I do not agree that this is a 'heat trap' conduits are often in walls with insulation.
That aside in this area (New England) this would not be allowed as this would be considered as service conductors "inside" the building and a violation of 230.70(A)(1).
Randy not putting down what is allowed in CA but that method (semi flush services) is, as far as I know only acceptable in CA.
It was an eye opener when Bill A. showed me some pictures of CA services, as a NY native he was also surprised by that method.
Bob
