Sonoma County resident Bill Skoonberg recently received a flyer in the mail that set off his alarm bells.

If you’re a PG&E customer, there’s a good chance you’ve received one, too.

It says homeowners are often unaware that they are responsible for their properties’ exterior water line and electrical systems, and that HomeServe, a national home repair provider, offers protection plans that can be billed through PG&E .

Skoonberg didn’t understand the connection to PG&E and wondered if his information had been hacked.

“There are a lot of red flags here for me,” said Skoonberg, who was employed by PG&E for years.

The sender of the mail, he added, is “irrelevant to the company I worked for.”

He also questioned the need for such insurance, but “by partnering with PG&E, people are going to say, ‘Gosh, maybe I should take care of that,'” he said. declared.

He is not alone. Posts on Nextdoor generated dozens of confused and skeptical comments.

The letter is not the result of a data breach but the launch of a partnership between PG&E and HomeServe and potentially other third-party companies.

One of the letter’s seven pages explains that HomeServe is not a subsidiary of PG&E and that the utility “is not responsible for, nor does it endorse or provide warranties for, plans offered by HomeServe.”

But the package also contains a letter from a PG&E vice president, Chris Zenner. “We have some exciting news to share with you! » he writes. “As a valued PG&E customer, you have access to HomeServe’s home protection plans. »

It goes on to say that “HomeServe is a trusted provider of home protection programs” and that customers can now enjoy “the convenience of” seeing the company’s charges added to their PG&E bill.

PG&E spokeswoman Lynsey Paulo told the Press Democrat that “we have received inquiries from customers and so we are currently reviewing that feedback.”

First partnership

This is the first time PG&E has partnered with an outside company to offer consolidated billing, and Paulo said the benefit allows customers to “reduce the number of bills they pay each month.” This is a service provided by a number of utilities across the country, she said.

It also provides PG&E with revenue in the form of fees paid by HomeServe for billing and payment processing services. Most of those fees “are used to lower rates, keeping the prices customers pay lower than they otherwise would be,” according to a PG&E web page, although Paulo declined to provide an explanation. percentage.

This web page explained PG&E’s third-party billing program and outlined a formal selection process. It offered contact details for companies interested in partnering.

But now, the page states only that PG&E is “currently updating this web page” and directs questions and attempts to cancel plans to a HomeServe website and phone number.

HomeServe, as a third-party company, is not subject to the jurisdiction or regulations of the California Public Utilities Commission, as are PG&E and other investor-owned utilities. Utilities must file annual reports revealing new types of partnerships, such as billing services provided by PG&E.

The CPUC approved short-term funding for PG&E programs in 2023 and 2024, but noted that more information was needed for a long-term assessment “in part because of a lack of detail on how the Profits generated by these programs are used to reduce PG&E’s rates. »

An audit will soon be underway and the benefits of the program cannot be spent in the meantime without authorization from the CPUC.

People have the impression that it is “deaf”

“While this is clearly optional — there’s no question about it — I think a lot of people feel like it’s tone-deaf to talk about record bills,” said Mark Toney, executive director of The Utility Reform Network, a non-profit consumer protection organization. who said his organization had also received inquiries regarding the partnership. “They say they’re trying to keep costs down, but this is promoting an optional service, an insurance product, that some people will benefit from and most people won’t benefit from, because that’s the way insurance is supposed to work.”

Plus, Toney said, the promotional package with its letter from PG&E’s vice president, “feels like it’s official or something you should do or something PG&E recommends.”

A HomeServe spokesperson said that since launching last month, more than 5,100 PG&E customers have signed up. Homeowners can register directly with HomeServe, but its main business is through partnerships with municipalities. The company has 1,300 such relationships in the United States, including 48 in California.

Scrutiny

HomeServe has scrutiny and legal problems in the past for marketing linked to some of these partnerships, based on the confusion caused to consumers and on questions about the real benefit of the offers. In 2023, the company agreed to pay $850,000 for alleged violations of the Kansas Consumer Protection Act. Between 2010 and 2015, HomeServe reached agreements with attorneys general or other state officials in six states during investigations.

HomeServe has not admitted any wrongdoing in connection with these agreements, and the HomeServe spokesperson said the company is in good standing with all regulatory bodies in which it operates. He said customers have saved more than $2 billion in repair expenses, and when asked what percentage of policyholders are filing claims, he said, “We’re at a customer doing some type of repair, on average every 46 seconds.”

PG&E’s Paulo said HomeServe went through a competitive solicitation and vetting process and the company works with many other utilities. She added that “customers’ decisions to opt-in or decline the offer have no impact on PG&E service” and that “PG&E and HomeServe are working together to try to ensure customers better understand the relationship.”

Regarding the issue of customer privacy and information sharing, Paulo said names and addresses were provided to HomeServe, but no financial or personal data, such as Social Security numbers, was shared. “Protecting customer privacy is a top priority for PG&E,” she said. Consumer advocate Toney agreed that PG&E is responsible for customer data.

Customers who do not wish to receive marketing materials can unsubscribe in their online account preferences.

“In Your Corner” is a column that puts watchdog reports to work for the community. If you have a concern, advice or insight, you can contact “In Your Corner” columnist Marisa Endicott at 707-521-5470 or [email protected]. On X (formerly Twitter) @InYourCornerTPD and Facebook @InYourCornerTPD.