While I don't see anything wrong with that code, you might want to try this little re-write. I can't test this as I don't have a gamesurge account, let alone authserv access
Code:
ON *:START:{
  server irc.gamesurge.net:6667 -i Nickname Alternative 
email name
  server -mp irc.gamesurge.net:6667 -i Nickname Alternative 
email name
}

ON *:CONNECT:{
 mode $me +x
 if (*gamesurge* iswm $network) {
    if (*CEVO* iswm $me) {
      as auth account password
      mode nick +x
      join #channels
    }
    elseif (*fd* iswm $me) {
      as auth account password
      mode nick +x
      join #channels
    }
  }
}