What’s with the Mailers Offering Home Protection Plans to PG&E Customers?

Source: The Press Democrat  |  By Marisa Endicott

One of the seven pages in the mailer explains that HomeServe is not an affiliate of PG&E and that the utility “is not responsible for, and does not endorse or provide guarantees for, plans offered by HomeServe.” But the packet 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 home protection plans from HomeServe.” He goes on to say that “HomeServe is a trusted provider of home protection programs” and that customers can now enjoy “the convenience of” having the company’s charges added to their PG&E bill. It also provides PG&E with revenue in the form of a fee paid by HomeServe for billing and payment processing services. Most of that fee “is used to lower rates, keeping the prices customers pay lower than they otherwise would be,” according to a PG&E webpage, although Paulo declined to provide a percentage.

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