# Utility Company Competition



## JGrif (Jan 19, 2010)

I recieved a letter from some company saying that they have partnered up with Southern California Gas Co. and will be offering maintenance agreements to customers for sewer lines, water services, gas lines, HVAC and I am assuming water heaters to follow. The letter stated that they are looking for qualified contractors to be apart of the program/provide the services needed. I have heard of this in other parts of the country. Does anybody have experience dealing with this? As far as I can tell this is not a good thing as The Gas Co. has now become a competitor. A competitor with alot of reach and a big budget. I'm sure that everyone who gets a gas bill will also recieve solicitations for the maintenace agreements. Personally, I can't stand any of the home warranty companies as they like to tell me what I'm going to charge, and then are slow at paying. Screw The Gas Company!!!!


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## OldSchool (Jan 30, 2010)

JGrif said:


> I recieved a letter from some company saying that they have partnered up with Southern California Gas Co. and will be offering maintenance agreements to customers for sewer lines, water services, gas lines, HVAC and I am assuming water heaters to follow. The letter stated that they are looking for qualified contractors to be apart of the program/provide the services needed. I have heard of this in other parts of the country. Does anybody have experience dealing with this? As far as I can tell this is not a good thing as The Gas Co. has now become a competitor. A competitor with alot of reach and a big budget. I'm sure that everyone who gets a gas bill will also recieve solicitations for the maintenace agreements. Personally, I can't stand any of the home warranty companies as they like to tell me what I'm going to charge, and then are slow at paying. Screw The Gas Company!!!!


This has been going on for a long time in Canada.... More than likely Direct energy has something to do with it...

This is the way it will play out

First the will get a bunch of independant contractors to do all the installs and once the have enough customers they will cut you out and open shop as a full mechanical company competing directly against you in your town.


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## user2090 (Sep 26, 2009)

Here in my part of Indiana NIPSCO has a program called ESP, and its a maintenance agreement. Only on appliances, but that includes water heaters and furnaces. So in effect, they are screwing legit contractors.


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## JGrif (Jan 19, 2010)

I see that happening. Is there anything that can be done?


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## rocksteady (Oct 8, 2008)

I'm only about 70 miles up the coast from you and I haven't gotten any letters about this. I will keep my eyes open for something though.







Paul


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## SewerRatz (Apr 25, 2009)

I just found out that a city out here does RPZ testing for all in their city and bill it to the water bill. The city tells the home owners that they can call their own plumber and pay his high testing fees, or they can have a city guy come out and do the test and they will bill them through their water bill for $125.00


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## plbgbiz (Aug 27, 2010)

About 20 years ago, the public gas utility took over the private business of gas service replacements industry in OKC. The only way licensed plumbers can get those jobs now is if a customer is not willing to wait for the gas company to get around to it.


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## ILPlumber (Jun 17, 2008)

SewerRatz said:


> I just found out that a city out here does RPZ testing for all in their city and bill it to the water bill. The city tells the home owners that they can call their own plumber and pay his high testing fees, or they can have a city guy come out and do the test and they will bill them through their water bill for $125.00


Ratz,
I like to make money as much as the next guy. But why would the city NOT test valves? They need the revenue. 

I would love to follow behind the city guys doing retests. I'm going to speculate that EVERY valve passes......


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## grandpa (Jul 13, 2008)

For many years, in MA, my folks RENTED their water heater from the gas company. When it croaked, it would be replaced within the hour! I don't remember if it was gas co. or a contractor who came to replace it.


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## 422 plumber (Jul 31, 2008)

SewerRatz said:


> I just found out that a city out here does RPZ testing for all in their city and bill it to the water bill. The city tells the home owners that they can call their own plumber and pay his high testing fees, or they can have a city guy come out and do the test and they will bill them through their water bill for $125.00


What city?


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## LEAD INGOT (Jul 15, 2009)

I just had a guy call me to change his system from propane to natural gas. Which would require resizing from the meter in, and converting 2 branches from 1/2" copper to black iron, drilling the oriface for the furnace, and the water heater was field convertable. I found out that the gas company did it for $150.00 dollars cheaper than me, and used all CSST. I wonder if they had a licensed electrician come in and bond it? :whistling2:


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## M5Plumb (Oct 2, 2008)

Clark County here in SW Wa had a program with the PUD in that they would install your WH and service based on a monthly fee you pay. The county stopped the program and new I run into so many customers that are really pissed they did away with it. They spent a ton of money to have it pulled right from under them. Fun stuff !!!!:furious:



Indie said:


> Here in my part of Indiana NIPSCO has a program called ESP, and its a maintenance agreement. Only on appliances, but that includes water heaters and furnaces. So in effect, they are screwing legit contractors.


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## SewerRatz (Apr 25, 2009)

Matt said:


> Ratz,
> I like to make money as much as the next guy. But why would the city NOT test valves? They need the revenue.
> 
> I would love to follow behind the city guys doing retests. I'm going to speculate that EVERY valve passes......


There is no way a guy like me can compete against the city. Differing the bills to the water bill, and if they are not making enough from the test to cover the costs, they can always raise the taxes or what they charge for the water bill.

Back in the early 1980's something like this happened and the cities doing this got in trouble since a common company could not compete against them.



jjbex said:


> What city?


Westmont


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## SewerRatz (Apr 25, 2009)

Matt said:


> Ratz,
> I like to make money as much as the next guy. But why would the city NOT test valves? They need the revenue.
> 
> I would love to follow behind the city guys doing retests. I'm going to speculate that EVERY valve passes......


Matt I wonder if they are hiring out plumbers for this test, or are they sending out the guys from the water works department which have the CCCDI License but only to test the devices in their treatment plants from what I understood.


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## Tommy plumber (Feb 19, 2010)

The gas company here is putting together a list of licensed plumbing companies to convert elec. W/H's over to natural gas. I gave them my name, I'll wait to see if it pans out.

Gas company gives rebates and incentives to homeowners to do the conversion. If gas co. pays me my price, I'll do it.


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## Hillside (Jan 22, 2010)

theres a city near me that if you have an exposed cleanout the city will come rooter it for free, not a lot of people know about it but we have lost customers in that area for sure


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## Lifer (Nov 23, 2010)

Here in Nova Scotia , there is a fuel oil delivery Co. that will install your new (newyorker ) boiler FREE no cost to you as long as you sign a life long buy from them only fuel oil contract ... Not quite the same as a city or town doing it . But the jobs are very porly done and nt very well recived in the trades in my area ..


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