Is Your Electric Bill Lower? Here's Why

Is your current electric bill lower than your last one?

It’s not a mistake. All San Diego Gas and Electric residential customers received a $36.24 credit on their October bill.

Starting this year, Californians will receive automatic “climate credits” on their electricity bills twice a year. The first climate credit was issued in April. Small businesses have been receiving credits every month.

It’s part of the California Global Warming Solutions Act of 2006, which aims to reduce greenhouse gas emissions 15 percent by 2020. Under Assembly Bill 32, California power plants and major manufactures are charged based on how much pollution they emit. Some of those fees go toward climate change programs, and the rest is given to customers in the form of credits on their electric bills, according to Energy Upgrade California.

All SDG&E households receive the same amount regardless of how much electricity they use, totaling $72.48 a year. Other electric companies in California are offering customers credits between $30 and $40.

The state hopes customers will use the savings to buy energy-efficient home upgrades, such as LED light bulbs, low-flow showerheads and smart thermostats.

Although it’s great to save on an electric bill, there is concern consumers may end up paying for these savings in other ways. Starting next year, fuel distributors will also have to pay pollution permit fees, meaning the price of gas could increase.

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