Over my 53 years of experience as an electrical contractor, I have witnessed how electrical service companies deceive their customers. Leveraging customers’ lack of technical knowledge, electrical contractors extort their customers using different methods.
Unfortunately, unsuspecting property owners fall into their trap as they believe their contractors have knowledge in the space.
Hence, as a property owner, it is crucial that you get yourself familiar with your electrical system and what service companies don’t want you to know about it. This not only saves you money but also ensures your safety and that of your family.
This comprehensive blog post highlights everything you need to know about your electrical system and equipment, and debunks the lies the less honorable electrical companies might have sold to you.
Understanding Your Home’s Electrical Basics
Contrary to what your electrical service company tells you, your electrical system is not difficult to understand.
It is a well-designed system that takes and supplies power from the utility grid to your appliances. While it encompasses different segments, the main component to understand is the breaker box, also known as the electrical panel.
This box is usually located outside or in the garage of the property and functions as the main control of the whole installation. It comprises circuit breakers that control the circuits in the electrical system, and owners must know where they are located and how to use them so they can flip the breakers off during hazards.
Unfortunately, the breaker box is where electricians usually cheat their customers. For example, most electrical service companies don’t advise their customers to install whole-house surge protectors in their system, which they install in their own systems at home. They do this intentionally to keep homeowners in the dark and benefit from repairs.
However, newer homes built with the new Electrical Code of 2023 require a whole-house surge protector upon installation, while honest electricians recommend it during electrical inspections. If your electrician never talks about this, ensure you have one in your home to protect your circuits.
A surge protector helps “protect” the electrical system against voltage spikes from the grid or lightning. They know that having this equipment in your system will reduce the risk of repair, hence less money in their pocket.
Another way electrical service contractors deceive their customers is by skipping carbon monoxide detectors that enhance safety with electrical systems. These detectors are handy in identifying potential electrical faults, as they can quickly pick up CO leaks from faulty appliances.
Regardless, the latest NEC Code requires newer homes to have this device. You can place them in your bedroom or garage so you can be alerted to small faults before they deteriorate into complicated issues.
When Should You Upgrade Your Wiring Or Outlets?
Some homeowners have been deceived into believing that they must replace their systems once they are 8 to 12 years old. This is a lie.
You don’t need to replace old parts or outlets if they are not damaged or malfunctioning. You should only consider upgrading old outlets, switches, or breakers if they compromise functionality and pose a hazard to your property.
Replacing electrical components only because they are old is a waste of resources, which should go into improving other parts of your home.
Your electrical system components are designed to last several years, and what determines if you need to replace them is how you use them and your experience using them. Similarly, the quality of your outlets contributes to how long they can serve you before considering a replacement. Most quality outlets serve for many years before needing to be replaced.
Here are a few factors to know whether it is time to replace your wiring and outlets or not:
Wear and Tear
If you notice that your outlets are weak and wearing, it may be time to remove them and install another set. Wiring and outlets in moisture-prone areas, like the kitchen, are more susceptible to wear and tear and can cause breakers to trip.
Safety Standards
If your outlets still comply with safety standards, you may not need to replace them. However, it may be time to invest in a replacement service if they are old and no longer meet safety standards.
For example, you may need to replace your outlets if they are installed before the new grounding requirements of having a ground opening on the outlets, instead of just 2-prongs. Outlets manufactured before this time lack modern features that enhance safety.
Opting for new outlets means you are investing in safety features like GFCI (Ground Fault Circuit Interrupter) protection, which is instrumental to protecting you and your electrical system in wet areas like the kitchen and bathroom.
On the other hand, if your outlets offer safety features and meet safety codes, such that they are UL-listed, you may not need a replacement service now.
Outdated
Consider replacing your electrical outlets if they are no longer compatible with modern devices. However, note that you are only upgrading for convenience, and you are not mandated to change them.
Aluminum Wiring
Before the 1960s, copper wiring was widely used, and everything was cool until the mid-1960s when aluminium wiring showed up. Due to its lower cost than copper wiring, aluminium wiring started gaining traction among homeowners and business owners.
During that time, the president of this firm foresaw the implications of the shift and warned adopters of the potential damage of aluminum wiring on their electrical systems, but only a few would listen. However, the result didn’t take long to come out.
After a few years, homeowners who bought the idea of aluminum wiring started experiencing issues with their panels and wiring. Common problems reported include corrosion with panels, breakers, and circuit wiring.
