PUC: CenterPoint must separate natural gas and HomeService Plus bills
At a recent hearing, the Minnesota Public Utilities Commission (PUC) required CenterPoint to begin the process of separating its customers’ regulated gas service accounts from their unregulated HomeService Plus accounts. HomeService Plus (HSP) is an unregulated business operated by CenterPoint Energy offering appliance sales and warranty subscription services to natural gas customers.
This decision comes in response to a complaint filed with the PUC Consumer Affairs Office by a customer whose gas service was disconnected after CenterPoint improperly applied payments intended for her gas service, to her HSP and merchandise charges instead.
CUB is pleased with the PUC’s careful consideration of the customer complaint and its decision to implement comprehensive protections for consumers. Prior to the hearing, CUB, Legal Services Advocacy Project (LSAP), the Minnesota Office of the Attorney General, and the Department of Commerce reached agreement with CenterPoint to support a transition to separate billing. We believe this change will provide needed guardrails for customers in avoiding potential disconnection of gas service, and help eliminate confusion and misunderstanding about the optional, unregulated products and plans offered through HSP.
Read our previous article for a discussion of the difference between regulated and unregulated utility businesses, and for additional background on the customer complaint that initiated this proceeding.
PUC: “This was a really unacceptable situation”
At the March 27 hearing, the PUC expressed disappointment and frustration with CenterPoint’s early handling of the customer complaint, and agreed with commenting parties that this was “a really unacceptable situation.” The Commission found that CenterPoint’s method of default payment allocation enabled by the utility’s joint billing system was inappropriate, and that concrete steps were necessary to prevent further customer issues from arising in the future.
Historically, customers receiving natural gas from CenterPoint and enrolled in HSP received a single bill for both services. Under the joint bill, customer payments were automatically applied following a default allocation method that paid off unregulated business arrears before applying any remaining amount left to current gas service charges. This payment scheme increased the likelihood of customers falling behind on their gas bills, potentially leading to the disconnection of their natural gas service. The joint billing system also contributed to customers confusing which payments were required to receive gas, and which were optional as part of CenterPoint’s unregulated HSP business.
Customers who find themselves falling behind on their utility bill should have a clear understanding of which charges are required to keep their gas service on, and which can be cancelled to avoid accumulating further arrears. The PUC’s decision to fully separate gas and HSP bills will aid in this process. Customers will still have the same choices to sign up for HSP plans, but separate billing will make the distinction between unregulated and regulated service more transparent.
What will this change look like for customers?
Currently, customers who voluntarily sign up for HSP or purchase appliances through CenterPoint’s unregulated business receive their monthly bill for those charges on the same bill as their natural gas service. The unregulated service charges are also compiled under the same account number as the customer’s gas service.
Under the PUC’s new decision, customers will have two separate accounts for unregulated and regulated charges, and they will receive separate monthly billing statements for both. Bills will also include additional language clarifying the distinction between regulated and unregulated service, the order in which payments are applied to customer charges, and methods for submitting customer complaints to the PUC’s Consumer Affairs Office. Similar explainers will also be added to CenterPoint’s website.
While the PUC has ordered CenterPoint to begin unwinding the two businesses, this process will likely take months to complete. During that time, the utility is required to file regular updates with the Commission outlining the expected costs of compliance. CUB and other parties will continue to review these filings to ensure customers are not unduly burdened by the transition.
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