POCO contracting without a license

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Minuteman

Minuteman

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The Sooner Nation
Over the past several years, a major POCO in my state has been attempting to enter the electrical contracting business, bidding on jobs while not holding an electrical contractor's license. The POCO is a part of a parent company of 8 power companies in 11 different states with a net income of 1.2 billion dollars, and as such has a powerful financial backing.

In recent years, this POCO has been cited by the Construction Industry Board (our state licensing agency) for contracting without an electrical license; this POCO actually protested a fine from the CIB and has taken their case to the State Supreme Court where it is currently waiting to be heard. Further, during the 2007 legislative session, this POCO attempted to push for wording in current legislation that would take away the CIB's ability to regulate the work done by them on the customer side of the meter.

The language included in the legislation was this POCO's belief that the Corporation Commission (and not the CIB) should regulate all work that they do no matter where it is done and that they should be allowed to do any electrical work which interested them. This language was eventually struck from the bill at the last possible moment before the close of session. The bill prompting this POCO's actions, which was originally a CIB bill to clean up the language in their licensing acts, was also defeated. Nonetheless, I expect this POCO to continue to push to reintroduce their language in the coming year and would not be surprised if there is additional language added to bills that would hurt the electrical contracting industry.

Many NECA and IEC contractors complain about having to compete with this POCO on a regular basis. A POCO in your state could be next!
 
It sounds like they are using their size and clout to bully the state into allowing their work. Nice. :rolleyes:

Thankfully, the major poco's in my area keep it strictly on their side. And they have enough trouble just keeping up with that.
 
Minuteman said:
Over the past several years, a major POCO in my state has been attempting to enter the electrical contracting business, bidding on jobs while not holding an electrical contractor's license.
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What State might that be?
 
Anecdote time.... Several years ago, when I lived in the UK, all decent security alarm companies were part of a trade organization, which it was quite hard to get into; you had to have a track record over several years, they examined your offices, your paperwork, your processes etc.

Then the dominant telco figured out that it's phone engineers could install alarm systems too, so they created a security division. This division, with no track record, suddenly had trade body accreditation, which p*ssed off every alarm company that had done the hard yards to get accredited. Then to add insult to injury, these phone boys did a really poor job of installation, which tarred everyone in the industry.

The telco has since dumped that business stream, but it sure caused pain to proper installers, and to many customers.

Like you said, money (and size) talks, this could be trouble...
 
In the Baltimore area we have BGE Home that does all types of service work, including electrical and HVAC. They advertise that they are not BGE, a regulated utility. BGE is the parent company. It used to be called Baltimore Gas and Electric.
 
There are 3 separate issues here.

  1. They are a very large utility that is DIRECTLY bidding against EC's on construction.
  2. They flagrantly violate state licensing laws and permit regulations.
  3. They consider themselves exempt from the rule of ALL state agencies, except the Corporation Commission (which regulates their usage price).

I'm not too sure that the work they do AFTER the meter is to NEC.
 
Here is a little bit about the parent company, AEP:

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation?s largest generators of electricity, owning more than 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation?s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP?s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP?s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP?s headquarters are in Columbus, Ohio.
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Oklahoma ehhh? Yeah I would'nt cough up that I lived there to quickly either... (pardon the joke, I am Texan and cant help it).

Back on topic:

I am completely astounded that the POCO is trying to circumvent the system. Even after re-reading 90.2 I can't see how they are justifying this.

It would seem that the AJH should be the ones putting a stop to this. If they don't have a permit, then they cant get a CO, and without that everything should quickly come to a grinding halt (including funds) until the problem is fixed.
 
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The POCOs tried that stunt here in NJ ....they failed at their attempt.

I'll try and a link for you....
 
This a been an issue in Ohio as well. The local public utility has their non-regulated":rolleyes: linemen work on customer owned service laterals from their non-regulated:rolleyes: trucks and with their non-regulated :rolleyes: tools and material. All the time getting paid their same wages. My comment to some of the utility people I've been able to talk to is "you stay off my wires, I'll stay off of yours". Utilities are for the poles and wires--period!
 
I'll never forget the time I worked at a supply counter and I had to explain to a lineman how to wire a GFI and install it in a weatherproof box.
 
Sounds like the Encompass thing. They bought out everything in sight then found out the profit was not there to cover the tab. They will find out that the profit take in contracting is far under the profit being a POCO. I think if the start contracting it will soon die out because the profit is not what they are used to. Keep us posted.
 
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