Electrical for Subdivision

12 Replies

By Subdivision, I mean a local subdivision with streets, sidewalks, home and commercial building lots.  I want to know how the local utility company wants to be paid for bringing electrical in. Thanks in advance!  

Your local building department should be able to help with that one.  And, sorry if I'm stating the obvious, but the utility company themselves.

Not sure there is a standard.  Here in North Texas, developer can expect to pay a lump sum to have electricity installed.  If you are big enough, you may be able to negotiate a better deal.  Other franchise utilities are usually a little easier to work with.  (example:  you might frint the cost for gas, but then enter into an agreement with the gas company to earn money back as new houses come on line and use gas).

Originally posted by @Jay Nielsen :

Right.  What is standard throughout the United States for electrical though?  Does anyone know?

 In Northern Indiana (Nisource), it used to be 20+ years ago (and I assume its still the case)  you would have to put a deposit down to cover the gas and electric distribution services, and you could get some credit back based on houses going into service with some assumed usage patterns.

City run utilities and REMC's would have drastically different practices.  The Nisource pad mount transformer would run 8-10K, an REMC might charge a few hundred dollars.

Interested to know how your analysis turned out on your potential land sale. I am looking at buying land in Houston. The recent deals I have looked at locally have most all of the costs for electric and gas installation in a new single-family residential land development deal back-end loaded with impact fees to builders. The developer was not paying upfront for installation. 

Expect to pay everything up front. Cities/utility companies rarely are going to want to do some kind of pro-rated payment plan. Reason being is it could take YEARS for sub divisions to fill out. You can expect the same for water/sewer as well.