Draft Order Would Deny Utility's Proposal To Offer Line-Item Billing Service for Non-Utility Providers (Affiliates)

A draft California PUC resolution would deny the application of San Diego Gas and Electric to provide line item billing service for non-tariffed products or services provided by non-utility providers, including utility affiliates

According to the draft, SDG&E proposes to initiate a program by which it will allow non-discriminatory access by third-party providers (including affiliates) of energy-related or home safety and convenience services approved by SDG&E. The service would offer customers the option to pay for specific approved products or services via their monthly SDG&E bill.

Under SDG&E's application, the service would be limited to SDG&E customers who receive an SDG&E bill and who have purchased an approved product or service from the service provider, "that has a fixed charge due either on a one-time or monthly basis."

"SDG&E will not include charges that vary from month to month. To reduce the volatility in payments for customers, only fixed monthly charges will be acceptable," SDG&E said in its application

Per the draft, the only example of such products or services SDG&E has provided, when asked, is a home warranty. In its application, SDG&E describes the relevant market for the program as, "encompass[ing] vendors that offer home safety, convenience or energy-related services."

Furthermore, SDG&E would condition acceptance of line-item billing for third-party service on the provider meeting the following criteria:

• Be compatible with SDG&E’s image of trust, integrity, quality and reliability among its customers and shareholders, be in full regulatory compliance; and

• Offer energy-related, or home, safety and convenience services that complement SDG&E core gas and electric services; and

• Be aligned with SDG&E customer services strategy and provide positive benefits to customers and ratepayers.

SDG&E's application was protested by various contractors which saw SDG&E enjoying a distinct advantage relative to third-parties.

The draft PUC resolution would deny the application.

"The requested authorization to establish Line Item Billing Service on a non-tariffed basis is too broad and lacks specificity. It places no limits on the type of products and services for which SDG&E could provide the billing services," the draft notes.

"With no limits in place on the type of products or services to be offered, approving this advice letter would provide no safeguards to limit the categories that could be placed on a line item basis on the customer bill. We are concerned that there would be a deluge of products and services appearing on customers’ utility bills," the draft notes.

Resolution E-4709

Advice Letter 2644-E