Overbilled customers will get credit on 2009 Windsource bill

By Roger Fillion, Rocky Mountain News (Contact)

Published January 8, 2009 at 9:15 p.m.

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Xcel Energy said it reached agreement with Colorado regulators to refund customers of its Windsource renewable energy program $1.6 million to settle allegations it overbilled consumers.

The proposed refund, to come in the form of a credit for Windsource customers, must still win approval from the three-member Colorado Public Utilities Commission.

The plan comes after PUC staff members accused Colorado's largest utility of collecting too much money from Windsource customers beginning in 2005 through 2007.

The proposed pact brings together Xcel, environmental groups, the PUC staff and others. It is in line with a pact that PUC staffers proposed earlier.

The $1.6 million refund would cover $1.5 million in alleged overpayments by customers and $100,000 in interest.

Xcel launched Windsource in 1998. The program gives Colorado consumers a chance to pay a premium to support the development of electricity generated by Colorado wind farms. About 47,000 customers have enrolled.

Late last year PUC staff members alleged that Xcel sold credits from 2005-07 for more green energy than it actually produced through Windsource.

Under the proposed settlement, Xcel Energy would give Windsource customers a credit in the form of a lower 2009 Windsource rate.

The amount was negotiated by the PUC staff.

As a result, Windsource customers still would pay a slight premium in 2009 over the retail rates of $1.59 per 100-kilowatt hour block of renewable energy.

That would amount to less than $10 a month for an average residential customer to be fully subscribed, Xcel said. Windsource rates will be set annually.

Xcel said the premium is intended to reflect the extra cost of adding more renewable resources, including solar and biomass facilities.

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