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Electric supply responsibility question

2,966 Views | 36 Replies | Last: 4 days ago by godeep83
godeep83
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AG
Appreciate any help please as I'm new to this… I'm trying to purchase a small rural undeveloped tract (10 ac in north central Texas Montague Co near Forestburg) and the closet existing electrical pole Pentex can tie onto is quite far away. I met a Pentex rep today and he told me they would have to run a total of 7 poles at $1100 each to get power to my property line, then I would have to pay per foot to run to a service pole on the property. So I would have to spend almost $10K just to get power. I always thought the utilities company was responsible for getting/providing power to the property line. Please educate me on the subject. I may want to retract my offer and kill the contract while I still have time. Thanks Ag's!
aggiebrad16
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You may want to cross post this to the real estate board if you don't find what you're looking for here.

Maybe try using it as a negotiating tool on the purchase price before backing out completely.

Good luck!
snowaggie
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How are similar vacant properties in the area priced that have easier power access? The expensive access may already be priced into what you're paying.
Charismatic Megafauna
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They will most likely also require that you grant them a right of way across your property to install the poles, read the fine print as to how much or little access that will give them

But no, it is not the utilities company's responsibility to get power to your property line
OnlyForNow
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It's 100% normal for you as the property owner to have to pay to get power to it.
jtp01
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In the Texas panhandle for residential service the coop charged me nothing to run 1/4 mile of poles and wire from the road to the house.

Now if it's for ag, you have to buy transformers and poles and wire + labor.

Seems a bit backward to me but it's their policy.

rme
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AG
Good info above, plus you may have to negotiate ROW with any landowners between your property and exiting line. I don't know if that varies by utility, but I'm negotiating the purchase of land and I have to secure ROW for power line across neighbor's property. Fortunately, it's a short run and the neighbor is willing.
2ndChanceAg96
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Every Utility is different. It depends on what is stated in the Tariff. For instance, my utility will provide up to three poles of power with a transformer and drops to your location. Anything above an beyond that is the customer's responsibility.
OnlyForNow
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What provider do y'all have?
2ndChanceAg96
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Probably because for ag it is just serving a meter pole and not a permanent residential structure. Meter poles are considered temporary by most utilities and customer's normally have to pay for temporary service. That is usually how most electric utilities work.
2ndChanceAg96
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I am in CenterPoint Energy's territory. Now that is what it was a few years ago and the tariff may have changed since then.
HarleySpoon
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OP:

I've developed three farms....most recenty in Montague County between Forestburg and Saint Jo. I have Pentex as my electrical provider. What Pentex is telling you is consistent with their fee schedule to me. I ran both above ground and underground with numerous poles and two transformer boxes.

I've never seen an instance in Texas where the electrical coop was responsible for the cost of running line to your property. Some may do it, but I've never seen it for free. And as others have said, if you want to run line across other's property, you will need to talk them into an boilerplate easement from Pentex. And yes, read the fine print of your easement with Pentex, realize it's not fair and that there is nothing you can do about it if you want electricity on your place. And yes in many rural locations in Texas, having electricity already run to a property/site is a very valuable feature and usually included in consideration of asking price. Never underestimate the cost/value of electrical/water/road/fence infrastructure on rural properties when shopping/selling rural property.

Feel free to PM me if you want to discuss in greater detail...or if you're even out at your place and want to make contact with a fellow ag.

