I agree with dennis you change a service to a sub you gotta figure modifications of the old service into your bid, floating neutral bar, separating grounds and neutrals and 3 wire cables.I have discussed it with the inspector. I have made corrections that they have required but i am appealing the decision to the county Electrical board of supervisors before i do anymore generator work in this particular county. They have interpreted this article WRONG. It is totally assinine for us as Electrical contractors to tell a customer
"Sure sir/mam, i can install your whole house generator BUT its gonna cost you an extra $1500 to $2,000.00 for me to re wire your existing 3 wire appliances to go along with it".
Why would you re-run the circuit? You just need to meet code.
I think mbrooke's brilliant code interpretation would cost one role of super 88 white tape and about an hour of labor.
My solution get them a 4-wire and costs more, but not typically over $200, 1 scrap piece of #8 about 5 feet, one box, mudring, 14-40 and a split bolt.
In the photo I posted i was moving the range receptacle anyways and drwyaller took care of the patch for $50.