Gov. Newsom Claims He’s Offering Utility Bill Relief as California Utilities Are Up 30%

Today Governor Gavin Newsom announced from New York “during Climate Week NYC that millions of California households are receiving automatic credit on their electricity bills this August and September, providing an average of $75 in relief on monthly bills.”

“Please, sir,” replied Oliver, “I want some more.”

My utility bills are up 30+% over last year, and each bill is higher than the previous month. I just paid a $500 electricity bill to SMUD, the Sacramento Municipal Utility District, for one of the mildest summers in Sacramento I can remember.

In January, the Globe reported that Sacramento Municipal Utility District CEO and General Manager Paul Lau is paid $936,617 in total wages, and $45,374 in retirement and health benefits, totaling $981,991 annually. Lau is paid nearly $1 million annually to manage 2,400 employees, and revenue of $2 billion.

Ratepayers have to pay for that.

Back in May 2019, we reported “Sacramento Utility Penalizing Working Families With Tiered Rates”:

“The Sacramento Municipal Utility District announced last year Sacramento electricity ratepayers would be under a new rate system that charges residential users higher rates between 5:00 p.m. and 8:00 p.m. — just in time for everyone to arrive home after work and begin evening family rituals: homework on computers, dinner, television, stereo, baths, laundry, and dishwasher after dinner.”

In June 2019, we reported “SMUD Utility ‘Summer Rates‘ Surge To Accommodate Increasing Renewable Cost Subsidies”:

On June 1st, the Sacramento Municipal Utility District began charging Sacramento electricity users and ratepayers a new rate system that charges residential users higher rates between 5:00 p.m. and 8:00 p.m… much higher rates, just in time to get home from work, feed the family, do a couple loads of laundry, bathe the kiddies, maybe vacuum a room or two, and watch a little Netflix.

These new summer “peak” rates appear to be about 40% – 200% higher, looking at the bill.

SMUD says the goal is to “reduce energy usage,” but they don’t say why. Instead they make suggestions like “start or program your dishwasher, washing machine or clothes dryer to run and finish before 5 p.m. or to start after 8 p.m., or schedule these chores for any time on the weekend when all hours are at the lowest off-peak price.”

SMUD is just one example of ever-increasing utility costs.

The City of Sacramento is gouging just as much with metered water, storm drainage fees, wastewater fees, garbage, recycling, organics, and SacSewer treatment fees totaling this month $307.98.

Newsom continues:

“For the first time, eligible residential electric customers of PG&E, Southern California Edison, and San Diego Gas & Electric are receiving the credit during August and September when summer heat drives more electricity use. The credits are automatic, require no application, and will put a total of $886 million back in the pockets of California electric customers this year.”

Ah shucks. All of our utility bills are skyrocketing and the governor is giving us back $75 of our own money.

Spencer Pratt took notice as well:

SCAM ALERT! Here's the "climate credit" scam…they hike your rates 20%, you spend an extra $500+ every year, then they give you back $75 of it and call it a "climate rebate". YOU are paying for it, then they give you part of your money back. Gavin is so full of shit. https://t.co/8C4rnzQqb5

— Spencer Pratt (@spencerpratt) September 22, 2026

Indeed. Gavin is full of it, and we are supposed to be grateful.

Newsom says “the California Climate Credit comes from the state’s Cap-and-Invest Program, which is managed by the California Air Resources Board.”

The California Air Resources Board is made up of board members appointed by Gov. Newsom.

The cap and invest program, formerly the “Cap and Trade program,” extorts money from California’s largest businesses just for the privilege of being in California. It’s a shakedown.

“Companies that emit large amounts of climate pollution must purchase allowances for their emissions. Some of those funds are returned directly to residential customers as a credit on their utility bills.”

Right.

California’s cap-and-trade program, recently renamed “cap and invest,” places a “cap” on aggregate greenhouse gas emissions from businesses and utilities deemed “polluters” by the California Air Resources Board, which the CARB says are responsible for most of the state’s greenhouse gas emissions.

Gov. Newsom continues:

“In addition to electric bill refunds, California’s Cap-and-Invest program has generated $37 billion in climate investments, supporting more than 143,000 jobs and cutting millions of tons of carbon emissions.”

What are these 143,000 jobs?

According to the CARB, The 143,000 figure is not a count of 143,000 named, permanent positions created by one program. It is CARB’s modeled estimate of jobs supported by California Climate Investments – the spending of Cap-and-Invest auction proceeds – over the lifetimes of the funded projects.

CARB’s  2026 Annual Report to the Legislature on California Climate Investments states that more than 143,000 jobs were supported “across the economy through project spending, supply chain activity, and induced economic activity over project lifetimes.”

The CARB claims “Since 2014, these investments have reduced local pollution, made homes more affordable to heat and cool, improved transit options, increased access to affordable housing, expanded job training, and strengthened resilience to climate-driven hazards.”

What they don’t tell you is that the CARB has tried to regulate long-haul diesel trucks right out of existence in California, forced electric cars on Californians, and is regulating the oil and gas industry out of the state. Chevron already moved to Texas, and Phillips 66 and Valero have closed down refineries.

Cap-and-Invest itself prices only greenhouse gases; facilities can continue emitting local pollutants if they buy allowances. While the claimed goal is reduced greenhouse gases, CARB will take the money instead of actual GHG reductions.

“The investments are a key part of Governor Newsom’s build more, faster agenda, delivering infrastructure upgrades and creating jobs across the state,” the governor states.

Gov. Newsom brags that since he took office in 2019, “California has added more than 37,000 megawatts of utility-scale clean and renewable energy to serve the California grid.” What he doesn’t tell you is that renewable energy only works when the sun is shining and the wind is blowing. The rest of the time, California has to rely on traditional forms of energy.

And renewable energy is more expensive, driving all of our energy costs up, and unreliable.

“Last year, clean energy met 100% of the state’s electricity needs for at least part of the day on 279 separate days,” Gov. Newsom said. It does not mean California ran on 100% clean electricity around the clock. It means that generating electricity by combusting coal, natural gas, or oil, is still the largest single source most days, and especially evenings.

In January we linked to the U.S. Energy Information Administration which reported that the U.S. average retail price per kilowatt hour was 12.68 cents (Release Date: November 10, 2025). In California the retail price per kilowatt hour was 27.04 cents.

Today, the U.S. Energy Information Administration reports the U.S. average retail price per kilowatt hour is 18.34 cents. In California the retail price per kilowatt hour is 34.74 cents – and much higher than Oregon or Washington, and nearly double the national average.

Californians pay the highest electricity costs, while subsidizing green energy scams to reduce greenhouse gasses for the whole world. The CARB is extorting California businesses, and the governor and Legislature are extorting ratepayers through high utility costs.

There is no real measurable difference in greenhouse gas emissions, even after years of very expensive climate policies – years of targets, subsidies, renewable mandates and international agreements have not produced a measurable decline in global emissions. But we are paying a lot more for the green scams. 

And now you know the rest of the story.