Ask About Windsource
Q: I am a Sierra Club member and an energy consumer of Xcel Energy. I recently received the Windsource green pricing option to pay additional money monthly on my energy bill to support wind power. Is this program legitimate? As a concerned citizen, should I buy Windsource?
A: The Sierra Club and several other environmental organizations support Xcel Energy's Windsource program as a way for citizens to demonstrate an increased demand for clean, safe wind power. Such green pricing programs, which rely on ratepayers paying additional premiums for renewable energy, are one step toward a clean energy future. At the same time, they are not an adequate substitute for an aggressive renewable energy standard set by the state. Minnesota's energy future requires that citizens hold state decision-makers accountable for developing a 20% renewable energy standard which supports renewable energy and ends Minnesota's dependence on harmful non-renewables (i.e. coal and nuclear.)
Xcel Energy (like all Minnesota electric utilities) is required by state law to provide consumers with an option to buy renewable energy through green pricing programs. Windsource - Xcels green pricing program - is an optional utility service which allows consumers to support a greater level of utility investment in wind power by paying a premium on their electric bill. Windsource allows Xcel Energy to develop wind resources in areas of Minnesota where wind speeds are less than optimal and where wind may not be as competitive with other forms of electricity. In places like Buffalo Ridge, high average wind speeds mean that wind is the least expensive form of power and therefore should be developed without the use of Windsource funds. According to Xcel Energy, Windsource will fund the program costs associated with Xcel Energy purchasing wind power from private owners of wind turbines and new wind generation facilities in Minnesota. "All Windsource wind energy will be separate from and in addition to any other wind energy requirements or mandated wind energy purchases (ex. Prairie Island related wind requirements)" (Xcel Energy's FAQ for Windsource).
Windsource costs $2.00 per 100 kWh block more than your additional base electric rates. Consumers can opt to purchase any number of 100 kWh blocks up to their full electric usage monthly. The average household uses 700 kWh, so purchasing 100% of the average households energy use in Windsource would mean an additional $14.00 per month on the electricity bill. Note that your Windsource investment does not mean wind-generated energy will immediately power your home; rather, it means that you are financially supporting making wind energy a greater source of the electricity generated by Xcel Energy.
Xcel Energy will be held accountable for using Windsource funds appropriately: it must file annual reports with the Minnesota Department of Commerce and Minnesota Public Utilities Commission, accounting for program revenues and expenses and wind generation and sales. In addition, all wind facilities supplying the Windsource program will be certified by the Minnesota Department of Commerce.
The Sierra Club North Star Chapter suggests consumers contact decision-makers and tell them to support a 20% renewable energy standard. Such a standard is the only way to ensure increased investments in safe, cost-effective, and reliable forms of renewable energy, like Buffalo Ridge wind power. A renewable energy standard is preferable to green pricing programs like Windsource and would eliminate the need for such programs. In the interim, the Sierra Club encourages consumers who can afford to show demand for renewable energy through green pricing take advantage of the opportunity. For more information on Sierra Club's proposed renewable energy standard, please visit www.sierraclub.org/energy. To sign up for Windsource, visit www.xcelenergy.com or call 612-659-9124.
Contact: Cesia Kearns, Sierra Club Clean Air Organizer,