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Utility To Allow Non-Commodity Services To Be Billed On Utility Consolidated Bill, Subject To Conditions

July 1, 2025

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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Columbia Gas in Pennsylvania has informed the Pennsylvania PUC that Columbia will allow third parties, including retail natural gas suppliers, to bill non-commodity services through Columbia's utility bill in Pennsylvania (called "on-bill" billing)

Prior to 2019, Columbia had limited, to only two select third-party providers, the availability of "on-bill" billing

However, as previously reported, the Pennsylvania PUC had in 2018 found that Columbia's earlier practice in the offering of "on-bill" billing was, "discriminatory."

The PUC had earlier directed Columbia to resolve the matter in a nondiscriminatory manner. Rather than opening on-bill billing to allow all providers to use the service, Columbia in 2019 elected to cease the offering of on-bill billing to any third party, thus complying with the PUC's nondiscrimination order

See details on the prior PUC order here

However, Columbia has now notified the Pennsylvania PUC that Columbia intends to change its practice, and to now permit on-bill billing by third parties.

"Columbia will provide such a service to all entities that desire the service on a non-discriminatory basis," Columbia said

The on-bill billing service will be open to any third party, not only retail natural gas suppliers.

Columbia noted that, under applicable law, a customer’s service may not be terminated for nonpayment of nonbasic charges.

Columbia further said that it shall apply various limitations and conditions with respect to requests for on-bill billing, as discussed below

Columbia will offer on-bill billing via a, "written, contractual framework," and provided to the PUC a, "general outline," of the, "standard terms and conditions," that will apply to any third-party requests for on-bill billing

As further detailed below, Columbia will impose the following fees for on-bill billing: an initial set-up fee, an annual fee for the billing systems, a base access fee to integrate with Columbia's IT systems, an annual IT integration maintenance fee, and a monthly per-customer billing fee.

Columbia did not list the amount of any fees in its notice

Columbia said that contracts for the on-bill billing service would have, "[a] long initial term, typically spanning multiple years".

Columbia would impose insurance requirements as part of the on-bill billing service contracts, as follows: "comprehensive insurance coverage, including general liability, auto liability, umbrella/excess liability, cyber liability, professional liability, and workers’ compensation that conforms with company standards".

More specifically, Columbia specifically listed the general outline of the standard terms and conditions that will apply to any third-party requests for on-bill billing as follows:

Entry Fee and Annual Billing Fees

Third parties are required to pay a one-time entry fee to cover Columbia’s internal and external costs associated with integrating the third party into Columbia’s billing system. Additionally, an annual billing fee is charged to support baseline billing system services and is invoiced in equal monthly installments.

Monthly Per-Customer Billing Fee

A recurring monthly fee is assessed for each customer billed through Columbia’s system. This fee is designed to recover the incremental cost of including and processing third-party charges on customer bills.

IT Integration, Maintenance and Modification Costs

Third parties must cover the cost of access to customer-facing systems such as websites, IVR, and mobile apps. This includes a base access fee and an annual maintenance fee. If enhancements or additional services are requested beyond the baseline support, Columbia may charge additional fees based on actual costs incurred. Access to IT integration services and customer list data described below is contingent upon payment of the entry fee and annual billing fees.

Customer List Access and Associated Fees

Upon request and subject to applicable privacy policies and customer preferences, Columbia may provide updated customer lists. A recurring fee applies for this service. Third parties are required to delete outdated lists upon receipt of new ones and certify compliance. Additional provisions may allow for integration with utility communication channels, such as website links, subject to feasibility and security considerations.

Contract Term Lengths

A long initial term, typically spanning multiple years, with automatic renewal periods unless terminated with advance notice. This structure provides long-term stability while allowing for periodic review and adjustment.

Insurance Requirements

Third parties must maintain comprehensive insurance coverage, including general liability, auto liability, umbrella/excess liability, cyber liability, professional liability, and workers’ compensation that conforms with company standards.

Indemnification

Third parties are required to indemnify Columbia against claims arising from breaches of the agreement, issues with covered products, or allegations that Columbia is acting as a debt collector or advertiser on behalf of the third party.

Data Privacy and Security

Strict obligations apply to the handling of customer information. These include compliance with all applicable data privacy laws, restrictions on data use and sharing, incident reporting requirements, and annual audits. Data must be stored and processed within the United States.

Confidentiality

All customer and business information must be treated as confidential. Unauthorized use or disclosure is prohibited, and violations may result in injunctive relief and other remedies

Apart from these standard terms, Columbia did not include in its filing additional specific language or specific fees for the program

PUC Docket R-2018-2647577

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