Xcel is accused of sending fraudulent insurance emails

BOULDER, Colorado – The city of Boulder wants Xcel Energy investigated for emails sent by a third-party company with which Xcel works.

HomeServe offers warranty services for equipment that may be the responsibility of the owner.

The city of Boulder asked the Colorado Public Utilities Commission (PUC) to investigate Xcel and HomeServe for “predatory business practices.”

“We've heard from many community members asking if it was real, expressing concern about receiving the letter, and wondering if they should sign up or register because they're afraid of future outages,” said Carolyn Elam, Boulder's senior sustainability manager.

These are the same HomeServe mailers that customers spoke to 9NEWS about in April and questioned the legitimacy of.

As part of the investigation into the April Public Safety Power Shutoff (PSPS), Boulder brought the emails sent by HomeServe to the PUC's attention. Boulder said they were sent within days of the April PSPS and again after the nearby wildfires in August.

“Boulder would like to take this opportunity to express to the Commission its concerns about what it considers to be predatory practices by HomeServe USA Repair Management Corporation (“HomeServe”), which allegedly entered into an agreement with Xcel Energy to market insurance coverage for off-site electrical infrastructure to Xcel Energy's customers, including customers of its Colorado operating company, Public Service,” the city's PUC filing said.

“Especially so soon after this proactive power outage, it was really concerning,” Elam said. “In our view, and in my view in particular, that certainly borders on a pretty aggressive approach, and that concerns us.”

In response to the PUC, Xcel said:

“The Company understands that Boulder has raised certain concerns and speculated in this proceeding about alleged business practices related to mailings from HomeServe USA Repair Management Corporation (“HomeServe”). The Company disagrees with Boulder's representations. Public Service understands that HomeServe's mailings to customers following the storm were purely incidental in nature. Therefore, Boulder's allegations are without merit.”

“When it happens so close together, and then twice so close together that customers in our community experienced particularly severe outages, that was very concerning to us,” Elam said. “I don't know if it was intentional. I think it was definitely a miscalculation.”

In a statement emailed to 9NEWS, an Xcel spokesperson said, in part, “The scheduled HomeServe mailings had nothing to do with the timing of the power outages and mailings are scheduled months in advance before they land in a customer's mailbox. The HomeServe and Xcel Energy teams are working together to more closely monitor marketing mailing schedules and pause, delay or reschedule them as needed.”

A HomeServe spokesman also said the timing was coincidental.

“From time to time, HomeServe customers will receive information about these service plans in the mail. These mailings are scheduled months in advance and their arrival at customers' homes is entirely dependent on other local activities or weather events that may occur,” a HomeServe spokesperson said.

The PUC does not regulate HomeServe because it is not a public utility, but a PUC spokeswoman said state regulators ensure customers are not subsidizing HomeServe.

“Our citizens obviously need to know that they are responsible for some of the utility infrastructure,” Elam said. “If we want to send a positive message to customers about their responsibility, we need to encourage them to check with their home insurance provider, the agent they use for their regular home insurance, what is and isn't covered, and then make informed decisions.”

The simplest way to understand responsibility is that Xcel is responsible for the equipment from the meter on your house to the pole, and the homeowner is responsible for problems from the meter to the house. However, if something, such as a tree branch, falls on a line and causes damage outside the house, you could be responsible.

It is best to first check with your insurance company whether you are covered or whether you need additional protection.