Homeserve USA may be getting gas!

Homeserve USA (aka Homeserv, HomeEmergency Solutions, HEIS, etc.) seems to have gotten into the gas insurance line business. I noticed that Homeserve USA had posted a wealth of pages that are indexed by Google, this tends to push pages or posts by other parties to page 2 and 3. Only about 5-8% of folks doing a search look past page 1 of the search results.

I found several articles in the LA Times addressing, " Homeserve gas issue".

• SoCal Gas, third-party insurer should disclose their sweetheart deal, February 23, 2015. The following is an excerpt from the article:

"This financial relationship should be disclosed to consumers. In fact, any sweetheart deal between a utility and a third party should be made clear to consumers, and the California Public Utilities Commission should make sure such marketing affiliations are completely transparent. 

Better still, utilities should be barred from peddling third-party services to customers. If they see value in repair insurance, they should simply educate customers about the possible risks to homes and provide the names of all available insurers."

• Water Service Line Repairs Insurance a SCAM! The following is an excerpt from an older article, Newport, RI: (older article, but interesting viewpoint)

"Asking The Newport Water Division division of the City of Newport's Department of Utilities ; “How many water service line repairs did you complete in 2012? In the last 5 years? In the last 10 years?"

I believe this insurance company is preying on the elderly in Newport and Aquidneck Island
Yes, Newport's water service is OLD! (Started in 1876)...but the water service lines that connect your home to the water main are not in need of any emergency repairs!"

•  No, SoCal Gas Does Not Endorse that Insurance Mailer Despite the Logo, excerpt from article:

"The statement to shareholders by British-based Home Emergency Insurance Solutions (HEIS) about its sweetheart deals with utilities sounded like a personal invitation addressed to David Lazarus at the Los Angeles Times: “In the U.S.A., we have been proactively working with local attorneys general and media commentators . . . to minimize the risk of any negative media commentary.”

Lazarus mentioned that as background in his piece about Southern California Gas Company’s business arrangement with HomeServe USA, the official name of the Connecticut-based subsidiary that markets its insurance policies through direct mail."

The profits must be significant to fund the continuing mass mail campaign, royalty payments to utilities and pay for the repairs to gas and water pipes.................................

SJWC Requested 22% Rate Increase 2016, 2017, 2018 GRC A1501002

The following is the list of some of the more visible contested Items, in SJWC Rate Increase Request (GRC A1501002) and their current status, as of 9/7/2015. The proposed rate increase is about 22% over the years 2016, 2017 and 2018. The overall increase seems excessive since inflation historically has been running very low, annually 3%, or less.

SJWC Requested Item	Status	Blogger Comment
WRAM full de-coupling of revenue and sales	Contested as of 9/18/15	PG&E got an ERAM, guarantees revenue independent of sales. Over the past 25 years have PG&E customers benefited?
WRAM contingent conservation programs	Contested as of 9/18/15	The proposed rate is 2,000 toilets a year, there are over 1 million toilets in SJWC system. Are you going to live long enough to get a free low flow toilet?
Staffing requests for 33 new staff positions	Contested as of 9/18/15	Since it appears that SJWC is delivering less water, has available man-hours(6 staff full-time) to use for NTP&S, do they really need 33 more staff people that we would pay for or would they be used for NTP&S?
Bonuses for Officers and Managers	Contested as of 9/18/15	Who should pay?You ( SJWC customers) or Shareholders? Shareholders set goals for their benefit, not SJWC customers.
Non-Tariffed Products and Services (“NTP&S”)	Tentative Agreement	Tentative Agreement, Appendix A Relates to staffing request, above.
Other financial items have contingent agreements or are pending and contested	Pending  as of 9/18/2015	Pending resolution of contested Items

I also have a previous post to this blog discussing the items above in more detail.

I also have a previous post to this blog discussing the items above in more detail.

Please send email,

 make your opinion heard!

 If you are concerned about these issues, send email to CPUC at: District 5 United eForm eMail  Simply click on the "eForm eMail" and you will get a page to fill out the information and specify the reason for your opposition to the currently contested issues and continuing requests to de-couple their revenue from the requirement to do business efficiently and your concern about their lack of openness and transparency. 

Please consider pasting the following when you fill in the eForm:

"I OPPOSE SJWC paying management and officers bonuses with money included in our water rates, bonuses benefit shareholders, shareholders should pay the bonuses. I oppose a WRAM separating revenues from sales, I oppose using regulated staff for unregulated projects with insufficient controls, reporting and evaluation of the risk/reward for ratepayers. I oppose proposals by SJWC that discriminate against seniors or other classes of SJWC ratepayers. Reference San Jose Water Company (SJWC) GRC 1501002."

You can also send an email to express your opinion on who should pay the bonuses you or the shareholders:

CPUC Public Advisor public.advisor@cpuc.ca.gov  Reference San Jose Water Company (SJWC) GRC 1501002.The Public Adviser will insure your email will be sent to all the appropriate CPUC staff members. 

Other people to drop an email (note) and express your opinion are:

• Scott Herhold, San Jose Mercury News, sherhold@mercurynews.com
• Paul Rodgers, San Jose Mercury News, progers@mercurynews.com
• Julie Putnam, NBC Channel 5, julie.putnam@nbcuni.com