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

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

He notes that homeowners often don’t realize they’re responsible for the exterior water service line and electrical systems on their property, and HomeServe, a national home repair provider, offers protection plans that can be billed through PG&E.

Skoonberg did not 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 has worked at PG&E for years.

The mailman added that the mail was “not appropriate for the company I work for.”

He also questioned the need for such insurance, but said, “Once you get involved with PG&E, people will say, ‘Geez, maybe I should take care of this.'”

He is not alone. Posts on Nextdoor have sparked dozens of confusing and skeptical comments.

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

One of seven pages in the mailing explains that HomeServe is not a subsidiary of PG&E and that the utility “is not responsible for the plans offered by HomeServe and does not endorse or warrant such plans.”

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

“HomeServe is a trusted provider of home protection programs,” he continues, and customers can now enjoy the “convenience” of having the company’s rates added to their PG&E bill.

“We have received some customer questions and so we are currently evaluating that feedback,” PG&E spokeswoman Lynsey Paulo told the Press Democrat.

First time partnership

This is the first time PG&E is partnering 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.” He said this is a service provided by many utilities across the country.

It also provides revenue to PG&E in the form of fees paid by HomeServe for billing and payment processing services. According to a PG&E web page, much of that fee is “used to lower rates, keeping the prices customers pay lower,” but Paulo declined to say anything about that. percentage.

This web page explained PG&E’s third-party billing program and noted a formal selection process. He presented the contact information of companies interested in the partnership.

But now page It simply states that PG&E is “currently making updates to this web page” and directs questions and attempts to cancel plans to a HomeServe website and phone number.

HomeServe, a third-party business, is not subject to the jurisdiction or regulations of the California Public Utilities Commission like PG&E and other investor-owned utilities. Utilities are required to submit annual reports describing 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 is needed for a long-term evaluation; this was “in part due to a lack of details about how profits from these programs were used to lower PG&E rates.” ”

An audit will begin soon, and in the meantime, profits from the program cannot be spent without the CPUC’s permission.

People think it’s ‘tone deaf’

“While this is clearly optional — there’s no question about it — I think a lot of people think it’s tone-deaf on top of record-breaking bills,” said Mark Toney, executive director of The Utility Reform Network, a nonprofit consumer advocacy organization. He said his organization has also received questions about the partnership. “They say they’re working to keep costs down, but this is pushing an insurance product that’s an optional service that some people will take advantage of and most won’t, because that’s how insurance is supposed to work.”

Moreover, Toney said, the promotional package that included the letter from PG&E’s vice president “gives the impression of being official or something you need to do or something PG&E is recommending.”

More than 5,100 PG&E customers have signed up since last month’s launch, a HomeServe spokeswoman said. Homeowners can sign up directly from HomeServe, but its main business is partnerships with municipalities. The company has 1,300 such relationships across the United States, including 48 in California.

drawing review

HomeServe has: drawn review and past legal problems marketing It’s based on consumer confusion about some of these partnerships and questions about the true benefit of the offerings. The company will operate in 2023 agreed to pay $850,000 for alleged violations of the Kansas Consumer Protection Act. HomeServe between 2010 and 2015 agreements reached with attorneys general or other government officials in six states during investigations.

HomeServe has denied any wrongdoing under those agreements, and a HomeServe spokesman said the company is in good standing with all the regulatory agencies it operates under. He said customers have saved more than $2 billion in repair costs, and when asked what percentage of policyholders file claims, he said, “On average, we perform some type of repair on a customer’s home every 46 seconds.”

PG&E’s Paulo said HomeServe went through a competitive solicitation and review process and the company is working with many other service providers. It added that “customers’ decision to sign up or decline the offer has no impact on PG&E service” and that “PG&E and HomeServe are working together to ensure customers better understand the relationship.”

On the subject of customer privacy and information sharing, Paulo said names and addresses are provided to HomeServe, but no financial or personal data, such as Social Security numbers, are shared. “Protecting customer privacy is a top priority for PG&E,” he said. Toney, the consumer advocate, acknowledged that PG&E is responsible for customer data.

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

“In Your Corner” is a column that makes watchdog reporting work for the community. If you have a concern, a tip, or a hunch, you can reach “In Your Corner” Columnist Marisa Endicott at 707-521-5470 or [email protected]. @InYourCornerTPD on X (formerly Twitter) and @InYourCornerTPD on Facebook.