Concerns mount over Xcel’s billing and service quality
On Monday, September 22, CUB filed comments with the Minnesota Public Utilities Commission (PUC) supporting an investigation into Xcel’s service quality.
Xcel fell short of meeting the PUC’s standards for both telephone response time and customer complaints this year. Because many of these complaints were related to billing errors, the PUC initiated an investigation to identify and address the causes of these issues. A group of large commercial customers also requested the PUC conduct a broader investigation of Xcel’s customer care and billing systems after reporting incorrect invoices and other service issues.
CUB has heard from many residential customers about similar problems with Xcel’s billing, customer service, and online account information. While we try to work with Xcel to resolve individual complaints whenever possible, the recently growing number of concerns suggest a broader problem. We agree an investigation could shed some light on these issues and help improve service quality going forward.
Setting Up Payment Agreements and Providing Information on Assistance Resources
By law, utilities are required to offer customers an opportunity to enter into agreements to pay down their past due balances. These payment plans must be based on what each individual customer can afford. Xcel started using a PUC-approved framework to negotiate payment plans earlier this year, but confirmed it would offer alternative terms if the standard options were still unaffordable. In these circumstances, the customer is supposed to be referred to higher-level agents that have authority to set more flexible terms. Unfortunately, we’ve heard these referrals don’t always happen. If they do, customers may need to speak to multiple agents before they are able to reach an affordable payment agreement.
In addition to these issues, we have concerns that Xcel is not always providing information about available assistance resources. For example, if a customer calls Xcel about a disconnection notice or past-due bills, they should be informed about the Energy Assistance Program, which provides financial relief to qualified households. Customers that are eligible for this assistance could likewise enroll in Xcel’s own PowerOn program, which lowers the percentage of income participants spend on utility bills and aids customers in paying down past-due balances.
Missing Information in Online Account Portals
CUB was contacted earlier this year by a customer whose Xcel bills showed household electricity usage increasing 80 percent compared to the same period the previous year. The customer tried to access their online “MyAccount” portal to see what might have caused the change. Unfortunately, they were unable to see any of their energy usage or cost information online, even after having a smart meter installed at their home.
Although Xcel confirmed that the customer’s meter was working, they were also unable to access the energy usage data. It’s difficult to pinpoint the cause of the customer’s unusually high energy usage without this information. It also eliminates a primary benefit of smart meters: understanding household energy use and allowing customers to make adjustments to help lower bills.
Incorrect Information about Xcel’s Time-of-Use Rate
CUB was also concerned to learn that Xcel displayed the wrong rate information on at least one customer’s MyAccount portal. The customer was enrolled in Xcel’s time-of-use (TOU) pilot rate, which charged different amounts for electricity depending on the time of day. From 3:00 to 8:00 p.m., the costs were highest, and from midnight to 6:00 a.m., they were lowest. Under this rate, knowing when higher prices are being charge is critical: the purpose of a TOU rate is to allow customers to adjust their energy usage and save money on their bills while reducing peak electricity demand across the system.
Unfortunately, the customer’s MyAccount portal showed the wrong time periods for Minnesota, and instead displayed Xcel’s TOU rate for its Colorado service territory. As a result, the customer adjusted their energy usage based on incorrect information, potentially resulting in higher bills. At least one other individual indicated they faced the same issue, which raises the question of whether this was a widespread problem.
Uninformed About Rate and Program Options
CUB has also received several complaints about Xcel’s representatives lacking updated information on available rates and program options. For example, a customer who just installed an air source heat pump sought to enroll in Xcel’s electric space heating rate, which charges customers less if they heat their homes with electricity. In June, Xcel’s electric space heating rate was updated to be even cheaper—only 6.537 cents per kWh (“¢/kWh”), down from 8.2 ¢/kWh. However, when the customer contacted Xcel to enroll in August, the representative informed them the rate had not changed. After hearing this, CUB confirmed that the PUC had reduced the electric space heating rate and contacted Xcel. Xcel clarified with the customer that the reduced rate was correct and revised their website (which still showed the outdated rate) to reflect the changes.
Although we appreciate Xcel’s quick response, we have received similar reports about Xcel representatives not referring customers to the electric space heating rate, being uninformed about the sales tax exemption for electric heat, or generally having difficulties discussing different rate options.
Have you had issues with your service quality?
CUB appreciates Xcel’s willingness to address the complaints of individual customers as we raise them. However, we are concerned that these issues are just one part of a broader problem and believe a Commission investigation could help identify areas for improvement.
If you have experienced similar issues with Xcel’s service quality, billing systems, or MyAccount portal, you can share those concerns with the PUC by filing a public comment. The deadline is November 6 at 4:30pm. Make sure to reference “Docket 25-27” so your comments make it to the right place. Please be aware that everything in your comment, including your name and any contact information you include, will be part of the public record.