yellow spikes

I have had two Jades for about 6 months now, and they are both doing pretty well. I noticed recently however that the larger of the two seems to be growing some yellow spikes at the base in the soil. I have noticed a bit of fuzz on them, but have no idea what it might be. Living in Alberta, there is not much sun during the winter months, and from reading I have already noticed that I am probably over watering it. Any thoughts?

 

Sounds like some kind of fungal fruiting bodies or similar phenomenon.

 

1. Is this bad?
2. How can I treat it, and what may be the cause?

 

Mushrooms maybe? If so, they are pretty harmless, just pull them out and water less.