is proposing to shift the timing of the April credit to the summer months, meaning the credit is not going away, but will instead be delivered when energy costs are typically at their highest.
The California Climate Credit is a state-mandated bill credit that returns money to residents and small businesses annually. The credit is funded by California’s Cap-and-Invest program, which requires large greenhouse gas emitters to pay for the greenhouse gases they produce. These funds are then automatically applied to CEA customers’ bills to help offset their energy costs.
Historically, most residential customers received the electric Climate Credit twice a year: in April and October. In 2026, the CPUC is proposing a change designed to deliver greater relief when energy costs are typically at their highest. The April 2026 credit has been deferred and is expected to be redistributed during the summer months, when energy costs are at their peak. The CPUC’s proposed schedule places the credit in August and September for SDG&E and CEA residential customers, with the proposed decision expected to be voted on at the CPUC Commissioners’ Business Meeting on April 30 and a final decision issued shortly thereafter.
The value of the credit is not reduced, as CEA’s residential customers will receive the same amount, just at a different time of the year.
Small Business Climate Credits (normally distributed in April and October) and California Industry Assistance (normally distributed in April) remain unchanged. The Natural Gas Climate Credit will continue to be distributed in April 2026, but the CPUC has proposed moving it to February, starting in 2027.
CEA customers will automatically receive the California Climate Credit as a line item on their SDG&E bill. Because the CPUC has not yet issued a final decision, the exact months may be subject to change. CEA will monitor the outcome of the April 30 vote and communicate any updates. Customers can connect with CEA at (833) 232-3110 to receive answers to any further questions.
About Clean Energy Alliance
Clean Energy Alliance (CEA) is a locally controlled, not-for-profit power provider serving over 255,000 customer accounts in the cities of Carlsbad, Del Mar, Escondido, Oceanside, San Marcos, Solana Beach and Vista, with a focus on clean energy, sustainability, competitive rates and community reinvestment. CEA follows a community choice aggregation (CCA) model that allows local governments to purchase power to meet their community’s electricity needs, offering an alternative to investor-owned utilities’ bundled rate service.