Announced in a tweet Thursday afternoon, the credit will be a welcomed relief for many as there has been a significant increase in utility bills over recent months--about 32% higher compared to this time last year.
The Governor said residents should see a $90-$120 credit, and that the payments were originally set for late spring, but have been moved up to give relief faster.
Customers and advocates have been demanding answers as to why bills have increased so much.
"It's been a very cold winter. Demand has been higher, usage is higher," said PG&E spokesman Paul Moreno. "Unfortunately on the supply end, supplies are bit tighter."
Officials say the increase is also the result of the higher cost of natural gas.