DENVER — Xcel customers seem confused about a mailer with an Xcel logo that is about a non-Xcel service.
“It came from Xcel or at least the envelope said Xcel Energy on it,” said Greenwood Village John Cormey.
“We thought it came from Xcel Energy. The letterhead says Xcel Energy,” said Arvada Xcel customer Allen Schanot.
Cormey and Schanot are just two of several Next with Kyle Clark viewers who reached out about a mailer selling protection plans for the part of a home’s electrical service that is not covered by Xcel.
“The impression was that they were using a scare tactic to try to get you to sign up for this insurance,” Cormey said.
“When we got this, I contacted Next,” said Schanot.
The mailer, promoting HomeServe USA protection plans, was sent in a partnership with Xcel and HomeServe.
“If I’d gotten this from HomeServe without Xcel’s logos on it, I probably wouldn’t have opened it, and if I did, after reading the first paragraph, it would’ve gone in the recycle,” said Cormey.
“If this would not have had the Xcel logo on the envelope, I probably would’ve torn it up and thrown it away as another spammy-type, somebody wants money. And they do, actually,” Schanot said.
For $5.99 a month, Xcel customers, through HomeServe, can insure the parts of their electrical system that are their responsibility, like the weatherhead or base that the meter sits in.
“I contacted my insurance company, and basically, as far as our house is concerned, we’d be paying money for no coverage whatsoever,” Schanot said. “Anything attached to the house is covered by our homeowner’s insurance and the wires that run under the ground belong to Xcel.”
For Schanot, his wires are underground. For homes elsewhere in the metro area, wires could be overhead and attached to the roof, so contact your homeowner’s insurance to know if you would be covered or not.
Cormey was confused by some of the mailer’s content and fine print.
“They say, ‘that’s why Xcel Energy has partnered with HomeServe, an independent company and leading provider of emergency home repair programs nationwide,” Cormey said.
Compare that to what is in the fine print.
“There is no partnership among or joint venture by HomeServe and any of Xcel Energy Inc., its regulated utilities, or its subsidiaries or affiliates,” Cormey said. “I find that confusing that they talk about partnering, but then say there is no partnership.”
In an emailed response, an Xcel spokesperson wrote:
“These are legitimate, co-branded mailers from both Xcel Energy and HomeServe. They are approved by Xcel Energy and are meant to introduce HomeServe as the service plan administrator and additional service offerings to our customers. As our customers’ trusted energy provider, the letter is meant to explain the protection plan’s value to customers – to minimize unexpected repairs on the customer side of the electric and natural gas meters.”
“I question, what does Xcel get out of the agreement? I assume there’s some compensation involved,” Cormey said.
“Now that we know that it’s a separate insurance company, we’re curious to know what Xcel’s cut is if they get a cut,” Schanot said.
We asked Xcel and HomeServe about the agreement and how much Xcel gets, and if Xcel gets a cut for each customer who signs up.
“The financial terms of the agreement are confidential,” an Xcel spokesperson said in the emailed statement.
The mailer also came with an insert about the protection plans signed by a vice president of customer care for Xcel Energy.
Xcel, in its statement, also pointed out that Black Hills Energy, in southern Colorado, is a partner with HomeServe.
Who, exactly, received the letter in the mail?
Schanot is most curious about that.
“Why, out of the blue, did we get this? We started wondering, who is the target audience for this? We were a little concerned that it’s targeting seniors,” Schanot said.
Demographics was a question sent to HomeServe Friday morning. How many mailers were sent, where and what was the criteria?
In response, a HomeServe spokesperson wrote that Xcel would address the questions about the mailer.
Xcel and HomeServe are separate, independent companies.
Next with Kyle Clark had not specifically asked Xcel about the mailer demographics when emailing questions about the mailer on Friday morning.
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