A Letter of Authorization (LOA) is a legal document that gives a company permission to switch your electricity supplier on your behalf. In deregulated electricity markets like Ohio, Pennsylvania, and Massachusetts, an LOA allows services like Smart Enroll to automatically optimize your electricity rate without requiring your approval for each switch.
Definition verified January 2026
In deregulated electricity markets, you can choose who supplies your electricity. But switching suppliers involves paperwork—and utilities need to verify that you actually authorized the change.
The LOA serves two purposes:
When you sign up for Smart Enroll, you sign a single LOA that stays active until you cancel. Here's what happens:
Name, address, and utility account number that identifies your electricity service
What actions the company can take on your behalf (supplier switching, rate changes)
How long the authorization lasts (typically until you cancel)
Your right to revoke the authorization at any time
Yes, an LOA is a legally binding authorization. It allows the authorized company to make supplier changes on your behalf. This is why you should only sign LOAs from companies you trust.
Yes, you can cancel your LOA at any time. Contact the company you authorized and request cancellation. Your current electricity service will not be interrupted—you'll simply stop receiving automatic rate optimization.
No. Your utility company (like AEP Ohio, PECO, or Eversource) stays the same. The LOA only authorizes changes to your electricity supplier—the company that generates your power. Your utility still delivers the electricity and handles outages.
LOAs are used in deregulated electricity markets including Ohio, Pennsylvania, Massachusetts, Texas, and others. The specific requirements vary by state and utility, but most third-party switching services require an LOA for consumer protection.