The emailing that occurs in PowerStore by default does not make use of authentication, so this is something that you will need to add manually if you need it.
Do you have UE v3? This is the version that the email functionality was created with in PowerStore. If you have it you should try updating the UE server behaviors to work with the PEAR mail. You will need to ensure that you have PEAR with the mail module installed on your php server. Then you need specify the path to pear and you can enter the credentials to access your outgoing smtp server.