A letter of authority is an authorization document. Its effect comes from the actual language signed. Read the permissions, duration and covered accounts before giving access or authority.
The document defines the authority
It may permit data collection, utility communication, quote requests or broader actions. Some documents contain execution powers, exclusivity, fees or incorporated agreements. The LOA title does not establish limits.
Level 1 and Level 2 are not universal legal standards. Ask for a written explanation of each permission and the clause that grants it.
Verify the account list
List legal entities, accounts and meters. Confirm signing authority for each. A manager may need owner approval; an owner may lack authority over a tenant's separate account.
Define how accounts are added or removed. Avoid unexplained blanket authority over future properties.
Signing checklist
- Data access, use, sharing and retention.
- Quote-only or execution authority.
- Switching, renewal or cancellation powers.
- Exclusivity and delegation.
- Fees and incorporated agreements.
- Start, expiration and revocation procedure.
- Recipient identity and contact details.
Separate data access and supply approval
If the intent is data access and quoting only, require that limit in writing. Preserve owner approval for execution when intended. Verbal assurances should not conflict with signed language.
Read any attached service agreement: requesting quotes and hiring a paid advisor can create different obligations.
Bound the data process
Share information necessary for the stated review through the agreed channel. Specify purpose, retention and access controls. Keep every signed version.
Revocation and assignment closure
Follow the document and applicable utility procedures. Obtain confirmation that access and authority ended. Revocation does not automatically undo earlier actions or obligations under another agreement.
When to obtain legal review
Review execution powers, broad exclusivity, unclear fees, indemnities and long duration with counsel. Applicable rules differ by state and transaction; no form should be treated as inherently safe.
Sources and scope
- ENERGY STAR: building benchmarking
- New Jersey BPU: commercial energy shopping and contract questions
- Illinois Power Agency: customer electric choice
- DOE: energy management information systems
- DOE: re-tuning existing buildings
Reviewed October 12, 2026. Confirm effective tariffs, program rules and signed terms for the actual account. Hypothetical examples are planning calculations, not current offers or client results.
Request a property energy review