PG&E will end a new program that provides billing services for a company that sells home protection plans, which caused confusion and concern among customers.

Last month, PG&E customers contacted The Press Democrat about mailers they received from HomeServe, a national home repair provider.

The flyers advertised insurance for properties’ outdoor water pipes and electrical systems. Although the package stated that PG&E did not endorse or guarantee the products, it included a letter from a PG&E vice president touting the service. Recipients responded with questions about their data privacy, the necessity of the plans, or whether the offer was simply an attempt at a scam.

In reality, it was PG&E’s first attempt to offer billing to select third-party companies, with the utility giant receiving a fee for processing payments.

“We took into account the feedback we received from customers. They had confusion about the offer and there was also a low acceptance rate of the program, so we decided to end it,” PG&E spokesperson Lynsey Paulo told The Press Democrat.

For now, that applies to both its partnership with HomeServe and its consolidated billing offering with any other company, she said.

PG&E began notifying customers who signed up on Friday. In October, HomeServe said more than 5,000 PG&E customers had signed up. Those who continue with a protection plan will now receive bills from HomeServe and pay the company directly. Those wishing to cancel can call HomeServe at 1-833-572-2846.

HomeServe declined to comment on PG&E’s decision to end its consolidated billing program. A spokesperson said HomeServe is also contacting customers to give them the option to continue or cancel coverage. “We want to ensure customers have the flexibility given the changing circumstances,” he said.

The company’s operations are primarily driven by similar partnerships with municipalities and utilities, including 48 in California and more than 1,300 nationwide. These relationships, and related marketing efforts, have attracted attention in other states due to consumer confusion and questions about the benefits of services. In 2023, HomeServe paid $850,000 for alleged violations of the Kansas Consumer Protection Act and settled with attorneys general or other state officials in six states during investigations between 2010 and 2015. HomeServe did not admit to any wrongdoing in these cases, and a spokesperson previously said the company is in good standing with all regulatory agencies where it operates.

Assistant District Attorney Brian Staebell said the Sonoma County District Attorney’s Office has received complaints from the community about the mailers and is investigating the matter.

Customers who do not wish to receive future marketing materials from PG&E can opt out through their online accounts.

“In Your Corner” is a column that puts watchdog reporting to work for the community. If you have a concern, tip or suspicion, you can reach “In Your Corner” columnist Marisa Endicott at 707-521-5470 or [email protected]. On X (formerly Twitter) @InYourCornerTPD and Facebook @InYourCornerTPD.