Got a client in Baton Rouge who wants to switch from propane to natural gas. Entergy quoted $18,000 for 400 feet of line extension. That seems insane - works out to $45 per foot. Anyone have recent experience with Entergy gas extension costs? Is there any way to challenge these quotes or get a second opinion?
Entergy gas line extension charges - $18K seems excessive
Danielle, that does seem high but not crazy high for current market. MLGW here in Memphis was quoting $35-40/foot last year and costs have only gone up. The key question is what's included - are they trenching through concrete, crossing roads, dealing with other utilities? Also check if there's a cost-sharing program for commercial customers. Many utilities will subsidize part of the extension if the projected revenue justifies it.
Bobby's right about the cost-sharing programs. Avista here in Spokane has a "line extension allowance" that can cover up to 75% of costs for commercial customers with sufficient load. Your client should ask about their tariff schedule for new service extensions. Also get the engineering study - sometimes you can value-engineer the route to save money.
Larry makes excellent points about the engineering options. I've seen cases where utilities quote the most expensive route first, hoping customers won't question it. Always ask for alternatives - different routing, phased installation, customer-provided trenching, etc. Also check if your client qualifies as an "anchor customer" under their economic development programs. That can sometimes reduce or eliminate extension costs entirely.
Randy's advice about alternative routes is spot on. Had a similar situation in Montana where NorthWestern Energy initially quoted $22K for a 300-foot extension. After pushing back and getting a second engineering review, they found a route that only cost $8K. The difference was avoiding a creek crossing and going around a wetland instead of through it. Always question the first quote - utilities often go with the safest option, not the most cost-effective.