James Hunter

Thursday, April 16, 2015

Home Emergency Insurance Solutions (HEIS, Homeserv USA) 2015, GRC 1501002

San Jose Water Company Lobby

"My name is James, James Hunter, I prefer my Exhibits filed not served", it certainly makes it more difficult to get to the information that is actually public when they're served as hardcopy. The commitment to openness and transparency may be "slowly" improving, but it still requires more effort than it should.

Update 5/3/2015

  • Filing – A document, such as written comments or a motion, which is provided to the CPUC’s Docket Office, to become part of the record for a specific proceeding. 
  • Served – A document, which is filed with the CPUC as part of a proceeding, is provided to all the parties on that  proceedings' service list.

This allows utilities, such as San Jose Water Company make it more difficult to access the information.

I've spent 12 hours or so reviewing the Exhibits that were not published (online at the CPUC website) in the General Rate Case (GRC) 1501002. SJWC served (delivered hard copies of Exhibit E, F, G, H, I and J). I've been able to review Exhibits E, F, G, and I. I expect to make several more visits, to finish reading the served Exhibits. The photo to the left is the SJWC Lobby where I've been reading the Exhibits.

I've had a lot of traffic to the blog pages devoted to the insurance offered by Home Emergency Insurance Solutions and gotten quite a few comments:

San Jose Water Company has not published any specific information about the financial relationship between HEIS and San Jose Water Company. I noticed that the non-tariffed services provided by SJWC were referenced, in the GRC filing 1501002, page 8 & 9:
i) Non-tariffed Transactions: Non-tariffed products and services are offered in compliance with the Affiliate Transaction Rules adopted in D.10-10-019, as modified by D.11-10-034. Non-tariffed 


 projects are detailed in Exhibit E, Chapter 8, and in Exhibit F, Chapter 8, WP 8-19. These contracts are a lease operation of the City of Cupertino water system, miscellaneous services contract with the City of San Jose, meter testing services, coordination with Home Emergency Solutions to provide customers information regarding optional water service line insurance coverage, as well as leases for antenna space to telecommunication companies on various water facilities. Any revenue generated by non-tariffed offerings is allocated between ratepayers and shareholders in accordance with the methodology adopted in D.10-10-019. 
I noticed that the non-tariffed services provided by SJWC were referenced in Exhibit E, Chapter 8, Page 6:

This leads to a spreadsheet on Non-Tariffed Business Revenues  in Exhibit F WP-16:

An estimate of roughly 4000 policies were sold to the roughly 200,000 ratepayers served by San Jose Water Company, during 2014. This is roughly 2% annual penetration of the available market.

Update 4/26/2015 and 5/3/2015
The number of SJWC customers who purchased HEIS water pipe insurance "was" said to be 18,000. Since the number of customers was roughly 4,000 for 2014, HEIS would have to have sold over 12,000 new policies in 2015, during the first four months..............18,000 x $4.95 x 12 = $1,069,200,of this amount of premiums SJWD would likely get $106,920 and ratepayers would receive $10,692 (10% for a passive activity by CPUC. The question then becomes did HEIS sell 10,000 - 12,000 policies to date in 2015? 

Homeserv/HEIS stopped sending me the postal mailers for the insurance, last year I wonder why? If anyone would like to send me a copy they received and the envelope (please use a black marker to cover your name and address) I'd be happy to publish a copy of the current mail piece and compare it with the originals.

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