I'm putting together my first Letter of Authorization and want to make sure I'm covering all the bases. What do you all include in yours? I've seen some that are half a page and others that are three pages long. Trying to find the right balance between thorough and not scaring the client off with a wall of legal text.
What should be in your LOA?
Terry, at a minimum you need the client's legal name, all account numbers you'll be auditing, the utility company names, and a clear statement that the utility is authorized to release billing history and account information to you. I also include a line about releasing interval data if available. Some utilities like ComEd and Duke Energy have their own LOA forms they prefer — always check first before sending your own.
One thing I learned the hard way — get the LOA signed by someone with actual authority over the accounts. I had a facilities manager sign one for a hospital system in Memphis, and MLGW rejected it because he wasn't on the account. Took three weeks to get the CFO's signature. Now I always ask up front who the authorized signer is before I even draft the LOA.
Good advice from both of you. I'd add a few things I always include: a specific date range for the billing history you're requesting (I typically ask for 36 months minimum), language that covers all meters and sub-accounts at each service address, and a clause that allows you to communicate directly with the utility's billing department on the client's behalf. That last one saves enormous time. Without it, every question has to go through the client and back, which can add weeks to an audit.
Great points Randy. The 36-month history is smart — I was only going to ask for 24. And the direct communication clause is something I hadn't thought of. Going to add both of those. Thanks everyone.