Recently a user encountered the following error message when refreshing a query in Excel that used PowerQuery to connect to Microsoft SQL Server using Windows authentication:

Could not load file or assembly ‘System.EnterpriseServices, Version=4.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a’ or one of its dependencies. Either a required impersonation level was not provided, or the provided impersonation level is invalid. (Exception from HRESULT: 0x80070542)

What’s going on? Read on for all the gory details.

Spoiler: The problem was caused by attempting to “Use alternate credentials” for Windows authentication in PowerQuery. It was solved by switching to “Use my current credentials” in Data Source Settings, as described in “Manage data source credentials” in Manage data source settings and permissions (Power Query).

Breaking Down the Error Message

The first part of the error message “Could not load file or assembly ‘System.EnterpriseServices, Version=4.0.0.0, Culture=neutral, PublicKeyToken=b03f5f7f11d50a3a’ or one of its dependencies.” can be a bit misleading. It indicates that the System.EnterpriseServices .NET assembly failed to load. Often this is caused by missing or corrupted DLL files (in this case, System.EnterpriseServices.dll or any of its dependencies). I found many well-intentioned suggestions to run System File Checker or reinstall .NET framework to address the failure. However, in this case the error is not caused by missing or corrupted DLLs.

The rest of the error message indicates what caused the assembly load failure. We can use the Microsoft Error Lookup Tool to decode the HRESULT and determine that it is 1346 (0x542) ERROR_BAD_IMPERSONATION_LEVEL, which has a description that matches the preceding error message. Although this doesn’t tell us much that we didn’t already know, it fills in the details a bit.

Additional Symptoms

Since the error message refers to impersonation, I suspected it had something to do with database authentication. I used the following tests, which you may find useful:

Can you connect from another program?

I was able to connect using sqlcmd, SQL Server Management Studio, and PowerShell (by running $c = New-Object System.Data.Odbc.OdbcConnection "DRIVER=SQL Server;SERVER=$myServerName;Trusted_Connection=Yes;DATABASE=$myDbName"; $c.Open()) which confirmed that the issue was specific to Excel.

Can you connect from another workbook?

I tried creating a new workbook and querying data from the same database, using the same connection type (PowerQuery in my case). It failed with the same error message, confirming that the issue is not specific to a particular file.

Fixing Invalid Windows Credentials

If you are able to connect from other programs using Windows authentication as the current user, the issue may be caused the data source credentials for the SQL Server database connection in PowerQuery being configured to “Use alternate credentials” for Windows authentication rather than “Use my current credentials”. This can be changed in the Data Source Settings, as described in “Manage data source credentials” in Manage data source settings and permissions (Power Query) and reproduced below:

  1. In Excel, select Data > Get Data > Data Source Settings.
  2. Select the data source experiencing the error.
  3. Press the “Edit Permissions…” button.
  4. Press the “Edit…” button in the “Credentials” section.
  5. Switch to “Use my current credentials” or read on for all the gory details. I was able to fix the issue by changed by navigating to the Data tab, pressing Queries & Connections, editing the affected connection, opening Data source settings, clicking “Edit Permissions…”, clicking “Edit…” in the “Credentials” section, then fixing the credentials (in my case, switching to “Use my current credentials”).

Changing Local Security Policies

If the SQL Server connection does require using alternate credentials, the issue may be that User Rights Assignment does not allow Impersonate a client after authentication in the Local Security Policy. See Configure security policy settings for how to change this setting, as suggested by How do I make sure that my windows impersonation level is valid? on Stack Overflow.