What the LPOA Does in Your Texas Electricity Sales Tax Claim

Why a Limited Power of Attorney Is Required

The Texas electricity sales tax refund process involves two parties the property owner does not normally communicate with directly during a managed recovery: the retail electricity provider and the Texas Comptroller's office.

The retail electricity provider holds four years of invoice history. They will not release that history to a third party without authorization from the account holder. The Limited Power of Attorney is that authorization. It tells the provider that PowerCord has the legal authority to request the invoice records on the owner's behalf and to correspond with the provider about the account.

The Texas Comptroller requires the same authorization for the refund filing. The refund claim is a legal submission to a state agency. The Comptroller needs to verify that the party filing the claim has the authority to do so on behalf of the taxpayer of record -- in this case, the entity that owns the electricity account.

Without the Limited Power of Attorney, PowerCord cannot legally request the invoice records or file the claim. The owner would have to handle both of those steps directly, which is what makes this a DIY process rather than a managed one.

What the Document Actually Authorizes

The authorization is scoped to the tax recovery transaction and nothing else. It authorizes PowerCord to request electricity invoice history from the retail electricity provider for specified meter accounts, to communicate with the provider about those accounts for the purpose of the refund claim, and to file and pursue the refund claim with the Texas Comptroller on the owner's behalf.

It does not authorize changes to the electricity account itself. It does not allow PowerCord to make rate elections, switch providers, modify service agreements with the retail electricity provider, or handle any billing or account management functions. It also expires once the refund claim is resolved -- either the Comptroller pays or the claim is denied and closed.

Owners sometimes ask whether they need to contact their retail electricity provider separately before or after signing. They do not. PowerCord handles the provider communication as the first step after the documents are signed, using the Limited Power of Attorney to initiate the invoice request formally.

What Happens After the Signing

Once both documents are signed -- the Service Agreement and the Limited Power of Attorney -- the process moves to PowerCord's side. The sequence is as follows.

PowerCord contacts the retail electricity provider and requests four years of invoice history for the qualifying meter accounts on the property. This typically takes one to three weeks depending on the provider's records processing.

Once the invoices are in hand, PowerCord analyzes the meter-by-meter billing history to identify which accounts have been charged state sales tax and which use classification those accounts carry. The recoverable amount is calculated based on the actual invoiced sales tax on qualifying meters.

For any meter where a use analysis is required to support the exemption -- usually mixed-use meters where a leasing office shares a panel with common areas -- PowerCord prepares the supporting documentation based on the usage information the owner provides.

The refund filing is submitted to the Texas Comptroller with the full supporting package: invoice history, use determination, and the authorization documentation. The Comptroller's office typically takes four to six months to adjudicate the claim and issue the refund.

What the Owner's Involvement Looks Like After Signing

After the two signatures, the property owner's active involvement in the process is minimal. PowerCord may come back with specific questions about individual meters -- particularly if a mixed-use situation requires the owner to describe how a specific panel is used. Those conversations are brief and straightforward. There is no ongoing reporting obligation and no administrative burden while the Comptroller processes the claim.

The owner receives a notification when the Comptroller issues the refund. PowerCord invoices for the 30 percent contingency fee at that point. The owner collects 70 percent of the refunded amount with no out-of-pocket cost at any prior stage.

Why the Authorization Is Narrow

A broad power of attorney -- one that gave PowerCord authority over all dealings with the electricity provider -- would create unnecessary risk for the owner and is not what the process requires. The Limited Power of Attorney is scoped to exactly what needs to happen and nothing more.

This structure is intentional. The property owner retains full control of their electricity account, their provider relationship, and all aspects of the property's energy management that fall outside the tax recovery process. PowerCord gets the authority needed to do the work. The scope ends when the work ends.

If you want to see what the recoverable amount looks like before signing anything, the calculator at powercordenergy.com/tax-recapture produces an estimate based on your property's monthly common-area electricity spend. No commitment required.