The adoption of aluminum wiring also resulted in loose connections in outlets, switches, and other areas, leading to fire hazards.
The reason for the problems with aluminum wiring is not far-fetched: aluminum wiring is prone to oxidation due to the heating and cooling effect of electrical usage. This results in loose connections, especially under the screws.
However, aluminum wiring is widely used today in larger sizes of wire, with no risk of these troubles, thanks to anti-oxidizing compounds. Anti-oxidizing compounds are used in aluminum wiring to protect electrical circuits from the risk of oxidation.
Regardless, checking your system once a year helps ensure your main feeder wires are still intact under the lug. Plus, there is new technology that ensures these wires are torqued down and intact under the lugs, if installed according to the manufacturer’s specifications.
Once this measure is put into place and annually inspected, there is no need to loosen or retighten your connections again.
If you have loose wires at your main lugs in your panel, then it is more than likely done prior to this new code requirement in the last two generations of the code book. This is another reason you want a competent Electrician or Electrical Contractor to look at your panel once a year.
Plus, you want to hire an honest contractor to replace your aluminum wiring with safer copper wiring and the special required connectors to prevent further damage to your home’s electrical system.
How Do Electrician Service Contractors Overcharge For Services?
Most of the time, your electrical service company charges you; they extort you by charging more than they should. Exploring your trust in them and lack of technical knowledge in the field, you pay them exorbitantly without realizing it.
Based on my decades of experience, here are a few tactics I have seen them use to deceive their customers:
Unnecessary Upgrades
One common way your service company takes money deceitfully from you is by convincing you to replace your service panel or outlets because it is outdated and does not align with the new code. Contrarily, your panel might still be in good shape and UL-listed.
The exception to the rule is FPE Brand and Zinsco Brand Panels. If your system runs on any product from these brands, we also recommend changing it to a newer panel and breaker brand.
Inflated Labor Charges
You often pay a lot more per hour rate because your electrician can get there in a shorter period of time, and it is a convenience to have a note that if we don’t get there in a specific time, your service call is free or on us. Some electrical companies don’t respond to new customers in case of an emergency, where repairs should be done immediately.
This is why you want to build a solid relationship with a reputable electrical contractor that you can contact anytime. This gives you the peace of mind that you have a company to call should you run into trouble with your electrical system.
Additionally, keeping a relationship with an electrical contractor that you can trust means you have someone who won’t mislead you or overcharge you for the work they do.
We have seen service change out costing upwards of $15.000.00, and when we were asked about it, we looked at the same service and unfortunately had to tell the folks they paid way too much for a $5,000 to $8,000.00 service change.
Don’t get us wrong: we have seen service changes that cost $15,000.00 and more to change out, but it all depends on the size and amount of what you’re updating or changing.
However, when choosing an electrical contractor, ensure they have a local or state electrical permit. This permit ensures that your new service gets inspected and checked for any violations of the National Electrical Code by a certified contractor.
The permit also helps with the insurance companies in case anything unfortunate happens to your home. If your service was not inspected and passed by the City or State Electrical Inspectors when it was changed, your insurance company will not cover any damages that may arise from your electrical service because it was not approved.
Similarly, they deploy more than the necessary number of workers, such as sending a team of five people for a job that only requires three or fewer people to complete. Unfortunately, when it is time to pay, you pay for the work of these five people. Get a fixed price on big expenditures. This way, you know what you’re agreeing to and know the budget if you decide to go with the bid.
Marked-Up Materials
Electrical service providers also make more money from their customers than they deserve by inflating material prices. One tactic they pull is convincing you that a particular product is the best on the market, but costs more than other products. Since you trust them, you are not reluctant to go with their recommendations.
Unfortunately, there are usually many other products of the same quality and reliability as what they are recommending, but with lower prices.
Keep in mind that the new standards for manufacturers under the UL listing are consistent across the board for every component, regardless of brand. The only difference is where the manufacturer got their parts from to build the product, such as China, Mexico, Taiwan, or the USA.
We always recommend going with USA-made products due to their high standards.
This doesn’t mean products from other countries are inferior; we only don’t have much knowledge about their standards besides being UL-listed, a standard that allows them to enter the market here.
