What a letter of authorization allows a broker to do
Last reviewed 2026-09-12 by Jaken Energy editorial desk. Next review scheduled 2027-03-12.
Direct answer
A letter of authorization allows an energy broker, buyer, or advisor to access utility usage data, supplier records, and account details on behalf of a laundromat owner. LOAs are essential during acquisitions to pull bills when sellers stall and for brokers to quote supply without guessing usage.
Cited: [1] Coin Laundry Association
Definition: Letter of authorization
LOAs specify scope, duration, and authorized parties. Utilities and suppliers reject incomplete or expired LOAs.
At closing, update LOAs to the buyer entity and chosen broker to maintain continuity for renewals and dispute support.
Laundromat example
During diligence, a buyer's broker submits an LOA signed by the seller to pull 36 months of interval data for a 45 kW-billed store before pricing fixed supply offers.
Related terms
Sources
- CLA Due Diligence Resources — Coin Laundry Association
Supports: Utilities often ~20–25% of revenue; request 1–3 years of bills
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