Have a potential client here in Cincinnati (Duke Energy territory) who wants to modify my standard Letter of Authorization. They want to add language limiting my access to "only current month bills" and excluding any historical analysis beyond 12 months. This seems like they're trying to hide something. Red flag or am I being paranoid?
Client wants to modify standard LOA - red flags?
Cecilia - huge red flag. Most of the big savings are found in historical data, especially demand billing errors and rate schedule misapplications. Why would they limit historical access unless they know there's something there? I'd walk away or demand to know why they're imposing those restrictions.
Agree with Sylvia. Up here with Idaho Power I had a similar situation last year. Turned out they had already done an internal audit and found $45k in billing errors but wanted me to find "additional" savings without giving me credit for what they already knew about. Total waste of time.
Red flag for sure. Alabama Power territory here in Huntsville - I insist on at least 24 months of historical data, preferably 36. That's where you find the demand ratchet errors, seasonal rate optimization opportunities, power factor issues. If they won't provide it, they're not serious about finding real savings.
I'd counter-propose with "Client will provide minimum 24 months historical data or Consultant reserves right to adjust fee structure for limited-scope engagement." Put the ball back in their court. Sometimes they'll back down if you show you're not desperate for the work.