ETA: $10K to get to your meter box is pretty reasonable....my total was closer to $25K and I already had 200 feet of line running to a meter on my property. I did run a lot of line in two different directions and a few hundred feet was underground...that's why.
Gunny456
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It is not the utility companies responsibility to provide you power to your property line. What they are telling you as far as getting it to your property line is correct and that quoted cost is in line as well.
Also, unless they can come down an existing public ROW, like down a highway or county road to place their poles, they will have to get permission for a ROW through your neighbor. That neighbor does not have to give that permission, and negotiations will have to be carried out to do that.
Once they get to your property line is where it's gets different depending on the policy of that particular electric company co-op. Some will give you a certain distance free and you pay the rest. Some don't. With some the cost depends on if the power will be to a permanent residence with a well or running it just for a deer camp etc.
You also need to check for the cost of setting the meter on the post and if that is included in their cost.
Honestly, if I was buying the property, I would make having the power run and your meter loop set as part of the deal in contingency to you closing on it. Negotiate that as part of the purchase price and let the seller have the responsibility of accomplishing that.
It may be too late for that if you have already signed an offer.
I had to pay our co-op 12K 30 years ago to get power so don't fret to much over it.
Gunny456
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Sound wisdom Harley. I went through the same thing when I bought our ranch.
I was literally out of money and financed to the hilt when I bought our place. I was a babe in the woods and didn't even think about getting power.
I borrowed 12 K from my dad to be able and get power.
Our house sits where it is today because that was as far as I could go in the property and afford to get power.
True story. It ended up being a good spot though.
Jack Squat 83
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OP, our Coop had a $2000 rebate if the permanent residential service was established within 2 years if I'm not mistaken. Of course we missed that (built a barn with a casita first, then house following. Casita didn't count). You might check into that if by chance they offer it.

Electric service is expensive, then water well, septic, fences, ......................

I always figured finding a property with an established homestead with a run-down old house would be perfect, but those are few and far between.
I don't think you know me.
Gunny456
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Old Indian Chief tell white man that "Ranch" is old Indian word for " better have Gold mine".
Jack Squat 83
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You got that right Gunny.

Gold mine or REALLY good credit!


(ETA: OP of course it's all a trade off, and I wouldn't change a thing - from the peace and quiet, critters, etc).
I don't think you know me.
Gunny456
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Yes sir!
oh no
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I'm no expert, but $10k sounds legit for how far you need it to be run. Actually, sounds somewhat cheap.

However, depending on your consumption needs and what you want to build on that property, you might also want to look into a solar array and power wall /storage solution. I think costs for that stuff has been steadily coming down, to where around $10k might be getting close to a crossing point... plus, it gets you off-grid and not dependent on a public utility's service with monthly invoices.
Gunny456
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Same hear Jack. I was born on our old place that was very rural. My wife and mines Texas ranch was 40 minutes from town. Now the Ozark place is 40 minutes to town as well.
I don't think I could live in town mentally. But like you said, I am truly blessed by God to be where I am and would not want it any other way. I hope God grants me the blessing of just lights out while I'm out in the pasture someday.
tamc93
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Years ago most COOP's and providers subsidized utility extensions and basically passed on the costs to the existing users. Times have changed for many and now you pay for everything at what ever rate they decide you pay. Development pays for development.

The costs and process do not seem unreasonable these days.
John Cocktolstoy
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Have you contacted any of your neighbors? They might be waiting for a package deal. Seen it happen quite a few times where 4 to 5 properties split the cost. I would ask for buried wire and padmount transformer.
Second Hardest Workin Man on Texags
AgLA06
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HarleySpoon said:

ETA: $10K to get to your meter box is pretty reasonable....my total was closer to $25K and I already had 200 feet of line running to a meter on my property. I did run a lot of line in two different directions and a few hundred feet was underground...that's why.
This. In western states it's often a lot more and a lot further. That's why so many are off grid and use a combination of Solar / propane generator ,and wood fuel for their homes.

