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Pennsylvania Utility Seeks Declaratory Order For "Unwritten" Affiliate Arrangement That Would Facilitate Utility's Billing Of Non-utility Services From Selected Third Party
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Columbia Gas of Pennsylvania, Inc. ("Columbia") has sought a declaratory order from the Pennsylvania PUC affirming that a ruling from the Pennsylvania Supreme Court, concerning an electric utility's billing of a non-commodity offering, also applies to Columbia's sought billing of non-supply and non-utility services from a selected, unaffiliated third party
The petition is Columbia's latest approach for approval to offer and bill for certain service plans and products from Oncourse Home Solutions, LLC, a selected non-affiliated third party, on the Columbia bill.
See full background on the prior proceedings in our previous stories here:
• Affiliated interest agreement proceeding, as a step needed to facilitate Pivotal's billing on Columbia bills
• Rate case proceeding addressing non-discrimination provision
In brief, the PUC in 2018 found that Columbia's offering of "on-bill" billing functionality (for non-utility and non-supply services which were included on the Columbia bill) to only select providers (and not all providers) was discriminatory
In response to the 2018 order, Columbia elected to comply with the non-discrimination provisions by ceasing the offering of "on-bill" billing for any non-commodity service
However, in 2025, Columbia sought approval of an affiliated interest arrangement necessary to allow on-bill billing for non-commodity services from a selected third party (Pivotal Home Solutions, LLC, which is now named Oncourse Home Solutions, LLC). As previously reported, Pivotal was not an affiliate of Columbia, but an affiliated interest arrangement (AIA) between certain NiSource companies was needed to facilitate such billing. Columbia in 2025 did propose to offer on-bill billing for non-commodity services to all providers under what Columbia said were non-discriminatory standard terms
As first reported by EnergyChoiceMatters.com, the PUC denied on procedural grounds Columbia's 2025 requested relief concerning on-bill billing, finding that Columbia could not seek to implement on-bill billing through what Columbia had sought to position as a compliance filing to the 2018 order described above, rather than through a petition pursuant to Section 5.41 or other appropriate pleading
In its new petition for a declaratory order, Columbia seeks affirmation from the PUC that the on-bill billing
program related to an affiliated interest arrangement (necessary for billing, with the provider [Oncourse] not being a Columbia affiliate) does not constitute the provision of utility "service" under the Public
Utility Code. Columbia says that the PUC must make such a finding in light of a 2025 Pennsylvania Supreme Court decision [Interstate Gas Supply, Inc. v. Pub. Util. Comm'n, 343 A.3d 1152 (Pa. 2025)]
In September 2025, the Pennsylvania Supreme Court ruled that FirstEnergy Pennsylvania's provision of on-bill billing for FirstEnergy Pennsylvania's own non-commodity services does not constitute the provision of utility "service" under the Public
Utility Code, and therefore FirstEnergy Pennsylvania does not violate any anti-discrimination provisions to the extent on-bill billing is not made available to retail suppliers
The Court, with respect to FirstEnergy PA, had ruled that Section 1502 of the Public Utility Code prohibits a public utility from acting in a discriminatory manner only, "in the
performance of its duties under the Code".
The Court found that an electric utility's duties
relative to customer billing, under Section 2807(c) of the Code, are limited to, "billing customers for all
electric services".
In brief, the Court, with respect to FirstEnergy PA, held that non-commodity goods and services are not "electric services" which an electric utility such as FirstEnergy PA provides and bills for pursuant to the utility's duties under the Code
As non-commodity goods and services are not provided under an electric utility's statutorily required duties, the billing of non-commodity goods and services is not subject to the non-discrimination provisions applicable to electric services, the Court held
Columbia argued that the PUC must reach the same finding with respect to on-bill billing by natural gas utilities, arguing that nothing distinguishes the natural gas statute from the electric statute on this matter
Columbia argued that, "An NGDC’s provision of on-bill billing for nonbasic services does not constitute
'service' under Section 102 of the Code or 'natural gas distribution service' under the Natural
Gas Choice and Competition Act."
In light of the PA Supreme Court's decision, Columbia argued that, "the
Company’s on-bill billing program is not subject to the Commission’s jurisdiction and does not
require Commission approval for its implementation."
However, even if the PUC disagrees, Columbia said that Columbia's latest proposal complies with the 2018 non-discrimination order, and therefore the relevant Affiliated
Interest Arrangement (AIA) should be approved
Columbia said that, "Columbia will provide on-bill billing
service to all entities that meet standard terms and conditions in a non-discriminatory manner."
Columbia did not in its petition include a proposed tariff or other document setting forth such "standard terms and conditions".
In its 2025 filing, Columbia had included a general outline of then-proposed standard terms and conditions, but at such time did not include specific fees (see prior proposal here)
In connection with its petition, Columbia sought approval of an "unwritten" Affiliated
Interest Arrangement (AIA) between Columbia and NiSource Development Company to facilitate the on-bill billing of non-commodity (non-basic) services offered by non-affiliate Oncourse Home Solutions, LLC. Such services may include service line plans, appliance repair plans, plumbing protection services, and HVAC maintenance programs.
Under an agreement, NiSource Development Company, a Columbia affiliate, would grant to non-affiliate Oncourse Home Solutions, LLC (f/k/a Pivotal Home Solutions, LLC) a non-exclusive license to use NiSource service marks in marketing the non-commodity services. Oncourse will pay NiSource Development Company a revenue share based on the number of customers selecting the non-commodity services
Additionally, Columbia and Oncourse would enter into a billing agreement under which Oncourse shall pay an annual fixed fee for billing services, and
monthly volumetric billing fees. Additionally, Oncourse will also pay setup and maintenance fees
for IT related interfaces.
Columbia will make information about Oncourse's home protection services available through IT
interfaces such as Columbia's website, mobile app, interactive voice response ("IVR"), and the
Start/Stop/Move process.
Docket P-2026-3063860
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July 14, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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