Reminds me of the FHA homes where they required the SEU service riser was required to be in RMC conduit.
They did not care if the service size was ample or if wiring practice was correct.
Just put the service in rmc and verify all outlets worked.
I am talking the 70's but it was still crazy then.

All that was required was to install the RMC riser and verify all outlets in the home worked.

My understanding is that Citizens wants any panel that is over 30 years old to be replaced. Welcome to the forum Chris, do you have anything in writing from Citizens that states they want the service upgraded and not just the panel changed? It would help in future cases like this.Ruben, Nick is correct, besides the added load, the unpermitted air handler is in the required panel working space. I asked this question to several people that were at the State meeting and most said it was a repair. I guess when we have a couple of dwellings lost to fires (hopefully no one will loose their life) and Citizens not cover the loss, maybe then my fellow inspectors will change their opinion.

Neal Burdick
City of Tampa
Construction Inspection II