Price-Switching
There have been cases where electrical contractors quote low prices to secure jobs, but later earn more from the owners by coming up with “unforeseen amendments”. When you hire them, they offer the lowest price from your vetted contractors, but as work progresses, they come up with excuses that cost you more money.
This is exactly the story of one of our new customers, who narrated how the last contractor doubled costs mid-project on the grounds of unexpected issues.
There were also instances where homeowners invited us for repairs, but we were shocked by the unprofessional work we encountered. These homeowners had paid their supposed contractor large sums of money for the work they didn’t do. Unfortunately, these customers had to pay us to clean up the mess.
Often, most of the jobs don’t meet the National Electrical Code Standards. Then it costs homeowners more to actually fix the damage caused and ensure their installations meet regulations.
Hence, it makes sense to check the contractor’s electrical licenses and if the workers sent to your home have an apprenticeship card or a Residential, Journeyman, or Master electrical license issued by the State or local authority with jurisdiction in your City or County. They should be more than happy to show you their licenses with proper identification.
If your prospective contactor feels reluctant to show you these licenses and permits, they are hiding something, and you don’t want to hire them. In most cases, such contractors don’t have the licenses and have little to no experience in the electrical trade.
Note that it takes years to become a journeyman and even more years to become a good one.
You also want to check with your city, state, or country authorities on the authentication of your contractor’s licenses and permits. After all, it is your home, so ensure you take the time and effort to research to be sure of what you’re letting yourself in for.
How to Avoid Being Overcharged
Now that you know how electrical service contractors pull their tricks, let’s consider a few ways to counter tricks and avoid being overcharged:
Get Detailed Quotes
Start by asking your potential service provider for detailed quotes and break down the costs of items needed to complete their job. This will give you an idea of how much they quote for each item, and you can easily suspect their lies.
Compare Multiple Providers
Don’t limit yourself to only one contractor; talk to as many service companies as possible. This gives you a better understanding of what the job entails and what to expect. By comparing many offers, you can identify cunning contractors and avoid them.
Verify Work Performed
Reviews from past customers tell you about the quality of service to expect from your contractor, but that is not enough. Go further by asking for explanations and invoices about items used in past projects.
If a contractor feels reluctant to provide you with the necessary information, they may be hiding something, and it makes sense to avoid them.
If verifying past projects seems challenging, consider hiring an independent contractor.
Know Common Rates
You also want to do your independent research on the cost of the service in your area. For example, if you are installing a new outlet, you can expect to spend between $150 and $450 or $1,500 to $3,000 for a 200-amp panel upgrade or more.
Avoid Verbal Agreements
One mistake you will make with your electrical contractor is to base your contract on verbal agreements. With verbal agreements, they can turn around and hike the price mid-project.
Do this vetting before you run into an emergency and need help right away, and would normally forgo all that you need to protect your pocketbook and family because of that emergency. Know the Electrical Service Company or Electrical Contractor that you will use before this happens.
Should You Replace Zinsco Or FPE Electrical Panel?
One common question I have come across from clients over the decades is whether they should replace their Zinsco or Federal Pacific Electric panels, and the answer is simple. Yes, it makes sense to replace your Zinsco or FPE panels, especially for safety concerns.
If you are asking the same questions, here are a few factors you want to consider to get you started:
Safety
The safety status of your system is one good reason to take the bold step of replacing your Zinsco and FPE panels. Most Zinsco panels, especially the ones produced between the 1950s and 1970s, are known for their vulnerability to safety issues. These panels are made of aluminum alloy, which is prone to corrosion, a potential cause of overheating and electrical fires.
Similarly, Zinsco and FPE circuit breakers lack the ability to trip during overloads and short circuits, a necessary feature that prevents damage and fire.
Obsolete
Zinsco panels are obsolete. You may run into trouble with Zinsco if your region requires that your electrical system features, like Arc-Fault Circuit Interrupters (AFCIs) or Ground-Fault Circuit Interrupters (GFCIs). These are advanced features provided for enhanced safety.
Out of Production
It is worth noting that Zinsco and FPE stopped production decades ago, and replacement parts are available for Zinsco because it is still UL Listed, but that doesn’t mean you should continue to use it. When you manage to source replacement parts, such as breakers, they are expensive, and quality is not guaranteed.
Insurance
One good reason you want to replace your Zinsco panel is to comply with your insurance company. Most insurance providers will not cover properties with Zinsco products, and when they do, they charge higher premiums.
