Light & Water - Customer Service

Posted on: January 4, 2018

Electric Bill Credit

Wondering why you received a $62.04 “CA CLIMATE CREDIT” on your electric bill?


The credit comes from revenues realized from sales of excess (or not otherwise needed for compliance) Greenhouse Gas Allowances (“GHG Allowances”) by the Azusa electric utility. GHG Allowances are regulatory compliance instruments used in measuring and determining compliance with the state’s cap-and-trade program established under the California Assembly Bill 32. GHG Allowances may be purchased or directly allocated by the California Air Resources Board to California entities that are subject to (“are covered under”) the cap-and-trade program. The regulation provides that California’s publicly owned utilities (which are not CPUC jurisdictional) can use monies realized from sale of excess (I.e. not used or intended for future compliance) Allowances for various programs aiming at reducing the GHG emissions. The cap-and-trade regulation also provides that monies from sales of such excess GHG Allowances can be directly returned to the ratepayers to the extent GHG reduction programs are not implemented or are in the process of being formulated. Thus far any revenues from sales of excess Allowances have been blended with the variable Power Cost Adjustment charge on your bills. However, recent changes in the regulation require that as long as such monies are not used for GHG reduction programs, they ought to be credited directly to customers. While Azusa is currently in the process of formulating recommendations for GHG reduction programs, monies realized from sale of excess (I.e. not needed or set aside for future compliance) Allowances are being returned directly to all Azusa electric ratepayers as a credit.

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