Is Windsource a scam?

In response to my post about my new electric hot water heater, one reader, Ed (who prefers to keep his last name anonymous) claimed that Xcel Energy’s Windsource program is a scam.  If you are not familiar with Windsource, it is an optional program that gives Xcel customers the option of having part or all of their electricity come from wind.  The customer pays a small monthly premium for this option which I find irritating since renewable energy is now cheaper to produce than energy from fossil fuels. Windsource has been around since 2003. Xcel is Minneapolis-based and serves 3.6 million customers in eight states: Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin.

In summary, Ed alleged that the program is an excuse to charge customers more money.  He said that there was no connection between the number of Windsource customers and any increases in Xcel’s conversion to wind-generated electricity.  Ed also said that Xcel had staff members who were tasked with discouraging commercial customers from installing roof-top solar on their buildings.  Because of the rate structure and the larger profits from commercial electricity use in comparison with residential, Xcel was desperate to keep “cash-cow” commercial customers. 

                                            Wind turbines and bison, Bent County, Colorado                    

I’ve done a brief search on the internet and can find no articles which back up Ed’s claims.  You would think that investigative journalists would have been all over this story if it were leaked that Windsource was a scam and Xcel was pressuring commercial customers not to go solar.  It is possible that such shenanigans were going on 15 years ago and have since been cleaned up.  By the way, Ed agrees that the situation may be different in 2022.

My internet search did turn up one article regarding a proposed $2.6 million settlement over claims that Xcel oversold Windsource credits from 2005 to 2007.  The Colorado Public Utilities Commission said that Xcel sold more credits for wind-generated energy than they were actually able to produce from 2005 to 2007.  Here is the link to the article:  http://www.windaction.org/posts/18604-judge-reviews-2-6m-settlement-over-claims-xcel-oversold-energy-credits#.Yf7kxNXMLIU

Xcel has committed to be 80% carbon-free by 2030 and with 100% of its production from renewables by 2050.  I would think that commercial buildings installing rooftop solar would make it easier for them to reach those goals even if it cost them some revenue.  Maybe I’m naïve.

If any readers can find documentation backing up or disputing Ed’s claims, please enter the information in the comments section of this blog (including links to websites or articles).

© Will Mahoney 2022

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