While replacing your Zinsco panel might be expensive upfront, it comes with the perk of qualifying for regular premiums, saving you money in the long run. Safety is the main issue here, always. Safety for your home and for your family.
Home Value
If you plan to sell your property in the future, it is quite advisable that you replace your outdated electrical panel with a modern option. Buyers are scared away from buying property with Zinsco and FPE panels, as they are aware of the troubles associated with them.
During inspection, inspectors often flag these panels and require owners to replace them before advancing.
Capacity Limitations
Let’s face it: old electrical panels lack the capacity to accommodate modern appliances. These panels were designed with limited capacities, typically between 100 and 150 amps, based on available appliances at the time of production.
With modern appliances like HVAC systems and EV chargers, with high loads, Zinsco and FPE panels are overwhelmed and cannot power such loads without hazards breaking out.
Hence, if you own or plan to own these appliances, upgrading your system to a new 200-amp panel is non-negotiable.
How Often Does Your Electrical System Need Maintenance Reviews
Maintenance reviews are crucial to the functionality of your electrical system and the safety of your home. This is one thing a non-reputable service company hides from you, since they thrive on your calls, and regular inspections reduce the risk of repairs.
The one that tells you to inspect your system may recommend doing it three to four times a year, but this is also another tactic to lure you into putting money in their pocket.
Generally, a periodic inspection by a professional once a year is enough to keep an eye on your electrical system and ensure your safety and that of your family. Some electrical service companies offer packages for annual inspections that cover several checks for a set fee. Packages like these are excellent in enhancing the health of your electrical system.
You only want to be sure you are working with a reputable electrical service company.
Note that your electrical system, especially if installed anytime from the 1980s until now, is installed to withstand the test of time. You only need to inspect it to identify minor issues early before they degenerate into severe issues.
Newer models of electrical panels are equipped with safety-enhancement features, thanks to advancements in electrical knowledge. Plus, the National Electrical Code and other safety enforcement bodies provide manufacturers and installers with stricter safety guidelines.
However, if your electrical system is still running on a Zinsco or FPE panel (which are old models), you want to replace the panel since they lack modern safety guidelines and can cause electrical hazards to your property.
DIY Maintenance Tips Service Companies Don’t Want You to Know
While investing in periodic maintenance review is practical for picking up issues at early stages, getting yourself familiar with these electrical maintenance tips will help keep your system in excellent condition:
Regular Inspection
Why professional maintenance review is crucial, regularly inspecting your system yourself also goes a long way in enhancing the health of your electrical wiring.
Start by checking your electrical panels and breakers for discoloration or other signs of damage.
You also want to test ground-fault circuit interrupters in water-prone rooms like the bathrooms and kitchens. Interestingly, you don’t need prior electrical knowledge to do this. You only need a plug tester, which usually costs less than $10.
Switch to Energy-Efficient Lights
Energy-efficient LED bulbs help reduce your circuit’s energy consumption, reducing the load on your electrical system and saving you money. Since high loads are a common cause of heat and fire in electrical panels, these lights also reduce the risk of hazards with your system.
Use Power Tools with Caution
Power tools are energy-consuming, and care should be taken when using them. Always check the cords before using them, and use grounding-type cords. This is necessary to reduce the risk of hazards should internal faults occur.
Conclusion
Working with electrical service companies requires being careful and diligent in dealing with them. Using manipulation skills, they leverage customers’ ignorance to make more than they deserve.
By identifying their tactics as highlighted in this guide, you can boycott them and prevent them from stealing from you.
You have also learnt the best time to upgrade your panel and how often to inspect it. Upgrading your electrical panel at the right time, especially if you own a Zinsco or FPE panel, reduces the risk of electrical hazards in your electrical system.
Do you need an honest electrical contractor you can trust for your panel upgrade or any electrical service? Consider working with Neighborhood Electrical Service Company, LLC. We are not the only ones out there that are honest and dependable; there are many Electrical Service Companies and Electrical Contractors available on the Market here in Colorado. Just be smart and choose yours with the education you get out of this article. No matter who you choose, you will be confident that you have chosen correctly for your needs and family.
Owned and operated by American Disabled Veteran and Veterans, Neighborhood Electrical Service Company LLC is a division of OneCore Electric, Inc. The renowned electrical contractor possesses all the necessary permits and adheres to the National Electrical Code as enforced by the President of the company and every employee.
Best Wishes from Management