The California Climate Credit is provided from the California Cap-and-Trade Program, which is designed to fight climate change by limiting greenhouse gas emissions and which generates proceeds that are used to further reduce emissions and benefit utility customers.
Under California’s Cap and Trade Program, the largest emissions sources must pay for carbon pollution allowances. Some of that money is used by the state of California to further reduce emissions, and some is used for the benefit of utility customers. The CA Climate Credit on your Southwest Gas bill is designed to help utility customers during the transition to a low-carbon future. Want to help fight climate change and SAVE MONEY? Invest the savings in energy-efficient home upgrades.
The 2025 CA Climate Credit is $73.68.
You will see the CA Climate Credit annually on your bill in April (based on your billing cycle, you may see your CA Climate Credit reflected on your May bill).
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Frequently Asked Questions
What is the California Climate Credit?
The California Climate Credit is a part of California’s efforts to fight climate change. 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 credit on your bill is designed to help utility customers during the transition to a low-carbon future. For more information about the Climate Credit, visit cpuc.ca.gov/climatecredit/.
Where does the money for the California Climate Credit come from/how is it generated?
Each year under the California Cap-and-Trade Program, the state issues a limited number of greenhouse gas emission allowances in line with California’s goal of reducing its overall emissions. Some of these allowances are sold at auctions, and the auction proceeds are used to either reduce greenhouse gas emissions or benefit utility customers though the California Climate Credit and other programs.
Who is eligible for the CA Climate Credit?
All California residential customers that receive natural gas service from an investor-owned utility company, including Southwest Gas.
Why are residential customers receiving the California Climate Credit?
The California Public Utilities Commission decided to protect each household from cost increases and to give people additional opportunities to take advantage of energy and money-saving upgrades offered by Southwest Gas.
When is the CA Climate Credit applied to accounts?
You will see the CA Climate Credit annually on your April natural gas bill (based on your billing cycle, you may see your CA Climate Credit reflected on your May bill).
What if there is a credit remaining on the account balance after the application of the CA Climate Credit?
Any carryover balance will be applied to your next bill. If there is a carryover balance, you may call and ask for a refund check instead of having the balance applied to your next month’s bill.
Does the CA Climate Credit amount vary by natural gas utility for residential customers?
Yes. However, the CA Climate Credit is distributed equally to each of Southwest Gas’ residential customers, regardless of the amount of gas you use or your bill amount.
Is the CA Climate Credit amount connected to the amount of natural gas I use?
No, all residential customer households of Southwest Gas will receive an equal amount of the CA Climate Credit regardless of the amount of natural gas they use.
How is the California Climate Credit amount calculated?
Under the California Cap-and-Trade Program, Southwest Gas uses a portion of its auction proceeds to support customer programs that help reduce emissions, pay administrative costs, and then divides the remaining portion equally among all of its residential customers.
Will the size of my CA Climate Credit change over time?
Yes. The size of the CA Climate Credit depends on the amounts received from the carbon pollution permit auctions from year to year, but the credit will always be calculated according to rules established by the California Public Utilities Commission.
When will the amount of annual CA Climate Credit be determined?
Normally, Southwest Gas’ proposed California Climate Credit will be filed with the California Public Utilities Commission in November of each year for the following year’s credit amount, i.e., Southwest Gas’ 2019 CA Climate Credit was filed and approved in 2018. The annual Climate Credit amount will be updated on Southwest Gas website in January of each year.
For how many years will natural gas residential customers receive the Climate Credit?
Currently the credit is expected to continue until it is discontinued by the California Public Utilities Commission.
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Commission Websites
Check your state’s Commission office for more information on utility regulation and consumer programs and services.
