Authorization to contract
Because energy prices fluctuate daily, contracts must all be signed on the same day. That is why organizations will sign an “Authorization to Contract” to complete your participation in the group purchase. This authorization allows CPA to sign the actual supply contract on behalf of your organization as long as it meets the listed price and term. Sign the “Authorization to Contract” below to complete your participation in the group purchase. The deadline to join is Monday, May 11 EOD.
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 also complete the form below. Otherwise, simply complete the Authorization to Contract above.
Questions? Please email us at energy@cpa.coop
FAQs
Q: How did the strike price get calculated? Why is it higher than the indicative pricing?
After reviewing indicative pricing, the group voted on its preferred term length. The strike price is calculated by taking the lowest indicative price from your memo for the winning term length, and adding 2% as a buffer to account for normal market variation. We work to get as much below this strike price as possible, but this is the maximum price at which we will contract.
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: What is the Rescission portion of the authorization? Should I complete it?
Yes! 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 December 31, 2026, 11:59 PM Eastern. This window provides some time for CPA to find the strike price even if there are temporary spikes in the market.