We looked at a property that was actually in a town. It was however, at the far parameter of the town and the back of the "ranchete community" that had partially been developed. It would have been $15K to run about the same you are looking at. And they are used to doing it. Of course the kicker was we (and you) would have been subsidizing and power for anyone between your property and the closest pole. And by extension making their property more valuable. So most wait to see if someone with bigger pockets is does it first.
HarleySpoon
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Agree. 40 years ago when I joined my first water coop.,,.that coop would make you pay the full cost of the extension, but would allow you to recover a set portion (per foot) from anyone that later tied into the coop line that you paid the extension on. So folks closer than you paid a little….someone further than you paid more. Eventually over the years you world recover most of what you spent. But I haven't seen that sort of formal cooperation since.
will.mcg
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A few years ago I built a house in the middle of a county road with multiple houses on each end. The small section of the road my house was on didn't have any poles running past it or on a neighbors property. The utility company had to set 1 pole & run wire 250' to it to get to my property. That cost about $5,000. The provided 100' free into my property. My house is 160' from the new pole on the county road. The utility company charged me another $2,500 for the extra 60' to my house. All they had to do was pull wire. I buried the conduit. I wonder what a generator would cost to run my place 24/7 for many many years?
JB!98
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It's called a line extension policy and it should be posted on their website. It outlines the cost, etc. $10K sounds reasonable and even cheap. Poles, wire, insulators, and transformers are not cheap now. They are also probably applying a line extension credit to get it to that cost. You are paying what the utility calls CIAC (Contribution In Aid of Construction) the rest of the cost is recovered in their rates.
CanyonAg77
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Seems cheap to me. I believe Xcel quoted me $1900 per pole (one every 300 feet) plus 1900 for the transformer, several years ago. The only discount was a deduction equal to projected energy use for three years.

As it was a barn, not a house, that wasn't much of a discount. A house might have knocked $5000-$10.000 off the price.

Lucky for me, a neighbor built a house to the west of my barn, and ran the line right up to the corner of my place. Only had to pay for transformer.
CanyonAg77
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jtp01 said:

In the Texas panhandle for residential service the coop charged me nothing to run 1/4 mile of poles and wire from the road to the house.

Now if it's for ag, you have to buy transformers and poles and wire + labor.

Seems a bit backward to me but it's their policy.

I'm going to guess that's because their charter from the 1930s was to provide rural electrification for houses, not to run irrigation.

That being said, rural co-ops are still the way to go. Unfortunately, I am under Xcel for electricity, so running power for electricity is expensive.

But I am in a rural telephone co-op service area (Mid Plains) So when I asked them about Internet, they tunneled under a FM road, and buried 1/2 mile of fiber optic to get high speed Internet to my barn.

Total charge: $0.00
TdoubleH
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Wise Co. here. I had to pay to have power ran to where I wanted to build my house. I have 25 acres broken into an adjacent one 10 acre tract and one 15 acre tract. I have power on the 10 acre tract. It took 5 poles to run it down to where I wanted my meter rack. Tri-County charged me about $12k but there was a $7500 applicable credit because my property didn't have power. Meaning the 15 acre tract didn't have power so i was able to get them to apply the credit since they are surveyed into two tracts. The fact I had power on 10 acre tract was irrelevant.

Check to see if there is an applicable credit since no power exists on the property.
RCR06
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AG
Edit because I didn't read the OP very well.
HarleySpoon
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I'm a little worried that our OP's failure to return may be because he accidentally electrocuted himself.

OneMoonGoon92
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I'm in Duval county and paid to have electricity put in. I was responsible for the utility pole, box and the wiring. They got the power to to box and that was it. Thankfully I was close and the first 90 ft on my property was free. Having electricity and water is a definite increase in valuation. The lack thereof is the opposite. Good luck k...
Build It
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You are responsible. I just spent 25k getting power to one of my properties. 1100 per pole is a great price.
fullback44
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Sounds about right, we had some poles removed and went below ground… that was a hell of a lot more expensive than above ground poles. I would say $10k is easily within reason… Sometimes they will cover so many poles/feet if your gonna put a house in right away.. either way they are getting their money back from you
godeep83
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Guy's I just wanted to say thank you for all the responses and wise wisdom. Between what I've learned from this thread and what I've learned talking with numerous locals and power companies you all are correct. Why would I expect anything different.

Years ago it was common for electric companies to cover the cost and it was expected that they provide power to a property line. Not anymore. All on the land owner now as many of you said. What seems to have driven the change is elect companies paying to get power to a property, then landowner setting up a mobile home, pulling little power, then moving the home a year or two later. They aren't able to recoup their costs so the change. As we know electrical companies aren't about losing money.

In my case $10k elect + $20k well just to get the necessities of electricity & water to a small property! I need a gold mine as the wise Indian chief once said! Thanks guy's!
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