Authorization to contract
CPA Co-op group purchases require every organization to sign on the same day. As our groups grow larger and the energy markets become increasingly volatile, this process becomes increasingly fragile—even one organization failing to sign may jeopardize the whole group purchase. To create a more resilient process, CPA Co-op is gathering an “Authorization to Contract.” The authorization allows CPA to sign on behalf of its participating organizations only if we reach the agreed upon strike price (final price no more than 2% of the indicative rates). Of course, CPA will work to find the lowest price and bid suppliers off of one another. If pricing comes in higher than 2% over indicative prices, then the “Rescission Agreement” automatically kicks in and removes CPA’s authority.
CPA is requesting this authorization from all participants in the group process.
Optional Add-On: Renewable Energy Credits are an optional add-on to your base rate. (More information in the FAQs below.) If you would like to add RECs into your contract, please complete both forms. Otherwise, simple complete the Authorization to Contract above.
Questions? Please email us at energy@cpa.coop
FAQs
Q: Am I giving up my decision-making authority by signing this authorization?
No, the participants of CPA Co-op picked the term length.
Q: Is the strike price the price that I will be paying?
The strike price is the maximum rate that we will contract for. However, we will negotiate with suppliers to push prices down as far as we can. In the past, we’ve had good experience pushing prices well below the initial indicative offers.
Q: What options do I have for renewable energy?
All suppliers provide the option of adding 100% wind Renewable Energy Credits (RECs) to the contract. When you purchase RECs, you are buying the legal “renewable attributes” associated with electricity from wind power and other renewable sources. There are two concerns with the voluntary purchase of RECs: regulation and additionality. You can read more about these concerns in this article. Nonetheless, we offer RECs as an option that you can choose with your authorization.
If you would like to add RECs onto your contract, please fill out both forms above: “Authorization to Contract” and “Optional Add-on: 100% Renewable Energy Credits”.
Q: Why are two documents to sign?
When you click the link you’ll be guided through two documents: “Authorization to Contract” and “Rescission of Authorization to Contract.” The Authorization to Contract document gives an officer of CPA the authority to sign a contract on your institution’s behalf. The Rescission of Authorization to Contract limits that authorization to exist only for the group’s chosen term length and associated strike price. We do not keep both sets of information on a single document because we want to share our authorizations with our energy suppliers without also sharing the maximum price.
Q: Who has vetted this authorization?
We had help from a legal team to craft this authorization. The authorization to contract is actually a fairly standard document in the energy procurement industry (e.g. It is not uncommon for property managers to sign contracts on behalf of the properties they’ve been hired to manage).
Q: How long does this authorization to contract last?
This authorization to contract is only effective through August 31, 2024, 11:59 PM Eastern. This 90 day window provides some time for CPA to find the strike price even if there are temporary spikes in the market.