Providing carefully crafted incentives that essentially eliminate the cost premium to the builder for using gas Proof of installation cost parity. The past performance of successful LDCs confirms the success of this approach. On the other hand, only 10 percent of the low-penetration builders report paying the same or less. Out-servicing the competition. The multifamily construction market is not only financially attractive for LDCs, but also well-positioned competitively to benefit from the superior service LDCs can provide over electric utilities.
Multifamily builders have clear bases of selection when it comes to fuel choice.
Building gas preference. According to the industry study, LDCs can and do beat electric utilities on the service dimension in the South, even though performance is sometimes spotty and could be improved. Builders value strong relationships with their gas reps who keep them apprised of new products and incentives, provide training and other support, and help them navigate LDC bureaucracies. To date in the South, only about half of the builders agreed that they knew who to call at the gas utilities wherever they build or that a gas representative called them periodically. Furthermore, just 46 percent of the Southern builders felt that gas utilities were equally, or more, effective than electric in maintaining a relationship with them.